diff --git a/README.md b/README.md
index f05e195..d94ee10 100644
--- a/README.md
+++ b/README.md
@@ -59,6 +59,17 @@ Otherwise, if you are trying to use Vue components in Node.js environments (e.g.
 
 Make sure to place `@vue/tsconfig/tsconfig.json` *after* `@tsconfig/node18/tsconfig.json` so that it takes precedence.
 
+## Emitting Declaration Files
+
+As most Vue projects are built with bundlers, the default Vue TSConfig does not emit declaration files. If you are building a library or a component library, you can enable declaration file emitting by also extending `@vue/tsconfig/tsconfig.lib.json` in your `tsconfig.json`:
+
+```json
+"extends": [
+  "@vue/tsconfig/tsconfig.dom.json",
+  "@vue/tsconfig/tsconfig.lib.json"
+]
+```
+
 ## Migrating from TypeScript < 5.0
 
 - The usage of base `tsconfig.json` is unchanged.
diff --git a/tsconfig.json b/tsconfig.json
index d185ef8..f612826 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -1,5 +1,16 @@
 {
   "compilerOptions": {
+    // Most non-library projects don't need to emit declarations.
+    // So we add this option by default to make the config more friendly to most users.
+    "noEmit": true,
+    // When type-checking with solution-style tsconfigs, though with `noEmit: true`, there won't
+    // be any `.d.ts` files emitted, but tsc still writes a `.tsbuildinfo` file to the `outDir`
+    // for each project. If we don't explicitly set the `outDir`, it will be in the same folder
+    // as the `tsconfig.json` file, which would look messy.
+    // Setting it to `./dist/` isn't ideal either, because it would pollute the `dist` folder.
+    // So we set it to a hidden folder in `node_modules` to avoid polluting the project root.
+    "outDir": "./node_modules/.cache/vue-tsbuildinfo",
+
     // As long as you are using a build tool, we recommend you to author and ship in ES modules.
     // Even if you are targeting Node.js, because
     //  - `CommonJS` is too outdated
diff --git a/tsconfig.lib.json b/tsconfig.lib.json
new file mode 100644
index 0000000..4812721
--- /dev/null
+++ b/tsconfig.lib.json
@@ -0,0 +1,8 @@
+{
+  "compilerOptions": {
+    "noEmit": false,
+    "declaration": true,
+    "emitDeclarationOnly": true,
+    "outDir": "./dist/"
+  }
+}