diff --git a/examples/playground/src/index.js b/examples/playground/src/index.js
index ee96cf5f95..475e1ca0c7 100644
--- a/examples/playground/src/index.js
+++ b/examples/playground/src/index.js
@@ -397,7 +397,7 @@ function fetchTodoById({ id }) {
           new Error(JSON.stringify({ fetchTodoById: { id } }, null, 2))
         );
       }
-      resolve(list.find((d) => d.id == id));
+      resolve(list.find((d) => d.id === id));
     }, queryTimeMin + Math.random() * (queryTimeMax - queryTimeMin));
   });
 }
diff --git a/src/core/query.ts b/src/core/query.ts
index f82b0281f6..2627c43184 100644
--- a/src/core/query.ts
+++ b/src/core/query.ts
@@ -572,7 +572,10 @@ export class Query<
           fetchStatus: canFetch(this.options.networkMode)
             ? 'fetching'
             : 'paused',
-          status: !state.dataUpdatedAt ? 'loading' : state.status,
+          ...(!state.dataUpdatedAt && {
+            error: null,
+            status: 'loading',
+          }),
         }
       case 'success':
         return {
diff --git a/src/core/queryObserver.ts b/src/core/queryObserver.ts
index c2a249a9aa..587be13fb2 100644
--- a/src/core/queryObserver.ts
+++ b/src/core/queryObserver.ts
@@ -69,7 +69,10 @@ export class QueryObserver<
   >
   private previousQueryResult?: QueryObserverResult<TData, TError>
   private previousSelectError: TError | null
-  private previousSelectFn?: (data: TQueryData) => TData
+  private previousSelect?: {
+    fn: (data: TQueryData) => TData
+    result: TData
+  }
   private staleTimeoutId?: ReturnType<typeof setTimeout>
   private refetchIntervalId?: ReturnType<typeof setInterval>
   private currentRefetchInterval?: number | false
@@ -473,14 +476,17 @@ export class QueryObserver<
       if (
         prevResult &&
         state.data === prevResultState?.data &&
-        options.select === this.previousSelectFn &&
+        options.select === this.previousSelect?.fn &&
         !this.previousSelectError
       ) {
-        data = prevResult.data
+        data = this.previousSelect.result
       } else {
         try {
-          this.previousSelectFn = options.select
           data = options.select(state.data)
+          this.previousSelect = {
+            fn: options.select,
+            result: data,
+          }
           if (options.structuralSharing !== false) {
             data = replaceEqualDeep(prevResult?.data, data)
           }
diff --git a/src/devtools/styledComponents.ts b/src/devtools/styledComponents.ts
index 18968629c5..0f41715025 100644
--- a/src/devtools/styledComponents.ts
+++ b/src/devtools/styledComponents.ts
@@ -65,6 +65,7 @@ export const QueryKey = styled('span', {
 
 export const Code = styled('code', {
   fontSize: '.9em',
+  color: 'inherit',
 })
 
 export const Input = styled('input', (_props, theme) => ({
diff --git a/src/reactjs/tests/useQuery.test.tsx b/src/reactjs/tests/useQuery.test.tsx
index 193dc892b1..44d0ac4caf 100644
--- a/src/reactjs/tests/useQuery.test.tsx
+++ b/src/reactjs/tests/useQuery.test.tsx
@@ -4102,6 +4102,56 @@ describe('useQuery', () => {
     expect(selectRun).toBe(3)
   })
 
+  it('select should always return the correct state', async () => {
+    const key1 = queryKey()
+
+    function Page() {
+      const [count, inc] = React.useReducer(prev => prev + 1, 2)
+      const [forceValue, forceUpdate] = React.useReducer(prev => prev + 1, 1)
+
+      const state = useQuery(
+        key1,
+        async () => {
+          await sleep(10)
+          return 0
+        },
+        {
+          select: React.useCallback(
+            (data: number) => {
+              return `selected ${data + count}`
+            },
+            [count]
+          ),
+          placeholderData: 99,
+        }
+      )
+
+      return (
+        <div>
+          <h2>Data: {state.data}</h2>
+          <h2>forceValue: {forceValue}</h2>
+          <button onClick={inc}>inc: {count}</button>
+          <button onClick={forceUpdate}>forceUpdate</button>
+        </div>
+      )
+    }
+
+    const rendered = renderWithClient(queryClient, <Page />)
+    await waitFor(() => rendered.getByText('Data: selected 101')) // 99 + 2
+
+    await waitFor(() => rendered.getByText('Data: selected 2')) // 0 + 2
+
+    rendered.getByRole('button', { name: /inc/i }).click()
+
+    await waitFor(() => rendered.getByText('Data: selected 3')) // 0 + 3
+
+    rendered.getByRole('button', { name: /forceUpdate/i }).click()
+
+    await waitFor(() => rendered.getByText('forceValue: 2'))
+    // data should still be 3 after an independent re-render
+    await waitFor(() => rendered.getByText('Data: selected 3'))
+  })
+
   it('should cancel the query function when there are no more subscriptions', async () => {
     const key = queryKey()
     let cancelFn: jest.Mock = jest.fn()
@@ -4611,6 +4661,82 @@ describe('useQuery', () => {
     consoleMock.mockRestore()
   })
 
