diff --git a/crates/next-custom-transforms/src/transforms/server_actions.rs b/crates/next-custom-transforms/src/transforms/server_actions.rs
index 620ddf7303882..3da2d65b2c531 100644
--- a/crates/next-custom-transforms/src/transforms/server_actions.rs
+++ b/crates/next-custom-transforms/src/transforms/server_actions.rs
@@ -545,9 +545,6 @@ impl<C: Comments> ServerActions<C> {
                                         ..Default::default()
                                     }),
                                 },
-                                decorators: vec![],
-                                span: DUMMY_SP,
-                                is_generator: false,
                                 is_async: true,
                                 ..Default::default()
                             }),
@@ -752,44 +749,49 @@ impl<C: Comments> ServerActions<C> {
             });
         }
 
-        // Create the action export decl from the arrow function
-        // export var cache_ident = async function() {}
+        let inner_fn_body = match *arrow.body.take() {
+            BlockStmtOrExpr::BlockStmt(body) => Some(body),
+            BlockStmtOrExpr::Expr(expr) => Some(BlockStmt {
+                stmts: vec![Stmt::Return(ReturnStmt {
+                    span: DUMMY_SP,
+                    arg: Some(expr),
+                })],
+                ..Default::default()
+            }),
+        };
+
+        let inner_fn = Box::new(Expr::Fn(FnExpr {
+            ident: None,
+            function: Box::new(Function {
+                params: new_params.clone(),
+                body: inner_fn_body,
+                span: arrow.span,
+                is_generator: false,
+                is_async: true,
+                ..Default::default()
+            }),
+        }));
+
+        // Wrap with $$reactCache__(function foo() { return $$cache__(...) })
+        let wrapper_fn = wrap_cache_expr(
+            cache_kind.as_str(),
+            reference_id.as_str(),
+            ids_from_closure.len(),
+            inner_fn,
+            self.arrow_or_fn_expr_ident.clone(),
+            arrow.span,
+        );
+
+        // Create the export: export var $$RSC_SERVER_CACHE_0 = ...
         self.hoisted_extra_items
             .push(ModuleItem::ModuleDecl(ModuleDecl::ExportDecl(ExportDecl {
                 span: DUMMY_SP,
                 decl: VarDecl {
-                    span: DUMMY_SP,
                     kind: VarDeclKind::Var,
                     decls: vec![VarDeclarator {
                         span: arrow.span,
                         name: Pat::Ident(cache_ident.clone().into()),
-                        init: Some(wrap_cache_expr(
-                            Box::new(Expr::Fn(FnExpr {
-                                ident: None,
-                                function: Box::new(Function {
-                                    params: new_params,
-                                    body: match *arrow.body.take() {
-                                        BlockStmtOrExpr::BlockStmt(body) => Some(body),
-                                        BlockStmtOrExpr::Expr(expr) => Some(BlockStmt {
-                                            span: DUMMY_SP,
-                                            stmts: vec![Stmt::Return(ReturnStmt {
-                                                span: DUMMY_SP,
-                                                arg: Some(expr),
-                                            })],
-                                            ..Default::default()
-                                        }),
-                                    },
-                                    decorators: vec![],
-                                    span: DUMMY_SP,
-                                    is_generator: false,
-                                    is_async: true,
-                                    ..Default::default()
-                                }),
-                            })),
-                            &cache_kind,
-                            &reference_id,
-                            ids_from_closure.len(),
-                        )),
+                        init: Some(wrapper_fn),
                         definite: false,
                     }],
                     ..Default::default()
@@ -866,28 +868,40 @@ impl<C: Comments> ServerActions<C> {
             private_ctxt: self.private_ctxt,
         });
 
-        // export var cache_ident = async function() {}
+        let function_body = function.body.take();
+        let function_span = function.span;
+
+        let inner_fn = Box::new(Expr::Fn(FnExpr {
+            ident: fn_name.clone(),
+            function: Box::new(Function {
+                params: new_params.clone(),
+                body: function_body,
+                span: function_span,
+                is_async: true,
+                ..function.take()
+            }),
+        }));
+
+        // Wrap with $$reactCache__(function foo() { return $$cache__(...) })
+        let wrapper_fn = wrap_cache_expr(
+            cache_kind.as_str(),
+            reference_id.as_str(),
+            ids_from_closure.len(),
+            inner_fn,
+            fn_name.clone(),
+            function_span,
+        );
+
+        // Create the export: export var $$RSC_SERVER_CACHE_0 = ...
         self.hoisted_extra_items
             .push(ModuleItem::ModuleDecl(ModuleDecl::ExportDecl(ExportDecl {
                 span: DUMMY_SP,
                 decl: VarDecl {
-                    span: DUMMY_SP,
                     kind: VarDeclKind::Var,
                     decls: vec![VarDeclarator {
-                        span: function.span,
+                        span: function_span,
                         name: Pat::Ident(cache_ident.clone().into()),
-                        init: Some(wrap_cache_expr(
-                            Box::new(Expr::Fn(FnExpr {
-                                ident: fn_name.clone(),
-                                function: Box::new(Function {
-                                    params: new_params,
-                                    ..function.take()
-                                }),
-                            })),
-                            &cache_kind,
-                            &reference_id,
-                            ids_from_closure.len(),
-                        )),
+                        init: Some(wrapper_fn),
                         definite: false,
                     }],
                     ..Default::default()
@@ -901,7 +915,7 @@ impl<C: Comments> ServerActions<C> {
                 expr: Box::new(annotate_ident_as_server_reference(
                     cache_ident.clone(),
                     reference_id.clone(),
-                    function.span,
+                    function_span,
                 )),
             })));
 
@@ -2049,6 +2063,7 @@ impl<C: Comments> VisitMut for ServerActions<C> {
         }
 
         // import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+        // import { cache as $$reactCache__ } from "react";
         if self.has_cache && self.config.is_react_server_layer {
             new.push(ModuleItem::ModuleDecl(ModuleDecl::Import(ImportDecl {
                 span: DUMMY_SP,
@@ -2068,8 +2083,26 @@ impl<C: Comments> VisitMut for ServerActions<C> {
                 phase: Default::default(),
             })));
 
-            // Make it the first item
-            new.rotate_right(1);
+            new.push(ModuleItem::ModuleDecl(ModuleDecl::Import(ImportDecl {
+                span: DUMMY_SP,
+                specifiers: vec![ImportSpecifier::Named(ImportNamedSpecifier {
+                    span: DUMMY_SP,
+                    local: quote_ident!("$$reactCache__").into(),
+                    imported: Some(quote_ident!("cache").into()),
+                    is_type_only: false,
+                })],
+                src: Box::new(Str {
+                    span: DUMMY_SP,
+                    value: atom!("react"),
+                    raw: None,
+                }),
+                type_only: false,
+                with: None,
+                phase: Default::default(),
+            })));
+
+            // Make them the first items
+            new.rotate_right(2);
         }
 
         if (self.has_action || self.has_cache) && self.config.is_react_server_layer {
@@ -2379,24 +2412,64 @@ fn retain_names_from_declared_idents(
     *child_names = retained_names;
 }
 
-fn wrap_cache_expr(expr: Box<Expr>, name: &str, id: &str, bound_args_len: usize) -> Box<Expr> {
-    // expr -> $$cache__("name", "id", 0, expr)
-    Box::new(Expr::Call(CallExpr {
-        span: DUMMY_SP,
+fn wrap_cache_expr(
+    cache_kind: &str,
+    reference_id: &str,
+    bound_args_length: usize,
+    inner_fn: Box<Expr>,
+    fn_ident: Option<Ident>,
+    original_span: Span,
+) -> Box<Expr> {
+    let cache_call = CallExpr {
+        span: original_span,
         callee: quote_ident!("$$cache__").as_callee(),
         args: vec![
             ExprOrSpread {
                 spread: None,
-                expr: Box::new(name.into()),
+                expr: Box::new(cache_kind.into()),
+            },
+            ExprOrSpread {
+                spread: None,
+                expr: Box::new(reference_id.into()),
+            },
+            ExprOrSpread {
+                spread: None,
+                expr: Box::new(Expr::Lit(Lit::Num(Number {
+                    span: DUMMY_SP,
+                    value: bound_args_length as f64,
+                    raw: None,
+                }))),
             },
+            inner_fn.as_arg(),
             ExprOrSpread {
                 spread: None,
-                expr: Box::new(id.into()),
+                expr: Box::new(Expr::Ident(private_ident!(DUMMY_SP, "arguments"))),
             },
-            Number::from(bound_args_len).as_arg(),
-            expr.as_arg(),
         ],
         ..Default::default()
+    };
+
+    // This wrapper function ensures that we have a user-space call stack frame.
+    let wrapper_fn = Box::new(Expr::Fn(FnExpr {
+        ident: fn_ident,
+        function: Box::new(Function {
+            body: Some(BlockStmt {
+                span: DUMMY_SP,
+                stmts: vec![Stmt::Return(ReturnStmt {
+                    span: DUMMY_SP,
+                    arg: Some(Box::new(Expr::Call(cache_call))),
+                })],
+                ..Default::default()
+            }),
+            span: original_span,
+            ..Default::default()
+        }),
+    }));
+
+    Box::new(Expr::Call(CallExpr {
+        callee: quote_ident!("$$reactCache__").as_callee(),
+        args: vec![wrapper_fn.as_arg()],
+        ..Default::default()
     }))
 }
 
