diff --git a/docs/pages/lifecycle.md b/docs/pages/lifecycle.md
index 84f4a7c5..f7ab3f50 100644
--- a/docs/pages/lifecycle.md
+++ b/docs/pages/lifecycle.md
@@ -25,4 +25,6 @@ end
 function TestComponent:willUnmount()
 	print("We're about to unmount!")
 end
-```
\ No newline at end of file
+```
+
+**Note:** If you are calling `setState` within `didMount` or `didUpdate`, make sure that you are not calling `setState` unconditionally. If `setState` is called every time `didMount` or `didUpdate` is called, you will cause a stack overflow error.
\ No newline at end of file
diff --git a/lib/Component.lua b/lib/Component.lua
index 1496cef6..0b4ee191 100644
--- a/lib/Component.lua
+++ b/lib/Component.lua
@@ -10,6 +10,15 @@ local Component = {}
 
 Component.__index = Component
 
+-- The error message that is thrown when setState is called in the wrong place.
+-- This is declared here to avoid really messy indentation.
+local INVALID_SETSTATE_MESSAGE = [[
+setState cannot be used currently, are you calling setState from any of:
+* the willUpdate or willUnmount lifecycle hooks
+* the init function
+* the render function
+* the shouldUpdate function]]
+
 --[[
 	Create a new Roact stateful component class.
 
@@ -106,12 +115,9 @@ end
 	current state object.
 ]]
 function Component:setState(partialState)
-	-- State cannot be set in any of the following places:
-	-- * During the component's init function
-	-- * During the component's render function
-	-- * After the component has been unmounted (or is in the process of unmounting, e.g. willUnmount)
+	-- State cannot be set in any lifecycle hooks.
 	if not self._canSetState then
-		error("setState cannot be used currently: are you calling setState from an init, render, or willUnmount function?", 0)
+		error(INVALID_SETSTATE_MESSAGE, 0)
 	end
 
 	local newState = {}
@@ -134,7 +140,9 @@ end
 	reconciliation step.
 ]]
 function Component:_update(newProps, newState)
+	self._canSetState = false
 	local willUpdate = self:shouldUpdate(newProps or self.props, newState or self.state)
+	self._canSetState = true
 
 	if willUpdate then
 		self:_forceUpdate(newProps, newState)
@@ -147,6 +155,7 @@ end
 	newProps and newState are optional.
 ]]
 function Component:_forceUpdate(newProps, newState)
+	self._canSetState = false
 	if self.willUpdate then
 		self:willUpdate(newProps or self.props, newState or self.state)
 	end
@@ -162,9 +171,7 @@ function Component:_forceUpdate(newProps, newState)
 		self.state = newState
 	end
 
-	self._canSetState = false
 	local newChildElement = self:render()
-	self._canSetState = true
 
 	if self._handle._reified ~= nil then
 		-- We returned an element before, update it.
@@ -182,6 +189,8 @@ function Component:_forceUpdate(newProps, newState)
 		)
 	end
 
+	self._canSetState = true
+
 	if self.didUpdate then
 		self:didUpdate(oldProps, oldState)
 	end
@@ -209,4 +218,4 @@ function Component:_reify(handle)
 	end
 end
 
-return Component
\ No newline at end of file
+return Component
diff --git a/lib/Component.spec.lua b/lib/Component.spec.lua
index bf1c2f61..b575589e 100644
--- a/lib/Component.spec.lua
+++ b/lib/Component.spec.lua
@@ -184,6 +184,10 @@ return function()
 				})
 			end
 
+			function InitComponent:render()
+				return nil
+			end
+
 			local initElement = Core.createElement(InitComponent)
 
 			expect(function()
@@ -207,6 +211,65 @@ return function()
 			end).to.throw()
 		end)
 
+		it("should throw when called in shouldUpdate", function()
+			local TestComponent = Component:extend("TestComponent")
+
+			local triggerTest
+
+			function TestComponent:init()
+				triggerTest = function()
+					self:setState({
+						a = 1
+					})
+				end
+			end
+
+			function TestComponent:render()
+				return nil
+			end
+
+			function TestComponent:shouldUpdate()
+				self:setState({
+					a = 1
+				})
+			end
+
+			local testElement = Core.createElement(TestComponent)
+
+			expect(function()
+				Reconciler.reify(testElement)
+				triggerTest()
+			end).to.throw()
+		end)
+
+		it("should throw when called in willUpdate", function()
+			local TestComponent = Component:extend("TestComponent")
+			local forceUpdate
+
+			function TestComponent:init()
+				forceUpdate = function()
+					self:_forceUpdate()
+				end
+			end
+
+			function TestComponent:render()
+				return nil
+			end
+
+			function TestComponent:willUpdate()
+				self:setState({
+					a = 1
+				})
+			end
+
+			local testElement = Core.createElement(TestComponent)
+
+			expect(function()
+				Reconciler.reify(testElement)
+				forceUpdate()
+			end).to.throw()
+		end)
+
 		it("should throw when called in willUnmount", function()
 			local TestComponent = Component:extend("TestComponent")