diff --git a/compat/src/index.d.ts b/compat/src/index.d.ts
index 45b7a177de..eaf108fee1 100644
--- a/compat/src/index.d.ts
+++ b/compat/src/index.d.ts
@@ -24,6 +24,7 @@ declare namespace React {
 	export import useDebugValue = _hooks.useDebugValue;
 	export import useEffect = _hooks.useEffect;
 	export import useImperativeHandle = _hooks.useImperativeHandle;
+	export import useId = _hooks.useId;
 	export import useLayoutEffect = _hooks.useLayoutEffect;
 	export import useMemo = _hooks.useMemo;
 	export import useReducer = _hooks.useReducer;
diff --git a/compat/src/index.js b/compat/src/index.js
index 49c67a7aa8..6b9988951c 100644
--- a/compat/src/index.js
+++ b/compat/src/index.js
@@ -9,6 +9,7 @@ import {
 } from 'preact';
 import {
 	useState,
+	useId,
 	useReducer,
 	useEffect,
 	useLayoutEffect,
@@ -201,6 +202,7 @@ export {
 // React copies the named exports to the default one.
 export default {
 	useState,
+	useId,
 	useReducer,
 	useEffect,
 	useLayoutEffect,
diff --git a/hooks/src/index.d.ts b/hooks/src/index.d.ts
index 72322bd434..dfec612eaa 100644
--- a/hooks/src/index.d.ts
+++ b/hooks/src/index.d.ts
@@ -137,3 +137,5 @@ export function useDebugValue<T>(value: T, formatter?: (value: T) => any): void;
 export function useErrorBoundary(
 	callback?: (error: any, errorInfo: ErrorInfo) => Promise<void> | void
 ): [any, () => void];
+
+export function useId(): string;
diff --git a/hooks/src/index.js b/hooks/src/index.js
index ffb7899822..40e1366cb0 100644
--- a/hooks/src/index.js
+++ b/hooks/src/index.js
@@ -1,4 +1,4 @@
-import { options } from 'preact';
+import { Fragment, options } from 'preact';
 
 /** @type {number} */
 let currentIndex;
@@ -27,6 +27,21 @@ const RAF_TIMEOUT = 100;
 let prevRaf;
 
 options._diff = vnode => {
+	if (
+		typeof vnode.type === 'function' &&
+		!vnode._mask &&
+		vnode.type !== Fragment
+	) {
+		vnode._mask =
+			(vnode._parent && vnode._parent._mask ? vnode._parent._mask : '') +
+			(vnode._parent && vnode._parent._children
+				? vnode._parent._children.indexOf(vnode)
+				: 0);
+	} else if (!vnode._mask) {
+		vnode._mask =
+			vnode._parent && vnode._parent._mask ? vnode._parent._mask : '';
+	}
+
 	currentComponent = null;
 	if (oldBeforeDiff) oldBeforeDiff(vnode);
 };
@@ -366,6 +381,23 @@ export function useErrorBoundary(cb) {
 	];
 }
 
+function hash(s) {
+	let h = 0,
+		i = s.length;
+	while (i > 0) {
+		h = ((h << 5) - h + s.charCodeAt(--i)) | 0;
+	}
+	return h;
+}
+
+export function useId() {
+	const state = getHookState(currentIndex++, 11);
+	if (!state._value) {
+		state._value = 'P' + hash(currentComponent._vnode._mask) + currentIndex;
+	}
+
+	return state._value;
+}
 /**
  * After paint effects consumer.
  */
diff --git a/hooks/src/internal.d.ts b/hooks/src/internal.d.ts
index 1bbfaaf093..58a2741384 100644
--- a/hooks/src/internal.d.ts
+++ b/hooks/src/internal.d.ts
@@ -1,7 +1,8 @@
 import {
 	Component as PreactComponent,
 	PreactContext,
-	ErrorInfo
+	ErrorInfo,
+	VNode as PreactVNode
 } from '../../src/internal';
 import { Reducer } from '.';
 
@@ -37,6 +38,10 @@ export interface Component extends PreactComponent<any, any> {
 	__hooks?: ComponentHooks;
 }
 
+export interface VNode extends PreactVNode {
+	_mask?: string;
+}
+
 export type HookState =
 	| EffectHookState
 	| MemoHookState
diff --git a/hooks/test/browser/useId.test.js b/hooks/test/browser/useId.test.js
new file mode 100644
index 0000000000..53f3b893af
--- /dev/null
+++ b/hooks/test/browser/useId.test.js
@@ -0,0 +1,132 @@
+import { createElement, render } from 'preact';
+import { useId, useState } from 'preact/hooks';
+import { setupRerender } from 'preact/test-utils';
+import { setupScratch, teardown } from '../../../test/_util/helpers';
+
+/** @jsx createElement */
+
+describe('useId', () => {
+	/** @type {HTMLDivElement} */
+	let scratch, rerender;
+
+	beforeEach(() => {
+		scratch = setupScratch();
+		rerender = setupRerender();
+	});
+
+	afterEach(() => {
+		teardown(scratch);
+	});
+
+	it('keeps the id consistent after an update', () => {
+		function Comp() {
+			const id = useId();
+			return <div id={id} />;
+		}
+
+		render(<Comp />, scratch);
+		const id = scratch.firstChild.getAttribute('id');
+		expect(scratch.firstChild.getAttribute('id')).to.equal(id);
+
+		render(<Comp />, scratch);
+		expect(scratch.firstChild.getAttribute('id')).to.equal(id);
+	});
+
+	it('ids are unique according to dom-depth', () => {
+		function Child() {
+			const id = useId();
+			const spanId = useId();
+			return (
+				<div id={id}>
+					<span id={spanId}>h</span>
+				</div>
+			);
+		}
+
+		function Comp() {
+			const id = useId();
+			return (
+				<div id={id}>
+					<Child />
+				</div>
+			);
+		}
+
+		render(<Comp />, scratch);
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><div id="P15361"><span id="P15362">h</span></div></div>'
+		);
+
+		render(<Comp />, scratch);
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><div id="P15361"><span id="P15362">h</span></div></div>'
+		);
+	});
+
+	it('ids are unique across siblings', () => {
+		function Child() {
+			const id = useId();
+			return <span id={id}>h</span>;
+		}
+
+		function Comp() {
+			const id = useId();
+			return (
+				<div id={id}>
+					<Child />
+					<Child />
+					<Child />
+				</div>
+			);
+		}
+
+		render(<Comp />, scratch);
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><span id="P15361">h</span><span id="P15671">h</span><span id="P15981">h</span></div>'
+		);
+
+		render(<Comp />, scratch);
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><span id="P15361">h</span><span id="P15671">h</span><span id="P15981">h</span></div>'
+		);
+	});
+
+	it('correctly handles new elements', () => {
+		let set;
+		function Child() {
+			const id = useId();
+			return <span id={id}>h</span>;
+		}
+
+		function Stateful() {
+			const [state, setState] = useState(false);
+			set = setState;
+			return (
+				<div>
+					<Child />
+					{state && <Child />}
+				</div>
+			);
+		}
+
+		function Comp() {
+			const id = useId();
+			return (
+				<div id={id}>
+					<Stateful />
+				</div>
+			);
+		}
+
+		render(<Comp />, scratch);
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><div><span id="P476641">h</span></div></div>'
+		);
+
+		set(true);
+		rerender();
+		expect(scratch.innerHTML).to.equal(
+			'<div id="P481"><div><span id="P476641">h</span><span id="P486251">h</span></div></div>'
+		);
+	});
+});