diff --git a/packages/react-reconciler/src/ReactFiberBeginWork.js b/packages/react-reconciler/src/ReactFiberBeginWork.js
index 9db5886a6c2b4..75ec89d469522 100644
--- a/packages/react-reconciler/src/ReactFiberBeginWork.js
+++ b/packages/react-reconciler/src/ReactFiberBeginWork.js
@@ -523,6 +523,20 @@ function updateSimpleMemoComponent(
     ) {
       didReceiveUpdate = false;
       if (updateExpirationTime < renderExpirationTime) {
+        // The pending update priority was cleared at the beginning of
+        // beginWork. We're about to bail out, but there might be additional
+        // updates at a lower priority. Usually, the priority level of the
+        // remaining updates is accumlated during the evaluation of the
+        // component (i.e. when processing the update queue). But since since
+        // we're bailing out early *without* evaluating the component, we need
+        // to account for it here, too. Reset to the value of the current fiber.
+        // NOTE: This only applies to SimpleMemoComponent, not MemoComponent,
+        // because a MemoComponent fiber does not have hooks or an update queue;
+        // rather, it wraps around an inner component, which may or may not
+        // contains hooks.
+        // TODO: Move the reset at in beginWork out of the common path so that
+        // this is no longer necessary.
+        workInProgress.expirationTime = current.expirationTime;
         return bailoutOnAlreadyFinishedWork(
           current,
           workInProgress,
@@ -3103,7 +3117,11 @@ function beginWork(
     didReceiveUpdate = false;
   }
 
-  // Before entering the begin phase, clear the expiration time.
+  // Before entering the begin phase, clear pending update priority.
+  // TODO: This assumes that we're about to evaluate the component and process
+  // the update queue. However, there's an exception: SimpleMemoComponent
+  // sometimes bails out later in the begin phase. This indicates that we should
+  // move this assignment out of the common path and into each branch.
   workInProgress.expirationTime = NoWork;
 
   switch (workInProgress.tag) {
diff --git a/packages/react-reconciler/src/__tests__/ReactMemo-test.internal.js b/packages/react-reconciler/src/__tests__/ReactMemo-test.internal.js
index 25d4ac83a9afc..88a5a1b759a9b 100644
--- a/packages/react-reconciler/src/__tests__/ReactMemo-test.internal.js
+++ b/packages/react-reconciler/src/__tests__/ReactMemo-test.internal.js
@@ -419,6 +419,75 @@ describe('memo', () => {
           'Invalid prop `inner` of type `boolean` supplied to `Inner`, expected `number`.',
         ]);
       });
+
+      it('does not drop lower priority state updates when bailing out at higher pri (simple)', async () => {
+        const {useState} = React;
+
+        let setCounter;
+        const Counter = memo(() => {
+          const [counter, _setCounter] = useState(0);
+          setCounter = _setCounter;
+          return counter;
+        });
+
+        function App() {
+          return (
+            <Suspense fallback="Loading...">
+              <Counter />
+            </Suspense>
+          );
+        }
+
+        const root = ReactNoop.createRoot();
+        await ReactNoop.act(async () => {
+          root.render(<App />);
+        });
+        expect(root).toMatchRenderedOutput('0');
+
+        await ReactNoop.act(async () => {
+          setCounter(1);
+          ReactNoop.discreteUpdates(() => {
+            root.render(<App />);
+          });
+        });
+        expect(root).toMatchRenderedOutput('1');
+      });
+
+      it('does not drop lower priority state updates when bailing out at higher pri (complex)', async () => {
+        const {useState} = React;
+
+        let setCounter;
+        const Counter = memo(
+          () => {
+            const [counter, _setCounter] = useState(0);
+            setCounter = _setCounter;
+            return counter;
+          },
+          (a, b) => a.complexProp.val === b.complexProp.val,
+        );
+
+        function App() {
+          return (
+            <Suspense fallback="Loading...">
+              <Counter complexProp={{val: 1}} />
+            </Suspense>
+          );
+        }
+
+        const root = ReactNoop.createRoot();
+        await ReactNoop.act(async () => {
+          root.render(<App />);
+        });
+        expect(root).toMatchRenderedOutput('0');
+
+        await ReactNoop.act(async () => {
+          setCounter(1);
+          ReactNoop.discreteUpdates(() => {
+            root.render(<App />);
+          });
+        });
+        expect(root).toMatchRenderedOutput('1');
+      });
     });
   }
 });