diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/components/ErrorButton.vue b/dev-packages/e2e-tests/test-applications/nuxt-3/components/ErrorButton.vue
index 42d53ade03f7..92ea714ae489 100644
--- a/dev-packages/e2e-tests/test-applications/nuxt-3/components/ErrorButton.vue
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/components/ErrorButton.vue
@@ -5,6 +5,10 @@ const props = defineProps({
   errorText: {
     type: String,
     required: true
+  },
+  id: {
+    type: String,
+    required: true
   }
 })
 
@@ -14,5 +18,5 @@ const triggerError = () => {
 </script>
 
 <template>
-  <button id="errorBtn" @click="triggerError">Trigger Error</button>
+  <button :id="props.id" @click="triggerError">Trigger Error</button>
 </template>
diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/pages/client-error.vue b/dev-packages/e2e-tests/test-applications/nuxt-3/pages/client-error.vue
index 25eaa672c87c..5e1a14931f84 100644
--- a/dev-packages/e2e-tests/test-applications/nuxt-3/pages/client-error.vue
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/pages/client-error.vue
@@ -3,7 +3,8 @@ import ErrorButton from '../components/ErrorButton.vue';
 </script>
 
 <template>
-  <ErrorButton  error-text="Error thrown from Nuxt-3 E2E test app"/>
+  <ErrorButton id="errorBtn"  error-text="Error thrown from Nuxt-3 E2E test app"/>
+  <ErrorButton id="errorBtn2" error-text="Another Error thrown from Nuxt-3 E2E test app"/>
 </template>
 
 
diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/pages/test-param/[param].vue b/dev-packages/e2e-tests/test-applications/nuxt-3/pages/test-param/[param].vue
index 2ac1b9095a0f..379e8e417b35 100644
--- a/dev-packages/e2e-tests/test-applications/nuxt-3/pages/test-param/[param].vue
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/pages/test-param/[param].vue
@@ -1,7 +1,7 @@
 <template>
   <p>{{ $route.params.param }} - {{ $route.params.param }}</p>
 
-  <ErrorButton errorText="Error thrown from Param Route Button"  />
+  <ErrorButton id="errorBtn" errorText="Error thrown from Param Route Button"  />
   <button @click="fetchData">Fetch Server Data</button>
 </template>
 
diff --git a/dev-packages/e2e-tests/test-applications/nuxt-3/tests/errors.client.test.ts b/dev-packages/e2e-tests/test-applications/nuxt-3/tests/errors.client.test.ts
index fb03a08b4033..4cb23e8b81df 100644
--- a/dev-packages/e2e-tests/test-applications/nuxt-3/tests/errors.client.test.ts
+++ b/dev-packages/e2e-tests/test-applications/nuxt-3/tests/errors.client.test.ts
@@ -55,4 +55,51 @@ test.describe('client-side errors', async () => {
       },
     });
   });
+
+  test('page is still interactive after client error', async ({ page }) => {
+    const error1Promise = waitForError('nuxt-3', async errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Error thrown from Nuxt-3 E2E test app';
+    });
+
+    await page.goto(`/client-error`);
+    await page.locator('#errorBtn').click();
+
+    const error1 = await error1Promise;
+
+    const error2Promise = waitForError('nuxt-3', async errorEvent => {
+      return errorEvent?.exception?.values?.[0]?.value === 'Another Error thrown from Nuxt-3 E2E test app';
+    });
+
+    await page.locator('#errorBtn2').click();
+
+    const error2 = await error2Promise;
+
+    expect(error1).toMatchObject({
+      exception: {
+        values: [
+          {
+            type: 'Error',
+            value: 'Error thrown from Nuxt-3 E2E test app',
+            mechanism: {
+              handled: false,
+            },
+          },
+        ],
+      },
+    });
+
+    expect(error2).toMatchObject({
+      exception: {
+        values: [
+          {
+            type: 'Error',
+            value: 'Another Error thrown from Nuxt-3 E2E test app',
+            mechanism: {
+              handled: false,
+            },
+          },
+        ],
+      },
+    });
+  });
 });
diff --git a/packages/nuxt/src/runtime/plugins/sentry.client.ts b/packages/nuxt/src/runtime/plugins/sentry.client.ts
index 95dc954c4b89..b89a2fa87a8d 100644
--- a/packages/nuxt/src/runtime/plugins/sentry.client.ts
+++ b/packages/nuxt/src/runtime/plugins/sentry.client.ts
@@ -1,6 +1,7 @@
 import { getClient } from '@sentry/core';
 import { browserTracingIntegration, vueIntegration } from '@sentry/vue';
 import { defineNuxtPlugin } from 'nuxt/app';
+import { reportNuxtError } from '../utils';
 