diff --git a/crates/next-custom-transforms/tests/fixture/next-font-with-directive/use-cache/output.js b/crates/next-custom-transforms/tests/fixture/next-font-with-directive/use-cache/output.js
index 6fd4ffd10ac18..fbc7d67790a2f 100644
--- a/crates/next-custom-transforms/tests/fixture/next-font-with-directive/use-cache/output.js
+++ b/crates/next-custom-transforms/tests/fixture/next-font-with-directive/use-cache/output.js
@@ -1,10 +1,13 @@
 /* __next_internal_action_entry_do_not_use__ {"c0dd5bb6fef67f5ab84327f5164ac2c3111a159337":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 import React from 'react';
 import inter from '@next/font/google/target.css?{"path":"app/test.tsx","import":"Inter","arguments":[],"variableName":"inter"}';
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "c0dd5bb6fef67f5ab84327f5164ac2c3111a159337", 0, async function Cached({ children }) {
-    return <div className={inter.className}>{children}</div>;
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function Cached() {
+    return $$cache__("default", "c0dd5bb6fef67f5ab84327f5164ac2c3111a159337", 0, async function Cached({ children }) {
+        return <div className={inter.className}>{children}</div>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "c0dd5bb6fef67f5ab84327f5164ac2c3111a159337", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/next.d.ts b/crates/next-custom-transforms/tests/fixture/server-actions/next.d.ts
index befe558c27831..2e19662d526a8 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/next.d.ts
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/next.d.ts
@@ -44,6 +44,7 @@ declare module 'private-next-rsc-cache-wrapper' {
     kind: string,
     id: string,
     boundArgsLength: number,
-    fn: TFn
-  ): TFn
+    fn: TFn,
+    argsObj: IArguments
+  ): Promise<any>
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/33/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/33/output.js
index 3c6c43a7775b7..034ece8e19a61 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/33/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/33/output.js
@@ -1,9 +1,12 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 const v = 'world';
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fn() {
-    return 'hello, ' + v;
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function fn() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fn() {
+        return 'hello, ' + v;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/34/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/34/output.js
index 7d387cf83de75..2769b42858ad9 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/34/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/34/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"8012a8d21b6362b4cc8f5b15560525095bc48dba80":"$$RSC_SERVER_CACHE_3","803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0","8069348c79fce073bae2f70f139565a2fda1c74c74":"$$RSC_SERVER_CACHE_2","80951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {
-    return 'foo';
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {
+        return 'foo';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
@@ -11,8 +14,10 @@ Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
 });
 const foo = $$RSC_SERVER_CACHE_0;
 export { bar };
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
-    return 'bar';
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function bar() {
+    return $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
+        return 'bar';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "80951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
@@ -24,8 +29,10 @@ var bar = $$RSC_SERVER_CACHE_1;
 const qux = async function qux() {
     return 'qux';
 };
-export var $$RSC_SERVER_CACHE_2 = $$cache__("default", "8069348c79fce073bae2f70f139565a2fda1c74c74", 0, async function baz() {
-    return qux() + 'baz';
+export var $$RSC_SERVER_CACHE_2 = $$reactCache__(function baz() {
+    return $$cache__("default", "8069348c79fce073bae2f70f139565a2fda1c74c74", 0, async function baz() {
+        return qux() + 'baz';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_2, "8069348c79fce073bae2f70f139565a2fda1c74c74", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_2, "name", {
@@ -33,8 +40,10 @@ Object["defineProperty"]($$RSC_SERVER_CACHE_2, "name", {
     writable: false
 });
 const baz = $$RSC_SERVER_CACHE_2;
-export var $$RSC_SERVER_CACHE_3 = $$cache__("default", "8012a8d21b6362b4cc8f5b15560525095bc48dba80", 0, async function() {
-    return 'quux';
+export var $$RSC_SERVER_CACHE_3 = $$reactCache__(function quux() {
+    return $$cache__("default", "8012a8d21b6362b4cc8f5b15560525095bc48dba80", 0, async function() {
+        return 'quux';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_3, "8012a8d21b6362b4cc8f5b15560525095bc48dba80", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_3, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/35/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/35/output.js
index 23c08a193de83..7e482e8c37937 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/35/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/35/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {
-    return 'data';
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function my_fn() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {
+        return 'data';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/36/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/36/output.js
index 0640df39823e7..5c30e24ef6d67 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/36/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/36/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"8012a8d21b6362b4cc8f5b15560525095bc48dba80":"$$RSC_SERVER_CACHE_3","803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0","80951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1","c069348c79fce073bae2f70f139565a2fda1c74c74":"$$RSC_SERVER_CACHE_2"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
-    return 'data A';
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
+        return 'data A';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
@@ -10,8 +13,10 @@ Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
     writable: false
 });
 export var foo = $$RSC_SERVER_CACHE_0;
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
-    return 'data B';
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function bar() {
+    return $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
+        return 'data B';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "80951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
@@ -19,8 +24,10 @@ Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
     writable: false
 });
 export var bar = $$RSC_SERVER_CACHE_1;
-export var $$RSC_SERVER_CACHE_2 = $$cache__("default", "c069348c79fce073bae2f70f139565a2fda1c74c74", 0, async function Cached({ children }) {
-    return children;
+export var $$RSC_SERVER_CACHE_2 = $$reactCache__(function Cached() {
+    return $$cache__("default", "c069348c79fce073bae2f70f139565a2fda1c74c74", 0, async function Cached({ children }) {
+        return children;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_2, "c069348c79fce073bae2f70f139565a2fda1c74c74", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_2, "name", {
@@ -28,8 +35,10 @@ Object["defineProperty"]($$RSC_SERVER_CACHE_2, "name", {
     writable: false
 });
 export default $$RSC_SERVER_CACHE_2;
-export var $$RSC_SERVER_CACHE_3 = $$cache__("default", "8012a8d21b6362b4cc8f5b15560525095bc48dba80", 0, async function baz() {
-    return 'data C';
+export var $$RSC_SERVER_CACHE_3 = $$reactCache__(function baz() {
+    return $$cache__("default", "8012a8d21b6362b4cc8f5b15560525095bc48dba80", 0, async function baz() {
+        return 'data C';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_3, "8012a8d21b6362b4cc8f5b15560525095bc48dba80", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_3, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/37/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/37/output.js
index 30e6223c88ba2..6eb0199d1e85a 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/37/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/37/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fn() {
-    return 'foo';
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function fn() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fn() {
+        return 'foo';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/38/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/38/output.js
index e0de6fb1bda5a..4e7e15e2dc3c6 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/38/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/38/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("x", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
-    return 'data';
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("x", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
+        return 'data';
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/input.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/input.js
index f3d9f13465bfa..9d1bf1061be00 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/input.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/input.js
@@ -10,6 +10,6 @@ async function Component({ foo }) {
   }
 
   const data = await fn()
-  // @ts-expect-error: data is not a valid react child
+  // @ts-ignore: data is not a valid react child
   return <div>{data}</div>
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/output.js
index 3eb7a29401101..b57a82ca6e457 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/39/output.js
@@ -1,11 +1,14 @@
 /* __next_internal_action_entry_do_not_use__ {"c03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function fn([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
-    console.log($$ACTION_ARG_0);
-    return {
-        foo: $$ACTION_ARG_1
-    };
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function fn() {
+    return $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function fn([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
+        console.log($$ACTION_ARG_0);
+        return {
+            foo: $$ACTION_ARG_1
+        };
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "c03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
@@ -16,6 +19,6 @@ async function Component({ foo }) {
     const a = 123;
     var fn = $$RSC_SERVER_CACHE_0.bind(null, encryptActionBoundArgs("c03128060c414d59f8552e4788b846c0d2b7f74743", a, foo));
     const data = await fn();
-    // @ts-expect-error: data is not a valid react child
+    // @ts-ignore: data is not a valid react child
     return <div>{data}</div>;
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/40/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/40/output.js
index 8f6dc9e32f95f..abce8c606bc8b 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/40/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/40/output.js
@@ -1,15 +1,18 @@
 /* __next_internal_action_entry_do_not_use__ {"6090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","e03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 import { Form } from 'components';
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function cache([$$ACTION_ARG_0, $$ACTION_ARG_1], e) {
-    const f = $$ACTION_ARG_0 + e;
-    return [
-        f,
-        {
-            a: $$ACTION_ARG_1
-        }
-    ];
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function cache() {
+    return $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function cache([$$ACTION_ARG_0, $$ACTION_ARG_1], e) {
+        const f = $$ACTION_ARG_0 + e;
+        return [
+            f,
+            {
+                a: $$ACTION_ARG_1
+            }
+        ];
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "e03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/41/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/41/output.js
index e52be8748e992..f321824c6d8c8 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/41/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/41/output.js
@@ -1,6 +1,7 @@
 /* __next_internal_action_entry_do_not_use__ {"406a88810ecce4a4e8b59d53b8327d7e98bbf251d7":"$$RSC_SERVER_ACTION_0","c0951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 export const $$RSC_SERVER_ACTION_0 = async function fn($$ACTION_CLOSURE_BOUND) {
     var [$$ACTION_ARG_0, $$ACTION_ARG_1] = await decryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", $$ACTION_CLOSURE_BOUND);
     console.log($$ACTION_ARG_0);
@@ -9,12 +10,14 @@ export const $$RSC_SERVER_ACTION_0 = async function fn($$ACTION_CLOSURE_BOUND) {
     };
 };
 registerServerReference($$RSC_SERVER_ACTION_0, "406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", null);
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "c0951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function Component({ foo }) {
-    const a = 123;
-    var fn = $$RSC_SERVER_ACTION_0.bind(null, encryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", a, foo));
-    const data = await fn();
-    // @ts-expect-error: data is not a valid react child
-    return <div>{data}</div>;
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function Component() {
+    return $$cache__("default", "c0951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function Component({ foo }) {
+        const a = 123;
+        var fn = $$RSC_SERVER_ACTION_0.bind(null, encryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", a, foo));
+        const data = await fn();
+        // @ts-expect-error: data is not a valid react child
+        return <div>{data}</div>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "c0951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/input.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/input.js
index a5d450374855f..6cd45bb82972e 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/input.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/input.js
@@ -10,6 +10,6 @@ async function Component({ foo }) {
   }
 
