diff --git a/.changeset/rude-pigs-relax.md b/.changeset/rude-pigs-relax.md
new file mode 100644
index 0000000..bbc1675
--- /dev/null
+++ b/.changeset/rude-pigs-relax.md
@@ -0,0 +1,5 @@
+---
+"create-better-t-stack": minor
+---
+
+Update Nuxt template to v4
diff --git a/apps/cli/templates/frontend/nuxt/nuxt.config.ts.hbs b/apps/cli/templates/frontend/nuxt/nuxt.config.ts.hbs
index e2c1532..2dd8f1a 100644
--- a/apps/cli/templates/frontend/nuxt/nuxt.config.ts.hbs
+++ b/apps/cli/templates/frontend/nuxt/nuxt.config.ts.hbs
@@ -1,9 +1,6 @@
 // https://nuxt.com/docs/api/configuration/nuxt-config
 export default defineNuxtConfig({
-  compatibilityDate: '2024-11-01',
-  future: {
-    compatibilityVersion: 4
-  },
+  compatibilityDate: 'latest',
   devtools: { enabled: true },
   modules: ['@nuxt/ui'],
   css: ['~/assets/css/main.css'],
diff --git a/apps/cli/templates/frontend/nuxt/package.json.hbs b/apps/cli/templates/frontend/nuxt/package.json.hbs
index 25e14e5..a95602d 100644
--- a/apps/cli/templates/frontend/nuxt/package.json.hbs
+++ b/apps/cli/templates/frontend/nuxt/package.json.hbs
@@ -10,16 +10,16 @@
     "postinstall": "nuxt prepare"
   },
   "dependencies": {
-    "@nuxt/ui": "3.0.2",
-    "@tanstack/vue-query": "^5.74.5",
-    "nuxt": "^3.16.2",
+    "@nuxt/ui": "3.2.0",
+    "@tanstack/vue-query": "^5.83.0",
+    "nuxt": "^4.0.0",
     "typescript": "^5.6.3",
-    "vue": "^3.5.13",
-    "vue-router": "^4.5.0",
+    "vue": "^3.5.17",
+    "vue-router": "^4.5.1",
     "zod": "^4.0.2"
   },
   "devDependencies": {
-    "@tanstack/vue-query-devtools": "^5.74.5",
-    "@iconify-json/lucide": "^1.2.38"
+    "@tanstack/vue-query-devtools": "^5.83.0",
+    "@iconify-json/lucide": "^1.2.57"
   }
 }
diff --git a/bun.lock b/bun.lock
index ff736d5..1f5c0a3 100644
--- a/bun.lock
+++ b/bun.lock
@@ -14,7 +14,7 @@
     },
     "apps/cli": {
       "name": "create-better-t-stack",
-      "version": "2.25.7",
+      "version": "2.25.8",
       "bin": {
         "create-better-t-stack": "dist/index.js",
       },