diff --git a/packages/angular/build/src/builders/unit-test/runners/vitest/executor.ts b/packages/angular/build/src/builders/unit-test/runners/vitest/executor.ts
index fc64e432e19f..55003b4fc82a 100644
--- a/packages/angular/build/src/builders/unit-test/runners/vitest/executor.ts
+++ b/packages/angular/build/src/builders/unit-test/runners/vitest/executor.ts
@@ -333,6 +333,7 @@ export class VitestExecutor implements TestExecutor {
       projectName,
       buildResultFiles: this.buildResultFiles,
       testFileToEntryPoint: this.testFileToEntryPoint,
+      setupFiles: testSetupFiles,
     });
 
     const debugOptions = debug
diff --git a/packages/angular/build/src/builders/unit-test/runners/vitest/plugins.ts b/packages/angular/build/src/builders/unit-test/runners/vitest/plugins.ts
index ee81e417bb5d..6be4c6e8ebe3 100644
--- a/packages/angular/build/src/builders/unit-test/runners/vitest/plugins.ts
+++ b/packages/angular/build/src/builders/unit-test/runners/vitest/plugins.ts
@@ -37,6 +37,7 @@ interface PluginOptions {
   projectName: string;
   buildResultFiles: ReadonlyMap<string, ResultFile>;
   testFileToEntryPoint: ReadonlyMap<string, string>;
+  setupFiles: readonly string[];
 }
 
 type VitestCoverageOption = Exclude<InlineConfig['coverage'], undefined>;
@@ -313,8 +314,13 @@ async function loadResultFile(file: ResultFile): Promise<string> {
 }
 
 export function createVitestPlugins(pluginOptions: PluginOptions): Vite.Plugin[] {
-  const { workspaceRoot, buildResultFiles, testFileToEntryPoint } = pluginOptions;
+  const { workspaceRoot, buildResultFiles, testFileToEntryPoint, setupFiles } = pluginOptions;
   const isWindows = platform() === 'win32';
+  const setupFileSet = new Set(
+    setupFiles.map((file) =>
+      toPosixPath(path.isAbsolute(file) ? file : path.join(workspaceRoot, file)),
+    ),
+  );
   let vitestConfig: ResolvedConfig;
 
   return [
@@ -387,7 +393,11 @@ export function createVitestPlugins(pluginOptions: PluginOptions): Vite.Plugin[]
         if (entryPoint) {
           outputPath = entryPoint + '.js';
 
-          if (vitestConfig?.coverage?.enabled) {
+          // Setup files must not be wrapped in a virtual import stub because Vitest only invalidates
+          // the setup file itself between test files; wrapping it would cause the underlying bundle
+          // to be cached, preventing per-test hooks from running on subsequent test files.
+          const isSetupFile = setupFileSet.has(id);
+          if (vitestConfig?.coverage?.enabled && !isSetupFile) {
             // To support coverage exclusion of the actual test file, the virtual
             // test entry point only references the built and bundled intermediate file.
             // If vitest supported an "excludeOnlyAfterRemap" option, this could be removed completely.
diff --git a/packages/angular/build/src/builders/unit-test/tests/options/setup-files_spec.ts b/packages/angular/build/src/builders/unit-test/tests/options/setup-files_spec.ts
index 65d0dadf17b8..44241bbcfd8a 100644
--- a/packages/angular/build/src/builders/unit-test/tests/options/setup-files_spec.ts
+++ b/packages/angular/build/src/builders/unit-test/tests/options/setup-files_spec.ts
@@ -54,5 +54,68 @@ describeBuilder(execute, UNIT_TEST_BUILDER_INFO, (harness) => {
       const { result } = await harness.executeOnce();
       expect(result?.success).toBeTrue();
     });
+
+    it('should run setup file hooks for each spec file when coverage is enabled', async () => {
+      await harness.writeFiles({
+        'custom-vitest.config.mts': `
+          import { defineConfig } from 'vitest/config';
+
+          export default defineConfig({
+            test: {
+              fileParallelism: false,
+            },
+          });
+        `,
+        'src/setup.ts': `
+          import { afterEach, beforeEach, expect } from 'vitest';
+          const global = globalThis as typeof globalThis & {
+            setupHookCalls?: string[];
+          };
+          const setupHookCalls = (global.setupHookCalls ??= []);
+          beforeEach(() => {
+            const testName = expect.getState().currentTestName ?? '';
+            setupHookCalls.push('beforeEach:' + testName);
+          });
+          afterEach(() => {
+            const testName = expect.getState().currentTestName ?? '';
+            setupHookCalls.push('afterEach:' + testName);
+          });
+        `,
+        'src/app/app.component.spec.ts': `
+          import { expect, it } from 'vitest';
+          it('runs setup hooks for first test in app.component.spec', () => {
+            const global = globalThis as typeof globalThis & { setupHookCalls?: string[] };
+            expect(global.setupHookCalls).toContain('beforeEach:runs setup hooks for first test in app.component.spec');
+          });
+          it('runs setup hooks for second test in app.component.spec', () => {
+            const global = globalThis as typeof globalThis & { setupHookCalls?: string[] };
+            expect(global.setupHookCalls).toContain('beforeEach:runs setup hooks for second test in app.component.spec');
+            expect(global.setupHookCalls).toContain('afterEach:runs setup hooks for first test in app.component.spec');
+          });
+        `,
+        'src/app/second.spec.ts': `
+          import { expect, it } from 'vitest';
+          it('runs setup hooks for first test in second.spec', () => {
+            const global = globalThis as typeof globalThis & { setupHookCalls?: string[] };
+            expect(global.setupHookCalls).toContain('beforeEach:runs setup hooks for first test in second.spec');
+          });
+          it('runs setup hooks for second test in second.spec', () => {
+            const global = globalThis as typeof globalThis & { setupHookCalls?: string[] };
+            expect(global.setupHookCalls).toContain('beforeEach:runs setup hooks for second test in second.spec');
+            expect(global.setupHookCalls).toContain('afterEach:runs setup hooks for first test in second.spec');
+          });
+        `,
+      });
+
+      harness.useTarget('test', {
+        ...BASE_OPTIONS,
+        coverage: true,
+        runnerConfig: 'custom-vitest.config.mts',
+        setupFiles: ['src/setup.ts'],
+      });
+
+      const { result } = await harness.executeOnce();
+      expect(result?.success).toBeTrue();
+    });
   });
 });