diff --git a/hooks/src/index.js b/hooks/src/index.js
index 9f5d098139..d05947eaaf 100644
--- a/hooks/src/index.js
+++ b/hooks/src/index.js
@@ -27,22 +27,6 @@ const RAF_TIMEOUT = 100;
 let prevRaf;
 
 options._diff = vnode => {
-	if (
-		typeof vnode.type === 'function' &&
-		!vnode._mask &&
-		// Ignore root Fragment node
-		vnode._parent !== null
-	) {
-		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);
 };
@@ -383,19 +367,18 @@ 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;
+		// Grab either the root node or the nearest async boundary node.
+		/** @type {import('./internal.d').VNode} */
+		let root = currentComponent._vnode;
+		while (root !== null && !root._mask && root._parent !== null) {
+			root = root._parent;
+		}
+
+		let mask = root._mask || (root._mask = [0, 0]);
+		state._value = 'P' + mask[0] + '-' + mask[1]++;
 	}
 
 	return state._value;
diff --git a/hooks/src/internal.d.ts b/hooks/src/internal.d.ts
index 58a2741384..4d4be511f7 100644
--- a/hooks/src/internal.d.ts
+++ b/hooks/src/internal.d.ts
@@ -39,7 +39,7 @@ export interface Component extends PreactComponent<any, any> {
 }
 
 export interface VNode extends PreactVNode {
-	_mask?: string;
+	_mask?: [number, number];
 }
 
 export type HookState =
diff --git a/hooks/test/browser/useId.test.js b/hooks/test/browser/useId.test.js
index 232dffcf0a..e7fc7f947b 100644
--- a/hooks/test/browser/useId.test.js
+++ b/hooks/test/browser/useId.test.js
@@ -55,12 +55,12 @@ describe('useId', () => {
 
 		render(<Comp />, scratch);
 		expect(scratch.innerHTML).to.equal(
-			'<div id="P481"><div id="P15361"><span id="P15362">h</span></div></div>'
+			'<div id="P0-0"><div id="P0-1"><span id="P0-2">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>'
+			'<div id="P0-0"><div id="P0-1"><span id="P0-2">h</span></div></div>'
 		);
 	});
 
@@ -83,12 +83,12 @@ describe('useId', () => {
 
 		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>'
+			'<div id="P0-0"><span id="P0-1">h</span><span id="P0-2">h</span><span id="P0-3">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>'
+			'<div id="P0-0"><span id="P0-1">h</span><span id="P0-2">h</span><span id="P0-3">h</span></div>'
 		);
 	});
 
@@ -121,13 +121,13 @@ describe('useId', () => {
 
 		render(<Comp />, scratch);
 		expect(scratch.innerHTML).to.equal(
-			'<div id="P481"><div><span id="P476641">h</span></div></div>'
+			'<div id="P0-0"><div><span id="P0-1">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>'
+			'<div id="P0-0"><div><span id="P0-1">h</span><span id="P0-2">h</span></div></div>'
 		);
 	});
 
@@ -332,13 +332,16 @@ describe('useId', () => {
 			return <Fragment>{children}</Fragment>;
 		};
 
+		const ids = [];
 		function Foo() {
 			const id = useId();
+			ids.push(id);
 			return <p>{id}</p>;
 		}
 
 		function App() {
 			const id = useId();
+			ids.push(id);
 			return (
 				<div>
 					<p>{id}</p>
@@ -350,6 +353,84 @@ describe('useId', () => {
 		}
 
 		render(<App />, scratch);
-		expect(scratch.innerHTML).to.equal('<div><p>P481</p><p>P476951</p></div>');
+		expect(ids[0]).not.to.equal(ids[1]);
+	});
+
+	it('should skip over HTML', () => {
+		const ids = [];
+
+		function Foo() {
+			const id = useId();
+			ids.push(id);
+			return <p>{id}</p>;
+		}
+
+		function App() {
+			return (
+				<div>
+					<span>
+						<Foo />
+					</span>
+					<span>
+						<Foo />
+					</span>
+				</div>
+			);
+		}
+
+		render(<App />, scratch);
+		expect(ids[0]).not.to.equal(ids[1]);
+	});
+
+	it('should reset for each renderToString roots', () => {
+		const ids = [];
+
+		function Foo() {
+			const id = useId();
+			ids.push(id);
+			return <p>{id}</p>;
+		}
+
+		function App() {
+			return (
+				<div>
+					<span>
+						<Foo />
+					</span>
+					<span>
+						<Foo />
+					</span>
+				</div>
+			);
+		}
+
+		const res1 = rts(<App />);
+		const res2 = rts(<App />);
+		expect(res1).to.equal(res2);
+	});
+
+	it('should work with conditional components', () => {
+		function Foo() {
+			const id = useId();
+			return <p>{id}</p>;
+		}
+		function Bar() {
+			const id = useId();
+			return <p>{id}</p>;
+		}
+
+		let update;
+		function App() {
+			const [v, setV] = useState(false);
+			update = setV;
+			return <div>{!v ? <Foo /> : <Bar />}</div>;
+		}
+
+		render(<App />, scratch);
+		const first = scratch.innerHTML;
+
+		update(v => !v);
+		rerender();
+		expect(first).not.to.equal(scratch.innerHTML);
 	});
 });
diff --git a/mangle.json b/mangle.json
index 6633035754..22b96e72bf 100644
--- a/mangle.json
+++ b/mangle.json
@@ -81,4 +81,4 @@
       "$_isSuspended": "__i"
     }
   }
-}
\ No newline at end of file
+}