diff --git a/packages/react-reconciler/src/ReactFiberBeginWork.js b/packages/react-reconciler/src/ReactFiberBeginWork.js
index ef947a15a33e2..47b5957128934 100644
--- a/packages/react-reconciler/src/ReactFiberBeginWork.js
+++ b/packages/react-reconciler/src/ReactFiberBeginWork.js
@@ -1168,18 +1168,13 @@ export function replayFunctionComponent(
   workInProgress: Fiber,
   nextProps: any,
   Component: any,
+  secondArg: any,
   renderLanes: Lanes,
 ): Fiber | null {
   // This function is used to replay a component that previously suspended,
   // after its data resolves. It's a simplified version of
   // updateFunctionComponent that reuses the hooks from the previous attempt.
 
-  let context;
-  if (!disableLegacyContext) {
-    const unmaskedContext = getUnmaskedContext(workInProgress, Component, true);
-    context = getMaskedContext(workInProgress, unmaskedContext);
-  }
-
   prepareToReadContext(workInProgress, renderLanes);
   if (enableSchedulingProfiler) {
     markComponentRenderStarted(workInProgress);
@@ -1189,7 +1184,7 @@ export function replayFunctionComponent(
     workInProgress,
     Component,
     nextProps,
-    context,
+    secondArg,
   );
   const hasId = checkDidRenderIdHook();
   if (enableSchedulingProfiler) {
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.js b/packages/react-reconciler/src/ReactFiberWorkLoop.js
index 292cad9d0735e..f9c7d1fa61678 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.js
@@ -39,6 +39,7 @@ import {
   enableTransitionTracing,
   useModernStrictMode,
   revertRemovalOfSiblingPrerendering,
+  disableLegacyContext,
 } from 'shared/ReactFeatureFlags';
 import ReactSharedInternals from 'shared/ReactSharedInternals';
 import is from 'shared/objectIs';
@@ -281,6 +282,7 @@ import {
   flushSyncWorkOnLegacyRootsOnly,
   getContinuationForRoot,
 } from './ReactFiberRootScheduler';
+import {getMaskedContext, getUnmaskedContext} from './ReactFiberContext';
 
 const ceil = Math.ceil;
 