   const data = await fn()
-  // @ts-expect-error: data is not a valid react child
+  // @ts-ignore: data is not a valid react child
   return <div>{data}</div>
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/output.js
index b22cae0e87eac..58b929d549c26 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/42/output.js
@@ -1,11 +1,14 @@
 /* __next_internal_action_entry_do_not_use__ {"c03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
-    console.log($$ACTION_ARG_0);
-    return {
-        foo: $$ACTION_ARG_1
-    };
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function fn() {
+    return $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
+        console.log($$ACTION_ARG_0);
+        return {
+            foo: $$ACTION_ARG_1
+        };
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "c03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
@@ -16,6 +19,6 @@ async function Component({ foo }) {
     const a = 123;
     const fn = $$RSC_SERVER_CACHE_0.bind(null, encryptActionBoundArgs("c03128060c414d59f8552e4788b846c0d2b7f74743", a, foo));
     const data = await fn();
-    // @ts-expect-error: data is not a valid react child
+    // @ts-ignore: data is not a valid react child
     return <div>{data}</div>;
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/43/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/43/output.js
index 44e8130c1e01a..9edbf417ade20 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/43/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/43/output.js
@@ -1,6 +1,7 @@
 /* __next_internal_action_entry_do_not_use__ {"406a88810ecce4a4e8b59d53b8327d7e98bbf251d7":"$$RSC_SERVER_ACTION_0","e0951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 import { Button } from 'components';
 const secret = 'my password is qwerty123';
 export const $$RSC_SERVER_ACTION_0 = async function action($$ACTION_CLOSURE_BOUND) {
@@ -8,13 +9,15 @@ export const $$RSC_SERVER_ACTION_0 = async function action($$ACTION_CLOSURE_BOUN
     console.log(secret, $$ACTION_ARG_0);
 };
 registerServerReference($$RSC_SERVER_ACTION_0, "406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", null);
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "e0951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function getCachedRandom(x, children) {
-    return {
-        x,
-        y: Math.random(),
-        z: <Button action={$$RSC_SERVER_ACTION_0.bind(null, encryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", x))}/>,
-        r: children
-    };
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function getCachedRandom() {
+    return $$cache__("default", "e0951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function getCachedRandom(x, children) {
+        return {
+            x,
+            y: Math.random(),
+            z: <Button action={$$RSC_SERVER_ACTION_0.bind(null, encryptActionBoundArgs("406a88810ecce4a4e8b59d53b8327d7e98bbf251d7", x))}/>,
+            r: children
+        };
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "e0951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/45/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/45/output.js
index cbb932e159d76..3490889998b9b 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/45/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/45/output.js
@@ -1,14 +1,17 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 // Expect no error here, this is allowed to be sync because it's not exported.
 function Foo() {
     const v = Math.random();
     console.log(v);
     return v;
 }
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function bar() {
-    return <Foo/>;
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function bar() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function bar() {
+        return <Foo/>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/46/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/46/output.js
index a2cbfb91ff400..28fb3b653b59f 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/46/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/46/output.js
@@ -3,11 +3,14 @@
 /* __next_internal_action_entry_do_not_use__ {"6090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","7c9ed0cc47abc4e1c64320cf42b74ae60b58c40f00":"$$RSC_SERVER_ACTION_3","7ea9b2939c1f39073a6bed227fd20233064c8b7869":"$$RSC_SERVER_ACTION_4","e03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0","ff471a5eb0be1c31686dd4ba938a80328b80b1615d":"$$RSC_SERVER_CACHE_5","ff69348c79fce073bae2f70f139565a2fda1c74c74":"$$RSC_SERVER_CACHE_2"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function f1(a, b) {
-    return [
-        a,
-        b
-    ];
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function f1() {
+    return $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function f1(a, b) {
+        return [
+            a,
+            b
+        ];
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "e03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
@@ -25,12 +28,14 @@ $$RSC_SERVER_ACTION_1 = async function f2(a, b) {
 registerServerReference($$RSC_SERVER_ACTION_1, "6090b5db271335765a4b0eab01f044b381b5ebd5cd", null);
 var f2 = $$RSC_SERVER_ACTION_1;
 export var // Should be 1 111111 1, which is "ff" in hex.
-$$RSC_SERVER_CACHE_2 = $$cache__("default", "ff69348c79fce073bae2f70f139565a2fda1c74c74", 0, async function f3(a, b, ...rest) {
-    return [
-        a,
-        b,
-        rest
-    ];
+$$RSC_SERVER_CACHE_2 = $$reactCache__(function f3() {
+    return $$cache__("default", "ff69348c79fce073bae2f70f139565a2fda1c74c74", 0, async function f3(a, b, ...rest) {
+        return [
+            a,
+            b,
+            rest
+        ];
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_2, "ff69348c79fce073bae2f70f139565a2fda1c74c74", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_2, "name", {
@@ -64,16 +69,18 @@ $$RSC_SERVER_ACTION_4 = async function f5(a, b, c, d, e, f) {
 registerServerReference($$RSC_SERVER_ACTION_4, "7ea9b2939c1f39073a6bed227fd20233064c8b7869", null);
 var f5 = $$RSC_SERVER_ACTION_4;
 export var // Should be 1 111111 1, which is "ff" in hex.
-$$RSC_SERVER_CACHE_5 = $$cache__("default", "ff471a5eb0be1c31686dd4ba938a80328b80b1615d", 0, async function f6(a, b, c, d, e, f, g) {
-    return [
-        a,
-        b,
-        c,
-        d,
-        e,
-        f,
-        g
-    ];
+$$RSC_SERVER_CACHE_5 = $$reactCache__(function f6() {
+    return $$cache__("default", "ff471a5eb0be1c31686dd4ba938a80328b80b1615d", 0, async function f6(a, b, c, d, e, f, g) {
+        return [
+            a,
+            b,
+            c,
+            d,
+            e,
+            f,
+            g
+        ];
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_5, "ff471a5eb0be1c31686dd4ba938a80328b80b1615d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_5, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/48/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/48/output.js
index 1e7e81e2fba76..d31c9466056f4 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/48/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/48/output.js
@@ -1,6 +1,7 @@
 /* __next_internal_action_entry_do_not_use__ {"60079087479e4c103d815f273878c7d1b8e902cc39":"action3","70f14702b5a021dd117f7ec7a3c838f397c2046d3b":"action","7fc18c215a6b7cdc64bf709f3a714ffdef1bf9651d":"default","e03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 // Should be 0 111000 0, which is "70" in hex.
 export async function action(a, b, c) {
     return <div>
@@ -24,11 +25,13 @@ export async function action3(a, b) {
       {b}
     </div>;
 }
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function cache(a, b) {
-    return <div>
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function cache() {
+    return $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function cache(a, b) {
+        return <div>
       {a}
       {b}
     </div>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "e03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/49/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/49/output.js
index 311af2319d637..00e5933aebabe 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/49/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/49/output.js
@@ -1,12 +1,15 @@
 /* __next_internal_action_entry_do_not_use__ {"f03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "f03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function(a, b, c) {
-    return <div>
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function() {
+    return $$cache__("default", "f03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function(a, b, c) {
+        return <div>
       {a}
       {b}
       {c}
     </div>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "f03128060c414d59f8552e4788b846c0d2b7f74743", null);
 export default $$RSC_SERVER_CACHE_0;
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/50/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/50/output.js
index 9b6edcdc48fc7..4cb2c9e527ba2 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/50/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/50/output.js
@@ -1,12 +1,15 @@
 /* __next_internal_action_entry_do_not_use__ {"f03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "f03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function(a, b, c) {
-    return <div>
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function() {
+    return $$cache__("default", "f03128060c414d59f8552e4788b846c0d2b7f74743", 0, async function(a, b, c) {
+        return <div>
       {a}
       {b}
       {c}
     </div>;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "f03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/52/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/52/output.js
index f56368a4d010f..590b8b263f69b 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/52/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/52/output.js
@@ -1,19 +1,26 @@
 /* __next_internal_action_entry_do_not_use__ {"409ed0cc47abc4e1c64320cf42b74ae60b58c40f00":"$$RSC_SERVER_ACTION_3","601c36b06e398c97abe5d5d7ae8c672bfddf4e1b91":"$$RSC_SERVER_ACTION_2","c0951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1","e03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 import { Client } from 'components';
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function([$$ACTION_ARG_0, $$ACTION_ARG_1], c) {
-    return $$ACTION_ARG_0 + $$ACTION_ARG_1 + c;
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function // Should be 1 110000 0, which is "e0" in hex (counts as two params,
+// because of the encrypted bound args param)
+fn1() {
+    return $$cache__("default", "e03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function([$$ACTION_ARG_0, $$ACTION_ARG_1], c) {
+        return $$ACTION_ARG_0 + $$ACTION_ARG_1 + c;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "e03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
     value: "fn1",
     writable: false
 });
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "c0951c375b4a6a6e89d67b743ec5808127cfde405d", 2, async function // Should be 1 100000 0, which is "c0" in hex (counts as one param,
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function // Should be 1 100000 0, which is "c0" in hex (counts as one param,
 // because of the encrypted bound args param)
-fn2([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
-    return $$ACTION_ARG_0 + $$ACTION_ARG_1;
+fn2() {
+    return $$cache__("default", "c0951c375b4a6a6e89d67b743ec5808127cfde405d", 2, async function fn2([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
+        return $$ACTION_ARG_0 + $$ACTION_ARG_1;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "c0951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
@@ -36,7 +43,5 @@ fn4($$ACTION_CLOSURE_BOUND) {
 registerServerReference($$RSC_SERVER_ACTION_3, "409ed0cc47abc4e1c64320cf42b74ae60b58c40f00", null);
 export async function Component(a) {
     const b = 1;
-    return <Client // Should be 1 110000 0, which is "e0" in hex (counts as two params,
-    // because of the encrypted bound args param)
-    fn1={$$RSC_SERVER_CACHE_0.bind(null, encryptActionBoundArgs("e03128060c414d59f8552e4788b846c0d2b7f74743", a, b))} fn2={$$RSC_SERVER_CACHE_1.bind(null, encryptActionBoundArgs("c0951c375b4a6a6e89d67b743ec5808127cfde405d", a, b))} fn3={$$RSC_SERVER_ACTION_2.bind(null, encryptActionBoundArgs("601c36b06e398c97abe5d5d7ae8c672bfddf4e1b91", a, b))} fn4={$$RSC_SERVER_ACTION_3.bind(null, encryptActionBoundArgs("409ed0cc47abc4e1c64320cf42b74ae60b58c40f00", a, b))}/>;
+    return <Client fn1={$$RSC_SERVER_CACHE_0.bind(null, encryptActionBoundArgs("e03128060c414d59f8552e4788b846c0d2b7f74743", a, b))} fn2={$$RSC_SERVER_CACHE_1.bind(null, encryptActionBoundArgs("c0951c375b4a6a6e89d67b743ec5808127cfde405d", a, b))} fn3={$$RSC_SERVER_ACTION_2.bind(null, encryptActionBoundArgs("601c36b06e398c97abe5d5d7ae8c672bfddf4e1b91", a, b))} fn4={$$RSC_SERVER_ACTION_3.bind(null, encryptActionBoundArgs("409ed0cc47abc4e1c64320cf42b74ae60b58c40f00", a, b))}/>;
 }
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/53/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/53/output.js
index 762ae07c98091..ee66e902ca24d 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/53/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/53/output.js
@@ -1,7 +1,10 @@
 /* __next_internal_action_entry_do_not_use__ {"0090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {});
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {}, arguments);
+});
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
     value: "foo",
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/54/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/54/output.js
index aa133634af127..96fa538edb9ba 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/54/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/54/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"4090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","c03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function foo([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
-    return $$ACTION_ARG_0 * $$ACTION_ARG_1;
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 2, async function foo([$$ACTION_ARG_0, $$ACTION_ARG_1]) {
+        return $$ACTION_ARG_0 * $$ACTION_ARG_1;
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "c03128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/55/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/55/output.js
index 107d3770ea1ce..ff89475d38456 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/55/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/55/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fetch1() {
-    return fetch('https://example.com').then((res)=>res.json());
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function fetch1() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function fetch1() {
+        return fetch('https://example.com').then((res)=>res.json());
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/57/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/57/output.js
index b8e0d92c673a2..8701b04e14068 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/57/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/57/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"0090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
-    return fetch('https://example.com').then((res)=>res.json());
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function foo() {
+        return fetch('https://example.com').then((res)=>res.json());
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/58/output.js b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/58/output.js
index 972e6edc908a0..506feeabef654 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/58/output.js
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/58/output.js
@@ -1,8 +1,11 @@
 /* __next_internal_action_entry_do_not_use__ {"4090b5db271335765a4b0eab01f044b381b5ebd5cd":"$$RSC_SERVER_ACTION_1","c03128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 1, async function([$$ACTION_ARG_0]) {
-    return $$ACTION_ARG_0();
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function() {
+    return $$cache__("default", "c03128060c414d59f8552e4788b846c0d2b7f74743", 1, async function([$$ACTION_ARG_0]) {
+        return $$ACTION_ARG_0();
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_0, "c03128060c414d59f8552e4788b846c0d2b7f74743", null);
 function createCachedFn(start) {
diff --git a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/60/output.ts b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/60/output.ts
index 32cc70a4fc2ff..cd68086d2e414 100644
--- a/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/60/output.ts
+++ b/crates/next-custom-transforms/tests/fixture/server-actions/server-graph/60/output.ts
@@ -1,6 +1,7 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
+import { cache as $$reactCache__ } from "react";
 // Exported TypeScript nodes should be ignored when validating that all module
 // exports are async functions.
 export type T = {
@@ -11,7 +12,9 @@ export enum E {
 }
 export default interface D {
 }
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function Page() {});
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function Page() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function Page() {}, arguments);
+});
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
     value: "Page",
diff --git a/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.js b/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.js
index c12c9472a9d1d..86580137134d0 100644
--- a/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.js
+++ b/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.js
@@ -1,15 +1,20 @@
 /* __next_internal_action_entry_do_not_use__ {"803128060c414d59f8552e4788b846c0d2b7f74743":"$$RSC_SERVER_CACHE_0","80951c375b4a6a6e89d67b743ec5808127cfde405d":"$$RSC_SERVER_CACHE_1"} */ import { registerServerReference } from "private-next-rsc-server-reference";
 import { encryptActionBoundArgs, decryptActionBoundArgs } from "private-next-rsc-action-encryption";
 import { cache as $$cache__ } from "private-next-rsc-cache-wrapper";
-export var $$RSC_SERVER_CACHE_0 = $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {});
+import { cache as $$reactCache__ } from "react";
+export var $$RSC_SERVER_CACHE_0 = $$reactCache__(function foo() {
+    return $$cache__("default", "803128060c414d59f8552e4788b846c0d2b7f74743", 0, async function() {}, arguments);
+});
 registerServerReference($$RSC_SERVER_CACHE_0, "803128060c414d59f8552e4788b846c0d2b7f74743", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_0, "name", {
     value: "foo",
     writable: false
 });
 const foo = $$RSC_SERVER_CACHE_0;
-export var $$RSC_SERVER_CACHE_1 = $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
-    return foo();
+export var $$RSC_SERVER_CACHE_1 = $$reactCache__(function bar() {
+    return $$cache__("default", "80951c375b4a6a6e89d67b743ec5808127cfde405d", 0, async function bar() {
+        return foo();
+    }, arguments);
 });
 registerServerReference($$RSC_SERVER_CACHE_1, "80951c375b4a6a6e89d67b743ec5808127cfde405d", null);
 Object["defineProperty"]($$RSC_SERVER_CACHE_1, "name", {
diff --git a/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.map b/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.map
index 9c3bbcec03d87..d11f5cc559c35 100644
--- a/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.map
+++ b/crates/next-custom-transforms/tests/fixture/source-maps/server-graph/use-cache/1/output.map
@@ -1 +1 @@
-{"version":3,"sources":["input.js"],"sourcesContent":["'use cache'\n\nconst foo = async () => {\n  'use cache'\n}\n\nexport async function bar() {\n  return foo()\n}\n"],"names":[],"mappings":";;;WAEY,+GAEZ;AAFY;;;;;AAAZ,MAAM;WAIC,6FAAA,eAAe;IACpB,OAAO;AACT;;;;;;AAFA,WAAsB"}
+{"version":3,"sources":["input.js"],"sourcesContent":["'use cache'\n\nconst foo = async () => {\n  'use cache'\n}\n\nexport async function bar() {\n  return foo()\n}\n"],"names":[],"mappings":";;;;WAEY,sCAAA,SAAN;WAAM,sEAAA,kBAEZ;;AAFY;;;;;AAAZ,MAAM;WAIC,sCAAA,SAAe;WAAf,sEAAA,eAAe;QACpB,OAAO;IACT;;AAFO;;;;;AAAP,WAAsB"}
diff --git a/packages/next/src/server/use-cache/use-cache-wrapper.ts b/packages/next/src/server/use-cache/use-cache-wrapper.ts
index 2be97332026c6..5105a44945f4e 100644
--- a/packages/next/src/server/use-cache/use-cache-wrapper.ts
+++ b/packages/next/src/server/use-cache/use-cache-wrapper.ts
@@ -66,7 +66,6 @@ import {
   type SearchParams,
 } from '../request/search-params'
 import type { Params } from '../request/params'
-import React from 'react'
 import { createLazyResult, isResolvedLazyResult } from '../lib/lazy-result'
 import { dynamicAccessAsyncStorage } from '../app-render/dynamic-access-async-storage.external'
 import { isReactLargeShellError } from '../app-render/react-large-shell-error'
@@ -138,7 +137,7 @@ function generateCacheEntry(
   clientReferenceManifest: DeepReadonly<ClientReferenceManifestForRsc>,
   encodedArguments: FormData | string,
   fn: (...args: unknown[]) => Promise<unknown>,
-  sharedErrorStack: string | undefined
+  timeoutError: UseCacheTimeoutError
 ) {
   // We need to run this inside a clean AsyncLocalStorage snapshot so that the cache
   // generation cannot read anything from the context we're currently executing which
@@ -152,7 +151,7 @@ function generateCacheEntry(
     clientReferenceManifest,
     encodedArguments,
     fn,
-    sharedErrorStack
+    timeoutError
   )
 }
 
