diff --git a/docs/3.api/1.composables/use-async-data.md b/docs/3.api/1.composables/use-async-data.md
index 866705e69a..ff318a552f 100644
--- a/docs/3.api/1.composables/use-async-data.md
+++ b/docs/3.api/1.composables/use-async-data.md
@@ -26,6 +26,7 @@ type AsyncDataOptions<DataT> = {
   server?: boolean
   lazy?: boolean
   immediate?: boolean
+  deep?: boolean
   default?: () => DataT | Ref<DataT> | null
   transform?: (input: DataT) => DataT
   pick?: string[]
@@ -60,6 +61,7 @@ type AsyncDataRequestStatus = 'idle' | 'pending' | 'success' | 'error'
   * _transform_: a function that can be used to alter `handler` function result after resolving
   * _pick_: only pick specified keys in this array from the `handler` function result
   * _watch_: watch reactive sources to auto-refresh
+  * _deep_: return data in a deep ref object (it is `true` by default). It can be set to `false` to return data in a shallow ref object, which can improve performance if your data does not need to be deeply reactive.
 
 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/docs/3.api/1.composables/use-fetch.md b/docs/3.api/1.composables/use-fetch.md
index b3bdc3cd11..765bee2c53 100644
--- a/docs/3.api/1.composables/use-fetch.md
+++ b/docs/3.api/1.composables/use-fetch.md
@@ -26,6 +26,7 @@ type UseFetchOptions<DataT> = {
   server?: boolean
   lazy?: boolean
   immediate?: boolean
+  deep?: boolean
   default?: () => DataT
   transform?: (input: DataT) => DataT
   pick?: string[]
@@ -72,6 +73,7 @@ All fetch options can be given a `computed` or `ref` value. These will be watche
   * `transform`: a function that can be used to alter `handler` function result after resolving
   * `pick`: only pick specified keys in this array from the `handler` function result
   * `watch`: watch an array of reactive sources and auto-refresh the fetch result when they change. Fetch options and URL are watched by default. You can completely ignore reactive sources by using `watch: false`. Together with `immediate: false`, this allows for a fully-manual `useFetch`.
+  * `deep`: return data in a deep ref object (it is `true` by default). It can be set to `false` to return data in a shallow ref object, which can improve performance if your data does not need to be deeply reactive.
 
 ::alert{type=warning}
 If you provide a function or ref as the `url` parameter, or if you provide functions as arguments to the `options` parameter, then the [`useFetch`](/docs/api/composables/use-fetch) call will not match other [`useFetch`](/docs/api/composables/use-fetch) calls elsewhere in your codebase, even if the options seem to be identical. If you wish to force a match, you may provide your own key in `options`.
diff --git a/docs/3.api/1.composables/use-state.md b/docs/3.api/1.composables/use-state.md
index e33472ca05..9c82f7af60 100644
--- a/docs/3.api/1.composables/use-state.md
+++ b/docs/3.api/1.composables/use-state.md
@@ -24,3 +24,12 @@ Because the data inside [`useState`](/docs/api/composables/use-state) will be se
 
 ::ReadMore{link="/docs/getting-started/state-management"}
 ::
+
+## Using `shallowRef`
+
+If you don't need your state to be deeply reactive, you can combine `useState` with [`shallowRef`](https://vuejs.org/api/reactivity-advanced.html#shallowref). This can improve performance when your state contains large objects and arrays.
+
+```ts
+const state = useState('my-shallow-state', () => shallowRef({ deep: 'not reactive' }))
+// isShallow(state) === true
+```
diff --git a/packages/nuxt/src/app/composables/asyncData.ts b/packages/nuxt/src/app/composables/asyncData.ts
index 62cae6ecd9..25d39dc49d 100644
--- a/packages/nuxt/src/app/composables/asyncData.ts
+++ b/packages/nuxt/src/app/composables/asyncData.ts
@@ -1,4 +1,4 @@
-import { getCurrentInstance, onBeforeMount, onServerPrefetch, onUnmounted, ref, toRef, unref, watch } from 'vue'
+import { getCurrentInstance, onBeforeMount, onServerPrefetch, onUnmounted, ref, shallowRef, toRef, unref, watch } from 'vue'
 import type { Ref, WatchSource } from 'vue'
 import type { NuxtApp } from '../nuxt'
 import { useNuxtApp } from '../nuxt'
@@ -44,6 +44,7 @@ export interface AsyncDataOptions<
   pick?: PickKeys
   watch?: MultiWatchSources
   immediate?: boolean
+  deep?: boolean
 }
 
 export interface AsyncDataExecuteOptions {
@@ -148,8 +149,10 @@ export function useAsyncData<
   if (!nuxt._asyncData[key] || !options.immediate) {
     nuxt.payload._errors[key] ??= null
 
+    const _ref = options.deep !== true ? shallowRef : ref
+
     nuxt._asyncData[key] = {
-      data: ref(getCachedData() ?? options.default!()),
+      data: _ref(getCachedData() ?? options.default!()),
       pending: ref(!hasCachedData()),
       error: toRef(nuxt.payload._errors, key),
       status: ref('idle')
diff --git a/packages/nuxt/src/app/composables/fetch.ts b/packages/nuxt/src/app/composables/fetch.ts
index a3cb38fc51..ed97a9af2e 100644
--- a/packages/nuxt/src/app/composables/fetch.ts
+++ b/packages/nuxt/src/app/composables/fetch.ts
@@ -107,6 +107,7 @@ export function useFetch<
     pick,
     watch,
     immediate,
+    deep,
     ...fetchOptions
   } = opts
 
@@ -122,6 +123,7 @@ export function useFetch<
     transform,
     pick,
     immediate,
+    deep,
     watch: watch === false ? [] : [_fetchOptions, _request, ...(watch || [])]
   }