diff --git a/compiler/forget/src/HIR/HIR.ts b/compiler/forget/src/HIR/HIR.ts
index 661187ed90..b1ecd44d3f 100644
--- a/compiler/forget/src/HIR/HIR.ts
+++ b/compiler/forget/src/HIR/HIR.ts
@@ -987,6 +987,14 @@ export function isUseRefType(id: Identifier): boolean {
   return id.type.kind === "Object" && id.type.shapeId === "BuiltInUseRefId";
 }
 
+export function isUseStateType(id: Identifier): boolean {
+  return id.type.kind === "Object" && id.type.shapeId === "BuiltInUseState";
+}
+
+export function isSetStateType(id: Identifier): boolean {
+  return id.type.kind === "Function" && id.type.shapeId === "BuiltInSetState";
+}
+
 export function getHookKind(env: Environment, id: Identifier): HookKind | null {
   const idType = id.type;
   if (idType.kind === "Function") {
diff --git a/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts b/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
index af8b5b07d4..c90aeca7ae 100644
--- a/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
+++ b/compiler/forget/src/ReactiveScopes/PrintReactiveFunction.ts
@@ -18,6 +18,7 @@ import {
   printIdentifier,
   printInstructionValue,
   printPlace,
+  printType,
 } from "../HIR/PrintHIR";
 import { assertExhaustive } from "../Utils/utils";
 
@@ -59,7 +60,9 @@ export function printReactiveBlock(
 }
 
 function printDependency(dependency: ReactiveScopeDependency): string {
-  const identifier = printIdentifier(dependency.identifier);
+  const identifier =
+    printIdentifier(dependency.identifier) +
+    printType(dependency.identifier.type);
   return `${identifier}${dependency.path.map((prop) => `.${prop}`).join("")}`;
 }
 
diff --git a/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts b/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
index 91b7db4cf6..7a148515ff 100644
--- a/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
+++ b/compiler/forget/src/ReactiveScopes/PruneNonReactiveDependencies.ts
@@ -5,7 +5,12 @@
  * LICENSE file in the root directory of this source tree.
  */
 
-import { IdentifierId, ReactiveFunction, ReactiveScopeBlock } from "../HIR";
+import {
+  IdentifierId,
+  ReactiveFunction,
+  ReactiveScopeBlock,
+  isSetStateType,
+} from "../HIR";
 import { inferReactiveIdentifiers } from "./InferReactiveIdentifiers";
 import { ReactiveFunctionVisitor, visitReactiveFunction } from "./visitors";
 
@@ -26,7 +31,8 @@ class Visitor extends ReactiveFunctionVisitor<State> {
   override visitScope(scope: ReactiveScopeBlock, state: State): void {
     this.traverseScope(scope, state);
     for (const dep of scope.scope.dependencies) {
-      const isReactive = state.has(dep.identifier.id);
+      const isReactive =
+        state.has(dep.identifier.id) && !isSetStateType(dep.identifier);
       if (!isReactive) {
         scope.scope.dependencies.delete(dep);
       }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/concise-arrow-expr.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/concise-arrow-expr.expect.md
index 02c1ffe463..9f31cdb980 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/concise-arrow-expr.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/concise-arrow-expr.expect.md
@@ -15,26 +15,24 @@ function component() {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function component() {
-  const $ = useMemoCache(4);
+  const $ = useMemoCache(3);
   const [x, setX] = useState(0);
-  const c_0 = $[0] !== setX;
   let t0;
-  if (c_0) {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = (v) => setX(v);
-    $[0] = setX;
-    $[1] = t0;
+    $[0] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[0];
   }
   const handler = t0;
-  const c_2 = $[2] !== handler;
+  const c_1 = $[1] !== handler;
   let t1;
-  if (c_2) {
+  if (c_1) {
     t1 = <Foo handler={handler} />;
-    $[2] = handler;
-    $[3] = t1;
+    $[1] = handler;
+    $[2] = t1;
   } else {
-    t1 = $[3];
+    t1 = $[2];
   }
   return t1;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/controlled-input.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/controlled-input.expect.md
index 13c16778cb..ea7670d31d 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/controlled-input.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/controlled-input.expect.md
@@ -15,28 +15,26 @@ function component() {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function component() {
-  const $ = useMemoCache(5);
+  const $ = useMemoCache(4);
   const [x, setX] = useState(0);
-  const c_0 = $[0] !== setX;
   let t0;
-  if (c_0) {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = (event) => setX(event.target.value);
-    $[0] = setX;
-    $[1] = t0;
+    $[0] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[0];
   }
   const handler = t0;
-  const c_2 = $[2] !== handler;
-  const c_3 = $[3] !== x;
+  const c_1 = $[1] !== handler;
+  const c_2 = $[2] !== x;
   let t1;
-  if (c_2 || c_3) {
+  if (c_1 || c_2) {
     t1 = <input onChange={handler} value={x} />;
-    $[2] = handler;
-    $[3] = x;
-    $[4] = t1;
+    $[1] = handler;
+    $[2] = x;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/disable-jsx-memoization.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/disable-jsx-memoization.expect.md
index 02edc84ed3..9f4039d812 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/disable-jsx-memoization.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/disable-jsx-memoization.expect.md
@@ -22,18 +22,16 @@ function Component(props) {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react"; // @memoizeJsxElements false
 function Component(props) {
-  const $ = useMemoCache(2);
+  const $ = useMemoCache(1);
   const [name, setName] = useState(null);
-  const c_0 = $[0] !== setName;
   let t0;
-  if (c_0) {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = function (e) {
       setName(e.target.value);
     };
-    $[0] = setName;
-    $[1] = t0;
+    $[0] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[0];
   }
   const onChange = t0;
   return (
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/inadvertent-mutability-readonly-lambda.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/inadvertent-mutability-readonly-lambda.expect.md
index da12a92d08..22afe82a58 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/inadvertent-mutability-readonly-lambda.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/inadvertent-mutability-readonly-lambda.expect.md
@@ -23,29 +23,27 @@ function Component(props) {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function Component(props) {
-  const $ = useMemoCache(4);
+  const $ = useMemoCache(3);
   const [value, setValue] = useState(null);
-  const c_0 = $[0] !== setValue;
   let t0;
-  if (c_0) {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = (e) => setValue((value_0) => value_0 + e.target.value);
-    $[0] = setValue;
-    $[1] = t0;
+    $[0] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[0];
   }
   const onChange = t0;
 