@@ -162,7 +161,7 @@ function generateCacheEntryWithRestoredWorkStore(
   clientReferenceManifest: DeepReadonly<ClientReferenceManifestForRsc>,
   encodedArguments: FormData | string,
   fn: (...args: unknown[]) => Promise<unknown>,
-  sharedErrorStack: string | undefined
+  timeoutError: UseCacheTimeoutError
 ) {
   // Since we cleared the AsyncLocalStorage we need to restore the workStore.
   // Note: We explicitly don't restore the RequestStore nor the PrerenderStore.
@@ -179,7 +178,7 @@ function generateCacheEntryWithRestoredWorkStore(
     clientReferenceManifest,
     encodedArguments,
     fn,
-    sharedErrorStack
+    timeoutError
   )
 }
 
@@ -285,7 +284,7 @@ function generateCacheEntryWithCacheContext(
   clientReferenceManifest: DeepReadonly<ClientReferenceManifestForRsc>,
   encodedArguments: FormData | string,
   fn: (...args: unknown[]) => Promise<unknown>,
-  sharedErrorStack: string | undefined
+  timeoutError: UseCacheTimeoutError
 ) {
   if (!workStore.cacheLifeProfiles) {
     throw new InvariantError('cacheLifeProfiles should always be provided.')
@@ -310,7 +309,7 @@ function generateCacheEntryWithCacheContext(
       clientReferenceManifest,
       encodedArguments,
       fn,
-      sharedErrorStack
+      timeoutError
     )
   )
 }
@@ -525,7 +524,7 @@ async function generateCacheEntryImpl(
   clientReferenceManifest: DeepReadonly<ClientReferenceManifestForRsc>,
   encodedArguments: FormData | string,
   fn: (...args: unknown[]) => Promise<unknown>,
-  sharedErrorStack: string | undefined
+  timeoutError: UseCacheTimeoutError
 ): Promise<GenerateCacheEntryResult> {
   const temporaryReferences = createServerTemporaryReferenceSet()
   const outerWorkUnitStore = cacheContext.outerWorkUnitStore
@@ -631,12 +630,8 @@ async function generateCacheEntryImpl(
       // Otherwise we assume you stalled on hanging input and de-opt. This needs
       // to be lower than just the general timeout of 60 seconds.
       const timer = setTimeout(() => {
-        const error = new UseCacheTimeoutError()
-        if (sharedErrorStack) {
-          error.stack = error.name + ': ' + error.message + sharedErrorStack
-        }
-        workStore.invalidDynamicUsageError = error
-        timeoutAbortController.abort(error)
+        workStore.invalidDynamicUsageError = timeoutError
+        timeoutAbortController.abort(timeoutError)
       }, 50000)
 
       const dynamicAccessAbortSignal =
@@ -689,7 +684,7 @@ async function generateCacheEntryImpl(
         const hangingPromise = makeHangingPromise<never>(
           outerWorkUnitStore.renderSignal,
           workStore.route,
-          abortSignal.reason
+          'dynamic "use cache"'
         )
 
         if (outerWorkUnitStore.cacheSignal) {
@@ -830,26 +825,15 @@ function createTrackedReadableStream(
   })
 }
 
-function wrapAsInvalidDynamicUsageError(
-  error: Error,
-  sharedErrorStack: string | undefined,
-  workStore: WorkStore
-) {
-  if (sharedErrorStack) {
-    error.stack = error.name + ': ' + error.message + sharedErrorStack
-  }
-
-  workStore.invalidDynamicUsageError ??= error
-
-  return error
-}
-
-export function cache(
+export async function cache(
   kind: string,
   id: string,
   boundArgsLength: number,
-  originalFn: (...args: unknown[]) => Promise<unknown>
+  originalFn: (...args: unknown[]) => Promise<unknown>,
+  argsObj: IArguments
 ) {
+  let args = Array.prototype.slice.call(argsObj)
+
   const isPrivate = kind === 'private'
 
   // Private caches are currently only stored in the Resume Data Cache (RDC),
@@ -860,635 +844,409 @@ export function cache(
     throw new Error('Unknown cache handler: ' + kind)
   }
 
-  // Capture a better error stack in this scope.
-  const sharedError = new Error()
-  Error.captureStackTrace(sharedError, cache)
-  const sharedErrorStack = sharedError.stack?.slice(
-    sharedError.stack.indexOf('\n')
-  )
+  const timeoutError = new UseCacheTimeoutError()
+  Error.captureStackTrace(timeoutError, cache)
 
-  const name = originalFn.name
-  const cachedFn = {
-    [name]: async function (...args: any[]) {
-      const workStore = workAsyncStorage.getStore()
-      if (workStore === undefined) {
-        throw new Error(
-          '"use cache" cannot be used outside of App Router. Expected a WorkStore.'
-        )
-      }
+  const wrapAsInvalidDynamicUsageError = (
+    error: Error,
+    workStore: WorkStore
+  ) => {
+    Error.captureStackTrace(error, cache)
+    workStore.invalidDynamicUsageError ??= error
 
-      let fn = originalFn
+    return error
+  }
 
-      const workUnitStore = workUnitAsyncStorage.getStore()
+  const workStore = workAsyncStorage.getStore()
+  if (workStore === undefined) {
+    throw new Error(
+      '"use cache" cannot be used outside of App Router. Expected a WorkStore.'
+    )
+  }
 
-      let cacheContext: CacheContext
+  const workUnitStore = workUnitAsyncStorage.getStore()
+  const name = originalFn.name
+  let fn = originalFn
+  let cacheContext: CacheContext
 
-      if (isPrivate) {
-        const expression = '"use cache: private"'
+  if (isPrivate) {
+    const expression = '"use cache: private"'
 
-        switch (workUnitStore?.type) {
-          // "use cache: private" is dynamic in prerendering contexts.
-          case 'prerender':
-            return makeHangingPromise(
-              workUnitStore.renderSignal,
-              workStore.route,
-              expression
-            )
-          case 'prerender-ppr':
-            return postponeWithTracking(
-              workStore.route,
-              expression,
-              workUnitStore.dynamicTracking
-            )
-          case 'prerender-legacy':
-            return throwToInterruptStaticGeneration(
-              expression,
-              workStore,
-              workUnitStore
-            )
-          case 'prerender-client':
-            throw new InvariantError(
-              `${expression} must not be used within a client component. Next.js should be preventing ${expression} from being allowed in client components statically, but did not in this case.`
-            )
-          case 'unstable-cache': {
-            throw wrapAsInvalidDynamicUsageError(
-              new Error(
-                // TODO: Add a link to an error documentation page when we have one.
-                `${expression} must not be used within \`unstable_cache()\`.`
-              ),
-              sharedErrorStack,
-              workStore
-            )
-          }
-          case 'cache': {
-            throw wrapAsInvalidDynamicUsageError(
-              new Error(
-                // TODO: Add a link to an error documentation page when we have one.
-                `${expression} must not be used within "use cache". It can only be nested inside of another ${expression}.`
-              ),
-              sharedErrorStack,
-              workStore
-            )
-          }
-          case 'request':
-          case 'prerender-runtime':
-          case 'private-cache':
-            cacheContext = {
-              kind: 'private',
-              outerWorkUnitStore: workUnitStore,
-            }
-            break
-          case undefined:
-            throw wrapAsInvalidDynamicUsageError(
-              new Error(
-                // TODO: Add a link to an error documentation page when we have one.
-                `${expression} cannot be used outside of a request context.`
-              ),
-              sharedErrorStack,
-              workStore
-            )
-          default:
-            workUnitStore satisfies never
-            // This is dead code, but without throwing an error here, TypeScript
-            // will assume that cacheContext is used before being assigned.
-            throw new InvariantError(`Unexpected work unit store.`)
-        }
-      } else {
-        switch (workUnitStore?.type) {
-          case 'prerender-client':
-            const expression = '"use cache"'
-            throw new InvariantError(
-              `${expression} must not be used within a client component. Next.js should be preventing ${expression} from being allowed in client components statically, but did not in this case.`
-            )
-          case 'prerender':
-          case 'prerender-runtime':
-          case 'prerender-ppr':
-          case 'prerender-legacy':
-          case 'request':
-          case 'cache':
-          case 'private-cache':
-          // TODO: We should probably forbid nesting "use cache" inside
-          // unstable_cache. (fallthrough)
-          case 'unstable-cache':
-          case undefined:
-            cacheContext = {
-              kind: 'public',
-              outerWorkUnitStore: workUnitStore,
-            }
-            break
-          default:
-            workUnitStore satisfies never
-            // This is dead code, but without throwing an error here, TypeScript
-            // will assume that cacheContext is used before being assigned.
-            throw new InvariantError(`Unexpected work unit store.`)
-        }
+    switch (workUnitStore?.type) {
+      // "use cache: private" is dynamic in prerendering contexts.
+      case 'prerender':
+        return makeHangingPromise(
+          workUnitStore.renderSignal,
+          workStore.route,
+          expression
+        )
+      case 'prerender-ppr':
+        return postponeWithTracking(
+          workStore.route,
+          expression,
+          workUnitStore.dynamicTracking
+        )
+      case 'prerender-legacy':
+        return throwToInterruptStaticGeneration(
+          expression,
+          workStore,
+          workUnitStore
+        )
+      case 'prerender-client':
+        throw new InvariantError(
+          `${expression} must not be used within a client component. Next.js should be preventing ${expression} from being allowed in client components statically, but did not in this case.`
+        )
+      case 'unstable-cache': {
+        throw wrapAsInvalidDynamicUsageError(
+          new Error(
+            // TODO: Add a link to an error documentation page when we have one.
+            `${expression} must not be used within \`unstable_cache()\`.`
+          ),
+          workStore
+        )
       }
-
-      // Get the clientReferenceManifest while we're still in the outer Context.
-      // In case getClientReferenceManifestSingleton is implemented using AsyncLocalStorage.
-      const clientReferenceManifest = getClientReferenceManifestForRsc()
-
-      // Because the Action ID is not yet unique per implementation of that Action we can't
-      // safely reuse the results across builds yet. In the meantime we add the buildId to the
-      // arguments as a seed to ensure they're not reused. Remove this once Action IDs hash
-      // the implementation.
-      const buildId = workStore.buildId
-
-      // In dev mode, when the HMR refresh hash is set, we include it in the
-      // cache key. This ensures that cache entries are not reused when server
-      // components have been edited. This is a very coarse approach. But it's
-      // also only a temporary solution until Action IDs are unique per
-      // implementation. Remove this once Action IDs hash the implementation.
-      const hmrRefreshHash =
-        workUnitStore && getHmrRefreshHash(workStore, workUnitStore)
-
-      const hangingInputAbortSignal = workUnitStore
-        ? createHangingInputAbortSignal(workUnitStore)
-        : undefined
-
-      if (cacheContext.kind === 'private') {
-        const { outerWorkUnitStore } = cacheContext
-        switch (outerWorkUnitStore.type) {
-          case 'prerender-runtime': {
-            // In a runtime prerender, we have to make sure that APIs that would hang during a static prerender
-            // are resolved with a delay, in the runtime stage. Private caches are one of these.
-            if (outerWorkUnitStore.runtimeStagePromise) {
-              await outerWorkUnitStore.runtimeStagePromise
-            }
-            break
-          }
-          case 'request': {
-            if (process.env.NODE_ENV === 'development') {
-              // Similar to runtime prerenders, private caches should not resolve in the static stage
-              // of a dev request, so we delay them.
-              await makeDevtoolsIOAwarePromise(
-                undefined,
-                outerWorkUnitStore,
-                RenderStage.Runtime
-              )
-            }
-            break
-          }
-          case 'private-cache':
-            break
-          default: {
-            outerWorkUnitStore satisfies never
-          }
-        }
+      case 'cache': {
+        throw wrapAsInvalidDynamicUsageError(
+          new Error(
+            // TODO: Add a link to an error documentation page when we have one.
+            `${expression} must not be used within "use cache". It can only be nested inside of another ${expression}.`
+          ),
+          workStore
+        )
       }
-
-      let isPageOrLayoutSegmentFunction = false
-
-      // For page and layout segment functions (i.e. the page/layout component,
-      // or generateMetadata/generateViewport), the cache function is
-      // overwritten, which allows us to apply special handling for params and
-      // searchParams. For pages and layouts we're using the outer params prop,
-      // and not the inner one that was serialized/deserialized. While it's not
-      // generally true for "use cache" args, in the case of `params` the inner
-      // and outer object are essentially equivalent, so this is safe to do
-      // (including fallback params that are hanging promises). It allows us to
-      // avoid waiting for the timeout, when prerendering a fallback shell of a
-      // cached page or layout that awaits params.
-      if (isPageSegmentFunction(args)) {
-        isPageOrLayoutSegmentFunction = true
-
-        const [
-          { params: outerParams, searchParams: outerSearchParams },
-          ...otherOuterArgs
-        ] = args
-
-        const props: UseCachePageInnerProps = {
-          params: outerParams,
-          // Omit searchParams and $$isPage.
-        }
-
-        if (isPrivate) {
-          // Private caches allow accessing search params. We need to include
-          // them in the serialized args and when generating the cache key.
-          props.searchParams = outerSearchParams
+      case 'request':
+      case 'prerender-runtime':
+      case 'private-cache':
+        cacheContext = {
+          kind: 'private',
+          outerWorkUnitStore: workUnitStore,
         }
-
-        args = [props, ...otherOuterArgs]
-
-        fn = {
-          [name]: async (
-            {
-              params: _innerParams,
-              searchParams: innerSearchParams,
-            }: UseCachePageInnerProps,
-            ...otherInnerArgs: unknown[]
-          ) =>
-            originalFn.apply(null, [
-              {
-                params: outerParams,
-                searchParams:
-                  innerSearchParams ??
-                  // For public caches, search params are omitted from the cache
-                  // key (and the serialized args) to avoid mismatches between
-                  // prerendering and resuming a cached page that does not
-                  // access search params. This is also the reason why we're not
-                  // using a hanging promise for search params. For cached pages
-                  // that do access them, which is an invalid dynamic usage, we
-                  // need to ensure that an error is shown.
-                  makeErroringSearchParamsForUseCache(workStore),
-              },
-              ...otherInnerArgs,
-            ]),
-        }[name] as (...args: unknown[]) => Promise<unknown>
-      } else if (isLayoutSegmentFunction(args)) {
-        isPageOrLayoutSegmentFunction = true
-
-        const [
-          { params: outerParams, $$isLayout, ...outerSlots },
-          ...otherOuterArgs
-        ] = args
-
-        // Overwrite the props to omit $$isLayout. Note that slots are only
-        // passed to the layout component (if any are defined), and not to
-        // generateMetadata nor generateViewport. For those functions,
-        // outerSlots/innerSlots is an empty object, which is fine because we're
-        // just spreading it into the props.
-        args = [{ params: outerParams, ...outerSlots }, ...otherOuterArgs]
-
-        fn = {
-          [name]: async (
-            {
-              params: _innerParams,
-              ...innerSlots
-            }: Omit<UseCacheLayoutProps, '$$isLayout'>,
-            ...otherInnerArgs: unknown[]
-          ) =>
-            originalFn.apply(null, [
-              { params: outerParams, ...innerSlots },
-              ...otherInnerArgs,
-            ]),
-        }[name] as (...args: unknown[]) => Promise<unknown>
-      }
-
-      if (boundArgsLength > 0) {
-        if (args.length === 0) {
-          throw new InvariantError(
-            `Expected the "use cache" function ${JSON.stringify(fn.name)} to receive its encrypted bound arguments as the first argument.`
-          )
+        break
+      case undefined:
+        throw wrapAsInvalidDynamicUsageError(
+          new Error(
+            // TODO: Add a link to an error documentation page when we have one.
+            `${expression} cannot be used outside of a request context.`
+          ),
+          workStore
+        )
+      default:
+        workUnitStore satisfies never
+        // This is dead code, but without throwing an error here, TypeScript
+        // will assume that cacheContext is used before being assigned.
+        throw new InvariantError(`Unexpected work unit store.`)
+    }
+  } else {
+    switch (workUnitStore?.type) {
+      case 'prerender-client':
+        const expression = '"use cache"'
+        throw new InvariantError(
+          `${expression} must not be used within a client component. Next.js should be preventing ${expression} from being allowed in client components statically, but did not in this case.`
+        )
+      case 'prerender':
+      case 'prerender-runtime':
+      case 'prerender-ppr':
+      case 'prerender-legacy':
+      case 'request':
+      case 'cache':
+      case 'private-cache':
+      // TODO: We should probably forbid nesting "use cache" inside
+      // unstable_cache. (fallthrough)
+      case 'unstable-cache':
+      case undefined:
+        cacheContext = {
+          kind: 'public',
+          outerWorkUnitStore: workUnitStore,
         }
+        break
+      default:
+        workUnitStore satisfies never
+        // This is dead code, but without throwing an error here, TypeScript
+        // will assume that cacheContext is used before being assigned.
+        throw new InvariantError(`Unexpected work unit store.`)
+    }
+  }
 
