diff --git a/src/useLocalStorage.test.tsx b/src/useLocalStorage.test.tsx
index 4b0a058d..8cb66b77 100644
--- a/src/useLocalStorage.test.tsx
+++ b/src/useLocalStorage.test.tsx
@@ -7,7 +7,8 @@ Please see LICENSE in the repository root for full details.
 
 import { test } from "vitest";
 import { render, screen } from "@testing-library/react";
-import { type FC, useEffect } from "react";
+import { type FC, useEffect, useState } from "react";
+import userEvent from "@testing-library/user-event";
 
 import { setLocalStorageItem, useLocalStorage } from "./useLocalStorage";
 
@@ -21,3 +22,27 @@ test("useLocalStorage reacts to changes made by an effect mounted on the same re
   render(<Test />);
   screen.getByText("Hello!");
 });
+
+test("useLocalStorage reacts to key changes", async () => {
+  localStorage.clear();
+  localStorage.setItem("value-1", "1");
+  localStorage.setItem("value-2", "2");
+
+  const Test: FC = () => {
+    const [key, setKey] = useState("value-1");
+    const [value] = useLocalStorage(key);
+    if (key !== `value-${value}`) throw new Error("Value is out of sync");
+    return (
+      <>
+        <button onClick={() => setKey("value-2")}>Switch keys</button>
+        <div>Value is: {value}</div>
+      </>
+    );
+  };
+  const user = userEvent.setup();
+  render(<Test />);
+
+  screen.getByText("Value is: 1");
+  await user.click(screen.getByRole("button", { name: "Switch keys" }));
+  screen.getByText("Value is: 2");
+});
diff --git a/src/useLocalStorage.ts b/src/useLocalStorage.ts
index 517c7c62..e96c9c87 100644
--- a/src/useLocalStorage.ts
+++ b/src/useLocalStorage.ts
@@ -6,9 +6,10 @@ Please see LICENSE in the repository root for full details.
 */
 
 import EventEmitter from "events";
-import { useCallback, useEffect, useState } from "react";
+import { useCallback, useEffect } from "react";
 
 import { useLatest } from "./useLatest";
+import { useReactiveState } from "./useReactiveState";
 
 type LocalStorageItem = ReturnType<typeof localStorage.getItem>;
 
@@ -19,8 +20,9 @@ export const localStorageBus = new EventEmitter();
 export const useLocalStorage = (
   key: string,
 ): [LocalStorageItem, (value: string) => void] => {
-  const [value, setValue] = useState<LocalStorageItem>(() =>
-    localStorage.getItem(key),
+  const [value, setValue] = useReactiveState<LocalStorageItem>(
+    () => localStorage.getItem(key),
+    [key],
   );
   const latestValue = useLatest(value);