diff --git a/packages/react-native-renderer/src/__tests__/ReactFabric-test.internal.js b/packages/react-native-renderer/src/__tests__/ReactFabric-test.internal.js
index 644d7297403..9fbec9f5b04 100644
--- a/packages/react-native-renderer/src/__tests__/ReactFabric-test.internal.js
+++ b/packages/react-native-renderer/src/__tests__/ReactFabric-test.internal.js
@@ -273,6 +273,46 @@ describe('ReactFabric', () => {
     expect(nativeFabricUIManager.completeRoot).toBeCalled();
   });
 
+  it('should not clone nodes when layout effects are used', async () => {
+    const View = createReactNativeComponentClass('RCTView', () => ({
+      validAttributes: {foo: true},
+      uiViewClassName: 'RCTView',
+    }));
+
+    const ComponentWithEffect = () => {
+      // Same thing happens with `ref` and `useImperativeHandle`
+      React.useLayoutEffect(() => {});
+      return null;
+    };
+
+    await act(() =>
+      ReactFabric.render(
+        <View>
+          <ComponentWithEffect />
+        </View>,
+        11,
+      ),
+    );
+    expect(nativeFabricUIManager.completeRoot).toBeCalled();
+    jest.clearAllMocks();
+
+    await act(() =>
+      ReactFabric.render(
+        <View>
+          <ComponentWithEffect />
+        </View>,
+        11,
+      ),
+    );
+    expect(nativeFabricUIManager.cloneNode).not.toBeCalled();
+    expect(nativeFabricUIManager.cloneNodeWithNewChildren).not.toBeCalled();
+    expect(nativeFabricUIManager.cloneNodeWithNewProps).not.toBeCalled();
+    expect(
+      nativeFabricUIManager.cloneNodeWithNewChildrenAndProps,
+    ).not.toBeCalled();
+    expect(nativeFabricUIManager.completeRoot).not.toBeCalled();
+  });
+
   it('should call dispatchCommand for native refs', async () => {
     const View = createReactNativeComponentClass('RCTView', () => ({
       validAttributes: {foo: true},
diff --git a/packages/react-reconciler/src/ReactFiberCommitWork.js b/packages/react-reconciler/src/ReactFiberCommitWork.js
index 73889d8b818..c383f4acaab 100644
--- a/packages/react-reconciler/src/ReactFiberCommitWork.js
+++ b/packages/react-reconciler/src/ReactFiberCommitWork.js
@@ -97,6 +97,7 @@ import {
   Visibility,
   ShouldSuspendCommit,
   MaySuspendCommit,
+  Effect,
 } from './ReactFiberFlags';
 import getComponentNameFromFiber from 'react-reconciler/src/getComponentNameFromFiber';
 import {
@@ -1062,7 +1063,7 @@ function commitLayoutEffectOnFiber(
         finishedWork,
         committedLanes,
       );
-      if (flags & Update) {
+      if (flags & Effect) {
         commitHookLayoutEffects(finishedWork, HookLayout | HookHasEffect);
       }
       break;
@@ -2525,7 +2526,7 @@ function recursivelyTraverseMutationEffects(
   }
 
   const prevDebugFiber = getCurrentDebugFiberInDEV();
-  if (parentFiber.subtreeFlags & MutationMask) {
+  if (parentFiber.subtreeFlags & (MutationMask | Effect)) {
     let child = parentFiber.child;
     while (child !== null) {
       setCurrentDebugFiberInDEV(child);
diff --git a/packages/react-reconciler/src/ReactFiberFlags.js b/packages/react-reconciler/src/ReactFiberFlags.js
index 5febfa3d528..92f40d0ffd4 100644
--- a/packages/react-reconciler/src/ReactFiberFlags.js
+++ b/packages/react-reconciler/src/ReactFiberFlags.js
@@ -19,7 +19,24 @@ export const DidCapture = /*                   */ 0b0000000000000000000010000000
 export const Hydrating = /*                    */ 0b0000000000000001000000000000;
 
 // You can change the rest (and add more).
-export const Update = /*                       */ 0b0000000000000000000000000100;
+
+/**
+ * Work needs to be performed on host components, such as updating props.
+ */
+export const HostComponentUpdate = /*          */ 0b0000000000000000000000000100;
+
+/**
+ * Indicates presence of effects (e.g. InsertionEffect, LayoutEffect)
+ */
+export const Effect = /*                      */ 0b10000000000000000000000000000;
+
+/**
+ * One of the two flags.
+ *
+ * @deprecated Should use the more specific flag to allow us to bail out in more cases.
+ */
+export const Update = HostComponentUpdate | Effect;
+
 /* Skipped value:                                 0b0000000000000000000000001000; */
 
 export const ChildDeletion = /*                */ 0b0000000000000000000000010000;
@@ -33,6 +50,9 @@ export const Snapshot = /*                     */ 0b0000000000000000010000000000
 export const Passive = /*                      */ 0b0000000000000000100000000000;
 /* Used by Hydrating:                             0b0000000000000001000000000000; */
 
+/**
+ * Set when the visibility state of Activity/LegacyHidden changed.
+ */
 export const Visibility = /*                   */ 0b0000000000000010000000000000;
 export const StoreConsistency = /*             */ 0b0000000000000100000000000000;
 