-        const encryptedBoundArgs = args.shift()
-        const boundArgs = await decryptActionBoundArgs(id, encryptedBoundArgs)
+  // Get the clientReferenceManifest while we're still in the outer Context.
+  // In case getClientReferenceManifestSingleton is implemented using AsyncLocalStorage.
+  const clientReferenceManifest = getClientReferenceManifestForRsc()
+
+  // Because the Action ID is not yet unique per implementation of that Action we can't
+  // safely reuse the results across builds yet. In the meantime we add the buildId to the
+  // arguments as a seed to ensure they're not reused. Remove this once Action IDs hash
+  // the implementation.
+  const buildId = workStore.buildId
+
+  // In dev mode, when the HMR refresh hash is set, we include it in the
+  // cache key. This ensures that cache entries are not reused when server
+  // components have been edited. This is a very coarse approach. But it's
+  // also only a temporary solution until Action IDs are unique per
+  // implementation. Remove this once Action IDs hash the implementation.
+  const hmrRefreshHash =
+    workUnitStore && getHmrRefreshHash(workStore, workUnitStore)
+
+  const hangingInputAbortSignal = workUnitStore
+    ? createHangingInputAbortSignal(workUnitStore)
+    : undefined
 
-        if (!Array.isArray(boundArgs)) {
-          throw new InvariantError(
-            `Expected the bound arguments of "use cache" function ${JSON.stringify(fn.name)} to deserialize into an array, got ${typeof boundArgs} instead.`
-          )
+  if (cacheContext.kind === 'private') {
+    const { outerWorkUnitStore } = cacheContext
+    switch (outerWorkUnitStore.type) {
+      case 'prerender-runtime': {
+        // In a runtime prerender, we have to make sure that APIs that would hang during a static prerender
+        // are resolved with a delay, in the runtime stage. Private caches are one of these.
+        if (outerWorkUnitStore.runtimeStagePromise) {
+          await outerWorkUnitStore.runtimeStagePromise
         }
-
-        if (boundArgsLength !== boundArgs.length) {
-          throw new InvariantError(
-            `Expected the "use cache" function ${JSON.stringify(fn.name)} to receive ${boundArgsLength} bound arguments, got ${boundArgs.length} instead.`
+        break
+      }
+      case 'request': {
+        if (process.env.NODE_ENV === 'development') {
+          // Similar to runtime prerenders, private caches should not resolve in the static stage
+          // of a dev request, so we delay them.
+          await makeDevtoolsIOAwarePromise(
+            undefined,
+            outerWorkUnitStore,
+            RenderStage.Runtime
           )
         }
-
-        args.unshift(boundArgs)
+        break
       }
-
-      const temporaryReferences = createClientTemporaryReferenceSet()
-
-      // For private caches, which are allowed to read cookies, we still don't
-      // need to include the cookies in the cache key. This is because we don't
-      // store the cache entries in a cache handler, but only in the Resume Data
-      // Cache (RDC). Private caches are only used during dynamic requests and
-      // runtime prefetches. For dynamic requests, the RDC is immutable, so it
-      // does not include any private caches. For runtime prefetches, the RDC is
-      // mutable, but only lives as long as the request, so the key does not
-      // need to include cookies.
-      const cacheKeyParts: CacheKeyParts = hmrRefreshHash
-        ? [buildId, id, args, hmrRefreshHash]
-        : [buildId, id, args]
-
-      const encodeCacheKeyParts = () =>
-        encodeReply(cacheKeyParts, {
-          temporaryReferences,
-          signal: hangingInputAbortSignal,
-        })
-
-      let encodedCacheKeyParts: FormData | string
-
-      switch (workUnitStore?.type) {
-        case 'prerender-runtime':
-        // We're currently only using `dynamicAccessAsyncStorage` for params,
-        // which are always available in a runtime prerender, so they will never hang,
-        // effectively making the tracking below a no-op.
-        // However, a runtime prerender shares a lot of the semantics with a static prerender,
-        // and might need to follow this codepath in the future
-        // if we start using `dynamicAccessAsyncStorage` for other APIs.
-        //
-        // fallthrough
-        case 'prerender':
-          if (!isPageOrLayoutSegmentFunction) {
-            // If the "use cache" function is not a page or layout segment
-            // function, we need to track dynamic access already when encoding
-            // the arguments. If params are passed explicitly into a "use cache"
-            // function (as opposed to receiving them automatically in a page or
-            // layout), we assume that the params are also accessed. This allows
-            // us to abort early, and treat the function as dynamic, instead of
-            // waiting for the timeout to be reached.
-            const dynamicAccessAbortController = new AbortController()
-
-            encodedCacheKeyParts = await dynamicAccessAsyncStorage.run(
-              { abortController: dynamicAccessAbortController },
-              encodeCacheKeyParts
-            )
-
-            if (dynamicAccessAbortController.signal.aborted) {
-              return makeHangingPromise(
-                workUnitStore.renderSignal,
-                workStore.route,
-                dynamicAccessAbortController.signal.reason.message
-              )
-            }
-            break
-          }
-        // fallthrough
-        case 'prerender-ppr':
-        case 'prerender-legacy':
-        case 'request':
-        // TODO(restart-on-cache-miss): We need to handle params/searchParams on page components.
-        // the promises will be tasky, so `encodeCacheKeyParts` will not resolve in the static stage.
-        // We have not started a cache read at this point, so we might just miss the cache completely.
-        // fallthrough
-        case 'cache':
-        case 'private-cache':
-        case 'unstable-cache':
-        case undefined:
-          encodedCacheKeyParts = await encodeCacheKeyParts()
-          break
-        default:
-          return workUnitStore satisfies never
+      case 'private-cache':
+        break
+      default: {
+        outerWorkUnitStore satisfies never
       }
+    }
+  }
 
-      const serializedCacheKey =
-        typeof encodedCacheKeyParts === 'string'
-          ? // Fast path for the simple case for simple inputs. We let the CacheHandler
-            // Convert it to an ArrayBuffer if it wants to.
-            encodedCacheKeyParts
-          : await encodeFormData(encodedCacheKeyParts)
-
-      let stream: undefined | ReadableStream = undefined
-
-      // Get an immutable and mutable versions of the resume data cache.
-      const prerenderResumeDataCache = workUnitStore
-        ? getPrerenderResumeDataCache(workUnitStore)
-        : null
-      const renderResumeDataCache = workUnitStore
-        ? getRenderResumeDataCache(workUnitStore)
-        : null
+  let isPageOrLayoutSegmentFunction = false
+
+  // For page and layout segment functions (i.e. the page/layout component,
+  // or generateMetadata/generateViewport), the cache function is
+  // overwritten, which allows us to apply special handling for params and
+  // searchParams. For pages and layouts we're using the outer params prop,
+  // and not the inner one that was serialized/deserialized. While it's not
+  // generally true for "use cache" args, in the case of `params` the inner
+  // and outer object are essentially equivalent, so this is safe to do
+  // (including fallback params that are hanging promises). It allows us to
+  // avoid waiting for the timeout, when prerendering a fallback shell of a
+  // cached page or layout that awaits params.
+  if (isPageSegmentFunction(args)) {
+    isPageOrLayoutSegmentFunction = true
+
+    const [
+      { params: outerParams, searchParams: outerSearchParams },
+      ...otherOuterArgs
+    ] = args
+
+    const props: UseCachePageInnerProps = {
+      params: outerParams,
+      // Omit searchParams and $$isPage.
+    }
 
-      if (renderResumeDataCache) {
-        const cacheSignal = workUnitStore ? getCacheSignal(workUnitStore) : null
+    if (isPrivate) {
+      // Private caches allow accessing search params. We need to include
+      // them in the serialized args and when generating the cache key.
+      props.searchParams = outerSearchParams
+    }
 
