diff --git a/packages/e2e/next/cypress/e2e/repro-760.cy.js b/packages/e2e/next/cypress/e2e/repro-760.cy.js
new file mode 100644
index 000000000..b5274dead
--- /dev/null
+++ b/packages/e2e/next/cypress/e2e/repro-760.cy.js
@@ -0,0 +1,14 @@
+/// <reference types="cypress" />
+
+describe('repro-760', () => {
+  it('supports dynamic default values', () => {
+    cy.visit('/app/repro-760')
+    cy.contains('#hydration-marker', 'hydrated').should('be.hidden')
+    cy.get('#value-a').should('have.text', 'a')
+    cy.get('#value-b').should('have.text', 'b')
+    cy.get('#trigger-a').click()
+    cy.get('#trigger-b').click()
+    cy.get('#value-a').should('have.text', 'pass')
+    cy.get('#value-b').should('have.text', 'pass')
+  })
+})
diff --git a/packages/e2e/next/src/app/app/repro-760/page.tsx b/packages/e2e/next/src/app/app/repro-760/page.tsx
new file mode 100644
index 000000000..08382b46a
--- /dev/null
+++ b/packages/e2e/next/src/app/app/repro-760/page.tsx
@@ -0,0 +1,44 @@
+'use client'
+
+import { parseAsString, useQueryState, useQueryStates } from 'nuqs'
+import { Suspense, useState } from 'react'
+
+export default function Page() {
+  return (
+    <Suspense>
+      <DynamicUseQueryState />
+      <DynamicUseQueryStates />
+    </Suspense>
+  )
+}
+
+function DynamicUseQueryState() {
+  const [defaultValue, setDefaultValue] = useState('a')
+  const [value] = useQueryState('a', parseAsString.withDefault(defaultValue))
+  return (
+    <section>
+      <button id="trigger-a" onClick={() => setDefaultValue('pass')}>
+        Trigger
+      </button>
+      <span id="value-a">{value}</span>
+    </section>
+  )
+}
+
+function DynamicUseQueryStates() {
+  const [defaultValue, setDefaultValue] = useState('b')
+  const [{ value }] = useQueryStates(
+    {
+      value: parseAsString.withDefault(defaultValue)
+    },
+    { urlKeys: { value: 'b' } }
+  )
+  return (
+    <section>
+      <button id="trigger-b" onClick={() => setDefaultValue('pass')}>
+        Trigger
+      </button>
+      <span id="value-b">{value}</span>
+    </section>
+  )
+}
diff --git a/packages/nuqs/src/useQueryStates.test.tsx b/packages/nuqs/src/useQueryStates.test.tsx
new file mode 100644
index 000000000..eda6b3623
--- /dev/null
+++ b/packages/nuqs/src/useQueryStates.test.tsx
@@ -0,0 +1,95 @@
+import { act, renderHook } from '@testing-library/react'
+import type { ReactNode } from 'react'
+import React from 'react'
+import { describe, expect, it } from 'vitest'
+import { NuqsTestingAdapter } from './adapters/testing'
+import { parseAsArrayOf, parseAsJson, parseAsString } from './parsers'
+import { useQueryStates } from './useQueryStates'
+
+function withSearchParams(
+  searchParams?: string | URLSearchParams | Record<string, string>
+) {
+  return (props: { children: ReactNode }) => (
+    <NuqsTestingAdapter searchParams={searchParams} {...props} />
+  )
+}
+
+const defaults = {
+  str: 'foo',
+  obj: { initial: 'state' },
+  arr: [
+    {
+      initial: 'state'
+    }
+  ]
+}
+
+const hook = ({ defaultValue } = { defaultValue: defaults.str }) => {
+  return useQueryStates({
+    str: parseAsString.withDefault(defaultValue),
+    obj: parseAsJson<any>(x => x).withDefault(defaults.obj),
+    arr: parseAsArrayOf(parseAsJson<any>(x => x)).withDefault(defaults.arr)
+  })
+}
+
+describe('useQueryStates', () => {
+  it('should have referential equality on default values', () => {
+    const { result } = renderHook(hook, {
+      wrapper: NuqsTestingAdapter
+    })
+    const [state] = result.current
+    expect(state.str).toBe(defaults.str)
+    expect(state.obj).toBe(defaults.obj)
