diff --git a/packages/compiler-core/__tests__/transforms/transformElement.spec.ts b/packages/compiler-core/__tests__/transforms/transformElement.spec.ts
index bf3510a052d..f93e1131b6d 100644
--- a/packages/compiler-core/__tests__/transforms/transformElement.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/transformElement.spec.ts
@@ -99,6 +99,40 @@ describe('compiler: element transform', () => {
     expect(node.tag).toBe(`$setup["Example"]`)
   })
 
+  test('resolve component from setup bindings & component', () => {
+    const { root, node } = parseWithElementTransform(`<search/>`, {
+      bindingMetadata: {
+        search: BindingTypes.SETUP_CONST,
+      },
+      isNativeTag: (tag: string) => tag !== 'search',
+    })
+    expect(root.helpers).not.toContain(RESOLVE_COMPONENT)
+    expect(node.tag).toBe(`_resolveLateAddedTag("search", 'setupState')`)
+
+    const { root: root2, node: node2 } = parseWithElementTransform(
+      `<search/>`,
+      {
+        bindingMetadata: {
+          search: BindingTypes.SETUP_LET,
+        },
+        isNativeTag: (tag: string) => tag !== 'search',
+      },
+    )
+    expect(root2.helpers).not.toContain(RESOLVE_COMPONENT)
+    expect(node2.tag).toBe(`_resolveLateAddedTag("search", 'setupState')`)
+  })
+
+  test('resolve component from props', () => {
+    const { root, node } = parseWithElementTransform(`<search/>`, {
+      bindingMetadata: {
+        search: BindingTypes.PROPS,
+      },
+      isNativeTag: (tag: string) => tag !== 'search',
+    })
+    expect(root.helpers).not.toContain(RESOLVE_COMPONENT)
+    expect(node.tag).toBe(`_unref(_resolveLateAddedTag("search", 'props'))`)
+  })
+
   test('resolve component from setup bindings (inline)', () => {
     const { root, node } = parseWithElementTransform(`<Example/>`, {
       inline: true,
diff --git a/packages/compiler-core/src/ast.ts b/packages/compiler-core/src/ast.ts
index bae13372a98..26c86f1175c 100644
--- a/packages/compiler-core/src/ast.ts
+++ b/packages/compiler-core/src/ast.ts
@@ -9,6 +9,7 @@ import {
   OPEN_BLOCK,
   type RENDER_LIST,
   type RENDER_SLOT,
+  RESOLVE_LATE_ADDED_TAG,
   WITH_DIRECTIVES,
   type WITH_MEMO,
 } from './runtimeHelpers'
@@ -875,6 +876,10 @@ export function getVNodeBlockHelper(
   return ssr || isComponent ? CREATE_BLOCK : CREATE_ELEMENT_BLOCK
 }
 
