diff --git a/src/react/ReactQueryErrorResetBoundary.tsx b/src/react/ReactQueryErrorResetBoundary.tsx
index ac6a8adf92..af5edb39f5 100644
--- a/src/react/ReactQueryErrorResetBoundary.tsx
+++ b/src/react/ReactQueryErrorResetBoundary.tsx
@@ -9,7 +9,7 @@ interface ReactQueryErrorResetBoundaryValue {
 }
 
 function createValue(): ReactQueryErrorResetBoundaryValue {
-  let isReset = true
+  let isReset = false
   return {
     clearReset: () => {
       isReset = false
diff --git a/src/react/tests/ReactQueryResetErrorBoundary.test.tsx b/src/react/tests/ReactQueryResetErrorBoundary.test.tsx
new file mode 100644
index 0000000000..c708914488
--- /dev/null
+++ b/src/react/tests/ReactQueryResetErrorBoundary.test.tsx
@@ -0,0 +1,66 @@
+import { render, waitFor, fireEvent } from '@testing-library/react'
+import { ErrorBoundary } from 'react-error-boundary'
+import * as React from 'react'
+
+import { sleep, queryKey, mockConsoleError } from './utils'
+import { useQuery, ReactQueryErrorResetBoundary } from '../..'
+
+describe('ReactQueryResetErrorBoundary', () => {
+  it('should retry fetch if the reset error boundary has been reset', async () => {
+    const key = queryKey()
+
+    let succeed = false
+    const consoleMock = mockConsoleError()
+
+    function Page() {
+      const { data } = useQuery(
+        key,
+        async () => {
+          await sleep(10)
+          if (!succeed) {
+            throw new Error('Error')
+          } else {
+            return 'data'
+          }
+        },
+        {
+          retry: false,
+          useErrorBoundary: true,
+        }
+      )
+      return <div>{data}</div>
+    }
+
+    const rendered = render(
+      <ReactQueryErrorResetBoundary>
+        {({ reset }) => (
+          <ErrorBoundary
+            onReset={reset}
+            fallbackRender={({ resetErrorBoundary }) => (
+              <div>
+                <div>error boundary</div>
+                <button
+                  onClick={() => {
+                    resetErrorBoundary()
+                  }}
+                >
+                  retry
+                </button>
+              </div>
+            )}
+          >
+            <Page />
+          </ErrorBoundary>
+        )}
+      </ReactQueryErrorResetBoundary>
+    )
+
+    await waitFor(() => rendered.getByText('error boundary'))
+    await waitFor(() => rendered.getByText('retry'))
+    succeed = true
+    fireEvent.click(rendered.getByText('retry'))
+    await waitFor(() => rendered.getByText('data'))
+
+    consoleMock.mockRestore()
+  })
+})