diff --git a/.changeset/stale-poets-walk.md b/.changeset/stale-poets-walk.md
new file mode 100644
index 0000000000..41afa2a274
--- /dev/null
+++ b/.changeset/stale-poets-walk.md
@@ -0,0 +1,5 @@
+---
+"rooks": patch
+---
+
+useLocalstorageState: ensure stable identity for set/remove functions
diff --git a/packages/rooks/src/__tests__/useLocalstorageState.spec.tsx b/packages/rooks/src/__tests__/useLocalstorageState.spec.tsx
index 94373c3e2c..b5f45be7d9 100644
--- a/packages/rooks/src/__tests__/useLocalstorageState.spec.tsx
+++ b/packages/rooks/src/__tests__/useLocalstorageState.spec.tsx
@@ -68,6 +68,20 @@ describe("useLocalstorageState basic", () => {
     const removeAfterRerender = result.current[2];
     expect(setBeforeRerender).toBe(setAfterRerender);
     expect(removeBeforeRerender).toBe(removeAfterRerender);
+    act(() => {
+      setBeforeRerender("next value");
+    });
+    const setAfterSet = result.current[1];
+    const removeAfterSet = result.current[2];
+    expect(setBeforeRerender).toBe(setAfterSet);
+    expect(removeBeforeRerender).toBe(removeAfterSet);
+    act(() => {
+      removeBeforeRerender();
+    });
+    const setAfterRemove = result.current[1];
+    const removeAfterRemove = result.current[2];
+    expect(setBeforeRerender).toBe(setAfterRemove);
+    expect(removeBeforeRerender).toBe(removeAfterRemove);
   });
 
   it("initializes correctly", () => {
diff --git a/packages/rooks/src/hooks/useLocalstorageState.ts b/packages/rooks/src/hooks/useLocalstorageState.ts
index d69ac36a00..7f63ddab3e 100644
--- a/packages/rooks/src/hooks/useLocalstorageState.ts
+++ b/packages/rooks/src/hooks/useLocalstorageState.ts
@@ -1,5 +1,6 @@
 import type { Dispatch, SetStateAction } from "react";
 import { useMemo, useState, useEffect, useCallback, useRef } from "react";
+import { useFreshRef } from "./useFreshRef";
 
 // Gets value from localstorage
 function getValueFromLocalStorage(key: string) {
@@ -174,18 +175,20 @@ function useLocalstorageState<S>(
     [customEventTypeName]
   );
 
+  const currentValue = useFreshRef(value, true);
+
   const set = useCallback(
     (newValue: SetStateAction<S>) => {
       const resolvedNewValue =
         typeof newValue === "function"
-          ? (newValue as (prevState: S) => S)(value)
+          ? (newValue as (prevState: S) => S)(currentValue.current)
           : newValue;
       isUpdateFromCrossDocumentListener.current = false;
       isUpdateFromWithinDocumentListener.current = false;
       setValue(resolvedNewValue);
       broadcastValueWithinDocument(resolvedNewValue);
     },
-    [broadcastValueWithinDocument, value]
+    [broadcastValueWithinDocument, currentValue]
   );
 
   const remove = useCallback(() => {