+export function getResolveLateAddedTagHelper(): typeof RESOLVE_LATE_ADDED_TAG {
+  return RESOLVE_LATE_ADDED_TAG
+}
+
 export function convertToBlock(
   node: VNodeCall,
   { helper, removeHelper, inSSR }: TransformContext,
diff --git a/packages/compiler-core/src/codegen.ts b/packages/compiler-core/src/codegen.ts
index 99020bcf1ae..ed3feb1341f 100644
--- a/packages/compiler-core/src/codegen.ts
+++ b/packages/compiler-core/src/codegen.ts
@@ -24,6 +24,7 @@ import {
   type TemplateLiteral,
   type TextNode,
   type VNodeCall,
+  getResolveLateAddedTagHelper,
   getVNodeBlockHelper,
   getVNodeHelper,
   locStub,
@@ -336,6 +337,8 @@ export function generate(
   if (!__BROWSER__ && options.bindingMetadata && !options.inline) {
     // binding optimization args
     args.push('$props', '$setup', '$data', '$options')
+    // Add helper 'getResolveLateAddedTagHelper' for $setup
+    context.helper(getResolveLateAddedTagHelper())
   }
   const signature =
     !__BROWSER__ && options.isTS
diff --git a/packages/compiler-core/src/runtimeHelpers.ts b/packages/compiler-core/src/runtimeHelpers.ts
index 7cf3757b249..21d4de02de8 100644
--- a/packages/compiler-core/src/runtimeHelpers.ts
+++ b/packages/compiler-core/src/runtimeHelpers.ts
@@ -26,6 +26,9 @@ export const CREATE_STATIC: unique symbol = Symbol(
 export const RESOLVE_COMPONENT: unique symbol = Symbol(
   __DEV__ ? `resolveComponent` : ``,
 )
+export const RESOLVE_LATE_ADDED_TAG: unique symbol = Symbol(
+  __DEV__ ? `resolveLateAddedTag` : ``,
+)
 export const RESOLVE_DYNAMIC_COMPONENT: unique symbol = Symbol(
   __DEV__ ? `resolveDynamicComponent` : ``,
 )
@@ -98,6 +101,7 @@ export const helperNameMap: Record<symbol, string> = {
   [CREATE_TEXT]: `createTextVNode`,
   [CREATE_STATIC]: `createStaticVNode`,
   [RESOLVE_COMPONENT]: `resolveComponent`,
+  [RESOLVE_LATE_ADDED_TAG]: `resolveLateAddedTag`,
   [RESOLVE_DYNAMIC_COMPONENT]: `resolveDynamicComponent`,
   [RESOLVE_DIRECTIVE]: `resolveDirective`,
   [RESOLVE_FILTER]: `resolveFilter`,
diff --git a/packages/compiler-core/src/transforms/transformElement.ts b/packages/compiler-core/src/transforms/transformElement.ts
index 1dca0c514c1..4bb62909c66 100644
--- a/packages/compiler-core/src/transforms/transformElement.ts
+++ b/packages/compiler-core/src/transforms/transformElement.ts
@@ -21,12 +21,14 @@ import {
   createObjectProperty,
   createSimpleExpression,
   createVNodeCall,
+  getResolveLateAddedTagHelper,
 } from '../ast'
 import {
   PatchFlags,
   camelize,
   capitalize,
   isBuiltInDirective,
+  isLateTag,
   isObject,
   isOn,
   isReservedProp,
@@ -85,7 +87,6 @@ export const transformElement: NodeTransform = (node, context) => {
     ) {
       return
     }
-
     const { tag, props } = node
     const isComponent = node.tagType === ElementTypes.COMPONENT
 
@@ -344,10 +345,13 @@ function resolveSetupReference(name: string, context: TransformContext) {
     checkType(BindingTypes.SETUP_REACTIVE_CONST) ||
     checkType(BindingTypes.LITERAL_CONST)
   if (fromConst) {
+    const helper = context.helperString
     return context.inline
       ? // in inline mode, const setup bindings (e.g. imports) can be used as-is
         fromConst
-      : `$setup[${JSON.stringify(fromConst)}]`
+      : isLateTag(fromConst)
+        ? `${helper(getResolveLateAddedTagHelper())}(${JSON.stringify(fromConst)}, 'setupState')`
+        : `$setup[${JSON.stringify(fromConst)}]`
   }
 
   const fromMaybeRef =
@@ -355,17 +359,25 @@ function resolveSetupReference(name: string, context: TransformContext) {
     checkType(BindingTypes.SETUP_REF) ||
     checkType(BindingTypes.SETUP_MAYBE_REF)
   if (fromMaybeRef) {
+    const helper = context.helperString
     return context.inline
       ? // setup scope bindings that may be refs need to be unrefed
         `${context.helperString(UNREF)}(${fromMaybeRef})`
-      : `$setup[${JSON.stringify(fromMaybeRef)}]`
+      : isLateTag(fromMaybeRef)
+        ? `${helper(getResolveLateAddedTagHelper())}(${JSON.stringify(fromMaybeRef)}, 'setupState')`
+        : `$setup[${JSON.stringify(fromMaybeRef)}]`
   }
 
   const fromProps = checkType(BindingTypes.PROPS)
   if (fromProps) {
-    return `${context.helperString(UNREF)}(${
-      context.inline ? '__props' : '$props'
-    }[${JSON.stringify(fromProps)}])`
+    const helper = context.helperString
+    const fromPropsStr = JSON.stringify(fromProps)
+    let propsCode = context.inline
+      ? `__props[${fromPropsStr}]`
+      : isLateTag(fromProps)
+        ? `${helper(getResolveLateAddedTagHelper())}(${fromPropsStr}, 'props')`
+        : `$props[${fromPropsStr}]`
+    return `${helper(UNREF)}(${propsCode})`
   }
 }
 