 // --- Types are copied from @sentry/vue (so it does not need to be exported) ---
 // The following type is an intersection of the Route type from VueRouter v2, v3, and v4.
@@ -49,8 +50,19 @@ export default defineNuxtPlugin({
       const sentryClient = getClient();
 
       if (sentryClient) {
-        sentryClient.addIntegration(vueIntegration({ app: vueApp }));
+        // Adding the Vue integration without the Vue error handler
+        // Nuxt is registering their own error handler, which is unset after hydration: https://github.com/nuxt/nuxt/blob/d3fdbcaac6cf66d21e25d259390d7824696f1a87/packages/nuxt/src/app/entry.ts#L64-L73
+        // We don't want to wrap the existing error handler, as it leads to a 500 error: https://github.com/getsentry/sentry-javascript/issues/12515
+        sentryClient.addIntegration(vueIntegration({ app: vueApp, attachErrorHandler: false }));
       }
     });
+
+    nuxtApp.hook('app:error', error => {
+      reportNuxtError({ error });
+    });
+
+    nuxtApp.hook('vue:error', (error, instance, info) => {
+      reportNuxtError({ error, instance, info });
+    });
   },
 });
diff --git a/packages/nuxt/src/runtime/utils.ts b/packages/nuxt/src/runtime/utils.ts
index 585387f59003..7b56a258f708 100644
--- a/packages/nuxt/src/runtime/utils.ts
+++ b/packages/nuxt/src/runtime/utils.ts
@@ -1,8 +1,10 @@
-import { getTraceMetaTags } from '@sentry/core';
-import type { Context } from '@sentry/types';
+import { captureException, getClient, getTraceMetaTags } from '@sentry/core';
+import type { ClientOptions, Context } from '@sentry/types';
 import { dropUndefinedKeys } from '@sentry/utils';
+import type { VueOptions } from '@sentry/vue/src/types';
 import type { CapturedErrorContext } from 'nitropack';
 import type { NuxtRenderHTMLContext } from 'nuxt/app';
+import type { ComponentPublicInstance } from 'vue';
 
 /**
  *  Extracts the relevant context information from the error context (H3Event in Nitro Error)
@@ -41,3 +43,40 @@ export function addSentryTracingMetaTags(head: NuxtRenderHTMLContext['head']): v
     head.push(metaTags);
   }
 }
+
+/**
+ *  Reports an error to Sentry. This function is similar to `attachErrorHandler` in `@sentry/vue`.
+ *  The Nuxt SDK does not register an error handler, but uses the Nuxt error hooks to report errors.
+ *
+ *  We don't want to use the error handling from `@sentry/vue` as it wraps the existing error handler, which leads to a 500 error: https://github.com/getsentry/sentry-javascript/issues/12515
+ */
+export function reportNuxtError(options: {
+  error: unknown;
+  instance?: ComponentPublicInstance | null;
+  info?: string;
+}): void {
+  const { error, instance, info } = options;
+
+  const metadata: Record<string, unknown> = {
+    info,
+    // todo: add component name and trace (like in the vue integration)
+  };
+
+  if (instance && instance.$props) {
+    const sentryClient = getClient();
+    const sentryOptions = sentryClient ? (sentryClient.getOptions() as ClientOptions & VueOptions) : null;
+
+    // `attachProps` is enabled by default and props should only not be attached if explicitly disabled (see DEFAULT_CONFIG in `vueIntegration`).
+    if (sentryOptions && sentryOptions.attachProps && instance.$props !== false) {
+      metadata.propsData = instance.$props;
+    }
+  }
+
+  // Capture exception in the next event loop, to make sure that all breadcrumbs are recorded in time.
+  setTimeout(() => {
+    captureException(error, {
+      captureContext: { contexts: { nuxt: metadata } },
+      mechanism: { handled: false },
+    });
+  });
+}
diff --git a/packages/nuxt/test/runtime/utils.test.ts b/packages/nuxt/test/runtime/utils.test.ts
index 08c66193caa3..a6afc03b05da 100644
--- a/packages/nuxt/test/runtime/utils.test.ts
+++ b/packages/nuxt/test/runtime/utils.test.ts
@@ -1,5 +1,7 @@
-import { describe, expect, it } from 'vitest';
-import { extractErrorContext } from '../../src/runtime/utils';
+import { captureException, getClient } from '@sentry/core';
+import { type Mock, afterEach, beforeEach, describe, expect, it, test, vi } from 'vitest';
+import type { ComponentPublicInstance } from 'vue';
+import { extractErrorContext, reportNuxtError } from '../../src/runtime/utils';
 
