diff --git a/docs/content/3.docs/1.usage/1.data-fetching.md b/docs/content/3.docs/1.usage/1.data-fetching.md
index 75236470c0..04c385f90e 100644
--- a/docs/content/3.docs/1.usage/1.data-fetching.md
+++ b/docs/content/3.docs/1.usage/1.data-fetching.md
@@ -16,12 +16,12 @@ Within your pages, components and plugins you can use `useAsyncData` to get acce
 const {
   data: Ref<DataT>,
   pending: Ref<boolean>,
-  refresh: (force?: boolean) => Promise<void>,
+  refresh: () => Promise<void>,
   error?: any
 } = useAsyncData(
   key: string,
   handler: (ctx?: NuxtApp) => Promise<Object>,
-  options?: { 
+  options?: {
     lazy: boolean,
     server: boolean,
     watch: WatchSource[]
@@ -40,6 +40,7 @@ const {
   * _transform_: a function that can be used to alter `handler` function result after resolving
   * _pick_: only pick specified keys in this array from `handler` function result
   * _watch_: watch reactive sources to auto refresh
+  * _initialCache_: When set to `false`, will skip payload cache for initial fetch. (defaults to `true`)
 
 Under the hood, `lazy: false` uses `<Suspense>` to block the loading of the route before the data has been fetched. Consider using `lazy: true` and implementing a loading state instead for a snappier user experience.
 
diff --git a/packages/nuxt3/src/app/composables/asyncData.ts b/packages/nuxt3/src/app/composables/asyncData.ts
index ae164d346e..192558db4d 100644
--- a/packages/nuxt3/src/app/composables/asyncData.ts
+++ b/packages/nuxt3/src/app/composables/asyncData.ts
@@ -21,12 +21,17 @@ export interface AsyncDataOptions<
   transform?: Transform
   pick?: PickKeys
   watch?: MultiWatchSources
+  initialCache?: boolean
+}
+
+export interface RefreshOptions {
+  _initial?: boolean
 }
 
 export interface _AsyncData<DataT> {
   data: Ref<DataT>
   pending: Ref<boolean>
-  refresh: (force?: boolean) => Promise<void>
+  refresh: (opts?: RefreshOptions) => Promise<void>
   error?: any
 }
 
@@ -58,6 +63,7 @@ export function useAsyncData<
     console.warn('[useAsyncData] `defer` has been renamed to `lazy`. Support for `defer` will be removed in RC.')
   }
   options.lazy = options.lazy ?? (options as any).defer ?? false
+  options.initialCache = options.initialCache ?? true
 
   // Setup nuxt instance payload
   const nuxt = useNuxtApp()
@@ -81,11 +87,15 @@ export function useAsyncData<
     error: ref(nuxt.payload._errors[key] ?? null)
   } as AsyncData<DataT>
 
-  asyncData.refresh = (force?: boolean) => {
+  asyncData.refresh = (opts = {}) => {
     // Avoid fetching same key more than once at a time
-    if (nuxt._asyncDataPromises[key] && !force) {
+    if (nuxt._asyncDataPromises[key]) {
       return nuxt._asyncDataPromises[key]
     }
+    // Avoid fetching same key that is already fetched
+    if (opts._initial && options.initialCache && nuxt.payload.data[key] !== undefined) {
+      return nuxt.payload.data[key]
+    }
     asyncData.pending.value = true
     // TODO: Cancel previous promise
     // TODO: Handle immediate errors
@@ -115,11 +125,13 @@ export function useAsyncData<
     return nuxt._asyncDataPromises[key]
   }
 
+  const initialFetch = () => asyncData.refresh({ _initial: true })
+
   const fetchOnServer = options.server !== false && nuxt.payload.serverRendered
 
   // Server side
   if (process.server && fetchOnServer) {
-    const promise = asyncData.refresh()
+    const promise = initialFetch()
     onServerPrefetch(() => promise)
   }
 
@@ -131,10 +143,10 @@ export function useAsyncData<
     } else if (instance && (nuxt.isHydrating || options.lazy)) {
       // 2. Initial load (server: false): fetch on mounted
       // 3. Navigation (lazy: true): fetch on mounted
-      instance._nuxtOnBeforeMountCbs.push(asyncData.refresh)
+      instance._nuxtOnBeforeMountCbs.push(initialFetch)
     } else {
       // 4. Navigation (lazy: false) - or plugin usage: await fetch
-      asyncData.refresh()
+      initialFetch()
     }
     if (options.watch) {
       watch(options.watch, () => asyncData.refresh())
diff --git a/packages/nuxt3/src/app/composables/fetch.ts b/packages/nuxt3/src/app/composables/fetch.ts
index 03d298e5d0..2a055d8309 100644
--- a/packages/nuxt3/src/app/composables/fetch.ts
+++ b/packages/nuxt3/src/app/composables/fetch.ts
@@ -7,11 +7,16 @@ import { useAsyncData } from './asyncData'
 
 export type FetchResult<ReqT extends FetchRequest> = TypedInternalResponse<ReqT, unknown>
 
-export type UseFetchOptions<
+export interface UseFetchOptions<
   DataT,
   Transform extends _Transform<DataT, any> = _Transform<DataT, DataT>,
   PickKeys extends KeyOfRes<Transform> = KeyOfRes<Transform>
-> = AsyncDataOptions<DataT, Transform, PickKeys> & FetchOptions & { key?: string }
+> extends
+  AsyncDataOptions<DataT, Transform, PickKeys>,
+  FetchOptions
+  {
+  key?: string
+ }
 
 export function useFetch<
   ResT = void,
@@ -32,15 +37,22 @@ export function useFetch<
     return isRef(r) ? r.value : r
   })
 
-  const asyncData = useAsyncData(key, () => {
-    return $fetch(_request.value, opts) as Promise<_ResT>
-  }, {
+  const _fetchOptions = {
+    ...opts,
+    cache: typeof opts.cache === 'boolean' ? undefined : opts.cache
+  }
+
+  const _asyncDataOptions: AsyncDataOptions<any> = {
     ...opts,
     watch: [
       _request,
       ...(opts.watch || [])
     ]
-  })
+  }
+
+  const asyncData = useAsyncData(key, () => {
+    return $fetch(_request.value, _fetchOptions) as Promise<_ResT>
+  }, _asyncDataOptions)
 
   return asyncData
 }