-        if (cacheSignal) {
-          cacheSignal.beginRead()
-        }
-        const cachedEntry = renderResumeDataCache.cache.get(serializedCacheKey)
-        if (cachedEntry !== undefined) {
-          const existingEntry = await cachedEntry
-          if (workUnitStore !== undefined && existingEntry !== undefined) {
-            if (
-              existingEntry.revalidate === 0 ||
-              existingEntry.expire < DYNAMIC_EXPIRE
-            ) {
-              switch (workUnitStore.type) {
-                case 'prerender':
-                  // In a Dynamic I/O prerender, if the cache entry has
-                  // revalidate: 0 or if the expire time is under 5 minutes,
-                  // then we consider this cache entry dynamic as it's not worth
-                  // generating static pages for such data. It's better to leave
-                  // a dynamic hole that can be filled in during the resume with
-                  // a potentially cached entry.
-                  if (cacheSignal) {
-                    cacheSignal.endRead()
-                  }
-                  return makeHangingPromise(
-                    workUnitStore.renderSignal,
-                    workStore.route,
-                    'dynamic "use cache"'
-                  )
-                case 'prerender-runtime': {
-                  // In the final phase of a runtime prerender, we have to make
-                  // sure that APIs that would hang during a static prerender
-                  // are resolved with a delay, in the runtime stage.
-                  if (workUnitStore.runtimeStagePromise) {
-                    await workUnitStore.runtimeStagePromise
-                  }
-                  break
-                }
-                case 'request': {
-                  if (process.env.NODE_ENV === 'development') {
-                    // We delay the cache here so that it doesn't resolve in the static task --
-                    // in a regular static prerender, it'd be a hanging promise, and we need to reflect that,
-                    // so it has to resolve later.
-                    // TODO(restart-on-cache-miss): Optimize this to avoid unnecessary restarts.
-                    // We don't end the cache read here, so this will always appear as a cache miss in the static stage,
-                    // and thus will cause a restart even if all caches are filled.
-                    await makeDevtoolsIOAwarePromise(
-                      undefined,
-                      workUnitStore,
-                      RenderStage.Runtime
-                    )
-                  }
-                  break
-                }
-                case 'prerender-ppr':
-                case 'prerender-legacy':
-                case 'cache':
-                case 'private-cache':
-                case 'unstable-cache':
-                  break
-                default:
-                  workUnitStore satisfies never
-              }
-            }
+    args = [props, ...otherOuterArgs]
 
-            if (existingEntry.stale < RUNTIME_PREFETCH_DYNAMIC_STALE) {
-              switch (workUnitStore.type) {
-                case 'prerender-runtime':
-                  // In a runtime prerender, if the cache entry will become
-                  // stale in less then 30 seconds, we consider this cache entry
-                  // dynamic as it's not worth prefetching. It's better to leave
-                  // a dynamic hole that can be filled during the navigation.
-                  if (cacheSignal) {
-                    cacheSignal.endRead()
-                  }
-                  return makeHangingPromise(
-                    workUnitStore.renderSignal,
-                    workStore.route,
-                    'dynamic "use cache"'
-                  )
-                case 'request': {
-                  if (process.env.NODE_ENV === 'development') {
-                    // We delay the cache here so that it doesn't resolve in the runtime phase --
-                    // in a regular runtime prerender, it'd be a hanging promise, and we need to reflect that,
-                    // so it has to resolve later.
-                    // TODO(restart-on-cache-miss): Optimize this to avoid unnecessary restarts.
-                    // We don't end the cache read here, so this will always appear as a cache miss in the runtime stage,
-                    // and thus will cause a restart even if all caches are filled.
-                    await makeDevtoolsIOAwarePromise(
-                      undefined,
-                      workUnitStore,
-                      RenderStage.Dynamic
-                    )
-                  }
-                  break
-                }
-                case 'prerender':
-                case 'prerender-ppr':
-                case 'prerender-legacy':
-                case 'cache':
-                case 'private-cache':
-                case 'unstable-cache':
-                  break
-                default:
-                  workUnitStore satisfies never
-              }
-            }
-          }
+    fn = {
+      [name]: async (
+        {
+          params: _innerParams,
+          searchParams: innerSearchParams,
+        }: UseCachePageInnerProps,
+        ...otherInnerArgs: unknown[]
+      ) =>
+        originalFn.apply(null, [
+          {
+            params: outerParams,
+            searchParams:
+              innerSearchParams ??
+              // For public caches, search params are omitted from the cache
+              // key (and the serialized args) to avoid mismatches between
+              // prerendering and resuming a cached page that does not
+              // access search params. This is also the reason why we're not
+              // using a hanging promise for search params. For cached pages
+              // that do access them, which is an invalid dynamic usage, we
+              // need to ensure that an error is shown.
+              makeErroringSearchParamsForUseCache(workStore),
+          },
+          ...otherInnerArgs,
+        ]),
+    }[name] as (...args: unknown[]) => Promise<unknown>
+  } else if (isLayoutSegmentFunction(args)) {
+    isPageOrLayoutSegmentFunction = true
+
+    const [
+      { params: outerParams, $$isLayout, ...outerSlots },
+      ...otherOuterArgs
+    ] = args
+
+    // Overwrite the props to omit $$isLayout. Note that slots are only
+    // passed to the layout component (if any are defined), and not to
+    // generateMetadata nor generateViewport. For those functions,
+    // outerSlots/innerSlots is an empty object, which is fine because we're
+    // just spreading it into the props.
+    args = [{ params: outerParams, ...outerSlots }, ...otherOuterArgs]
+
+    fn = {
+      [name]: async (
+        {
+          params: _innerParams,
+          ...innerSlots
+        }: Omit<UseCacheLayoutProps, '$$isLayout'>,
+        ...otherInnerArgs: unknown[]
+      ) =>
+        originalFn.apply(null, [
+          { params: outerParams, ...innerSlots },
+          ...otherInnerArgs,
+        ]),
+    }[name] as (...args: unknown[]) => Promise<unknown>
+  }
 
-          // We want to make sure we only propagate cache life & tags if the
-          // entry was *not* omitted from the prerender. So we only do this
-          // after the above early returns.
-          propagateCacheLifeAndTags(cacheContext, existingEntry)
+  if (boundArgsLength > 0) {
+    if (args.length === 0) {
+      throw new InvariantError(
+        `Expected the "use cache" function ${JSON.stringify(fn.name)} to receive its encrypted bound arguments as the first argument.`
+      )
+    }
 
-          const [streamA, streamB] = existingEntry.value.tee()
-          existingEntry.value = streamB
+    const encryptedBoundArgs = args.shift()
+    const boundArgs = await decryptActionBoundArgs(id, encryptedBoundArgs)
 
-          if (cacheSignal) {
-            // When we have a cacheSignal we need to block on reading the cache
-            // entry before ending the read.
-            stream = createTrackedReadableStream(streamA, cacheSignal)
-          } else {
-            stream = streamA
-          }
-        } else {
-          if (cacheSignal) {
-            cacheSignal.endRead()
-          }
+    if (!Array.isArray(boundArgs)) {
+      throw new InvariantError(
+        `Expected the bound arguments of "use cache" function ${JSON.stringify(fn.name)} to deserialize into an array, got ${typeof boundArgs} instead.`
+      )
+    }
 
-          if (workUnitStore) {
-            switch (workUnitStore.type) {
-              case 'prerender':
-                // If `allowEmptyStaticShell` is true, and thus a prefilled
-                // resume data cache was provided, then a cache miss means that
-                // params were part of the cache key. In this case, we can make
-                // this cache function a dynamic hole in the shell (or produce
-                // an empty shell if there's no parent suspense boundary).
-                // Currently, this also includes layouts and pages that don't
-                // read params, which will be improved when we implement
-                // NAR-136. Otherwise, we assume that if params are passed
-                // explicitly into a "use cache" function, that the params are
-                // also accessed. This allows us to abort early, and treat the
-                // function as dynamic, instead of waiting for the timeout to be
-                // reached. Compared to the instrumentation-based params bailout
-                // we do here, this also covers the case where params are
-                // transformed with an async function, before being passed into
-                // the "use cache" function, which escapes the instrumentation.
-                if (workUnitStore.allowEmptyStaticShell) {
-                  return makeHangingPromise(
-                    workUnitStore.renderSignal,
-                    workStore.route,
-                    'dynamic "use cache"'
-                  )
-                }
-                break
-              case 'prerender-runtime':
-              case 'prerender-ppr':
-              case 'prerender-legacy':
-              case 'request':
-              case 'cache':
-              case 'private-cache':
-              case 'unstable-cache':
-                break
-              default:
-                workUnitStore satisfies never
-            }
-          }
-        }
-      }
+    if (boundArgsLength !== boundArgs.length) {
+      throw new InvariantError(
+        `Expected the "use cache" function ${JSON.stringify(fn.name)} to receive ${boundArgsLength} bound arguments, got ${boundArgs.length} instead.`
+      )
+    }
 
-      if (stream === undefined) {
-        const cacheSignal = workUnitStore ? getCacheSignal(workUnitStore) : null
-        if (cacheSignal) {
-          // Either the cache handler or the generation can be using I/O at this point.
-          // We need to track when they start and when they complete.
-          cacheSignal.beginRead()
-        }
+    args.unshift(boundArgs)
+  }
 
-        const lazyRefreshTags = workStore.refreshTagsByCacheKind.get(kind)
+  const temporaryReferences = createClientTemporaryReferenceSet()
+
+  // For private caches, which are allowed to read cookies, we still don't
+  // need to include the cookies in the cache key. This is because we don't
+  // store the cache entries in a cache handler, but only in the Resume Data
+  // Cache (RDC). Private caches are only used during dynamic requests and
+  // runtime prefetches. For dynamic requests, the RDC is immutable, so it
+  // does not include any private caches. For runtime prefetches, the RDC is
+  // mutable, but only lives as long as the request, so the key does not
+  // need to include cookies.
+  const cacheKeyParts: CacheKeyParts = hmrRefreshHash
+    ? [buildId, id, args, hmrRefreshHash]
+    : [buildId, id, args]
+
+  const encodeCacheKeyParts = () =>
+    encodeReply(cacheKeyParts, {
+      temporaryReferences,
+      signal: hangingInputAbortSignal,
+    })
+
+  let encodedCacheKeyParts: FormData | string
+
+  switch (workUnitStore?.type) {
+    case 'prerender-runtime':
+    // We're currently only using `dynamicAccessAsyncStorage` for params,
+    // which are always available in a runtime prerender, so they will never hang,
+    // effectively making the tracking below a no-op.
+    // However, a runtime prerender shares a lot of the semantics with a static prerender,
+    // and might need to follow this codepath in the future
+    // if we start using `dynamicAccessAsyncStorage` for other APIs.
+    //
+    // fallthrough
+    case 'prerender':
+      if (!isPageOrLayoutSegmentFunction) {
+        // If the "use cache" function is not a page or layout segment
+        // function, we need to track dynamic access already when encoding
+        // the arguments. If params are passed explicitly into a "use cache"
+        // function (as opposed to receiving them automatically in a page or
+        // layout), we assume that the params are also accessed. This allows
+        // us to abort early, and treat the function as dynamic, instead of
+        // waiting for the timeout to be reached.
+        const dynamicAccessAbortController = new AbortController()
+
+        encodedCacheKeyParts = await dynamicAccessAsyncStorage.run(
+          { abortController: dynamicAccessAbortController },
+          encodeCacheKeyParts
+        )
 
-        if (lazyRefreshTags && !isResolvedLazyResult(lazyRefreshTags)) {
-          await lazyRefreshTags
+        if (dynamicAccessAbortController.signal.aborted) {
+          return makeHangingPromise(
+            workUnitStore.renderSignal,
+            workStore.route,
+            'dynamic "use cache"'
+          )
         }
+        break
+      }
+    // fallthrough
+    case 'prerender-ppr':
+    case 'prerender-legacy':
+    case 'request':
+    // TODO(restart-on-cache-miss): We need to handle params/searchParams on page components.
+    // the promises will be tasky, so `encodeCacheKeyParts` will not resolve in the static stage.
+    // We have not started a cache read at this point, so we might just miss the cache completely.
+    // fallthrough
+    case 'cache':
+    case 'private-cache':
+    case 'unstable-cache':
+    case undefined:
+      encodedCacheKeyParts = await encodeCacheKeyParts()
+      break
+    default:
+      return workUnitStore satisfies never
+  }
 
-        let entry: CacheEntry | undefined
+  const serializedCacheKey =
+    typeof encodedCacheKeyParts === 'string'
+      ? // Fast path for the simple case for simple inputs. We let the CacheHandler
+        // Convert it to an ArrayBuffer if it wants to.
+        encodedCacheKeyParts
+      : await encodeFormData(encodedCacheKeyParts)
 
-        // We ignore existing cache entries when force revalidating.
-        if (cacheHandler && !shouldForceRevalidate(workStore, workUnitStore)) {
-          entry = await cacheHandler.get(
-            serializedCacheKey,
-            workUnitStore?.implicitTags?.tags ?? []
-          )
-        }
+  let stream: undefined | ReadableStream = undefined
 
