diff --git a/packages/react-reconciler/src/__tests__/useMemo-invalidation-test.js b/packages/react-reconciler/src/__tests__/useMemo-invalidation-test.js
new file mode 100644
index 0000000000000..a8f3e23bfcc27
--- /dev/null
+++ b/packages/react-reconciler/src/__tests__/useMemo-invalidation-test.js
@@ -0,0 +1,89 @@
+let React;
+let ReactNoop;
+let act;
+let useState;
+
+describe('possible useMemo invalidation bug', () => {
+  beforeEach(() => {
+    jest.resetModules();
+
+    React = require('react');
+    ReactNoop = require('react-noop-renderer');
+    act = require('jest-react').act;
+    useState = React.useState;
+  });
+
+  // @gate experimental || www
+  test('caches values whose inputs are unchanged after setstate in render (useMemo)', async () => {
+    let setX;
+    function Component({limit}) {
+      const [x, _setX] = useState(0);
+      setX = _setX;
+
+      // `x` is a controlled state that can't be set higher than the provided `limit`
+      if (x > limit) {
+        setX(limit);
+      }
+
+      // `obj` is an object that captures the value of `x`
+      const obj = React.useMemo(
+        // POSSIBLE BUG: because useMemo tries to reuse the WIP memo value after a setState-in-render,
+        // the previous value is discarded. This means that even though the final render has the same
+        // inputs as the last commit, the memoized value is discarded and recreated, breaking
+        // memoization of all the child components down the tree.
+        //
+        // 1) First render: cache is initialized to {count: 0} with deps of [x=0, limit=10]
+        // 2) Update: cache updated to {count: 10} with deps of [x=10, limit=10]
+        // 3) Second update:
+        // 3a) initially renders and caches {count: 12} with deps of [x=12, limit=10]
+        // 3b) re-renders bc of setstate, caches {count: 10} with deps of [x=10, limit=10]
+        // If this last step started from the `current` fiber's memo cache (from 2, instead of from 3a),
+        // then it would not re-execute and preserve object identity
+        () => {
+          return {count: x};
+        },
+        // Note that `limit` isn't technically a dependency,
+        // it's included here to show that even if we modeled that
+        // `x` can depend on the value of `limit`, it isn't sufficient
+        // to avoid breaking memoization across renders
+        [x, limit],
+      );
+
+      return <Child obj={obj} />;
+    }
+
+    const Child = React.memo(function Child({obj}) {
+      const text = React.useMemo(() => {
+        return {text: `Count ${obj.count}`};
+      }, [obj]);
+      return <Text value={text} />;
+    });
+
+    // Text should only ever re-render if the object identity of `value`
+    // changes.
+    let renderCount = 0;
+    const Text = React.memo(function Text({value}) {
+      renderCount++;
+      return value.text;
+    });
+
+    const root = ReactNoop.createRoot();
+    await act(async () => {
+      root.render(<Component limit={10} />);
+    });
+    expect(root).toMatchRenderedOutput('Count 0');
+    expect(renderCount).toBe(1);
+
+    await act(async () => {
+      setX(10); // set to the limit
+    });
+    expect(root).toMatchRenderedOutput('Count 10');
+    expect(renderCount).toBe(2);
+
+    await act(async () => {
+      setX(12); // exceeds limit, will be reset in setState during render
+    });
+    expect(root).toMatchRenderedOutput('Count 10');
+    expect(renderCount).toBe(2); // should not re-render, since value has not changed
+  });
+});