diff --git a/packages/compiler-core/package.json b/packages/compiler-core/package.json
index 6237a360d..b9a4f58c9 100644
--- a/packages/compiler-core/package.json
+++ b/packages/compiler-core/package.json
@@ -48,7 +48,7 @@
   "dependencies": {
     "@babel/parser": "catalog:",
     "@vue/shared": "workspace:*",
-    "entities": "^4.5.0",
+    "entities": "^5.0.0",
     "estree-walker": "catalog:",
     "source-map-js": "catalog:"
   },
diff --git a/packages/compiler-core/src/parser.ts b/packages/compiler-core/src/parser.ts
index cac943dd6..55487e12b 100644
--- a/packages/compiler-core/src/parser.ts
+++ b/packages/compiler-core/src/parser.ts
@@ -44,7 +44,7 @@ import {
   isSimpleIdentifier,
   isStaticArgOf,
 } from './utils'
-import { decodeHTML } from 'entities/lib/decode.js'
+import { decodeHTML } from 'entities/dist/decode.js'
 import {
   type ParserOptions as BabelOptions,
   parse,
diff --git a/packages/compiler-core/src/tokenizer.ts b/packages/compiler-core/src/tokenizer.ts
index 561a84b5f..72f548fa2 100644
--- a/packages/compiler-core/src/tokenizer.ts
+++ b/packages/compiler-core/src/tokenizer.ts
@@ -36,7 +36,7 @@ import {
   EntityDecoder,
   fromCodePoint,
   htmlDecodeTree,
-} from 'entities/lib/decode.js'
+} from 'entities/dist/decode.js'
 
 export enum ParseMode {
   BASE,
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 4b07894c0..3951e1c67 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -183,8 +183,8 @@ importers:
         specifier: workspace:*
         version: link:../shared
       entities:
-        specifier: ^4.5.0
-        version: 4.5.0
+        specifier: ^5.0.0
+        version: 5.0.0
       estree-walker:
         specifier: 'catalog:'
         version: 2.0.2
@@ -1891,6 +1891,10 @@ packages:
     resolution: {integrity: sha512-V0hjH4dGPh9Ao5p0MoRY6BVqtwCjhz6vI5LT8AJ55H+4g9/4vbHx1I54fS0XuclLhDHArPQCiMjDxjaL8fPxhw==}
     engines: {node: '>=0.12'}
 
+  entities@5.0.0:
+    resolution: {integrity: sha512-BeJFvFRJddxobhvEdm5GqHzRV/X+ACeuw0/BuuxsCh1EUZcAIz8+kYmBp/LrQuloy6K1f3a0M7+IhmZ7QnkISA==}
+    engines: {node: '>=0.12'}
+
   env-paths@2.2.1:
     resolution: {integrity: sha512-+h1lkLKhZMTYjog1VEpJNG7NZJWcuc2DDk/qsqSTRRCOXiLjeQ1d1/udrUGhqMxUgAlwKNZ0cf2uqan5GLuS2A==}
     engines: {node: '>=6'}
@@ -4982,6 +4986,8 @@ snapshots:
 
   entities@4.5.0: {}
 
+  entities@5.0.0: {}
+
   env-paths@2.2.1: {}
 
   error-ex@1.3.2:
diff --git a/rollup.config.js b/rollup.config.js
index ff0da3488..a7afed7ec 100644
--- a/rollup.config.js
+++ b/rollup.config.js
@@ -253,7 +253,7 @@ function createConfig(format, output, plugins = []) {
       'source-map-js',
       '@babel/parser',
       'estree-walker',
-      'entities/lib/decode.js',
+      'entities/dist/decode.js',
     ]
 
     if (isGlobalBuild || isBrowserESMBuild || isCompatPackage) {