diff --git a/.changeset/itchy-ants-explode.md b/.changeset/itchy-ants-explode.md
new file mode 100644
index 000000000000..903ad5f83223
--- /dev/null
+++ b/.changeset/itchy-ants-explode.md
@@ -0,0 +1,5 @@
+---
+'@sveltejs/kit': patch
+---
+
+[chore] upgrade to vite-plugin-svelte 1.1.0 and enable prebundleSvelteLibraries
diff --git a/packages/kit/package.json b/packages/kit/package.json
index fe192eec8c6f..4e362840f77f 100644
--- a/packages/kit/package.json
+++ b/packages/kit/package.json
@@ -10,7 +10,7 @@
 	"homepage": "https://kit.svelte.dev",
 	"type": "module",
 	"dependencies": {
-		"@sveltejs/vite-plugin-svelte": "^1.0.5",
+		"@sveltejs/vite-plugin-svelte": "^1.1.0",
 		"@types/cookie": "^0.5.1",
 		"cookie": "^0.5.0",
 		"devalue": "^4.0.0",
diff --git a/packages/kit/src/exports/vite/index.js b/packages/kit/src/exports/vite/index.js
index 4f8b9ee42afd..9ca644dec628 100644
--- a/packages/kit/src/exports/vite/index.js
+++ b/packages/kit/src/exports/vite/index.js
@@ -61,7 +61,7 @@ const enforced_config = {
 
 /** @return {import('vite').Plugin[]} */
 export function sveltekit() {
-	return [...svelte(), kit()];
+	return [...svelte({ prebundleSvelteLibraries: true }), kit()];
 }
 
 /**
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 89b38f5608f9..9a5f12e42155 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -266,7 +266,7 @@ importers:
   packages/kit:
     specifiers:
       '@playwright/test': ^1.25.0
-      '@sveltejs/vite-plugin-svelte': ^1.0.5
+      '@sveltejs/vite-plugin-svelte': ^1.1.0
       '@types/connect': ^3.4.35
       '@types/cookie': ^0.5.1
       '@types/marked': ^4.0.7
@@ -292,7 +292,7 @@ importers:
       uvu: ^0.5.3
       vite: ^3.1.1
     dependencies:
-      '@sveltejs/vite-plugin-svelte': 1.0.5_svelte@3.48.0+vite@3.1.1
+      '@sveltejs/vite-plugin-svelte': 1.1.0_svelte@3.48.0+vite@3.1.1
       '@types/cookie': 0.5.1
       cookie: 0.5.0
       devalue: 4.0.0
@@ -1155,8 +1155,8 @@ packages:
       golden-fleece: 1.0.9
     dev: true
 
-  /@sveltejs/vite-plugin-svelte/1.0.5_svelte@3.48.0+vite@3.1.1:
-    resolution: {integrity: sha512-CmSdSow0Dr5ua1A11BQMtreWnE0JZmkVIcRU/yG3PKbycKUpXjNdgYTWFSbStLB0vdlGnBbm2+Y4sBVj+C+TIw==}
+  /@sveltejs/vite-plugin-svelte/1.1.0_svelte@3.48.0+vite@3.1.1:
+    resolution: {integrity: sha512-cFRfEdztubtj1c/rYh7ArK7XCfFJn6wG6+J8/e9amFsKtEJILovoBrK0/mxt1AjPQg0vaX+fHPKvhx+q8mTPaQ==}
     engines: {node: ^14.18.0 || >= 16}
     peerDependencies:
       diff-match-patch: ^1.0.5
@@ -1166,13 +1166,12 @@ packages:
       diff-match-patch:
         optional: true
     dependencies:
-      '@rollup/pluginutils': 4.2.1
       debug: 4.3.4
       deepmerge: 4.2.2
       kleur: 4.1.5
-      magic-string: 0.26.3
+      magic-string: 0.26.7
       svelte: 3.48.0
-      svelte-hmr: 0.14.12_svelte@3.48.0
+      svelte-hmr: 0.15.0_svelte@3.48.0
       vite: 3.1.1
     transitivePeerDependencies:
       - supports-color
@@ -2935,6 +2934,7 @@ packages:
     engines: {node: '>=12'}
     dependencies:
       sourcemap-codec: 1.4.8
+    dev: true
 
   /magic-string/0.26.6:
     resolution: {integrity: sha512-6d+3bFybzyQFJYSoRsl9ZC0wheze8M1LrQC7tNMRqXR4izUTDOLMd9BtSuExK9iAukFh+s5K0WAhc/dlQ+HKYA==}
@@ -2942,6 +2942,13 @@ packages:
     dependencies:
       sourcemap-codec: 1.4.8
 
+  /magic-string/0.26.7:
+    resolution: {integrity: sha512-hX9XH3ziStPoPhJxLq1syWuZMxbDvGNbVchfrdCtanC7D13888bMFow61x8axrx+GfHLtVeAx2kxL7tTGRl+Ow==}
+    engines: {node: '>=12'}
+    dependencies:
+      sourcemap-codec: 1.4.8
+    dev: false
+
   /make-dir/3.1.0:
     resolution: {integrity: sha512-g3FeP20LNwhALb/6Cz6Dd4F2ngze0jz7tbzrD2wAV+o9FeNHe4rL+yK2md0J/fiSf1sa1ADhXqi5+oVwOM/eGw==}
     engines: {node: '>=8'}
@@ -4124,8 +4131,8 @@ packages:
       - sugarss
     dev: true
 
-  /svelte-hmr/0.14.12_svelte@3.48.0:
-    resolution: {integrity: sha512-4QSW/VvXuqVcFZ+RhxiR8/newmwOCTlbYIezvkeN6302YFRE8cXy0naamHcjz8Y9Ce3ITTZtrHrIL0AGfyo61w==}
+  /svelte-hmr/0.15.0_svelte@3.48.0:
+    resolution: {integrity: sha512-Aw21SsyoohyVn4yiKXWPNCSW2DQNH/76kvUnE9kpt4h9hcg9tfyQc6xshx9hzgMfGF0kVx0EGD8oBMWSnATeOg==}
     engines: {node: ^12.20 || ^14.13.1 || >= 16}
     peerDependencies:
       svelte: '>=3.19.0'