diff --git a/packages/core/vite.config.ts b/packages/core/vite.config.ts
index 0c867fa30..e5a9f93fb 100644
--- a/packages/core/vite.config.ts
+++ b/packages/core/vite.config.ts
@@ -3,9 +3,13 @@ import { defineConfig } from 'vite'
 import vue from '@vitejs/plugin-vue'
 import vueJsx from '@vitejs/plugin-vue-jsx'
 import dts from 'vite-plugin-dts'
+import pkg from './package.json'
 
 const projectRootDir = resolve(__dirname)
 
+// A bit of a hack, but lets us use the proper extension in chunk filenames
+let currentFormat = ''
+
 // https://vitejs.dev/config/
 export default defineConfig({
   plugins: [
@@ -28,11 +32,13 @@ export default defineConfig({
     ],
   },
   build: {
-    minify: true,
+    minify: false,
     target: 'esnext',
+    sourcemap: true,
     lib: {
       name: 'reka-ui',
       fileName: (format, name) => {
+        currentFormat = format
         return `${name}.${format === 'es' ? 'js' : 'cjs'}`
       },
       entry: {
@@ -42,12 +48,27 @@ export default defineConfig({
       },
     },
     rollupOptions: {
-      // make sure to externalize deps that shouldn't be bundled
-      // into your library (Vue)
-      external: ['vue', '@floating-ui/vue', '@internationalized/date', '@internationalized/number'],
+      external: [
+        'nanoid/non-secure',
+        ...Object.keys(pkg.dependencies ?? {}),
+        ...Object.keys(pkg.peerDependencies ?? {}),
+      ],
       output: {
-        preserveModules: true,
+        // Don't rely on preserveModules
+        // It creates a lot of unwanted files because of the multiple sections of SFC files
+        manualChunks: (moduleId, meta) => {
+          const info = meta.getModuleInfo(moduleId)
+          if (!info.isIncluded) {
+            // Don't create empty chunks
+            return null
+          }
+
+          const [namespace, file] = moduleId.split('?')[0].split('/').slice(-2)
+          return `${namespace}/${file.slice(0, file.lastIndexOf('.'))}`
+        },
+
         exports: 'named',
+        chunkFileNames: chunk => `${chunk.name}.${currentFormat === 'es' ? 'js' : 'cjs'}`,
         assetFileNames: (chunkInfo) => {
           if (chunkInfo.name === 'style.css')
             return 'index.css'