diff --git a/packages/nuxt/README.md b/packages/nuxt/README.md
index dcfc869cb108..e33201b21518 100644
--- a/packages/nuxt/README.md
+++ b/packages/nuxt/README.md
@@ -49,27 +49,33 @@ If the setup through the wizard doesn't work for you, you can also set up the SD
    yarn add @sentry/nuxt
    ```
 
-### 2. Client-side Setup
+### 2. Nuxt Module Setup
 
 The Sentry Nuxt SDK is based on [Nuxt Modules](https://nuxt.com/docs/api/kit/modules).
 
-1. Add `@sentry/nuxt` to the modules section of `nuxt.config.ts`:
+1. Add `@sentry/nuxt/module` to the modules section of `nuxt.config.ts`:
 
 ```javascript
 // nuxt.config.ts
 export default defineNuxtConfig({
-  modules: ['@sentry/nuxt'],
-  runtimeConfig: {
-    public: {
-      sentry: {
-        dsn: env.DSN,
-        // Additional config
-      },
-    },
-  },
+  modules: ['@sentry/nuxt/module'],
 });
 ```
 
+2. Add a `sentry.client.config.(js|ts)` file to the root of your project:
+
+```javascript
+import * as Sentry from '@sentry/nuxt';
+
+if (!import.meta.env.SSR) {
+  Sentry.init({
+    dsn: env.DSN,
+    replaysSessionSampleRate: 0.1,
+    replaysOnErrorSampleRate: 1.0,
+  });
+}
+```
+
 ### 3. Server-side Setup
 
 todo: add server-side setup
diff --git a/packages/nuxt/package.json b/packages/nuxt/package.json
index 4862d08aba2d..1a9bbb4c009a 100644
--- a/packages/nuxt/package.json
+++ b/packages/nuxt/package.json
@@ -12,16 +12,28 @@
   "files": [
     "/build"
   ],
-  "main": "build/module.cjs",
-  "module": "build/module.mjs",
-  "types": "build/types.d.ts",
+  "main": "build/cjs/index.server.js",
+  "module": "build/esm/index.server.js",
+  "browser": "build/esm/index.client.js",
+  "types": "build/types/index.types.d.ts",
   "exports": {
+    "./package.json": "./package.json",
     ".": {
-      "types": "./build/types.d.ts",
-      "import": "./build/module.mjs",
-      "require": "./build/module.cjs"
+      "types": "./build/types/index.types.d.ts",
+      "browser": {
+        "import": "./build/esm/index.client.js",
+        "require": "./build/cjs/index.client.js"
+      },
+      "node": {
+        "import": "./build/esm/index.server.js",
+        "require": "./build/cjs/index.server.js"
+      }
     },
-    "./package.json": "./package.json"
+    "./module": {
+      "types": "./build/module/types.d.ts",
+      "import": "./build/module/module.mjs",
+      "require": "./build/module/module.cjs"
+    }
   },
   "publishConfig": {
     "access": "public"
@@ -31,6 +43,7 @@
   },
   "dependencies": {
     "@nuxt/kit": "^3.12.2",
+    "@sentry/browser": "8.13.0",
     "@sentry/core": "8.13.0",
     "@sentry/node": "8.13.0",
     "@sentry/opentelemetry": "8.13.0",
@@ -44,12 +57,14 @@
     "nuxt": "^3.12.2"
   },
   "scripts": {
-    "build": "run-p build:transpile",
+    "build": "run-p build:transpile build:types build:nuxt-module",
     "build:dev": "yarn build",
-    "build:transpile": "nuxt-module-build build --outDir build",
+    "build:nuxt-module": "nuxt-module-build build --outDir build/module",
+    "build:transpile": "rollup -c rollup.npm.config.mjs",
+    "build:types": "tsc -p tsconfig.types.json",
     "build:watch": "run-p build:transpile:watch build:types:watch",
     "build:dev:watch": "yarn build:watch",
-    "build:transpile:watch": "nuxt-module-build build --outDir build --watch",
+    "build:transpile:watch": "rollup -c rollup.npm.config.mjs --watch",
     "build:types:watch": "tsc -p tsconfig.types.json --watch",
     "build:tarball": "npm pack",
     "circularDepCheck": "madge --circular src/index.client.ts && madge --circular src/index.server.ts && madge --circular src/index.types.ts",
@@ -72,7 +87,8 @@
           "^build:types"
         ],
         "outputs": [
-          "{projectRoot}/build"
+          "{projectRoot}/build",
+          "{projectRoot}/build/module"
         ]
       }
     }
diff --git a/packages/nuxt/rollup.npm.config.mjs b/packages/nuxt/rollup.npm.config.mjs
new file mode 100644
index 000000000000..e800fdbba474
--- /dev/null
+++ b/packages/nuxt/rollup.npm.config.mjs
@@ -0,0 +1,7 @@
+import { makeBaseNPMConfig, makeNPMConfigVariants } from '@sentry-internal/rollup-utils';
+
+export default makeNPMConfigVariants(
+  makeBaseNPMConfig({
+    entrypoints: ['src/index.client.ts', 'src/client/index.ts'],
+  }),
+);
diff --git a/packages/nuxt/src/client/sdk.ts b/packages/nuxt/src/client/sdk.ts
index 3a82dfb9f52f..e07c3267c902 100644
--- a/packages/nuxt/src/client/sdk.ts
+++ b/packages/nuxt/src/client/sdk.ts
@@ -1,19 +1,19 @@
+import { init as initBrowser } from '@sentry/browser';
 import { applySdkMetadata } from '@sentry/core';
 import type { Client } from '@sentry/types';
-import { init as initVue } from '@sentry/vue';
-import type { SentryVueOptions } from '../common/types';
+import type { SentryNuxtOptions } from '../common/types';
 
