diff --git a/package.json b/package.json
index 4494c673d..f3cd70a9d 100644
--- a/package.json
+++ b/package.json
@@ -86,6 +86,7 @@
     "micromatch": "^4.0.8",
     "minimark": "^0.2.0",
     "minimatch": "^10.0.3",
+    "modern-tar": "^0.6.1",
     "nuxt-component-meta": "https://pkg.pr.new/nuxt-component-meta@e3eb2c4",
     "nypm": "^0.6.2",
     "ohash": "^2.0.11",
@@ -97,7 +98,6 @@
     "slugify": "^1.6.6",
     "socket.io-client": "^4.8.1",
     "std-env": "^3.10.0",
-    "tar": "^7.5.1",
     "tinyglobby": "^0.2.15",
     "ufo": "^1.6.1",
     "unctx": "^2.4.1",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 552000e25..a7ad59c40 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -101,6 +101,9 @@ importers:
       minimatch:
         specifier: ^10.0.3
         version: 10.0.3
+      modern-tar:
+        specifier: ^0.6.1
+        version: 0.6.1
       nuxt-component-meta:
         specifier: https://pkg.pr.new/nuxt-component-meta@e3eb2c4
         version: https://pkg.pr.new/nuxt-component-meta@e3eb2c4(magicast@0.3.5)
@@ -137,9 +140,6 @@ importers:
       std-env:
         specifier: ^3.10.0
         version: 3.10.0
-      tar:
-        specifier: ^7.5.1
-        version: 7.5.1
       tinyglobby:
         specifier: ^0.2.15
         version: 0.2.15
@@ -6506,6 +6506,10 @@ packages:
   mocked-exports@0.1.1:
     resolution: {integrity: sha512-aF7yRQr/Q0O2/4pIXm6PZ5G+jAd7QS4Yu8m+WEeEHGnbo+7mE36CbLSDQiXYV8bVL3NfmdeqPJct0tUlnjVSnA==}
 
+  modern-tar@0.6.1:
+    resolution: {integrity: sha512-PS5kTfMLBrIP7X7dj3x+N17T1Fc2InnFJAe/pGleM0hT9GhDFkltsLYxB1eQisg55bjnvgLsbTRFYp47AUhcbg==}
+    engines: {node: '>=18.0.0'}
+
   motion-dom@12.23.12:
     resolution: {integrity: sha512-RcR4fvMCTESQBD/uKQe49D5RUeDOokkGRmz4ceaJKDBgHYtZtntC/s2vLvY38gqGaytinij/yi3hMcWVcEF5Kw==}
 
@@ -15867,6 +15871,8 @@ snapshots:
 
   mocked-exports@0.1.1: {}
 
+  modern-tar@0.6.1: {}
+
   motion-dom@12.23.12:
     dependencies:
       motion-utils: 12.23.6
diff --git a/src/utils/git.ts b/src/utils/git.ts
index bbc1738ac..c9062e4a6 100644
--- a/src/utils/git.ts
+++ b/src/utils/git.ts
@@ -1,11 +1,11 @@
-import { createWriteStream } from 'node:fs'
+import { createReadStream, createWriteStream } from 'node:fs'
 import { mkdir, readFile, rm, writeFile } from 'node:fs/promises'
-import { pipeline } from 'node:stream'
-import { promisify } from 'node:util'
+import { pipeline } from 'node:stream/promises'
+import { createGunzip } from 'node:zlib'
 import { join } from 'pathe'
-import { extract } from 'tar'
 import { readGitConfig } from 'pkg-types'
 import gitUrlParse from 'git-url-parse'
+import { unpackTar } from 'modern-tar/fs'
 
 export interface GitInfo {
   // Repository name
@@ -39,16 +39,15 @@ export async function downloadRepository(url: string, cwd: string, { headers }:
   try {
     const response = await fetch(url, { headers })
     const stream = createWriteStream(tarFile)
-    await promisify(pipeline)(response.body as unknown as ReadableStream[], stream)
-
-    await extract({
-      file: tarFile,
-      cwd: cwd,
-      onentry(entry) {
-        // Remove root directory from zip contents to save files directly in cwd
-        entry.path = entry.path.split('/').splice(1).join('/')
-      },
-    })
+    await pipeline(response.body as unknown as ReadableStream[], stream)
+
+    await pipeline(
+      createReadStream(tarFile),
+      createGunzip(),
+      unpackTar(cwd, {
+        strip: 1, // Remove root directory from zip contents to save files directly in cwd
+      }),
+    )
 
