diff --git a/.changeset/popular-roses-breathe.md b/.changeset/popular-roses-breathe.md
new file mode 100644
index 000000000..69f64af69
--- /dev/null
+++ b/.changeset/popular-roses-breathe.md
@@ -0,0 +1,6 @@
+---
+"@livekit/components-core": patch
+"@livekit/components-react": minor
+---
+
+Reset useChat messages when room disconnects
diff --git a/packages/core/src/components/chat.ts b/packages/core/src/components/chat.ts
index 0f91ae897..088b6e932 100644
--- a/packages/core/src/components/chat.ts
+++ b/packages/core/src/components/chat.ts
@@ -150,7 +150,7 @@ export function setupChat(room: Room, options?: ChatOptions) {
   function destroy() {
     onDestroyObservable.next();
     onDestroyObservable.complete();
-    topicSubjectMap.clear();
+    topicSubjectMap.delete(room);
   }
   room.once(RoomEvent.Disconnected, destroy);
 
diff --git a/packages/react/etc/components-react.api.md b/packages/react/etc/components-react.api.md
index 1dfb63afd..03a716172 100644
--- a/packages/react/etc/components-react.api.md
+++ b/packages/react/etc/components-react.api.md
@@ -659,8 +659,8 @@ export function useAudioPlayback(room?: Room): {
 
 // @public
 export function useChat(options?: ChatOptions): {
-    send: ((message: string) => Promise<ChatMessage>) | undefined;
-    update: ((message: string, messageId: string) => Promise<ChatMessage>) | undefined;
+    send: (message: string) => Promise<ChatMessage>;
+    update: (message: string, messageId: string) => Promise<ChatMessage>;
     chatMessages: ReceivedChatMessage[];
     isSending: boolean;
 };
diff --git a/packages/react/src/hooks/internal/useObservableState.ts b/packages/react/src/hooks/internal/useObservableState.ts
index 9b892f11d..e81da9572 100644
--- a/packages/react/src/hooks/internal/useObservableState.ts
+++ b/packages/react/src/hooks/internal/useObservableState.ts
@@ -5,13 +5,20 @@ import type { Observable } from 'rxjs';
 /**
  * @internal
  */
-export function useObservableState<T>(observable: Observable<T> | undefined, startWith: T) {
+export function useObservableState<T>(
+  observable: Observable<T> | undefined,
+  startWith: T,
+  resetWhenObservableChanges = true,
+) {
   const [state, setState] = React.useState<T>(startWith);
   React.useEffect(() => {
+    if (resetWhenObservableChanges) {
+      setState(startWith);
+    }
     // observable state doesn't run in SSR
     if (typeof window === 'undefined' || !observable) return;
     const subscription = observable.subscribe(setState);
     return () => subscription.unsubscribe();
-  }, [observable]);
+  }, [observable, resetWhenObservableChanges]);
   return state;
 }
diff --git a/packages/react/src/hooks/useChat.ts b/packages/react/src/hooks/useChat.ts
index 2c0d34a94..52f251ad8 100644
--- a/packages/react/src/hooks/useChat.ts
+++ b/packages/react/src/hooks/useChat.ts
@@ -1,8 +1,10 @@
+import * as React from 'react';
 import type { ChatOptions, ReceivedChatMessage } from '@livekit/components-core';
 import { setupChat } from '@livekit/components-core';
-import * as React from 'react';
+import { ConnectionState } from 'livekit-client';
 import { useRoomContext } from '../context';
 import { useObservableState } from './internal/useObservableState';
+import { useConnectionState } from './useConnectionStatus';
 
 /**
  * The `useChat` hook provides chat functionality for a LiveKit room.
@@ -14,14 +16,17 @@ import { useObservableState } from './internal/useObservableState';
  */
 export function useChat(options?: ChatOptions) {
   const room = useRoomContext();
-  const [setup, setSetup] = React.useState<ReturnType<typeof setupChat>>();
-  const isSending = useObservableState(setup?.isSendingObservable, false);
-  const chatMessages = useObservableState<ReceivedChatMessage[]>(setup?.messageObservable, []);
-
-  React.useEffect(() => {
-    const setupChatReturn = setupChat(room, options);
-    setSetup(setupChatReturn);
-  }, [room, options]);
+  const connectionState = useConnectionState(room);
+  const isDisconnected = React.useMemo(
+    () => connectionState === ConnectionState.Disconnected,
+    [connectionState],
+  ); // used to reset the messages on room disconnect
+  const setup = React.useMemo<ReturnType<typeof setupChat>>(
+    () => setupChat(room, options),
+    [room, options, isDisconnected],
+  );
+  const isSending = useObservableState(setup.isSendingObservable, false);
+  const chatMessages = useObservableState<ReceivedChatMessage[]>(setup.messageObservable, []);
 
-  return { send: setup?.send, update: setup?.update, chatMessages, isSending };
+  return { send: setup.send, update: setup.update, chatMessages, isSending };
 }