diff --git a/packages/nuxt/src/app/composables/asyncData.ts b/packages/nuxt/src/app/composables/asyncData.ts
index d4ac4e49ec3d..b7c401aaa3d6 100644
--- a/packages/nuxt/src/app/composables/asyncData.ts
+++ b/packages/nuxt/src/app/composables/asyncData.ts
@@ -135,7 +135,7 @@ export function useAsyncData<
       (nuxt._asyncDataPromises[key] as any).cancelled = true
     }
     // Avoid fetching same key that is already fetched
-    if (opts._initial && hasCachedData()) {
+    if ((opts._initial || (nuxt.isHydrating && opts._initial !== false)) && hasCachedData()) {
       return getCachedData()
     }
     asyncData.pending.value = true
diff --git a/test/fixtures/basic/pages/useAsyncData/override.vue b/test/fixtures/basic/pages/useAsyncData/override.vue
index 3d0328c43ec6..891f0339c8c5 100644
--- a/test/fixtures/basic/pages/useAsyncData/override.vue
+++ b/test/fixtures/basic/pages/useAsyncData/override.vue
@@ -15,14 +15,14 @@ if (count || data.value !== 1) {
 }
 
 timeout = 100
-const p = refresh({ dedupe: true })
+const p = refresh({ dedupe: true, _initial: false })
 
 if (process.client && (count !== 0 || data.value !== 1)) {
   throw new Error('count should start at 0')
 }
 
 timeout = 0
-await refresh()
+await refresh({ _initial: false })
 
 if (process.client && (count !== 1 || data.value !== 1)) {
   throw new Error('override should execute')