diff --git a/packages/compiler-sfc/README.md b/packages/compiler-sfc/README.md
index 26e61e6d..4cffa17f 100644
--- a/packages/compiler-sfc/README.md
+++ b/packages/compiler-sfc/README.md
@@ -6,12 +6,6 @@ This package contains lower level utilities that you can use if you are writing
 
 The API surface is intentionally minimal - the goal is to reuse as much as possible while being as flexible as possible.
 
-## Why isn't `@vue/compiler-dom` a peerDependency?
-
-Since this package is more often used as a low-level utility, it is usually a transitive dependency in an actual Vue project. It is therefore the responsibility of the higher-level package (e.g. `vue-loader`) to inject `@vue/compiler-dom` via options when calling the `compileTemplate` methods.
-
-Not listing it as a peer dependency also allows tooling authors to use a custom template compiler (built on top of `@vue/compiler-core`) instead of `@vue/compiler-dom`, without having to include it just to fulfill the peer dep requirement.
-
 ## API
 
 TODO
diff --git a/packages/compiler-sfc/__tests__/compileTemplate.spec.ts b/packages/compiler-sfc/__tests__/compileTemplate.spec.ts
index ebf6a6e4..0ece6334 100644
--- a/packages/compiler-sfc/__tests__/compileTemplate.spec.ts
+++ b/packages/compiler-sfc/__tests__/compileTemplate.spec.ts
@@ -1,15 +1,12 @@
 // TODO need more thorough tests here
 
 import { compileTemplate } from '../src/compileTemplate'
-import { compile } from '@vue/compiler-dom'
 import { parse, SFCTemplateBlock } from '../src/parse'
 
-const compiler = { compile }
-
 test('should work', () => {
   const source = `<div><p>{{ render }}</p></div>`
 
-  const result = compileTemplate({ filename: 'example.vue', source, compiler })
+  const result = compileTemplate({ filename: 'example.vue', source })
 
   expect(result.errors.length).toBe(0)
   expect(result.source).toBe(source)
@@ -33,8 +30,7 @@ body
   const result = compileTemplate({
     filename: 'example.vue',
     source: template.content,
-    preprocessLang: template.lang,
-    compiler
+    preprocessLang: template.lang
   })
 
   expect(result.errors.length).toBe(0)
@@ -48,7 +44,6 @@ test('warn missing preprocessor', () => {
 
   const result = compileTemplate({
     filename: 'example.vue',
-    compiler,
     source: template.content,
     preprocessLang: template.lang
   })
diff --git a/packages/compiler-sfc/package.json b/packages/compiler-sfc/package.json
index a427dd2e..aa16a9ca 100644
--- a/packages/compiler-sfc/package.json
+++ b/packages/compiler-sfc/package.json
@@ -28,6 +28,7 @@
   "homepage": "https://github.com/vuejs/vue/tree/dev/packages/compiler-sfc#readme",
   "dependencies": {
     "@vue/compiler-core": "3.0.0-alpha.0",
+    "@vue/compiler-dom": "3.0.0-alpha.0",
     "consolidate": "^0.15.1",
     "hash-sum": "^2.0.0",
     "lru-cache": "^5.1.1",
diff --git a/packages/compiler-sfc/src/compileTemplate.ts b/packages/compiler-sfc/src/compileTemplate.ts
index 4e7a1f81..47369576 100644
--- a/packages/compiler-sfc/src/compileTemplate.ts
+++ b/packages/compiler-sfc/src/compileTemplate.ts
@@ -29,7 +29,7 @@ export interface TemplateCompiler {
 export interface TemplateCompileOptions {
   source: string
   filename: string
-  compiler: TemplateCompiler
+  compiler?: TemplateCompiler
   compilerOptions?: CompilerOptions
   preprocessLang?: string
   preprocessOptions?: any
@@ -92,7 +92,7 @@ export function compileTemplate(
 function doCompileTemplate({
   filename,
   source,
-  compiler,
+  compiler = require('@vue/compiler-dom'),
   compilerOptions = {},
   transformAssetUrls
 }: TemplateCompileOptions): TemplateCompileResults {