+    expect(state.arr).toBe(defaults.arr)
+    expect(state.arr[0]).toBe(defaults.arr[0])
+  })
+
+  it('should keep referential equality when resetting to defaults', () => {
+    const { result } = renderHook(hook, {
+      wrapper: withSearchParams({
+        str: 'foo',
+        obj: '{"hello":"world"}',
+        arr: '{"obj":true},{"arr":true}'
+      })
+    })
+    act(() => {
+      result.current[1](null)
+    })
+    const [state] = result.current
+    expect(state.str).toBe(defaults.str)
+    expect(state.obj).toBe(defaults.obj)
+    expect(state.arr).toBe(defaults.arr)
+    expect(state.arr[0]).toBe(defaults.arr[0])
+  })
+
+  it('should keep referential equality when unrelated keys change', () => {
+    const { result } = renderHook(hook, {
+      wrapper: withSearchParams({
+        str: 'foo',
+        obj: '{"hello":"world"}'
+        // Keep arr as default
+      })
+    })
+    const [{ obj: initialObj, arr: initialArr }] = result.current
+    act(() => {
+      result.current[1]({ str: 'bar' })
+    })
+    const [{ str, obj, arr }] = result.current
+    expect(str).toBe('bar')
+    expect(obj).toBe(initialObj)
+    expect(arr).toBe(initialArr)
+  })
+
+  it('should keep referential equality when default changes for another key', () => {
+    const { result, rerender } = renderHook(hook, {
+      wrapper: withSearchParams()
+    })
+    expect(result.current[0].str).toBe('foo')
+    rerender({ defaultValue: 'b' })
+    const [state] = result.current
+    expect(state.str).toBe('b')
+    expect(state.obj).toBe(defaults.obj)
+    expect(state.arr).toBe(defaults.arr)
+    expect(state.arr[0]).toBe(defaults.arr[0])
+  })
+})
diff --git a/packages/nuqs/src/useQueryStates.ts b/packages/nuqs/src/useQueryStates.ts
index c96f81012..6ece5c74f 100644
--- a/packages/nuqs/src/useQueryStates.ts
+++ b/packages/nuqs/src/useQueryStates.ts
@@ -40,6 +40,7 @@ export type Values<T extends UseQueryStatesKeysMap> = {
     ? NonNullable<ReturnType<T[K]['parse']>>
     : ReturnType<T[K]['parse']> | null
 }
+type NullableValues<T extends UseQueryStatesKeysMap> = Nullable<Values<T>>
 
 type UpdaterFn<T extends UseQueryStatesKeysMap> = (
   old: Values<T>
@@ -80,7 +81,7 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
     urlKeys = defaultUrlKeys
   }: Partial<UseQueryStatesOptions<KeyMap>> = {}
 ): UseQueryStatesReturn<KeyMap> {
-  type V = Values<KeyMap>
+  type V = NullableValues<KeyMap>
   const stateKeys = Object.keys(keyMap).join(',')
   const resolvedUrlKeys = useMemo(
     () =>
@@ -99,6 +100,17 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
   if (Object.keys(queryRef.current).length !== Object.keys(keyMap).length) {
     queryRef.current = Object.fromEntries(initialSearchParams?.entries() ?? [])
   }
+  const defaultValues = useMemo(
+    () =>
+      Object.fromEntries(
+        Object.keys(keyMap).map(key => [key, keyMap[key]!.defaultValue ?? null])
+      ) as Values<KeyMap>,
+    [
+      Object.values(keyMap)
+        .map(({ defaultValue }) => defaultValue)
+        .join(',')
+    ]
+  )
 
   const [internalState, setInternalState] = useState<V>(() => {
     const source = initialSearchParams ?? new URLSearchParams()
@@ -137,7 +149,7 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
     }
     const handlers = Object.keys(keyMap).reduce(
       (handlers, stateKey) => {
-        handlers[stateKey as keyof V] = ({
+        handlers[stateKey as keyof KeyMap] = ({
           state,
           query
         }: CrossHookSyncPayload) => {
@@ -147,7 +159,7 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
           // for the subsequent setState to pick it up.