diff --git a/packages/compiler-dom/__tests__/transforms/validateHtmlNesting.spec.ts b/packages/compiler-dom/__tests__/transforms/validateHtmlNesting.spec.ts
index 46d69846bae..3cc49851770 100644
--- a/packages/compiler-dom/__tests__/transforms/validateHtmlNesting.spec.ts
+++ b/packages/compiler-dom/__tests__/transforms/validateHtmlNesting.spec.ts
@@ -34,6 +34,20 @@ describe('validate html nesting', () => {
  * with ISC license
  */
 describe('isValidHTMLNesting', () => {
+  test('customizable select', () => {
+    // invalid
+    expect(isValidHTMLNesting('select', 'selectedcontent')).toBe(false)
+    expect(isValidHTMLNesting('option', 'button')).toBe(false)
+
+    // using example from https://developer.mozilla.org/en-US/docs/Learn_web_development/Extensions/Forms/Customizable_select
+
+    // valid
+    expect(isValidHTMLNesting('select', 'button')).toBe(true)
+    expect(isValidHTMLNesting('button', 'selectedcontent')).toBe(true)
+    expect(isValidHTMLNesting('select', 'option')).toBe(true)
+    expect(isValidHTMLNesting('option', 'span')).toBe(true)
+  })
+
   test('form', () => {
     // invalid
     expect(isValidHTMLNesting('form', 'form')).toBe(false)
diff --git a/packages/compiler-dom/src/htmlNesting.ts b/packages/compiler-dom/src/htmlNesting.ts
index 5f924880bd0..d496e45cbc1 100644
--- a/packages/compiler-dom/src/htmlNesting.ts
+++ b/packages/compiler-dom/src/htmlNesting.ts
@@ -62,8 +62,75 @@ const onlyValidChildren: Record<string, Set<string>> = {
     'script',
     'template',
   ]),
-  optgroup: new Set(['option']),
-  select: new Set(['optgroup', 'option', 'hr']),
+  option: new Set([
+    'div',
+    'a',
+    'abbr',
+    'area',
+    'audio',
+    'b',
+    'bdi',
+    'bdo',
+    'br',
+    'canvas',
+    'cite',
+    'code',
+    'data',
+    'del',
+    'dfn',
+    'em',
+    'i',
+    'img',
+    'input',
+    'ins',
+    'kbd',
+    'link',
+    'map',
+    'mark',
+    'math',
+    'meta',
+    'meter',
+    'noscript',
+    'output',
+    'picture',
+    'progress',
+    'q',
+    'ruby',
+    's',
+    'samp',
+    'script',
+    'slot',
+    'small',
+    'span',
+    'strong',
+    'sub',
+    'sup',
+    'svg',
+    'template',
+    'time',
+    'u',
+    'var',
+    'video',
+    'wbr',
+  ]),
+  optgroup: new Set([
+    'option',
+    'legend',
+    'script',
+    'template',
+    'noscript',
+    'div',
+  ]),
+  select: new Set([
+    'optgroup',
+    'option',
+    'hr',
+    'button',
+    'script',
+    'template',
+    'noscript',
+    'div',
+  ]),
   // table
   table: new Set(['caption', 'colgroup', 'tbody', 'tfoot', 'thead']),
   tr: new Set(['td', 'th']),
@@ -74,10 +141,10 @@ const onlyValidChildren: Record<string, Set<string>> = {
   // these elements can not have any children elements
   script: emptySet,
   iframe: emptySet,
-  option: emptySet,
   textarea: emptySet,
   style: emptySet,
   title: emptySet,
+  selectedcontent: emptySet,
 }
 
 /** maps elements to set of elements which can be it's parent, no other */
@@ -104,6 +171,7 @@ const onlyValidParents: Record<string, Set<string>> = {
   // li: new Set(["ul", "ol"]),
   summary: new Set(['details']),
   area: new Set(['map']),
+  selectedcontent: new Set(['button']),
 } as const
 
