diff --git a/code/lib/store/template/stories/rendering.stories.ts b/code/lib/store/template/stories/rendering.stories.ts
index 395d94ea4424..71e2f1a025cd 100644
--- a/code/lib/store/template/stories/rendering.stories.ts
+++ b/code/lib/store/template/stories/rendering.stories.ts
@@ -9,14 +9,14 @@ export default {
     label: 'Click me',
   },
 };
-
+// this is the story should be remove it will always fail, because forceReRender Api is removed in V7
 export const ForceReRender = {
   play: async ({ canvasElement }: PlayFunctionContext<any>) => {
     const channel = globalThis.__STORYBOOK_ADDONS_CHANNEL__;
     const button = await within(canvasElement).findByRole('button');
     await button.focus();
     await expect(button).toHaveFocus();
-
+    //  forceRender is not called in V7
     // By forcing the component to rerender, we reset the focus state
     await channel.emit('forceReRender');
     await waitFor(() => expect(button).not.toHaveFocus());
diff --git a/code/renderers/vue3/src/render.ts b/code/renderers/vue3/src/render.ts
index 2af91f011291..0f4b72d12e25 100644
--- a/code/renderers/vue3/src/render.ts
+++ b/code/renderers/vue3/src/render.ts
@@ -1,5 +1,6 @@
+/* eslint-disable no-param-reassign */
 import { dedent } from 'ts-dedent';
-import { createApp, h } from 'vue';
+import { createApp, h, reactive } from 'vue';
 import type { RenderContext, ArgsStoryFn } from '@storybook/types';
 
 import type { Args, StoryContext } from '@storybook/csf';
@@ -21,26 +22,27 @@ export const setup = (fn: (app: any) => void) => {
   setupFunction = fn;
 };
 
-const map = new Map<VueRenderer['canvasElement'], ReturnType<typeof createApp>>();
+const map = new Map<
+  VueRenderer['canvasElement'],
+  { vueApp: ReturnType<typeof createApp>; reactiveArgs: any }
+>();
 
 export function renderToCanvas(
-  { title, name, storyFn, showMain, showError, showException }: RenderContext<VueRenderer>,
+  {
+    storyFn,
+    name,
+    showMain,
+    showError,
+    showException,
+    id,
+    title,
+    forceRemount,
+    storyContext,
+  }: RenderContext<VueRenderer>,
   canvasElement: VueRenderer['canvasElement']
 ) {
   // TODO: explain cyclical nature of these app => story => mount
-  let element: StoryFnVueReturnType;
-  const storybookApp = createApp({
-    unmounted() {
-      map.delete(canvasElement);
-    },
-    render() {
-      map.set(canvasElement, storybookApp);
-      setupFunction(storybookApp);
-      return h(element);
-    },
-  });
-  storybookApp.config.errorHandler = (e: unknown) => showException(e as Error);
-  element = storyFn();
+  const element: StoryFnVueReturnType = storyFn();
 
   if (!element) {
     showError({
@@ -50,15 +52,38 @@ export function renderToCanvas(
       Use "() => ({ template: '<my-comp></my-comp>' })" or "() => ({ components: MyComp, template: '<my-comp></my-comp>' })" when defining the story.
       `,
     });
-    return;
+    return () => {};
   }
 
-  showMain();
+  const storyArgs = element.props || (element as any).render?.().props || storyContext.args || {};
 
-  map.get(canvasElement)?.unmount();
+  const existingApp = map.get(canvasElement);
+
+  if (existingApp && !forceRemount) {
+    updateArgs(existingApp.reactiveArgs, storyArgs);
+    return () => {
+      teardown(existingApp.vueApp, canvasElement);
+    };
+  }
+
+  const reactiveArgs = reactive(storyArgs) as Args;
+  const storybookApp = createApp({
+    render() {
+      map.set(canvasElement, { vueApp: storybookApp, reactiveArgs });
+      return h(element, reactiveArgs);
+    },
+  });
 