           stateRef.current = {
             ...stateRef.current,
-            [stateKey as keyof V]: state ?? defaultValue ?? null
+            [stateKey as keyof KeyMap]: state ?? defaultValue ?? null
           }
           queryRef.current[urlKey] = query
           debug(
@@ -162,7 +174,7 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
         }
         return handlers
       },
-      {} as Record<keyof V, (payload: CrossHookSyncPayload) => void>
+      {} as Record<keyof KeyMap, (payload: CrossHookSyncPayload) => void>
     )
 
     for (const stateKey of Object.keys(keyMap)) {
@@ -183,7 +195,7 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
     (stateUpdater, callOptions = {}) => {
       const newState: Partial<Nullable<KeyMap>> =
         typeof stateUpdater === 'function'
-          ? stateUpdater(stateRef.current)
+          ? stateUpdater(applyDefaultValues(stateRef.current, defaultValues))
           : stateUpdater === null
             ? (Object.fromEntries(
                 Object.keys(keyMap).map(key => [key, null])
@@ -241,10 +253,16 @@ export function useQueryStates<KeyMap extends UseQueryStatesKeysMap>(
       startTransition,
       resolvedUrlKeys,
       updateUrl,
-      rateLimitFactor
+      rateLimitFactor,
+      defaultValues
     ]
   )
-  return [internalState, update]
+
+  const outputState = useMemo(
+    () => applyDefaultValues(internalState, defaultValues),
+    [internalState, defaultValues]
+  )
+  return [outputState, update]
 }
 
 // --
@@ -254,26 +272,34 @@ function parseMap<KeyMap extends UseQueryStatesKeysMap>(
   urlKeys: Partial<Record<keyof KeyMap, string>>,
   searchParams: URLSearchParams,
   cachedQuery?: Record<string, string | null>,
-  cachedState?: Values<KeyMap>
-) {
+  cachedState?: NullableValues<KeyMap>
+): NullableValues<KeyMap> {
   return Object.keys(keyMap).reduce((obj, stateKey) => {
     const urlKey = urlKeys?.[stateKey] ?? stateKey
-    const { defaultValue, parse } = keyMap[stateKey]!
+    const { parse } = keyMap[stateKey]!
     const queuedQuery = getQueuedValue(urlKey)
     const query =
       queuedQuery === undefined
         ? (searchParams?.get(urlKey) ?? null)
         : queuedQuery
     if (cachedQuery && cachedState && cachedQuery[urlKey] === query) {
-      obj[stateKey as keyof KeyMap] =
-        cachedState[stateKey] ?? defaultValue ?? null
+      obj[stateKey as keyof KeyMap] = cachedState[stateKey] ?? null
       return obj
     }
     const value = query === null ? null : safeParse(parse, query, stateKey)
-    obj[stateKey as keyof KeyMap] = value ?? defaultValue ?? null
+    obj[stateKey as keyof KeyMap] = value ?? null
     if (cachedQuery) {
       cachedQuery[urlKey] = query
     }
     return obj
-  }, {} as Values<KeyMap>)
+  }, {} as NullableValues<KeyMap>)
+}
+
+function applyDefaultValues<KeyMap extends UseQueryStatesKeysMap>(
+  state: NullableValues<KeyMap>,
+  defaults: Partial<Values<KeyMap>>
+) {
+  return Object.fromEntries(
+    Object.keys(state).map(key => [key, state[key] ?? defaults[key] ?? null])
+  ) as Values<KeyMap>
 }