-        if (entry) {
-          const implicitTags = workUnitStore?.implicitTags?.tags ?? []
-          let implicitTagsExpiration = 0
-
-          if (workUnitStore?.implicitTags) {
-            const lazyExpiration =
-              workUnitStore.implicitTags.expirationsByCacheKind.get(kind)
-
-            if (lazyExpiration) {
-              const expiration = isResolvedLazyResult(lazyExpiration)
-                ? lazyExpiration.value
-                : await lazyExpiration
-
-              // If a cache handler returns an expiration time of Infinity, it
-              // signals to Next.js that it handles checking cache entries for
-              // staleness based on the expiration of the implicit tags passed
-              // into the `get` method. In this case, we keep the default of 0,
-              // which means that the implicit tags are not considered expired.
-              if (expiration < Infinity) {
-                implicitTagsExpiration = expiration
-              }
-            }
-          }
+  // Get an immutable and mutable versions of the resume data cache.
+  const prerenderResumeDataCache = workUnitStore
+    ? getPrerenderResumeDataCache(workUnitStore)
+    : null
+  const renderResumeDataCache = workUnitStore
+    ? getRenderResumeDataCache(workUnitStore)
+    : null
 
-          if (
-            shouldDiscardCacheEntry(
-              entry,
-              workStore,
-              workUnitStore,
-              implicitTags,
-              implicitTagsExpiration
-            )
-          ) {
-            debug?.('discarding expired entry', serializedCacheKey)
-            entry = undefined
-          }
-        }
+  if (renderResumeDataCache) {
+    const cacheSignal = workUnitStore ? getCacheSignal(workUnitStore) : null
 
-        const currentTime = performance.timeOrigin + performance.now()
+    if (cacheSignal) {
+      cacheSignal.beginRead()
+    }
+    const cachedEntry = renderResumeDataCache.cache.get(serializedCacheKey)
+    if (cachedEntry !== undefined) {
+      const existingEntry = await cachedEntry
+      if (workUnitStore !== undefined && existingEntry !== undefined) {
         if (
-          workUnitStore !== undefined &&
-          entry !== undefined &&
-          (entry.revalidate === 0 || entry.expire < DYNAMIC_EXPIRE)
+          existingEntry.revalidate === 0 ||
+          existingEntry.expire < DYNAMIC_EXPIRE
         ) {
           switch (workUnitStore.type) {
             case 'prerender':
-              // In a Dynamic I/O prerender, if the cache entry has revalidate:
-              // 0 or if the expire time is under 5 minutes, then we consider
-              // this cache entry dynamic as it's not worth generating static
-              // pages for such data. It's better to leave a dynamic hole that
-              // can be filled in during the resume with a potentially cached
-              // entry.
+              // In a Dynamic I/O prerender, if the cache entry has
+              // revalidate: 0 or if the expire time is under 5 minutes,
+              // then we consider this cache entry dynamic as it's not worth
+              // generating static pages for such data. It's better to leave
+              // a dynamic hole that can be filled in during the resume with
+              // a potentially cached entry.
               if (cacheSignal) {
                 cacheSignal.endRead()
               }
@@ -1497,6 +1255,15 @@ export function cache(
                 workStore.route,
                 'dynamic "use cache"'
               )
+            case 'prerender-runtime': {
+              // In the final phase of a runtime prerender, we have to make
+              // sure that APIs that would hang during a static prerender
+              // are resolved with a delay, in the runtime stage.
+              if (workUnitStore.runtimeStagePromise) {
+                await workUnitStore.runtimeStagePromise
+              }
+              break
+            }
             case 'request': {
               if (process.env.NODE_ENV === 'development') {
                 // We delay the cache here so that it doesn't resolve in the static task --
@@ -1513,7 +1280,49 @@ export function cache(
               }
               break
             }
+            case 'prerender-ppr':
+            case 'prerender-legacy':
+            case 'cache':
+            case 'private-cache':
+            case 'unstable-cache':
+              break
+            default:
+              workUnitStore satisfies never
+          }
+        }
+
+        if (existingEntry.stale < RUNTIME_PREFETCH_DYNAMIC_STALE) {
+          switch (workUnitStore.type) {
             case 'prerender-runtime':
+              // In a runtime prerender, if the cache entry will become
+              // stale in less then 30 seconds, we consider this cache entry
+              // dynamic as it's not worth prefetching. It's better to leave
+              // a dynamic hole that can be filled during the navigation.
+              if (cacheSignal) {
+                cacheSignal.endRead()
+              }
+              return makeHangingPromise(
+                workUnitStore.renderSignal,
+                workStore.route,
+                'dynamic "use cache"'
+              )
+            case 'request': {
+              if (process.env.NODE_ENV === 'development') {
+                // We delay the cache here so that it doesn't resolve in the runtime phase --
+                // in a regular runtime prerender, it'd be a hanging promise, and we need to reflect that,
+                // so it has to resolve later.
+                // TODO(restart-on-cache-miss): Optimize this to avoid unnecessary restarts.
+                // We don't end the cache read here, so this will always appear as a cache miss in the runtime stage,
+                // and thus will cause a restart even if all caches are filled.
+                await makeDevtoolsIOAwarePromise(
+                  undefined,
+                  workUnitStore,
+                  RenderStage.Dynamic
+                )
+              }
+              break
+            }
+            case 'prerender':
             case 'prerender-ppr':
             case 'prerender-legacy':
             case 'cache':
@@ -1524,192 +1333,359 @@ export function cache(
               workUnitStore satisfies never
           }
         }
+      }
 
-        if (
-          entry === undefined ||
-          currentTime > entry.timestamp + entry.expire * 1000 ||
-          (workStore.isStaticGeneration &&
-            currentTime > entry.timestamp + entry.revalidate * 1000)
-        ) {
-          // Miss. Generate a new result.
+      // We want to make sure we only propagate cache life & tags if the
+      // entry was *not* omitted from the prerender. So we only do this
+      // after the above early returns.
+      propagateCacheLifeAndTags(cacheContext, existingEntry)
 
-          // If the cache entry is stale and we're prerendering, we don't want to use the
-          // stale entry since it would unnecessarily need to shorten the lifetime of the
-          // prerender. We're not time constrained here so we can re-generated it now.
+      const [streamA, streamB] = existingEntry.value.tee()
+      existingEntry.value = streamB
 
-          // We need to run this inside a clean AsyncLocalStorage snapshot so that the cache
-          // generation cannot read anything from the context we're currently executing which
-          // might include request specific things like cookies() inside a React.cache().
-          // Note: It is important that we await at least once before this because it lets us
-          // pop out of any stack specific contexts as well - aka "Sync" Local Storage.
+      if (cacheSignal) {
+        // When we have a cacheSignal we need to block on reading the cache
+        // entry before ending the read.
+        stream = createTrackedReadableStream(streamA, cacheSignal)
+      } else {
+        stream = streamA
+      }
+    } else {
+      if (cacheSignal) {
+        cacheSignal.endRead()
+      }
 
-          if (entry) {
-            if (currentTime > entry.timestamp + entry.expire * 1000) {
-              debug?.('entry is expired', serializedCacheKey)
+      if (workUnitStore) {
+        switch (workUnitStore.type) {
+          case 'prerender':
+            // If `allowEmptyStaticShell` is true, and thus a prefilled
+            // resume data cache was provided, then a cache miss means that
+            // params were part of the cache key. In this case, we can make
+            // this cache function a dynamic hole in the shell (or produce
+            // an empty shell if there's no parent suspense boundary).
+            // Currently, this also includes layouts and pages that don't
+            // read params, which will be improved when we implement
+            // NAR-136. Otherwise, we assume that if params are passed
+            // explicitly into a "use cache" function, that the params are
+            // also accessed. This allows us to abort early, and treat the
+            // function as dynamic, instead of waiting for the timeout to be
+            // reached. Compared to the instrumentation-based params bailout
+            // we do here, this also covers the case where params are
+            // transformed with an async function, before being passed into
+            // the "use cache" function, which escapes the instrumentation.
+            if (workUnitStore.allowEmptyStaticShell) {
+              return makeHangingPromise(
+                workUnitStore.renderSignal,
+                workStore.route,
+                'dynamic "use cache"'
+              )
             }
+            break
+          case 'prerender-runtime':
+          case 'prerender-ppr':
+          case 'prerender-legacy':
+          case 'request':
+          case 'cache':
+          case 'private-cache':
+          case 'unstable-cache':
+            break
+          default:
+            workUnitStore satisfies never
+        }
+      }
+    }
+  }
 
-            if (
-              workStore.isStaticGeneration &&
-              currentTime > entry.timestamp + entry.revalidate * 1000
-            ) {
-              debug?.('static generation, entry is stale', serializedCacheKey)
-            }
+  if (stream === undefined) {
+    const cacheSignal = workUnitStore ? getCacheSignal(workUnitStore) : null
+    if (cacheSignal) {
+      // Either the cache handler or the generation can be using I/O at this point.
+      // We need to track when they start and when they complete.
+      cacheSignal.beginRead()
+    }
+
+    const lazyRefreshTags = workStore.refreshTagsByCacheKind.get(kind)
+
+    if (lazyRefreshTags && !isResolvedLazyResult(lazyRefreshTags)) {
+      await lazyRefreshTags
+    }
+
+    let entry: CacheEntry | undefined
+
+    // We ignore existing cache entries when force revalidating.
+    if (cacheHandler && !shouldForceRevalidate(workStore, workUnitStore)) {
+      entry = await cacheHandler.get(
+        serializedCacheKey,
+        workUnitStore?.implicitTags?.tags ?? []
+      )
+    }
+
+    if (entry) {
+      const implicitTags = workUnitStore?.implicitTags?.tags ?? []
+      let implicitTagsExpiration = 0
+
+      if (workUnitStore?.implicitTags) {
+        const lazyExpiration =
+          workUnitStore.implicitTags.expirationsByCacheKind.get(kind)
+
+        if (lazyExpiration) {
+          const expiration = isResolvedLazyResult(lazyExpiration)
+            ? lazyExpiration.value
+            : await lazyExpiration
+
+          // If a cache handler returns an expiration time of Infinity, it
+          // signals to Next.js that it handles checking cache entries for
+          // staleness based on the expiration of the implicit tags passed
+          // into the `get` method. In this case, we keep the default of 0,
+          // which means that the implicit tags are not considered expired.
+          if (expiration < Infinity) {
+            implicitTagsExpiration = expiration
           }
+        }
+      }
 
-          const result = await generateCacheEntry(
-            workStore,
-            cacheContext,
-            clientReferenceManifest,
-            encodedCacheKeyParts,
-            fn,
-            sharedErrorStack
-          )
+      if (
+        shouldDiscardCacheEntry(
+          entry,
+          workStore,
+          workUnitStore,
+          implicitTags,
+          implicitTagsExpiration
+        )
+      ) {
+        debug?.('discarding expired entry', serializedCacheKey)
+        entry = undefined
+      }
+    }
 
-          if (result.type === 'prerender-dynamic') {
-            return result.hangingPromise
+    const currentTime = performance.timeOrigin + performance.now()
+    if (
+      workUnitStore !== undefined &&
+      entry !== undefined &&
+      (entry.revalidate === 0 || entry.expire < DYNAMIC_EXPIRE)
+    ) {
+      switch (workUnitStore.type) {
+        case 'prerender':
+          // In a Dynamic I/O prerender, if the cache entry has revalidate:
+          // 0 or if the expire time is under 5 minutes, then we consider
+          // this cache entry dynamic as it's not worth generating static
+          // pages for such data. It's better to leave a dynamic hole that
+          // can be filled in during the resume with a potentially cached
+          // entry.
+          if (cacheSignal) {
+            cacheSignal.endRead()
+          }
+          return makeHangingPromise(
+            workUnitStore.renderSignal,
+            workStore.route,
+            'dynamic "use cache"'
+          )
+        case 'request': {
+          if (process.env.NODE_ENV === 'development') {
+            // We delay the cache here so that it doesn't resolve in the static task --
+            // in a regular static prerender, it'd be a hanging promise, and we need to reflect that,
+            // so it has to resolve later.
+            // TODO(restart-on-cache-miss): Optimize this to avoid unnecessary restarts.
+            // We don't end the cache read here, so this will always appear as a cache miss in the static stage,
+            // and thus will cause a restart even if all caches are filled.
+            await makeDevtoolsIOAwarePromise(
+              undefined,
+              workUnitStore,
+              RenderStage.Runtime
+            )
           }
+          break
+        }
+        case 'prerender-runtime':
+        case 'prerender-ppr':
+        case 'prerender-legacy':
+        case 'cache':
+        case 'private-cache':
+        case 'unstable-cache':
+          break
+        default:
+          workUnitStore satisfies never
+      }
+    }
 