 /**
  * Initializes the client-side of the Nuxt SDK
  *
  * @param options Configuration options for the SDK.
  */
-export function init(options: SentryVueOptions): Client | undefined {
+export function init(options: SentryNuxtOptions): Client | undefined {
   const sentryOptions = {
     ...options,
   };
 
   applySdkMetadata(sentryOptions, 'nuxt', ['nuxt', 'vue']);
 
-  return initVue(sentryOptions);
+  return initBrowser(sentryOptions);
 }
diff --git a/packages/nuxt/src/common/debug-build.ts b/packages/nuxt/src/common/debug-build.ts
new file mode 100644
index 000000000000..60aa50940582
--- /dev/null
+++ b/packages/nuxt/src/common/debug-build.ts
@@ -0,0 +1,8 @@
+declare const __DEBUG_BUILD__: boolean;
+
+/**
+ * This serves as a build time flag that will be true by default, but false in non-debug builds or if users replace `__SENTRY_DEBUG__` in their generated code.
+ *
+ * ATTENTION: This constant must never cross package boundaries (i.e. be exported) to guarantee that it can be used for tree shaking.
+ */
+export const DEBUG_BUILD = __DEBUG_BUILD__;
diff --git a/packages/nuxt/src/common/snippets.ts b/packages/nuxt/src/common/snippets.ts
new file mode 100644
index 000000000000..5b8a3f1f3ea1
--- /dev/null
+++ b/packages/nuxt/src/common/snippets.ts
@@ -0,0 +1,47 @@
+import * as fs from 'fs';
+import * as path from 'path';
+
+/** Returns an import snippet */
+export function buildSdkInitFileImportSnippet(filePath: string): string {
+  const posixPath = filePath.split(path.sep).join(path.posix.sep);
+
+  // normalize to forward slashed for Windows-based systems
+  const normalizedPath = posixPath.replace(/\\/g, '/');
+
+  return `import '${normalizedPath}';`;
+}
+
+/**
+ * Script tag inside `nuxt-root.vue` (root component we get from NuxtApp)
+ */
+export const SCRIPT_TAG = '<script setup>';
+
+/**
+ * Adds a top-level import statement right after <script setup>.
+ * This should happen as early as possible (e.g. in root component)
+ */
+export function addImportStatement(filePath: string, importStatement: string): void {
+  try {
+    const data = fs.readFileSync(filePath, 'utf8');
+    const scriptIndex = data.indexOf(SCRIPT_TAG);
+
+    if (scriptIndex === -1) {
+      // eslint-disable-next-line no-console
+      console.warn(`[Sentry] Sentry not initialized. Could not find ${SCRIPT_TAG} in ${filePath}`);
+      return;
+    }
+
+    // Insert the import statement after the script tag
+    const output = data.replace(SCRIPT_TAG, `${SCRIPT_TAG}\n${importStatement}\n`);
+
+    try {
+      fs.writeFileSync(filePath, output, 'utf8');
+    } catch (err) {
+      //  eslint-disable-next-line no-console
+      console.error(`[Sentry] Error writing file to ${filePath}: ${err}`);
+    }
+  } catch (err) {
+    //  eslint-disable-next-line no-console
+    console.error(`[Sentry] Error reading file at ${filePath}: ${err}`);
+  }
+}
diff --git a/packages/nuxt/src/common/types.ts b/packages/nuxt/src/common/types.ts
index ef6edd9f5875..4b924f81192a 100644
--- a/packages/nuxt/src/common/types.ts
+++ b/packages/nuxt/src/common/types.ts
@@ -1,3 +1,4 @@
 import type { init } from '@sentry/vue';
 
