diff --git a/packages/nuxt/src/app/composables/asyncData.ts b/packages/nuxt/src/app/composables/asyncData.ts
index 413f98f52c..4702770445 100644
--- a/packages/nuxt/src/app/composables/asyncData.ts
+++ b/packages/nuxt/src/app/composables/asyncData.ts
@@ -204,6 +204,9 @@ export function useAsyncData<
         if (options.pick) {
           result = pick(result as any, options.pick) as DataT
         }
+
+        nuxt.payload.data[key] = result
+
         asyncData.data.value = result
         asyncData.error.value = null
         asyncData.status.value = 'success'
@@ -212,7 +215,7 @@ export function useAsyncData<
         // If this request is cancelled, resolve to the latest request.
         if ((promise as any).cancelled) { return nuxt._asyncDataPromises[key] }
 
-        asyncData.error.value = error
+        asyncData.error.value = createError(error) as DataE
         asyncData.data.value = unref(options.default!())
         asyncData.status.value = 'error'
       })
@@ -220,11 +223,7 @@ export function useAsyncData<
         if ((promise as any).cancelled) { return }
 
         asyncData.pending.value = false
-        nuxt.payload.data[key] = asyncData.data.value
-        if (asyncData.error.value) {
-          // We use `createError` and its .toJSON() property to normalize the error
-          nuxt.payload._errors[key] = createError(asyncData.error.value)
-        }
+
         delete nuxt._asyncDataPromises[key]
       })
     nuxt._asyncDataPromises[key] = promise
diff --git a/test/nuxt/composables.test.ts b/test/nuxt/composables.test.ts
index 1dea864fdd..f0d11b6be5 100644
--- a/test/nuxt/composables.test.ts
+++ b/test/nuxt/composables.test.ts
@@ -128,10 +128,20 @@ describe('useAsyncData', () => {
   })
 
   it('should capture errors', async () => {
-    const { error, status, pending } = await useAsyncData(() => Promise.reject(new Error('test')))
+    const { data, error, status, pending } = await useAsyncData('error-test', () => Promise.reject(new Error('test')), { default: () => 'default' })
+    expect(data.value).toMatchInlineSnapshot('"default"')
     expect(error.value).toMatchInlineSnapshot('[Error: test]')
     expect(status.value).toBe('error')
     expect(pending.value).toBe(false)
+    expect(useNuxtApp().payload._errors['error-test']).toMatchInlineSnapshot('[Error: test]')
+
+    // TODO: fix the below
+    // const { data: syncedData, error: syncedError, status: syncedStatus, pending: syncedPending } = await useAsyncData('error-test', () => ({}), { immediate: false })
+
+    // expect(syncedData.value).toEqual(null)
+    // expect(syncedError.value).toEqual(error.value)
+    // expect(syncedStatus.value).toEqual('idle')
+    // expect(syncedPending.value).toEqual(true)
   })
 
   // https://github.com/nuxt/nuxt/issues/23411
@@ -182,6 +192,22 @@ describe('useAsyncData', () => {
       }
     `)
   })
+
+  it('should use default while pending', async () => {
+    const promise = useAsyncData(() => Promise.resolve('test'), { default: () => 'default' })
+    const { data, pending } = promise
+
+    expect(pending.value).toBe(true)
+    expect(data.value).toMatchInlineSnapshot('"default"')
+
+    await promise
+    expect(data.value).toMatchInlineSnapshot('"test"')
+  })
+
+  it('should use default after reject', async () => {
+    const { data } = await useAsyncData(() => Promise.reject(new Error('test')), { default: () => 'default' })
+    expect(data.value).toMatchInlineSnapshot('"default"')
+  })
 })
 
 describe('errors', () => {