 describe('extractErrorContext', () => {
   it('returns empty object for undefined or empty context', () => {
@@ -77,3 +79,73 @@ describe('extractErrorContext', () => {
     expect(() => extractErrorContext(weirdContext3)).not.toThrow();
   });
 });
+
+describe('reportNuxtError', () => {
+  vi.mock('@sentry/core', () => ({
+    captureException: vi.fn(),
+    getClient: vi.fn(),
+  }));
+
+  const mockError = new Error('Test error');
+
+  const mockInstance: ComponentPublicInstance = {
+    $props: { foo: 'bar' },
+  } as any;
+
+  const mockClient = {
+    getOptions: vi.fn().mockReturnValue({ attachProps: true }),
+  };
+
+  beforeEach(() => {
+    // Using fake timers as setTimeout is used in `reportNuxtError`
+    vi.useFakeTimers();
+    vi.clearAllMocks();
+    (getClient as Mock).mockReturnValue(mockClient);
+  });
+
+  afterEach(() => {
+    vi.clearAllMocks();
+  });
+
+  test('captures exception with correct error and metadata', () => {
+    reportNuxtError({ error: mockError });
+    vi.runAllTimers();
+
+    expect(captureException).toHaveBeenCalledWith(mockError, {
+      captureContext: { contexts: { nuxt: { info: undefined } } },
+      mechanism: { handled: false },
+    });
+  });
+
+  test('includes instance props if attachProps is not explicitly defined', () => {
+    reportNuxtError({ error: mockError, instance: mockInstance });
+    vi.runAllTimers();
+
+    expect(captureException).toHaveBeenCalledWith(mockError, {
+      captureContext: { contexts: { nuxt: { info: undefined, propsData: { foo: 'bar' } } } },
+      mechanism: { handled: false },
+    });
+  });
+
+  test('does not include instance props if attachProps is disabled', () => {
+    mockClient.getOptions.mockReturnValue({ attachProps: false });
+
+    reportNuxtError({ error: mockError, instance: mockInstance });
+    vi.runAllTimers();
+
+    expect(captureException).toHaveBeenCalledWith(mockError, {
+      captureContext: { contexts: { nuxt: { info: undefined } } },
+      mechanism: { handled: false },
+    });
+  });
+
+  test('handles absence of instance correctly', () => {
+    reportNuxtError({ error: mockError, info: 'Some info' });
+    vi.runAllTimers();
+
+    expect(captureException).toHaveBeenCalledWith(mockError, {
+      captureContext: { contexts: { nuxt: { info: 'Some info' } } },
+      mechanism: { handled: false },
+    });
+  });
+});
diff --git a/packages/vue/src/errorhandler.ts b/packages/vue/src/errorhandler.ts
index 725f9b56c714..07caeaf0f9cf 100644
--- a/packages/vue/src/errorhandler.ts
+++ b/packages/vue/src/errorhandler.ts
@@ -7,7 +7,7 @@ import { formatComponentName, generateComponentTrace } from './vendor/components
 type UnknownFunc = (...args: unknown[]) => void;
 
 export const attachErrorHandler = (app: Vue, options: VueOptions): void => {
-  const { errorHandler, warnHandler, silent } = app.config;
+  const { errorHandler: originalErrorHandler, warnHandler, silent } = app.config;
 
   app.config.errorHandler = (error: Error, vm: ViewModel, lifecycleHook: string): void => {
     const componentName = formatComponentName(vm, false);
@@ -36,8 +36,9 @@ export const attachErrorHandler = (app: Vue, options: VueOptions): void => {
       });
     });
 
-    if (typeof errorHandler === 'function') {
-      (errorHandler as UnknownFunc).call(app, error, vm, lifecycleHook);
+    // Check if the current `app.config.errorHandler` is explicitly set by the user before calling it.
+    if (typeof originalErrorHandler === 'function' && app.config.errorHandler) {
+      (originalErrorHandler as UnknownFunc).call(app, error, vm, lifecycleHook);
     }
 
     if (options.logErrors) {
diff --git a/packages/vue/src/integration.ts b/packages/vue/src/integration.ts
index b62c43375bb5..900fa686dbcf 100644
--- a/packages/vue/src/integration.ts
+++ b/packages/vue/src/integration.ts
@@ -14,6 +14,7 @@ const DEFAULT_CONFIG: VueOptions = {
   Vue: globalWithVue.Vue,
   attachProps: true,
   logErrors: true,
+  attachErrorHandler: true,
   hooks: DEFAULT_HOOKS,
   timeout: 2000,
   trackComponents: false,
@@ -76,7 +77,9 @@ const vueInit = (app: Vue, options: Options): void => {
     }
   }
 
-  attachErrorHandler(app, options);
+  if (options.attachErrorHandler) {
+    attachErrorHandler(app, options);
+  }
 
   if (hasTracingEnabled(options)) {
     app.mixin(
diff --git a/packages/vue/src/types.ts b/packages/vue/src/types.ts
index 13d9e8588350..9735923cd52c 100644
--- a/packages/vue/src/types.ts
+++ b/packages/vue/src/types.ts
@@ -47,6 +47,17 @@ export interface VueOptions extends TracingOptions {
    */
   logErrors: boolean;
 
+  /**
+   *  By default, Sentry attaches an error handler to capture exceptions and report them to Sentry.
+   *  When `attachErrorHandler` is set to `false`, automatic error reporting is disabled.
+   *
+   *  Usually, this option should stay enabled, unless you want to set up Sentry error reporting yourself.
+   *  For example, the Sentry Nuxt SDK does not attach an error handler as it's using the error hooks provided by Nuxt.
+   *
+   *  @default true
+   */
+  attachErrorHandler: boolean;
+
   /** {@link TracingOptions} */
   tracingOptions?: Partial<TracingOptions>;
 }