-export type SentryVueOptions = Parameters<typeof init>[0] & object;
+// Omitting 'app' as the Nuxt SDK will add the app instance in the client plugin (users do not have to provide this)
+export type SentryNuxtOptions = Omit<Parameters<typeof init>[0] & object, 'app'>;
diff --git a/packages/nuxt/src/index.types.ts b/packages/nuxt/src/index.types.ts
index cb0ff5c3b541..4f1cce44fa36 100644
--- a/packages/nuxt/src/index.types.ts
+++ b/packages/nuxt/src/index.types.ts
@@ -1 +1 @@
-export {};
+export * from './client';
diff --git a/packages/nuxt/src/module.ts b/packages/nuxt/src/module.ts
index 480f70b1bd97..23c16b343b36 100644
--- a/packages/nuxt/src/module.ts
+++ b/packages/nuxt/src/module.ts
@@ -1,23 +1,49 @@
+import * as fs from 'fs';
+import * as path from 'path';
 import { type Resolver, addPlugin, createResolver, defineNuxtModule } from '@nuxt/kit';
-import type { SentryVueOptions } from './common/types';
+import { addImportStatement, buildSdkInitFileImportSnippet } from './common/snippets';
+import type { SentryNuxtOptions } from './common/types';
 
-export type ModuleOptions = SentryVueOptions;
+export type ModuleOptions = SentryNuxtOptions;
 
 export default defineNuxtModule<ModuleOptions>({
   meta: {
-    name: '@sentry/nuxt',
+    name: '@sentry/nuxt/module',
     configKey: 'sentry',
     compatibility: {
       nuxt: '^3.0.0',
     },
   },
-  // Default configuration options of the Nuxt module
   defaults: {},
-  setup(_moduleOptions, _nuxt) {
+  setup(_moduleOptions, nuxt) {
     const resolver: Resolver = createResolver(import.meta.url);
 
+    const pathToClientInit = findDefaultSdkInitFile('client');
+
+    if (pathToClientInit) {
+      nuxt.hook('app:templates', nuxtApp => {
+        if (nuxtApp.rootComponent) {
+          try {
+            addImportStatement(nuxtApp.rootComponent, buildSdkInitFileImportSnippet(pathToClientInit));
+          } catch (err) {
+            // eslint-disable-next-line no-console
+            console.error(`[Sentry] Could not add import statement to root component. ${err}`);
+          }
+        }
+      });
+    }
+
     if (resolver) {
-      addPlugin(resolver.resolve('runtime/plugins/sentry.client.js'));
+      addPlugin(resolver.resolve('./runtime/plugins/sentry.client'));
     }
   },
 });
+
+function findDefaultSdkInitFile(type: /* 'server' | */ 'client'): string | undefined {
+  const possibleFileExtensions = ['ts', 'js', 'mjs', 'cjs', 'mts', 'cts'];
+
+  const cwd = process.cwd();
+  return possibleFileExtensions
+    .map(e => path.resolve(path.join(cwd, `sentry.${type}.config.${e}`)))
+    .find(filename => fs.existsSync(filename));
+}
diff --git a/packages/nuxt/src/runtime/plugins/sentry.client.ts b/packages/nuxt/src/runtime/plugins/sentry.client.ts
index ab28e9ef5f6b..e15cdb31d7c6 100644
--- a/packages/nuxt/src/runtime/plugins/sentry.client.ts
+++ b/packages/nuxt/src/runtime/plugins/sentry.client.ts
@@ -1,12 +1,13 @@
-import { defineNuxtPlugin, useRuntimeConfig } from 'nuxt/app';
-import { init } from '../../client';
+import { getClient } from '@sentry/core';
+import { vueIntegration } from '@sentry/vue';
+import { defineNuxtPlugin } from 'nuxt/app';
 
 export default defineNuxtPlugin(nuxtApp => {
-  const config = useRuntimeConfig();
-  const sentryConfig = config.public.sentry || {};
+  nuxtApp.hook('app:created', vueApp => {
+    const sentryClient = getClient();
 
-  init({
-    ...sentryConfig,
-    app: nuxtApp.vueApp,
+    if (sentryClient) {
+      sentryClient.addIntegration(vueIntegration({ app: vueApp }));
+    }
   });
 });
diff --git a/packages/nuxt/test/client/sdk.test.ts b/packages/nuxt/test/client/sdk.test.ts
index 9a868f132198..23766e9da0e3 100644
--- a/packages/nuxt/test/client/sdk.test.ts
+++ b/packages/nuxt/test/client/sdk.test.ts
@@ -1,9 +1,9 @@
+import * as SentryBrowser from '@sentry/browser';
 import { SDK_VERSION } from '@sentry/vue';
-import * as SentryVue from '@sentry/vue';
 import { beforeEach, describe, expect, it, vi } from 'vitest';
 import { init } from '../../src/client';
 
