diff --git a/docs/3.api/1.components/8.nuxt-island.md b/docs/3.api/1.components/8.nuxt-island.md
index 7bedd3db0b..6032b357f9 100644
--- a/docs/3.api/1.components/8.nuxt-island.md
+++ b/docs/3.api/1.components/8.nuxt-island.md
@@ -32,7 +32,10 @@ Server only components use `<NuxtIsland>` under the hood
   - **type**: `Record<string, any>`
 - `source`: Remote source to call the island to render.
   - **type**: `string`
-- **dangerouslyLoadClientComponents**: Required to load components from a remote source.
+- `useCache`: Use the cached payload if available
+  - **type**: `boolean`
+  - **default**: `true`
+- **`dangerouslyLoadClientComponents`**: Required to load components from a remote source.
   - **type**: `boolean`
   - **default**: `false`
 
diff --git a/packages/nuxt/src/app/components/nuxt-island.ts b/packages/nuxt/src/app/components/nuxt-island.ts
index 20d1f11cbf..91024d42e1 100644
--- a/packages/nuxt/src/app/components/nuxt-island.ts
+++ b/packages/nuxt/src/app/components/nuxt-island.ts
@@ -76,6 +76,14 @@ export default defineComponent({
       type: Boolean,
       default: false,
     },
+    /**
+     * use the NuxtIslandResponse which has been cached if available
+     * @default true
+     */
+    useCache: {
+      type: Boolean,
+      default: true,
+    },
   },
   emits: ['error'],
   async setup (props, { slots, expose, emit }) {
@@ -250,13 +258,13 @@ export default defineComponent({
     }
 
     if (import.meta.client) {
-      watch(props, debounce(() => fetchComponent(), 100), { deep: true })
+      watch(props, debounce(() => fetchComponent(!props.useCache), 100), { deep: true })
     }
 
     if (import.meta.client && !instance.vnode.el && props.lazy) {
-      fetchComponent()
+      fetchComponent(!instance.vnode.el && !props.useCache)
     } else if (import.meta.server || !instance.vnode.el || !nuxtApp.payload.serverRendered) {
-      await fetchComponent()
+      await fetchComponent(!instance.vnode.el && !props.useCache)
     } else if (selectiveClient && canLoadClientComponent.value) {
       await loadComponents(props.source, payloads.components)
     }
diff --git a/packages/nuxt/src/components/runtime/server-component.ts b/packages/nuxt/src/components/runtime/server-component.ts
index c5ecee9b2e..6dda4dd241 100644
--- a/packages/nuxt/src/components/runtime/server-component.ts
+++ b/packages/nuxt/src/components/runtime/server-component.ts
@@ -8,7 +8,7 @@ export const createServerComponent = (name: string) => {
   return defineComponent({
     name,
     inheritAttrs: false,
-    props: { lazy: Boolean },
+    props: { lazy: Boolean, useCache: { type: Boolean, default: true } },
     emits: ['error'],
     setup (props, { attrs, slots, expose, emit }) {
       const vm = getCurrentInstance()
@@ -22,6 +22,7 @@ export const createServerComponent = (name: string) => {
         return h(NuxtIsland, {
           name,
           lazy: props.lazy,
+          useCache: props.useCache,
           props: attrs,
           scopeId: vm?.vnode.scopeId,
           ref: islandRef,
@@ -40,7 +41,7 @@ export const createIslandPage = (name: string) => {
     name,
     inheritAttrs: false,
     props: { lazy: Boolean },
-    async setup (props, { slots, expose }) {
+    async setup(props, { slots, expose }) {
       const islandRef = ref<null | typeof NuxtIsland>(null)
 
       expose({
diff --git a/test/nuxt/nuxt-island.test.ts b/test/nuxt/nuxt-island.test.ts
index a12123884f..3d761567f8 100644
--- a/test/nuxt/nuxt-island.test.ts
+++ b/test/nuxt/nuxt-island.test.ts
@@ -1,5 +1,4 @@
-import { beforeEach } from 'node:test'
-import { describe, expect, it, vi } from 'vitest'
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
 import { defineComponent, h, nextTick, popScopeId, pushScopeId } from 'vue'
 import { mountSuspended } from '@nuxt/test-utils/runtime'
 import { createServerComponent } from '../../packages/nuxt/src/components/runtime/server-component'
@@ -34,6 +33,11 @@ function expectNoConsoleIssue () {
 beforeEach(() => {
   consoleError.mockClear()
   consoleWarn.mockClear()
+  useNuxtApp().payload.data = {}
+})
+
+afterEach(() => {
+  if (vi.isMockFunction(fetch)) { vi.mocked(fetch).mockReset() }
 })
 
 describe('runtime server component', () => {
@@ -135,6 +139,22 @@ describe('runtime server component', () => {
   })
 
   it('expect NuxtIsland to have parent scopeId', async () => {
+    const stubFetch = vi.fn(() => {
+      return {
+        id: '1234',
+        html: `<div data-island-uid>hello<div data-island-uid="not-to-be-replaced" data-island-component="r"></div></div>`,
+        head: {
+          link: [],
+          style: [],
+        },
+        json () {
+          return this
+        },
+      }
+    })
+
+    vi.stubGlobal('fetch', stubFetch)
+
     const wrapper = await mountSuspended(defineComponent({
       render () {
         pushScopeId('data-v-654e2b21')
@@ -330,6 +350,63 @@ describe('client components', () => {
       <!--teleport end-->"
     `)
 
+    vi.mocked(fetch).mockReset()
     expectNoConsoleIssue()
   })
 })
+
+describe('reuse paylaod', () => {
+  let count = 0
+
+  const stubFetch = () => {
+    count++
+    return {
+      id: '123',
+      html: `<div>${count.toString()}</div>`,
+      state: {},
+      head: {
+        link: [],
+        style: [],
+      },
+      json () {
+        return this
+      },
+    }
+  }
+
+  beforeEach(() => {
+    count = 0
+    vi.mocked(fetch).mockReset()
+    vi.stubGlobal('fetch', vi.fn(stubFetch))
+  })
+  it('expect payload to be reused', async () => {
+    const component1 = await mountSuspended(createServerComponent('reuseCache'))
+    expect(fetch).toHaveBeenCalledOnce()
+    expect(component1.html()).toBe('<div>1</div>')
+    await component1.unmount()
+    expect(fetch).toHaveBeenCalledOnce()
+    const component2 = await mountSuspended(createServerComponent('reuseCache'))
+    expect(component2.html()).toBe('<div>1</div>')
+  })
+  it('expect to re-fetch the island', async () => {
+    const component = await mountSuspended(createServerComponent('withoutCache'), {
+      props: {
+        useCache: false,
+        onError (e) {
+          console.log(e)
+        },
+      },
+    })
+    await nextTick()
+    expect(fetch).toHaveBeenCalledOnce()
+    expect(component.html()).toBe('<div>1</div>')
+    await component.unmount()
+    const component2 = await mountSuspended(createServerComponent('withoutCache'), {
+      props: {
+        useCache: false,
+      },
+    })
+    expect(fetch).toHaveBeenCalledTimes(2)
+    expect(component2.html()).toBe('<div>2</div>')
+  })
+})