+  it('should have no error in loading state when refetching after error occurred', async () => {
+    const consoleMock = mockConsoleError()
+    const key = queryKey()
+    const states: UseQueryResult<number>[] = []
+    const error = new Error('oops')
+
+    let count = 0
+
+    function Page() {
+      const state = useQuery(
+        key,
+        async () => {
+          await sleep(10)
+          if (count === 0) {
+            count++
+            throw error
+          }
+          return 5
+        },
+        {
+          retry: false,
+        }
+      )
+
+      states.push(state)
+
+      if (state.isLoading) {
+        return <div>status: loading</div>
+      }
+      if (state.error instanceof Error) {
+        return (
+          <div>
+            <div>error</div>
+            <button onClick={() => state.refetch()}>refetch</button>
+          </div>
+        )
+      }
+      return <div>data: {state.data}</div>
+    }
+
+    const rendered = renderWithClient(queryClient, <Page />)
+
+    await waitFor(() => rendered.getByText('error'))
+
+    fireEvent.click(rendered.getByRole('button', { name: 'refetch' }))
+    await waitFor(() => rendered.getByText('data: 5'))
+
+    await waitFor(() => expect(states.length).toBe(4))
+
+    expect(states[0]).toMatchObject({
+      status: 'loading',
+      data: undefined,
+      error: null,
+    })
+
+    expect(states[1]).toMatchObject({
+      status: 'error',
+      data: undefined,
+      error,
+    })
+
+    expect(states[2]).toMatchObject({
+      status: 'loading',
+      data: undefined,
+      error: null,
+    })
+
+    expect(states[3]).toMatchObject({
+      status: 'success',
+      data: 5,
+      error: null,
+    })
+
+    consoleMock.mockRestore()
+  })
+
   describe('networkMode online', () => {
     it('online queries should not start fetching if you are offline', async () => {
       const onlineMock = mockNavigatorOnLine(false)
diff --git a/src/reactjs/types.ts b/src/reactjs/types.ts
index 3d2079d110..13ac8c4510 100644
--- a/src/reactjs/types.ts
+++ b/src/reactjs/types.ts
@@ -1,16 +1,12 @@
-import { RetryValue, RetryDelayValue } from '../core/retryer'
 import {
   InfiniteQueryObserverOptions,
   InfiniteQueryObserverResult,
   MutationObserverResult,
-  MutationKey,
   QueryObserverOptions,
   QueryObserverResult,
   QueryKey,
-  MutationFunction,
-  MutateOptions,
-  MutationMeta,
-  NetworkMode,
+  MutationObserverOptions,
+  MutateFunction,
 } from '../core/types'
 
 export interface UseBaseQueryOptions<
@@ -74,35 +70,10 @@ export interface UseMutationOptions<
   TError = unknown,
   TVariables = void,
   TContext = unknown
-> {
-  mutationFn?: MutationFunction<TData, TVariables>
-  mutationKey?: MutationKey
-  cacheTime?: number
-  onMutate?: (
-    variables: TVariables
-  ) => Promise<TContext | undefined> | TContext | undefined
-  onSuccess?: (
-    data: TData,
-    variables: TVariables,
-    context: TContext | undefined
-  ) => Promise<unknown> | void
-  onError?: (
-    error: TError,
-    variables: TVariables,
-    context: TContext | undefined
-  ) => Promise<unknown> | void
-  onSettled?: (
-    data: TData | undefined,
-    error: TError | null,
-    variables: TVariables,
-    context: TContext | undefined
-  ) => Promise<unknown> | void
-  retry?: RetryValue<TError>
-  retryDelay?: RetryDelayValue<TError>
-  networkMode?: NetworkMode
-  useErrorBoundary?: boolean | ((error: TError) => boolean)
-  meta?: MutationMeta
-}
+> extends Omit<
+    MutationObserverOptions<TData, TError, TVariables, TContext>,
+    '_defaulted' | 'variables'
+  > {}
 
 export type UseMutateFunction<
   TData = unknown,
@@ -110,8 +81,7 @@ export type UseMutateFunction<
   TVariables = void,
   TContext = unknown
 > = (
-  variables: TVariables,
-  options?: MutateOptions<TData, TError, TVariables, TContext>
+  ...args: Parameters<MutateFunction<TData, TError, TVariables, TContext>>
 ) => void
 
 export type UseMutateAsyncFunction<
@@ -119,10 +89,7 @@ export type UseMutateAsyncFunction<
   TError = unknown,
   TVariables = void,
   TContext = unknown
-> = (
-  variables: TVariables,
-  options?: MutateOptions<TData, TError, TVariables, TContext>
-) => Promise<TData>
+> = MutateFunction<TData, TError, TVariables, TContext>
 
 export type UseBaseMutationResult<
   TData = unknown,