   useOtherHook();
-  const c_2 = $[2] !== onChange;
+  const c_1 = $[1] !== onChange;
   let x;
-  if (c_2) {
+  if (c_1) {
     x = {};
     foo(x, onChange);
-    $[2] = onChange;
-    $[3] = x;
+    $[1] = onChange;
+    $[2] = x;
   } else {
-    x = $[3];
+    x = $[2];
   }
   return x;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/invalid-freeze-mutable-lambda.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/invalid-freeze-mutable-lambda.expect.md
index 41f4979204..b8762449c4 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/invalid-freeze-mutable-lambda.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/invalid-freeze-mutable-lambda.expect.md
@@ -19,7 +19,7 @@ function Component(props) {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function Component(props) {
-  const $ = useMemoCache(7);
+  const $ = useMemoCache(6);
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = { value: "" };
@@ -29,31 +29,29 @@ function Component(props) {
   }
   const [x, setX] = useState(t0);
   const c_1 = $[1] !== x;
-  const c_2 = $[2] !== setX;
   let t1;
-  if (c_1 || c_2) {
+  if (c_1) {
     t1 = (e) => {
       // INVALID! should use copy-on-write and pass the new value
       x.value = e.target.value;
       setX(x);
     };
     $[1] = x;
-    $[2] = setX;
-    $[3] = t1;
+    $[2] = t1;
   } else {
-    t1 = $[3];
+    t1 = $[2];
   }
   const onChange = t1;
-  const c_4 = $[4] !== x.value;
-  const c_5 = $[5] !== onChange;
+  const c_3 = $[3] !== x.value;
+  const c_4 = $[4] !== onChange;
   let t2;
-  if (c_4 || c_5) {
+  if (c_3 || c_4) {
     t2 = <input value={x.value} onChange={onChange} />;
-    $[4] = x.value;
-    $[5] = onChange;
-    $[6] = t2;
+    $[3] = x.value;
+    $[4] = onChange;
+    $[5] = t2;
   } else {
-    t2 = $[6];
+    t2 = $[5];
   }
   return t2;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/nested-function-shadowed-identifiers.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/nested-function-shadowed-identifiers.expect.md
index 31deb29cfe..920c0b9f38 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/nested-function-shadowed-identifiers.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/nested-function-shadowed-identifiers.expect.md
@@ -20,31 +20,29 @@ function Component(props) {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function Component(props) {
-  const $ = useMemoCache(5);
+  const $ = useMemoCache(4);
   const [x, setX] = useState(null);
-  const c_0 = $[0] !== setX;
   let t0;
-  if (c_0) {
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
     t0 = (e) => {
       let x_0 = null; // intentionally shadow the original x
       setX((currentX) => currentX + x_0); // intentionally refer to shadowed x
     };
-    $[0] = setX;
-    $[1] = t0;
+    $[0] = t0;
   } else {
-    t0 = $[1];
+    t0 = $[0];
   }
   const onChange = t0;
-  const c_2 = $[2] !== x;
-  const c_3 = $[3] !== onChange;
+  const c_1 = $[1] !== x;
+  const c_2 = $[2] !== onChange;
   let t1;
-  if (c_2 || c_3) {
+  if (c_1 || c_2) {
     t1 = <input value={x} onChange={onChange} />;
-    $[2] = x;
-    $[3] = onChange;
-    $[4] = t1;
+    $[1] = x;
+    $[2] = onChange;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }
diff --git a/compiler/forget/src/__tests__/fixtures/compiler/use-callback-simple.expect.md b/compiler/forget/src/__tests__/fixtures/compiler/use-callback-simple.expect.md
index feeca21b18..2d69ab396f 100644
--- a/compiler/forget/src/__tests__/fixtures/compiler/use-callback-simple.expect.md
+++ b/compiler/forget/src/__tests__/fixtures/compiler/use-callback-simple.expect.md
@@ -16,28 +16,26 @@ function component() {
 ```javascript
 import { unstable_useMemoCache as useMemoCache } from "react";
 function component() {
-  const $ = useMemoCache(5);
+  const $ = useMemoCache(4);
   const [count, setCount] = useState(0);
-  const c_0 = $[0] !== setCount;
-  const c_1 = $[1] !== count;
+  const c_0 = $[0] !== count;
   let t0;
-  if (c_0 || c_1) {
+  if (c_0) {
     t0 = () => setCount(count + 1);
-    $[0] = setCount;
-    $[1] = count;
-    $[2] = t0;
+    $[0] = count;
+    $[1] = t0;
   } else {
-    t0 = $[2];
+    t0 = $[1];
   }
   const increment = t0;
-  const c_3 = $[3] !== increment;
+  const c_2 = $[2] !== increment;
   let t1;
-  if (c_3) {
+  if (c_2) {
     t1 = <Foo onClick={increment} />;
-    $[3] = increment;
-    $[4] = t1;
+    $[2] = increment;
+    $[3] = t1;
   } else {
-    t1 = $[4];
+    t1 = $[3];
   }
   return t1;
 }