@@ -89,7 +109,7 @@ export const BeforeMutationMask: number =
 
 export const MutationMask =
   Placement |
-  Update |
+  HostComponentUpdate |
   ChildDeletion |
   ContentReset |
   Ref |
diff --git a/packages/react-reconciler/src/ReactFiberHooks.js b/packages/react-reconciler/src/ReactFiberHooks.js
index d2c456a5f9c..48a3a376f45 100644
--- a/packages/react-reconciler/src/ReactFiberHooks.js
+++ b/packages/react-reconciler/src/ReactFiberHooks.js
@@ -85,10 +85,10 @@ import {
   Passive as PassiveEffect,
   PassiveStatic as PassiveStaticEffect,
   StaticMask as StaticMaskEffect,
-  Update as UpdateEffect,
   StoreConsistency,
   MountLayoutDev as MountLayoutDevEffect,
   MountPassiveDev as MountPassiveDevEffect,
+  Effect as EffectEffect,
 } from './ReactFiberFlags';
 import {
   HasEffect as HookHasEffect,
@@ -883,10 +883,10 @@ export function bailoutHooks(
       MountPassiveDevEffect |
       MountLayoutDevEffect |
       PassiveEffect |
-      UpdateEffect
+      EffectEffect
     );
   } else {
-    workInProgress.flags &= ~(PassiveEffect | UpdateEffect);
+    workInProgress.flags &= ~(PassiveEffect | EffectEffect);
   }
   current.lanes = removeLanes(current.lanes, lanes);
 }
@@ -2398,7 +2398,7 @@ function updateEffect(
 function useEffectEventImpl<Args, Return, F: (...Array<Args>) => Return>(
   payload: EventFunctionPayload<Args, Return, F>,
 ) {
-  currentlyRenderingFiber.flags |= UpdateEffect;
+  currentlyRenderingFiber.flags |= EffectEffect;
   let componentUpdateQueue: null | FunctionComponentUpdateQueue =
     (currentlyRenderingFiber.updateQueue: any);
   if (componentUpdateQueue === null) {
@@ -2453,21 +2453,21 @@ function mountInsertionEffect(
   create: () => (() => void) | void,
   deps: Array<mixed> | void | null,
 ): void {
-  mountEffectImpl(UpdateEffect, HookInsertion, create, deps);
+  mountEffectImpl(EffectEffect, HookInsertion, create, deps);
 }
 
 function updateInsertionEffect(
   create: () => (() => void) | void,
   deps: Array<mixed> | void | null,
 ): void {
-  return updateEffectImpl(UpdateEffect, HookInsertion, create, deps);
+  return updateEffectImpl(EffectEffect, HookInsertion, create, deps);
 }
 
 function mountLayoutEffect(
   create: () => (() => void) | void,
   deps: Array<mixed> | void | null,
 ): void {
-  let fiberFlags: Flags = UpdateEffect | LayoutStaticEffect;
+  let fiberFlags: Flags = EffectEffect | LayoutStaticEffect;
   if (
     __DEV__ &&
     (currentlyRenderingFiber.mode & StrictEffectsMode) !== NoMode
@@ -2481,7 +2481,7 @@ function updateLayoutEffect(
   create: () => (() => void) | void,
   deps: Array<mixed> | void | null,
 ): void {
-  return updateEffectImpl(UpdateEffect, HookLayout, create, deps);
+  return updateEffectImpl(EffectEffect, HookLayout, create, deps);
 }
 
 function imperativeHandleEffect<T>(
@@ -2533,7 +2533,7 @@ function mountImperativeHandle<T>(
   const effectDeps =
     deps !== null && deps !== undefined ? deps.concat([ref]) : null;
 
-  let fiberFlags: Flags = UpdateEffect | LayoutStaticEffect;
+  let fiberFlags: Flags = EffectEffect | LayoutStaticEffect;
   if (
     __DEV__ &&
     (currentlyRenderingFiber.mode & StrictEffectsMode) !== NoMode
@@ -2568,7 +2568,7 @@ function updateImperativeHandle<T>(
     deps !== null && deps !== undefined ? deps.concat([ref]) : null;
 
   updateEffectImpl(
-    UpdateEffect,
+    EffectEffect,
     HookLayout,
     imperativeHandleEffect.bind(null, create, ref),
     effectDeps,
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.js b/packages/react-reconciler/src/ReactFiberWorkLoop.js
index cb217d04eba..57b5dc1a350 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.js
@@ -124,6 +124,7 @@ import {
   Visibility,
   MountPassiveDev,
   MountLayoutDev,
+  Effect,
 } from './ReactFiberFlags';
 import {
   NoLanes,
@@ -2745,11 +2746,19 @@ function commitRootImpl(
   // Reconsider whether this is necessary.
   const subtreeHasEffects =
     (finishedWork.subtreeFlags &
-      (BeforeMutationMask | MutationMask | LayoutMask | PassiveMask)) !==
+      (BeforeMutationMask |
+        MutationMask |
+        Effect |
+        LayoutMask |
+        PassiveMask)) !==
     NoFlags;
   const rootHasEffect =
     (finishedWork.flags &
-      (BeforeMutationMask | MutationMask | LayoutMask | PassiveMask)) !==
+      (BeforeMutationMask |
+        MutationMask |
+        Effect |
+        LayoutMask |
+        PassiveMask)) !==
     NoFlags;
 
   if (subtreeHasEffects || rootHasEffect) {