diff --git a/packages/nuxt/src/app/composables/asyncData.ts b/packages/nuxt/src/app/composables/asyncData.ts
index 9978172c6..413f98f52 100644
--- a/packages/nuxt/src/app/composables/asyncData.ts
+++ b/packages/nuxt/src/app/composables/asyncData.ts
@@ -261,7 +261,7 @@ export function useAsyncData<
       }
     }
 
-    if (asyncData.error.value || (fetchOnServer && nuxt.isHydrating && hasCachedData())) {
+    if (fetchOnServer && nuxt.isHydrating && (asyncData.error.value || hasCachedData())) {
       // 1. Hydration (server: true): no fetch
       asyncData.pending.value = false
       asyncData.status.value = asyncData.error.value ? 'error' : 'success'