diff --git a/receiver/receivercreator/config.go b/receiver/receivercreator/config.go
index 814011d293f0..a823290380d6 100644
--- a/receiver/receivercreator/config.go
+++ b/receiver/receivercreator/config.go
@@ -86,7 +86,7 @@ type Config struct {
 	config.ReceiverSettings `mapstructure:",squash"`
 	receiverTemplates       map[string]receiverTemplate
 	// WatchObservers are the extensions to listen to endpoints from.
-	WatchObservers []config.Type `mapstructure:"watch_observers"`
+	WatchObservers []config.ComponentID `mapstructure:"watch_observers"`
 	// ResourceAttributes is a map of default resource attributes to add to each resource
 	// object received by this receiver from dynamically created receivers.
 	ResourceAttributes resourceAttributes `mapstructure:"resource_attributes"`
diff --git a/receiver/receivercreator/config_test.go b/receiver/receivercreator/config_test.go
index ac563fd3f3ce..2271a8491258 100644
--- a/receiver/receivercreator/config_test.go
+++ b/receiver/receivercreator/config_test.go
@@ -90,7 +90,10 @@ func TestLoadConfig(t *testing.T) {
 	assert.Equal(t, userConfigMap{
 		endpointConfigKey: "localhost:12345",
 	}, r1.receiverTemplates["nop/1"].config)
-	assert.Equal(t, []config.Type{"mock_observer"}, r1.WatchObservers)
+	assert.Equal(t, []config.ComponentID{
+		config.NewComponentID("mock_observer"),
+		config.NewComponentIDWithName("mock_observer", "with_name"),
+	}, r1.WatchObservers)
 }
 
 func TestInvalidResourceAttributeEndpointType(t *testing.T) {
diff --git a/receiver/receivercreator/receiver.go b/receiver/receivercreator/receiver.go
index 194c8841357b..19d73d66f9d8 100644
--- a/receiver/receivercreator/receiver.go
+++ b/receiver/receivercreator/receiver.go
@@ -78,18 +78,18 @@ func (rc *receiverCreator) Start(_ context.Context, host component.Host) error {
 		},
 	}
 
-	observers := map[config.Type]observer.Observable{}
+	observers := map[config.ComponentID]observer.Observable{}
 
 	// Match all configured observables to the extensions that are running.
 	for _, watchObserver := range rc.cfg.WatchObservers {
-		for cfg, ext := range host.GetExtensions() {
-			if cfg.Type() != watchObserver {
+		for cid, ext := range host.GetExtensions() {
+			if cid != watchObserver {
 				continue
 			}
 
 			obs, ok := ext.(observer.Observable)
 			if !ok {
-				return fmt.Errorf("extension %q in watch_observers is not an observer", watchObserver)
+				return fmt.Errorf("extension %q in watch_observers is not an observer", watchObserver.String())
 			}
 			observers[watchObserver] = obs
 		}
@@ -98,7 +98,7 @@ func (rc *receiverCreator) Start(_ context.Context, host component.Host) error {
 	// Make sure all observables are present before starting any.
 	for _, watchObserver := range rc.cfg.WatchObservers {
 		if observers[watchObserver] == nil {
-			return fmt.Errorf("failed to find observer %q in the extensions list", watchObserver)
+			return fmt.Errorf("failed to find observer %q in the extensions list", watchObserver.String())
 		}
 	}
 
diff --git a/receiver/receivercreator/receiver_test.go b/receiver/receivercreator/receiver_test.go
index 15c0b8145799..86bbdff66a2e 100644
--- a/receiver/receivercreator/receiver_test.go
+++ b/receiver/receivercreator/receiver_test.go
@@ -69,7 +69,8 @@ var _ observer.Observable = (*mockObserver)(nil)
 func TestMockedEndToEnd(t *testing.T) {
 	host, cfg := exampleCreatorFactory(t)
 	host.extensions = map[config.ComponentID]component.Extension{
-		config.NewComponentID("mock_observer"): &mockObserver{},
+		config.NewComponentID("mock_observer"):                      &mockObserver{},
+		config.NewComponentIDWithName("mock_observer", "with_name"): &mockObserver{},
 	}
 	dynCfg := cfg.Receivers[config.NewComponentIDWithName(typeStr, "1")]
 	factory := NewFactory()
@@ -90,8 +91,8 @@ func TestMockedEndToEnd(t *testing.T) {
 	defer shutdown()
 
 	require.Eventuallyf(t, func() bool {
-		return dyn.observerHandler.receiversByEndpointID.Size() == 1
-	}, 1*time.Second, 100*time.Millisecond, "expected 1 receiver but got %v", dyn.observerHandler.receiversByEndpointID)
+		return dyn.observerHandler.receiversByEndpointID.Size() == 2
+	}, 1*time.Second, 100*time.Millisecond, "expected 2 receiver but got %v", dyn.observerHandler.receiversByEndpointID)
 
 	// Test that we can send metrics.
 	for _, receiver := range dyn.observerHandler.receiversByEndpointID.Values() {
@@ -126,7 +127,7 @@ func TestMockedEndToEnd(t *testing.T) {
 	}
 
 	// TODO: Will have to rework once receivers are started asynchronously to Start().
-	assert.Len(t, mockConsumer.AllMetrics(), 1)
+	assert.Len(t, mockConsumer.AllMetrics(), 2)
 }
 
 func TestLoggingHost(t *testing.T) {
diff --git a/receiver/receivercreator/testdata/config.yaml b/receiver/receivercreator/testdata/config.yaml
index 0b663af41764..ae69af596243 100644
--- a/receiver/receivercreator/testdata/config.yaml
+++ b/receiver/receivercreator/testdata/config.yaml
@@ -1,7 +1,9 @@
 receivers:
   receiver_creator:
   receiver_creator/1:
-    watch_observers: [mock_observer]
+    watch_observers:
+      - mock_observer
+      - mock_observer/with_name
     receivers:
       examplereceiver/1:
         rule: type == "port"
diff --git a/unreleased/receiver-creator-obs-cid.yaml b/unreleased/receiver-creator-obs-cid.yaml
new file mode 100755
index 000000000000..aefa50b6bd4a
--- /dev/null
+++ b/unreleased/receiver-creator-obs-cid.yaml
@@ -0,0 +1,4 @@
+change_type: bug_fix
+component: receiver_creator
+note: Correct observer instance reference by updating watch_observers use ComponentID instead of just Type
+issues: [12801]