diff --git a/server/src/embeddedSupport/vueDocumentRegionParser.ts b/server/src/embeddedSupport/vueDocumentRegionParser.ts
index e26b545fe2..00f4646b77 100644
--- a/server/src/embeddedSupport/vueDocumentRegionParser.ts
+++ b/server/src/embeddedSupport/vueDocumentRegionParser.ts
@@ -103,7 +103,7 @@ function scanTemplateRegion(scanner: Scanner, text: string): EmbeddedRegion | nu
   while (unClosedTemplate !== 0) {
     // skip parsing on non html syntax, just search terminator
     if (token === TokenType.AttributeValue && languageId !== 'vue-html') {
-      while (token !== TokenType.StartTagClose) {
+      while (![TokenType.StartTagClose, TokenType.StartTagSelfClose].includes(token)) {
         token = scanner.scan();
       }
       start = scanner.getTokenEnd();
diff --git a/test/lsp/features/external/basic.test.ts b/test/lsp/features/external/basic.test.ts
new file mode 100644
index 0000000000..0589ccf664
--- /dev/null
+++ b/test/lsp/features/external/basic.test.ts
@@ -0,0 +1,11 @@
+import { testCompletion } from '../../../completionHelper';
+import { position } from '../../../util';
+import { getDocUri } from '../../path';
+
+describe('Should use external file in Vue SFC', () => {
+  const docUri = getDocUri('external/Foo.vue');
+
+  it('Should work fine when template self close', async () => {
+    await testCompletion(docUri, position(2, 0), ['<style> css-scoped.vue ✌']);
+  });
+});
diff --git a/test/lsp/fixture/external/Foo.pug b/test/lsp/fixture/external/Foo.pug
new file mode 100644
index 0000000000..db06a64c5d
--- /dev/null
+++ b/test/lsp/fixture/external/Foo.pug
@@ -0,0 +1 @@
+div
diff --git a/test/lsp/fixture/external/Foo.ts b/test/lsp/fixture/external/Foo.ts
new file mode 100644
index 0000000000..67f74b21ec
--- /dev/null
+++ b/test/lsp/fixture/external/Foo.ts
@@ -0,0 +1,5 @@
+import Vue from 'vue';
+
+export default Vue.extend({
+  name: 'Foo'
+});
diff --git a/test/lsp/fixture/external/Foo.vue b/test/lsp/fixture/external/Foo.vue
new file mode 100644
index 0000000000..1a6fc9e754
--- /dev/null
+++ b/test/lsp/fixture/external/Foo.vue
@@ -0,0 +1,3 @@
+<template lang="pug" src="./Foo.pug" />
+<script lang="ts" src="./Foo.ts" />
+