diff --git a/apps/web/modules/auth/hooks/use-sign-out.test.tsx b/apps/web/modules/auth/hooks/use-sign-out.test.tsx
index 0d1ac842e255..cad711b859fe 100644
--- a/apps/web/modules/auth/hooks/use-sign-out.test.tsx
+++ b/apps/web/modules/auth/hooks/use-sign-out.test.tsx
@@ -1,4 +1,3 @@
-// @vitest-environment jsdom
 import { afterEach, beforeEach, describe, expect, test, vi } from "vitest";
 import { FORMBRICKS_ENVIRONMENT_ID_LS, FORMBRICKS_WORKSPACE_ID_LS } from "@/lib/localStorage";
 import { logSignOutAction } from "@/modules/auth/actions/sign-out";
diff --git a/apps/web/package.json b/apps/web/package.json
index d1dbfc01e549..b0dbfbd1902e 100644
--- a/apps/web/package.json
+++ b/apps/web/package.json
@@ -161,6 +161,7 @@
     "@vitest/coverage-v8": "4.1.6",
     "cross-env": "10.1.0",
     "dotenv": "17.3.1",
+    "jsdom": "29.1.1",
     "postcss": "8.5.14",
     "resize-observer-polyfill": "1.5.1",
     "tailwindcss-animate": "1.0.7",
diff --git a/apps/web/vite.config.mts b/apps/web/vite.config.mts
index 00d916c3cf5a..848bb26c67c2 100644
--- a/apps/web/vite.config.mts
+++ b/apps/web/vite.config.mts
@@ -6,13 +6,38 @@ import { defineConfig } from "vitest/config";
 
 export default defineConfig({
   test: {
-    environment: "node",
-    environmentMatchGlobs: [["**/*.test.tsx", "jsdom"]],
     // Integration tests run only via `pnpm test:integration` (vitest.integration.config.mts) against a
     // real Postgres + Redis; the unit config mocks the DB, so they must be excluded here (ENG-1054).
     exclude: ["playwright/**", "node_modules/**", ".next/**", "**/*.integration.test.ts"],
     setupFiles: ["./vitestSetup.ts"],
     env: loadEnv("", process.cwd(), ""),
+    // Environment selection (ENG-1680): Vitest 4 removed `environmentMatchGlobs`, so environments
+    // are assigned via projects. *.test.ts run in node; *.test.tsx (component tests) run in jsdom
+    // automatically - no `@vitest-environment` pragma needed.
+    projects: [
+      {
+        extends: true,
+        test: {
+          name: "unit",
+          environment: "node",
+          exclude: [
+            "playwright/**",
+            "node_modules/**",
+            ".next/**",
+            "**/*.integration.test.ts",
+            "**/*.test.tsx",
+          ],
+        },
+      },
+      {
+        extends: true,
+        test: {
+          name: "components",
+          environment: "jsdom",
+          include: ["**/*.test.tsx"],
+        },
+      },
+    ],
     coverage: {
       provider: "v8", // Use V8 as the coverage provider
       reporter: ["text", "html", "lcov"], // Generate text summary and HTML reports
diff --git a/packages/surveys/src/components/general/survey.test.tsx b/packages/surveys/src/components/general/survey.test.tsx
index cb5e11eca273..13bd7193b5c6 100644
--- a/packages/surveys/src/components/general/survey.test.tsx
+++ b/packages/surveys/src/components/general/survey.test.tsx
@@ -1,4 +1,3 @@
-// @vitest-environment happy-dom
 import { cleanup, fireEvent, render, screen, waitFor } from "@testing-library/preact";
 import { afterEach, beforeEach, describe, expect, test, vi } from "vitest";
 import type { TJsWorkspaceStateSurvey } from "@formbricks/types/js";
diff --git a/packages/surveys/src/lib/use-focus-trap.test.tsx b/packages/surveys/src/lib/use-focus-trap.test.tsx
index 7d9b457f72a9..b3da45ce13c9 100644
--- a/packages/surveys/src/lib/use-focus-trap.test.tsx
+++ b/packages/surveys/src/lib/use-focus-trap.test.tsx
@@ -1,4 +1,3 @@
-// @vitest-environment happy-dom
 import { cleanup, fireEvent, render, screen, waitFor } from "@testing-library/preact";
 import { type ComponentChildren } from "preact";
 import { afterEach, describe, expect, test, vi } from "vitest";
diff --git a/packages/surveys/vite.config.mts b/packages/surveys/vite.config.mts
index 9e9271932c27..fc3e0c46ec2f 100644
--- a/packages/surveys/vite.config.mts
+++ b/packages/surveys/vite.config.mts
@@ -86,16 +86,33 @@ const config = ({ mode }) => {
   return defineConfig({
     ...sharedConfig,
     test: {
-      name: "surveys",
-      environment: "node",
-      environmentMatchGlobs: [
-        ["**/*.test.tsx", "jsdom"],
-        ["**/lib/**/*.test.ts", "jsdom"],
-      ],
       setupFiles: ["./vitestSetup.ts"],
-      include: ["**/*.test.ts", "**/*.test.tsx"],
       exclude: ["dist/**", "node_modules/**"],
       env: env,
+      // Environment selection (ENG-1680): Vitest 4 removed `environmentMatchGlobs`, so environments
+      // are assigned via projects. *.test.tsx (component tests) run in happy-dom automatically;
+      // *.test.ts default to node — the few DOM-dependent .ts tests keep their per-file
+      // `@vitest-environment happy-dom` pragma.
+      projects: [
+        {
+          extends: true,
+          test: {
+            name: "surveys-unit",
+            environment: "node",
+            include: ["**/*.test.ts"],
+            exclude: ["dist/**", "node_modules/**"],
+          },
+        },
+        {
+          extends: true,
+          test: {
+            name: "surveys-components",
+            environment: "happy-dom",
+            include: ["**/*.test.tsx"],
+            exclude: ["dist/**", "node_modules/**"],
+          },
+        },
+      ],
       coverage: {
         provider: "v8",
         reporter: ["text", "html", "lcov"],
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index dade29e27133..f96daad2ffbf 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -539,6 +539,9 @@ importers:
       dotenv:
         specifier: 17.3.1
         version: 17.3.1
+      jsdom:
+        specifier: 29.1.1
+        version: 29.1.1(@noble/hashes@2.0.1)
       postcss:
         specifier: 8.5.14
         version: 8.5.14
diff --git a/vitest.workspace.ts b/vitest.workspace.ts
deleted file mode 100644
index 74145d4b8c03..000000000000
--- a/vitest.workspace.ts
+++ /dev/null
@@ -1 +0,0 @@
-export default ["packages/*/vite.config.{ts,mts}", "apps/**/vite.config.{ts,mts}"];