-const vueInit = vi.spyOn(SentryVue, 'init');
+const vueInit = vi.spyOn(SentryBrowser, 'init');
 
 describe('Nuxt Client SDK', () => {
   describe('init', () => {
diff --git a/packages/nuxt/test/common/snippets.test.ts b/packages/nuxt/test/common/snippets.test.ts
new file mode 100644
index 000000000000..c36921eb9823
--- /dev/null
+++ b/packages/nuxt/test/common/snippets.test.ts
@@ -0,0 +1,98 @@
+import * as fs from 'fs';
+
+import * as path from 'path';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+
+import { SCRIPT_TAG, addImportStatement, buildSdkInitFileImportSnippet } from '../../src/common/snippets';
+
+describe('Nuxt Code Snippets', () => {
+  describe('buildSdkInitFileImportSnippet', () => {
+    it('returns correct import statement for POSIX path', () => {
+      const filePath = 'src/myFile.ts';
+      const expectedOutput = "import 'src/myFile.ts';";
+      const result = buildSdkInitFileImportSnippet(filePath);
+      expect(result).toBe(expectedOutput);
+    });
+
+    it('returns correct import statement for Windows path', () => {
+      const filePath = 'src\\myFile.ts';
+      const expectedOutput = "import 'src/myFile.ts';";
+      const result = buildSdkInitFileImportSnippet(filePath);
+      expect(result).toBe(expectedOutput);
+    });
+
+    it('returns correct import statement for path with multiple segments', () => {
+      const filePath = path.join('src', 'myDir', 'myFile.ts');
+      const expectedOutput = "import 'src/myDir/myFile.ts';";
+      const result = buildSdkInitFileImportSnippet(filePath);
+      expect(result).toBe(expectedOutput);
+    });
+  });
+
+  describe('addImportStatement', () => {
+    vi.mock('fs');
+
+    beforeEach(() => {
+      vi.clearAllMocks();
+    });
+
+    it('should add import statement to file', () => {
+      const readFileSyncSpy = vi.spyOn(fs, 'readFileSync');
+      const writeFileSyncSpy = vi.spyOn(fs, 'writeFileSync');
+
+      const filePath = 'testFile.ts';
+      const importStatement = 'import { test } from "./test";';
+      const fileContent =
+        '<template>\n' +
+        '  <Suspense @resolve="onResolve">\n' +
+        '  </Suspense>\n' +
+        '</template>\n' +
+        '\n' +
+        '<script setup>\n' +
+        "import { provide } from 'vue'\n" +
+        "import { useNuxtApp } from '../nuxt'";
+
+      const fileContentExpected =
+        '<template>\n' +
+        '  <Suspense @resolve="onResolve">\n' +
+        '  </Suspense>\n' +
+        '</template>\n' +
+        '\n' +
+        '<script setup>\n' +
+        `${importStatement}\n\n` +
+        "import { provide } from 'vue'\n" +
+        "import { useNuxtApp } from '../nuxt'";
+
+      readFileSyncSpy.mockReturnValue(fileContent);
+      writeFileSyncSpy.mockImplementation(() => {});
+
+      addImportStatement(filePath, importStatement);
+
+      expect(fs.readFileSync).toHaveBeenCalledWith(filePath, 'utf8');
+      expect(fs.writeFileSync).toHaveBeenCalledWith(filePath, fileContentExpected, 'utf8');
+    });
+
+    it('should handle when SCRIPT_TAG is not found in file', () => {
+      const readFileSyncSpy = vi.spyOn(fs, 'readFileSync');
+      const writeFileSyncSpy = vi.spyOn(fs, 'writeFileSync');
+      const consoleWarnSpy = vi.spyOn(console, 'warn');
+
+      const filePath = 'testFile.ts';
+      const importStatement = 'import { test } from "./test";';
+      const fileContent = "import { provide } from 'vue'\nimport { useNuxtApp } from '../nuxt'";
+
+      // The file content does not contain SCRIPT_TAG
+      readFileSyncSpy.mockReturnValue(fileContent);
+      writeFileSyncSpy.mockImplementation(() => {});
+
+      addImportStatement(filePath, importStatement);
+
+      // The file content should remain the same as SCRIPT_TAG is not found
+      expect(fs.readFileSync).toHaveBeenCalledWith(filePath, 'utf8');
+      expect(fs.writeFileSync).not.toHaveBeenCalled();
+      expect(consoleWarnSpy).toHaveBeenCalledWith(
+        `[Sentry] Sentry not initialized. Could not find ${SCRIPT_TAG} in ${filePath}`,
+      );
+    });
+  });
+});