diff --git a/package.json b/package.json
index 4d62ed1a6f..c98ef197fc 100644
--- a/package.json
+++ b/package.json
@@ -74,6 +74,7 @@
     "prettier": "^1.19.1",
     "react": "^16.13.0",
     "react-dom": "^16.13.0",
+    "react-error-boundary": "^2.2.1",
     "rollup": "^1.32.0",
     "rollup-plugin-babel": "^4.3.2",
     "rollup-plugin-commonjs": "^10.0.0",
diff --git a/src/tests/useMutation.test.js b/src/tests/useMutation.test.js
index 2977bd7438..aed177cbbe 100644
--- a/src/tests/useMutation.test.js
+++ b/src/tests/useMutation.test.js
@@ -44,6 +44,9 @@ describe('useMutation', () => {
   })
 
   it('should be able to reset `error`', async () => {
+    jest.spyOn(console, 'error')
+    console.error.mockImplementation(() => {})
+
     function Page() {
       const [mutate, mutationResult] = useMutation(
         () => {
@@ -82,5 +85,7 @@ describe('useMutation', () => {
     fireEvent.click(getByText('reset'))
 
     expect(queryByTestId('error')).toBeNull()
+
+    console.error.mockRestore()
   })
 })
diff --git a/src/tests/useQuery.test.js b/src/tests/useQuery.test.js
index 38f1fd570d..2c230b43d7 100644
--- a/src/tests/useQuery.test.js
+++ b/src/tests/useQuery.test.js
@@ -1,4 +1,5 @@
 import { render, act, waitForElement, fireEvent } from '@testing-library/react'
+import { ErrorBoundary } from 'react-error-boundary'
 import * as React from 'react'
 
 import { useQuery, queryCache } from '../index'
@@ -806,4 +807,67 @@ describe('useQuery', () => {
     expect(queryFn).toHaveBeenCalledTimes(2)
     expect(memoFn).toHaveBeenCalledTimes(2)
   })
+
+  // https://github.com/tannerlinsley/react-query/issues/468
+  it('should reset error state if new component instances are mounted', async () => {
+    let succeed = false
+    const mockError = jest.fn()
+    jest.spyOn(console, 'error')
+    console.error.mockImplementation(mockError)
+
+    function Page() {
+      useQuery(
+        'test',
+        async () => {
+          await sleep(10)
+
+          if (!succeed) {
+            throw new Error()
+          } else {
+            return 'data'
+          }
+        },
+        {
+          retryDelay: 10,
+          suspense: true,
+        }
+      )
+
+      return <div>rendered</div>
+    }
+
+    const rendered = render(
+      <ErrorBoundary
+        fallbackRender={({ resetErrorBoundary }) => (
+          <div>
+            <div>error boundary</div>
+            <button
+              onClick={() => {
+                succeed = true
+                // Uncomment below and it will work
+                // queryCache.clear();
+                resetErrorBoundary()
+              }}
+            >
+              retry
+            </button>
+          </div>
+        )}
+      >
+        <React.Suspense fallback={'Loading...'}>
+          <Page />
+        </React.Suspense>
+      </ErrorBoundary>
+    )
+
+    await waitForElement(() => rendered.getByText('error boundary'))
+
+    expect(mockError).toHaveBeenCalledTimes(3)
+
+    fireEvent.click(rendered.getByText('retry'))
+
+    await waitForElement(() => rendered.getByText('rendered'))
+
+    console.error.mockRestore()
+  })
 })
diff --git a/src/utils.js b/src/utils.js
index 414b7964a0..df9e24c2dc 100644
--- a/src/utils.js
+++ b/src/utils.js
@@ -129,6 +129,9 @@ export function useMountedCallback(callback) {
 export function handleSuspense(queryInfo) {
   if (queryInfo.config.suspense || queryInfo.config.useErrorBoundary) {
     if (queryInfo.status === statusError) {
+      setTimeout(() => {
+        queryInfo.query.state.status = 'loading'
+      })
       throw queryInfo.error
     }
   }
diff --git a/yarn.lock b/yarn.lock
index 99f9eba67c..a24d3a069f 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1514,6 +1514,13 @@
   dependencies:
     regenerator-runtime "^0.13.2"
 
+"@babel/runtime@^7.9.6":
+  version "7.9.6"
+  resolved "https://registry.yarnpkg.com/@babel/runtime/-/runtime-7.9.6.tgz#a9102eb5cadedf3f31d08a9ecf294af7827ea29f"
+  integrity sha512-64AF1xY3OAkFHqOb9s4jpgk1Mm5vDZ4L3acHvAml+53nO1XbXLuDodsVpO4OIUsmemlUHMxNdYMNJmsvOwLrvQ==
+  dependencies:
+    regenerator-runtime "^0.13.4"
+
 "@babel/template@^7.1.0", "@babel/template@^7.4.4", "@babel/template@^7.6.0":
   version "7.6.0"
   resolved "https://registry.yarnpkg.com/@babel/template/-/template-7.6.0.tgz#7f0159c7f5012230dad64cca42ec9bdb5c9536e6"
@@ -5994,6 +6001,13 @@ react-dom@^16.13.0:
     prop-types "^15.6.2"
     scheduler "^0.19.0"
 
+react-error-boundary@^2.2.1:
+  version "2.2.1"
+  resolved "https://registry.yarnpkg.com/react-error-boundary/-/react-error-boundary-2.2.1.tgz#32ed74386a90482060cc2fea948bb7135465c4cb"
+  integrity sha512-8SZMkJRFUb0JuluHKwuUtkh5vvVWBg3O/bJIWgNMhMJv529aG//TmcphR3cSMhCWjz1vFZDb4taJd6pmwP5mEQ==
+  dependencies:
+    "@babel/runtime" "^7.9.6"
+
 react-is@^16.8.1:
   version "16.11.0"
   resolved "https://registry.yarnpkg.com/react-is/-/react-is-16.11.0.tgz#b85dfecd48ad1ce469ff558a882ca8e8313928fa"
@@ -6084,6 +6098,11 @@ regenerator-runtime@^0.13.2:
   resolved "https://registry.yarnpkg.com/regenerator-runtime/-/regenerator-runtime-0.13.3.tgz#7cf6a77d8f5c6f60eb73c5fc1955b2ceb01e6bf5"
   integrity sha512-naKIZz2GQ8JWh///G7L3X6LaQUAMp2lvb1rvwwsURe/VXwD6VMfr+/1NuNw3ag8v2kY1aQ/go5SNn79O9JU7yw==
 
+regenerator-runtime@^0.13.4:
+  version "0.13.5"
+  resolved "https://registry.yarnpkg.com/regenerator-runtime/-/regenerator-runtime-0.13.5.tgz#d878a1d094b4306d10b9096484b33ebd55e26697"
+  integrity sha512-ZS5w8CpKFinUzOwW3c83oPeVXoNsrLsaCoLtJvAClH135j/R77RuymhiSErhm2lKcwSCIpmvIWSbDkIfAqKQlA==
+
 regenerator-transform@^0.14.0:
   version "0.14.1"
   resolved "https://registry.yarnpkg.com/regenerator-transform/-/regenerator-transform-0.14.1.tgz#3b2fce4e1ab7732c08f665dfdb314749c7ddd2fb"