 /** maps element to set of elements that can not be it's children, others can */
diff --git a/packages/runtime-core/src/helpers/resolveAssets.ts b/packages/runtime-core/src/helpers/resolveAssets.ts
index 910fab33424..57a74d4e72c 100644
--- a/packages/runtime-core/src/helpers/resolveAssets.ts
+++ b/packages/runtime-core/src/helpers/resolveAssets.ts
@@ -7,7 +7,7 @@ import {
 } from '../component'
 import { currentRenderingInstance } from '../componentRenderContext'
 import type { Directive } from '../directives'
-import { camelize, capitalize, isString } from '@vue/shared'
+import { camelize, capitalize, isLateTag, isString } from '@vue/shared'
 import { warn } from '../warning'
 import type { VNodeTypes } from '../vnode'
 
@@ -118,12 +118,21 @@ function resolveAsset(
       return Component
     }
 
-    if (__DEV__ && warnMissing && !res) {
-      const extra =
-        type === COMPONENTS
-          ? `\nIf this is a native custom element, make sure to exclude it from ` +
+    if (
+      __DEV__ &&
+      warnMissing &&
+      ((!res && !isLateTag(name)) || (res && isLateTag(name)))
+    ) {
+      let extra = ''
+      if (type === COMPONENTS) {
+        if (isLateTag(name)) {
+          extra = `\nplease do not use built-in tag names as component names.`
+        } else {
+          extra =
+            `\nIf this is a native custom element, make sure to exclude it from ` +
             `component resolution via compilerOptions.isCustomElement.`
-          : ``
+        }
+      }
       warn(`Failed to resolve ${type.slice(0, -1)}: ${name}${extra}`)
     }
 
@@ -144,3 +153,27 @@ function resolve(registry: Record<string, any> | undefined, name: string) {
       registry[capitalize(camelize(name))])
   )
 }
+
+/**
+ * @private
+ */
+export function resolveLateAddedTag(
+  name: string,
+  key: 'setupState' | 'props',
+): unknown {
+  if (!currentRenderingInstance || !currentRenderingInstance[key]) return name
+  const data = currentRenderingInstance[key]
+  const value = data[name]
+  // Only the render function for the value is parsed as a component
+  // and a warning is reported
+  if (
+    __DEV__ &&
+    value &&
+    (value as ComponentInternalInstance).render &&
+    isLateTag(name as string)
+  ) {
+    const extra = `\nplease do not use built-in tag names as component names.`
+    warn(`Failed to resolve component: ${name},${extra}`)
+  }
+  return value
+}
diff --git a/packages/runtime-core/src/index.ts b/packages/runtime-core/src/index.ts
index 1ed6f21df77..42683fd4abc 100644
--- a/packages/runtime-core/src/index.ts
+++ b/packages/runtime-core/src/index.ts
@@ -144,6 +144,7 @@ export {
   resolveComponent,
   resolveDirective,
   resolveDynamicComponent,
+  resolveLateAddedTag,
 } from './helpers/resolveAssets'
 // For integration with runtime compiler
 export { registerRuntimeCompiler, isRuntimeOnly } from './component'
diff --git a/packages/shared/src/domTagConfig.ts b/packages/shared/src/domTagConfig.ts
index 7f9d198e569..a0e5d9f03ba 100644
--- a/packages/shared/src/domTagConfig.ts
+++ b/packages/shared/src/domTagConfig.ts
@@ -14,6 +14,8 @@ const HTML_TAGS =
   'option,output,progress,select,textarea,details,dialog,menu,' +
   'summary,template,blockquote,iframe,tfoot'
 
+const LATE_ADDED_TAGS = 'search,selectedcontent'
+
 // https://developer.mozilla.org/en-US/docs/Web/SVG/Element
 const SVG_TAGS =
   'svg,animate,animateMotion,animateTransform,circle,clipPath,color-profile,' +
@@ -62,3 +64,6 @@ export const isMathMLTag: (key: string) => boolean =
  */
 export const isVoidTag: (key: string) => boolean =
   /*@__PURE__*/ makeMap(VOID_TAGS)
+
+export const isLateTag: (key: string) => boolean =
+  /*#__PURE__*/ makeMap(LATE_ADDED_TAGS)