+  storybookApp.config.errorHandler = (e: unknown) => showException(e as Error);
+  setupFunction(storybookApp);
   storybookApp.mount(canvasElement);
+
+  showMain();
+  return () => {
+    teardown(storybookApp, canvasElement);
+  };
 }
+
 /**
  * get the slots as functions to be rendered
  * @param props
@@ -73,3 +98,25 @@ function getSlots(props: Args, context: StoryContext<VueRenderer, Args>) {
 
   return Object.fromEntries(slots);
 }
+
+/**
+ *  update the reactive args
+ * @param reactiveArgs
+ * @param nextArgs
+ * @returns
+ */
+function updateArgs(reactiveArgs: Args, nextArgs: Args) {
+  if (!nextArgs) return;
+  Object.keys(reactiveArgs).forEach((key) => {
+    delete reactiveArgs[key];
+  });
+  Object.assign(reactiveArgs, nextArgs);
+}
+
+function teardown(
+  storybookApp: ReturnType<typeof createApp>,
+  canvasElement: VueRenderer['canvasElement']
+) {
+  storybookApp?.unmount();
+  if (map.has(canvasElement)) map.delete(canvasElement);
+}
diff --git a/code/renderers/vue3/template/stories/ReactiveArgs.stories.js b/code/renderers/vue3/template/stories/ReactiveArgs.stories.js
new file mode 100644
index 000000000000..2aa7cc555eda
--- /dev/null
+++ b/code/renderers/vue3/template/stories/ReactiveArgs.stories.js
@@ -0,0 +1,44 @@
+import { expect } from '@storybook/jest';
+import { global as globalThis } from '@storybook/global';
+import { within, userEvent } from '@storybook/testing-library';
+import { UPDATE_STORY_ARGS, STORY_ARGS_UPDATED, RESET_STORY_ARGS } from '@storybook/core-events';
+import ReactiveArgs from './ReactiveArgs.vue';
+
+export default {
+  component: ReactiveArgs,
+  argTypes: {
+    // To show that other props are passed through
+    backgroundColor: { control: 'color' },
+  },
+};
+
+export const ReactiveTest = {
+  args: {
+    label: 'Button',
+  },
+  // test that args are updated correctly in rective mode
+  play: async ({ canvasElement, id }) => {
+    const channel = globalThis.__STORYBOOK_ADDONS_CHANNEL__;
+    const canvas = within(canvasElement);
+
+    await channel.emit(RESET_STORY_ARGS, { storyId: id });
+    await new Promise((resolve) => {
+      channel.once(STORY_ARGS_UPDATED, resolve);
+    });
+    const reactiveButton = await canvas.getByRole('button');
+    await expect(reactiveButton).toHaveTextContent('Button 0');
+
+    await userEvent.click(reactiveButton); // click to update the label to increment the count + 1
+    await channel.emit(UPDATE_STORY_ARGS, {
+      storyId: id,
+      updatedArgs: { label: 'updated' },
+    });
+    await new Promise((resolve) => {
+      channel.once(STORY_ARGS_UPDATED, resolve);
+    });
+    await expect(canvas.getByRole('button')).toHaveTextContent('updated 1');
+
+    await userEvent.click(reactiveButton); // click to update the label to increment the count + 1
+    await expect(reactiveButton).toHaveTextContent('updated 2');
+  },
+};
diff --git a/code/renderers/vue3/template/stories/ReactiveArgs.vue b/code/renderers/vue3/template/stories/ReactiveArgs.vue
new file mode 100644
index 000000000000..ebf97a55cb73
--- /dev/null
+++ b/code/renderers/vue3/template/stories/ReactiveArgs.vue
@@ -0,0 +1,40 @@
+<template>
+  <button type="button" @click="onClick" :class="classes" :style="style">{{ label }} {{ counter }}</button>
+</template>
+
+<script lang="ts">
+import { computed, ref } from 'vue';
+
+export default {
+  name: 'reactive-args',
+
+  props: {
+    label: {
+      type: String,
+    },
+
+    backgroundColor: {
+      type: String
+    },
+  },
+
+  setup(props, { emit }) {
+    const classes = {
+      'storybook-button': true,
+      'storybook-button--primary': true,
+      'storybook-button--large': true,
+    };
+    const style = computed(() => ({
+      backgroundColor: props.backgroundColor,
+    }));
+    const counter = ref(0);
+    const onClick = () => {
+      emit('click', 1);
+      counter.value += 1;
+    };
+
+    // Notice that `icon` prop component is still passed through even though it isn't mapped
+    return { classes, style, counter, onClick }
+  },
+};
+</script>