diff --git a/lib/template-compiler.js b/lib/template-compiler.js
index b9d0d92e3..cd269ba91 100644
--- a/lib/template-compiler.js
+++ b/lib/template-compiler.js
@@ -59,6 +59,20 @@ module.exports = function (html) {
     )
   }
 
+  // when vue and vue-template-compiler mismatch version, then fail the vue-loader
+  var vueTemplateCompiler = require('vue-template-compiler/package.json')
+  var vueVersion = require('vue/package.json').version
+  if (vueVersion !== vueTemplateCompiler.version) {
+    this.emitError(`\n
+        Vue packages version mismatch:
+        -vue@${vueVersion}
+        -${vueTemplateCompiler.name}@${vueTemplateCompiler.version}
+        This may cause things to work incorrectly. Make sure to use the same version for both.
+        If you are using vue-loader@>=10.0, simply update ${vueTemplateCompiler.name}.
+        If you are using vue-loader@<10.0 or vueify, re-installing vue-loader/vueify should bump ${vueTemplateCompiler.version} to the latest.\n
+    `)
+  }
+
   var compiled = compiler.compile(html, Object.assign({
     preserveWhitespace: options.preserveWhitespace
   }, defaultCompileOptions))