diff --git a/packages/compose/src/hooks/use-instance-id/index.ts b/packages/compose/src/hooks/use-instance-id/index.ts
index 12f71361cacb5..8f21c9657e8fa 100644
--- a/packages/compose/src/hooks/use-instance-id/index.ts
+++ b/packages/compose/src/hooks/use-instance-id/index.ts
@@ -55,7 +55,7 @@ function useInstanceId(
 		const id = createId( object );
 
 		return prefix ? `${ prefix }-${ id }` : id;
-	}, [ object ] );
+	}, [ object, preferredId, prefix ] );
 }
 
 export default useInstanceId;