@@ -2379,8 +2381,8 @@ function replaySuspendedUnitOfWork(unitOfWork: Fiber): void {
       // Fallthrough to the next branch.
     }
     // eslint-disable-next-line no-fallthrough
-    case FunctionComponent:
-    case ForwardRef: {
+    case SimpleMemoComponent:
+    case FunctionComponent: {
       // Resolve `defaultProps`. This logic is copied from `beginWork`.
       // TODO: Consider moving this switch statement into that module. Also,
       // could maybe use this as an opportunity to say `use` doesn't work with
@@ -2391,23 +2393,39 @@ function replaySuspendedUnitOfWork(unitOfWork: Fiber): void {
         unitOfWork.elementType === Component
           ? unresolvedProps
           : resolveDefaultProps(Component, unresolvedProps);
+      let context: any;
+      if (!disableLegacyContext) {
+        const unmaskedContext = getUnmaskedContext(unitOfWork, Component, true);
+        context = getMaskedContext(unitOfWork, unmaskedContext);
+      }
       next = replayFunctionComponent(
         current,
         unitOfWork,
         resolvedProps,
         Component,
+        context,
         workInProgressRootRenderLanes,
       );
       break;
     }
-    case SimpleMemoComponent: {
-      const Component = unitOfWork.type;
-      const nextProps = unitOfWork.pendingProps;
+    case ForwardRef: {
+      // Resolve `defaultProps`. This logic is copied from `beginWork`.
+      // TODO: Consider moving this switch statement into that module. Also,
+      // could maybe use this as an opportunity to say `use` doesn't work with
+      // `defaultProps` :)
+      const Component = unitOfWork.type.render;
+      const unresolvedProps = unitOfWork.pendingProps;
+      const resolvedProps =
+        unitOfWork.elementType === Component
+          ? unresolvedProps
+          : resolveDefaultProps(Component, unresolvedProps);
+
       next = replayFunctionComponent(
         current,
         unitOfWork,
-        nextProps,
+        resolvedProps,
         Component,
+        unitOfWork.ref,
         workInProgressRootRenderLanes,
       );
       break;
diff --git a/packages/react-reconciler/src/__tests__/ReactUse-test.js b/packages/react-reconciler/src/__tests__/ReactUse-test.js
index 86bb586ec5829..ec3b86acb1cda 100644
--- a/packages/react-reconciler/src/__tests__/ReactUse-test.js
+++ b/packages/react-reconciler/src/__tests__/ReactUse-test.js
@@ -1472,4 +1472,132 @@ describe('ReactUse', () => {
     assertLog(['Hi']);
     expect(root).toMatchRenderedOutput('Hi');
   });
+
+  test('unwrap uncached promises inside forwardRef', async () => {
+    const asyncInstance = {};
+    const Async = React.forwardRef((props, ref) => {
+      React.useImperativeHandle(ref, () => asyncInstance);
+      const text = use(Promise.resolve('Async'));
+      return <Text text={text} />;
+    });
+
+    const ref = React.createRef();
+    function App() {
+      return (
+        <Suspense fallback={<Text text="Loading..." />}>
+          <Async ref={ref} />
+        </Suspense>
+      );
+    }
+
+    const root = ReactNoop.createRoot();
+    await act(() => {
+      startTransition(() => {
+        root.render(<App />);
+      });
+    });
+    assertLog(['Async']);
+    expect(root).toMatchRenderedOutput('Async');
+    expect(ref.current).toBe(asyncInstance);
+  });
+
+  test('unwrap uncached promises inside memo', async () => {
+    const Async = React.memo(
+      props => {
+        const text = use(Promise.resolve(props.text));
+        return <Text text={text} />;
+      },
+      (a, b) => a.text === b.text,
+    );
+
+    function App({text}) {
+      return (
+        <Suspense fallback={<Text text="Loading..." />}>
+          <Async text={text} />
+        </Suspense>
+      );
+    }
+
+    const root = ReactNoop.createRoot();
+    await act(() => {
+      startTransition(() => {
+        root.render(<App text="Async" />);
+      });
+    });
+    assertLog(['Async']);
+    expect(root).toMatchRenderedOutput('Async');
+
+    // Update to the same value
+    await act(() => {
+      startTransition(() => {
+        root.render(<App text="Async" />);
+      });
+    });
+    // Should not have re-rendered, because it's memoized
+    assertLog([]);
+    expect(root).toMatchRenderedOutput('Async');
+
+    // Update to a different value
+    await act(() => {
+      startTransition(() => {
+        root.render(<App text="Async!" />);
+      });
+    });
+    assertLog(['Async!']);
+    expect(root).toMatchRenderedOutput('Async!');
+  });
+
+  // @gate !disableLegacyContext
+  test('unwrap uncached promises in component that accesses legacy context', async () => {
+    class ContextProvider extends React.Component {
+      static childContextTypes = {
+        legacyContext() {},
+      };
+      getChildContext() {
+        return {legacyContext: 'Async'};
+      }
+      render() {
+        return this.props.children;
+      }
+    }
+
+    function Async({label}, context) {
+      const text = use(Promise.resolve(context.legacyContext + ` (${label})`));
+      return <Text text={text} />;
+    }
+    Async.contextTypes = {
+      legacyContext: () => {},
+    };
+
+    const AsyncMemo = React.memo(Async, (a, b) => a.label === b.label);
+
+    function App() {
+      return (
+        <ContextProvider>
+          <Suspense fallback={<Text text="Loading..." />}>
+            <div>
+              <Async label="function component" />
+            </div>
+            <div>
+              <AsyncMemo label="memo component" />
+            </div>
+          </Suspense>
+        </ContextProvider>
+      );
+    }
+
+    const root = ReactNoop.createRoot();
+    await act(() => {
+      startTransition(() => {
+        root.render(<App />);
+      });
+    });
+    assertLog(['Async (function component)', 'Async (memo component)']);
+    expect(root).toMatchRenderedOutput(
+      <>
+        <div>Async (function component)</div>
+        <div>Async (memo component)</div>
+      </>,
+    );
+  });
 });