     await writeFile(cacheFile, JSON.stringify({
       url: url,
diff --git a/test/fixtures/remote-repository/app.vue b/test/fixtures/remote-repository/app.vue
new file mode 100644
index 000000000..09f935bbb
--- /dev/null
+++ b/test/fixtures/remote-repository/app.vue
@@ -0,0 +1,6 @@
+<template>
+  <div>
+    <NuxtRouteAnnouncer />
+    <NuxtWelcome />
+  </div>
+</template>
diff --git a/test/fixtures/remote-repository/content.config.ts b/test/fixtures/remote-repository/content.config.ts
new file mode 100644
index 000000000..bd115053d
--- /dev/null
+++ b/test/fixtures/remote-repository/content.config.ts
@@ -0,0 +1,16 @@
+import { defineCollection, defineContentConfig } from '@nuxt/content'
+
+export default defineContentConfig({
+  collections: {
+    content: defineCollection({
+      type: 'page',
+      source: {
+        repository: 'https://github.com/nuxt/content',
+        include: 'docs/content/**',
+        exclude: [
+          '**/_dir.yml',
+        ],
+      },
+    }),
+  },
+})
diff --git a/test/fixtures/remote-repository/nuxt.config.ts b/test/fixtures/remote-repository/nuxt.config.ts
new file mode 100644
index 000000000..ed45d60f9
--- /dev/null
+++ b/test/fixtures/remote-repository/nuxt.config.ts
@@ -0,0 +1,9 @@
+import { defineNuxtConfig } from 'nuxt/config'
+
+export default defineNuxtConfig({
+  modules: [
+    '../../../src/module',
+  ],
+  devtools: { enabled: true },
+  compatibilityDate: '2025-09-03',
+})
diff --git a/test/fixtures/remote-repository/server/api/content/get.get.ts b/test/fixtures/remote-repository/server/api/content/get.get.ts
new file mode 100644
index 000000000..509352cd5
--- /dev/null
+++ b/test/fixtures/remote-repository/server/api/content/get.get.ts
@@ -0,0 +1,10 @@
+import { eventHandler, getQuery } from 'h3'
+import { queryCollection } from '@nuxt/content/server'
+
+export default eventHandler(async (event) => {
+  const path = String(getQuery(event).path || '/')
+
+  const content = await queryCollection(event, 'content' as never).path(path).first()
+
+  return content
+})
diff --git a/test/remote-repository.test.ts b/test/remote-repository.test.ts
new file mode 100644
index 000000000..9aa98d708
--- /dev/null
+++ b/test/remote-repository.test.ts
@@ -0,0 +1,40 @@
+import fs from 'node:fs/promises'
+import { createResolver } from '@nuxt/kit'
+import { setup, $fetch } from '@nuxt/test-utils'
+import { afterAll, describe, expect, test } from 'vitest'
+
+const resolver = createResolver(import.meta.url)
+
+async function cleanup() {
+  await fs.rm(resolver.resolve('./fixtures/remote-repository/node_modules'), { recursive: true, force: true })
+  await fs.rm(resolver.resolve('./fixtures/remote-repository/.nuxt'), { recursive: true, force: true })
+  await fs.rm(resolver.resolve('./fixtures/remote-repository/.data'), { recursive: true, force: true })
+  await fs.rm(resolver.resolve('./fixtures/remote-repository/content'), { recursive: true, force: true })
+}
+
+describe('remote-repository', async () => {
+  await cleanup()
+  afterAll(async () => {
+    await cleanup()
+  })
+
+  await setup({
+    rootDir: resolver.resolve('./fixtures/remote-repository'),
+    dev: true,
+  })
+
+  describe('Repository', () => {
+    test('is cloned', async () => {
+      const stat = await fs.stat(resolver.resolve('./fixtures/remote-repository/.data/content/github-nuxt-content-main'))
+      expect(stat?.isDirectory()).toBe(true)
+    })
+  })
+
+  describe('Content', () => {
+    test('is loaded', async () => {
+      const doc: Record<string, unknown> = await $fetch('/api/content/get?path=/docs/content')
+      expect(doc).toBeDefined()
+      expect(doc.path).toBe('/docs/content')
+    })
+  })
+})