-          const { stream: newStream, pendingCacheEntry } = result
+    if (
+      entry === undefined ||
+      currentTime > entry.timestamp + entry.expire * 1000 ||
+      (workStore.isStaticGeneration &&
+        currentTime > entry.timestamp + entry.revalidate * 1000)
+    ) {
+      // Miss. Generate a new result.
+
+      // If the cache entry is stale and we're prerendering, we don't want to use the
+      // stale entry since it would unnecessarily need to shorten the lifetime of the
+      // prerender. We're not time constrained here so we can re-generated it now.
+
+      // We need to run this inside a clean AsyncLocalStorage snapshot so that the cache
+      // generation cannot read anything from the context we're currently executing which
+      // might include request specific things like cookies() inside a React.cache().
+      // Note: It is important that we await at least once before this because it lets us
+      // pop out of any stack specific contexts as well - aka "Sync" Local Storage.
+
+      if (entry) {
+        if (currentTime > entry.timestamp + entry.expire * 1000) {
+          debug?.('entry is expired', serializedCacheKey)
+        }
 
-          // When draft mode is enabled, we must not save the cache entry.
-          if (!workStore.isDraftMode) {
-            let savedCacheEntry
+        if (
+          workStore.isStaticGeneration &&
+          currentTime > entry.timestamp + entry.revalidate * 1000
+        ) {
+          debug?.('static generation, entry is stale', serializedCacheKey)
+        }
+      }
 
-            if (prerenderResumeDataCache) {
-              // Create a clone that goes into the cache scope memory cache.
-              const split = clonePendingCacheEntry(pendingCacheEntry)
-              savedCacheEntry = getNthCacheEntry(split, 0)
-              prerenderResumeDataCache.cache.set(
-                serializedCacheKey,
-                getNthCacheEntry(split, 1)
-              )
-            } else {
-              savedCacheEntry = pendingCacheEntry
-            }
+      const result = await generateCacheEntry(
+        workStore,
+        cacheContext,
+        clientReferenceManifest,
+        encodedCacheKeyParts,
+        fn,
+        timeoutError
+      )
 
-            if (cacheHandler) {
-              const promise = cacheHandler.set(
-                serializedCacheKey,
-                savedCacheEntry
-              )
+      if (result.type === 'prerender-dynamic') {
+        return result.hangingPromise
+      }
 
-              workStore.pendingRevalidateWrites ??= []
-              workStore.pendingRevalidateWrites.push(promise)
-            }
-          }
+      const { stream: newStream, pendingCacheEntry } = result
+
+      // When draft mode is enabled, we must not save the cache entry.
+      if (!workStore.isDraftMode) {
+        let savedCacheEntry
 
-          stream = newStream
+        if (prerenderResumeDataCache) {
+          // Create a clone that goes into the cache scope memory cache.
+          const split = clonePendingCacheEntry(pendingCacheEntry)
+          savedCacheEntry = getNthCacheEntry(split, 0)
+          prerenderResumeDataCache.cache.set(
+            serializedCacheKey,
+            getNthCacheEntry(split, 1)
+          )
         } else {
-          // If we have an entry at this point, this can't be a private cache
-          // entry.
-          if (cacheContext.kind === 'private') {
-            throw new InvariantError(
-              `A private cache entry must not be retrieved from the cache handler.`
-            )
-          }
+          savedCacheEntry = pendingCacheEntry
+        }
 
-          propagateCacheLifeAndTags(cacheContext, entry)
+        if (cacheHandler) {
+          const promise = cacheHandler.set(serializedCacheKey, savedCacheEntry)
 
-          // We want to return this stream, even if it's stale.
-          stream = entry.value
+          workStore.pendingRevalidateWrites ??= []
+          workStore.pendingRevalidateWrites.push(promise)
+        }
+      }
 
-          // If we have a cache scope, we need to clone the entry and set it on
-          // the inner cache scope.
-          if (prerenderResumeDataCache) {
-            const [entryLeft, entryRight] = cloneCacheEntry(entry)
-            if (cacheSignal) {
-              stream = createTrackedReadableStream(entryLeft.value, cacheSignal)
-            } else {
-              stream = entryLeft.value
-            }
+      stream = newStream
+    } else {
+      // If we have an entry at this point, this can't be a private cache
+      // entry.
+      if (cacheContext.kind === 'private') {
+        throw new InvariantError(
+          `A private cache entry must not be retrieved from the cache handler.`
+        )
+      }
+
+      propagateCacheLifeAndTags(cacheContext, entry)
+
+      // We want to return this stream, even if it's stale.
+      stream = entry.value
+
+      // If we have a cache scope, we need to clone the entry and set it on
+      // the inner cache scope.
+      if (prerenderResumeDataCache) {
+        const [entryLeft, entryRight] = cloneCacheEntry(entry)
+        if (cacheSignal) {
+          stream = createTrackedReadableStream(entryLeft.value, cacheSignal)
+        } else {
+          stream = entryLeft.value
+        }
+
+        prerenderResumeDataCache.cache.set(
+          serializedCacheKey,
+          Promise.resolve(entryRight)
+        )
+      } else {
+        // If we're not regenerating we need to signal that we've finished
+        // putting the entry into the cache scope at this point. Otherwise we do
+        // that inside generateCacheEntry.
+        cacheSignal?.endRead()
+      }
+
+      if (currentTime > entry.timestamp + entry.revalidate * 1000) {
+        // If this is stale, and we're not in a prerender (i.e. this is
+        // dynamic render), then we should warm up the cache with a fresh
+        // revalidated entry.
+        const result = await generateCacheEntry(
+          workStore,
+          // This is not running within the context of this unit.
+          { kind: cacheContext.kind, outerWorkUnitStore: undefined },
+          clientReferenceManifest,
+          encodedCacheKeyParts,
+          fn,
+          timeoutError
+        )
+
+        if (result.type === 'cached') {
+          const { stream: ignoredStream, pendingCacheEntry } = result
+          let savedCacheEntry: Promise<CacheEntry>
 
+          if (prerenderResumeDataCache) {
+            const split = clonePendingCacheEntry(pendingCacheEntry)
+            savedCacheEntry = getNthCacheEntry(split, 0)
             prerenderResumeDataCache.cache.set(
               serializedCacheKey,
-              Promise.resolve(entryRight)
+              getNthCacheEntry(split, 1)
             )
           } else {
-            // If we're not regenerating we need to signal that we've finished
-            // putting the entry into the cache scope at this point. Otherwise we do
-            // that inside generateCacheEntry.
-            cacheSignal?.endRead()
+            savedCacheEntry = pendingCacheEntry
           }
 
-          if (currentTime > entry.timestamp + entry.revalidate * 1000) {
-            // If this is stale, and we're not in a prerender (i.e. this is
-            // dynamic render), then we should warm up the cache with a fresh
-            // revalidated entry.
-            const result = await generateCacheEntry(
-              workStore,
-              // This is not running within the context of this unit.
-              { kind: cacheContext.kind, outerWorkUnitStore: undefined },
-              clientReferenceManifest,
-              encodedCacheKeyParts,
-              fn,
-              sharedErrorStack
+          if (cacheHandler) {
+            const promise = cacheHandler.set(
+              serializedCacheKey,
+              savedCacheEntry
             )
 
-            if (result.type === 'cached') {
-              const { stream: ignoredStream, pendingCacheEntry } = result
-              let savedCacheEntry: Promise<CacheEntry>
-
-              if (prerenderResumeDataCache) {
-                const split = clonePendingCacheEntry(pendingCacheEntry)
-                savedCacheEntry = getNthCacheEntry(split, 0)
-                prerenderResumeDataCache.cache.set(
-                  serializedCacheKey,
-                  getNthCacheEntry(split, 1)
-                )
-              } else {
-                savedCacheEntry = pendingCacheEntry
-              }
-
-              if (cacheHandler) {
-                const promise = cacheHandler.set(
-                  serializedCacheKey,
-                  savedCacheEntry
-                )
-
-                workStore.pendingRevalidateWrites ??= []
-                workStore.pendingRevalidateWrites.push(promise)
-              }
-
-              await ignoredStream.cancel()
-            }
+            workStore.pendingRevalidateWrites ??= []
+            workStore.pendingRevalidateWrites.push(promise)
           }
-        }
-      }
 
-      // Logs are replayed even if it's a hit - to ensure we see them on the client eventually.
-      // If we didn't then the client wouldn't see the logs if it was seeded from a prewarm that
-      // never made it to the client. However, this also means that you see logs even when the
-      // cached function isn't actually re-executed. We should instead ensure prewarms always
-      // make it to the client. Another issue is that this will cause double logging in the
-      // server terminal. Once while generating the cache entry and once when replaying it on
-      // the server, which is required to pick it up for replaying again on the client.
-      const replayConsoleLogs = true
-
-      const serverConsumerManifest = {
-        // moduleLoading must be null because we don't want to trigger preloads of ClientReferences
-        // to be added to the consumer. Instead, we'll wait for any ClientReference to be emitted
-        // which themselves will handle the preloading.
-        moduleLoading: null,
-        moduleMap: isEdgeRuntime
-          ? clientReferenceManifest.edgeRscModuleMapping
-          : clientReferenceManifest.rscModuleMapping,
-        serverModuleMap: getServerModuleMap(),
+          await ignoredStream.cancel()
+        }
       }
+    }
+  }
 
-      return createFromReadableStream(stream, {
-        findSourceMapURL,
-        serverConsumerManifest,
-        temporaryReferences,
-        replayConsoleLogs,
-        environmentName: 'Cache',
-      })
-    },
-  }[name]
+  // Logs are replayed even if it's a hit - to ensure we see them on the client eventually.
+  // If we didn't then the client wouldn't see the logs if it was seeded from a prewarm that
+  // never made it to the client. However, this also means that you see logs even when the
+  // cached function isn't actually re-executed. We should instead ensure prewarms always
+  // make it to the client. Another issue is that this will cause double logging in the
+  // server terminal. Once while generating the cache entry and once when replaying it on
+  // the server, which is required to pick it up for replaying again on the client.
+  const replayConsoleLogs = true
+
+  const serverConsumerManifest = {
+    // moduleLoading must be null because we don't want to trigger preloads of ClientReferences
+    // to be added to the consumer. Instead, we'll wait for any ClientReference to be emitted
+    // which themselves will handle the preloading.
+    moduleLoading: null,
+    moduleMap: isEdgeRuntime
+      ? clientReferenceManifest.edgeRscModuleMapping
+      : clientReferenceManifest.rscModuleMapping,
+    serverModuleMap: getServerModuleMap(),
+  }
 
-  return React.cache(cachedFn)
+  return createFromReadableStream(stream, {
+    findSourceMapURL,
+    serverConsumerManifest,
+    temporaryReferences,
+    replayConsoleLogs,
+    environmentName: 'Cache',
+  })
 }
 
 /**
diff --git a/test/e2e/app-dir/cache-components-errors/cache-components-errors.test.ts b/test/e2e/app-dir/cache-components-errors/cache-components-errors.test.ts
index 24def5ecf06b3..d87393354be02 100644
--- a/test/e2e/app-dir/cache-components-errors/cache-components-errors.test.ts
+++ b/test/e2e/app-dir/cache-components-errors/cache-components-errors.test.ts
@@ -2280,7 +2280,6 @@ describe('Cache Components Errors', () => {
           it('should show a redbox error', async () => {
             const browser = await next.browser('/use-cache-low-expire')
 
-            // FIXME: Should have a codeframe
             await expect(browser).toDisplayCollapsedRedbox(`
              {
                "description": "Uncached data was accessed outside of <Suspense>
@@ -2300,9 +2299,11 @@ describe('Cache Components Errors', () => {
              Learn more: https://nextjs.org/docs/messages/blocking-route",
                "environmentLabel": "Server",
                "label": "Blocking Route",
-               "source": null,
+               "source": "app/use-cache-low-expire/page.tsx (3:16) @ Page
+             > 3 | export default async function Page() {
+                 |                ^",
                "stack": [
-                 "Page [Server] <anonymous>",
+                 "Page app/use-cache-low-expire/page.tsx (3:16)",
                  "LogSafely <anonymous>",
                ],
              }
@@ -2402,7 +2403,6 @@ describe('Cache Components Errors', () => {
           it('should show a redbox error', async () => {
             const browser = await next.browser('/use-cache-revalidate-0')
 
-            // FIXME: Should have a codeframe
             await expect(browser).toDisplayCollapsedRedbox(`
              {
                "description": "Uncached data was accessed outside of <Suspense>
@@ -2422,9 +2422,11 @@ describe('Cache Components Errors', () => {
              Learn more: https://nextjs.org/docs/messages/blocking-route",
                "environmentLabel": "Server",
                "label": "Blocking Route",
-               "source": null,
+               "source": "app/use-cache-revalidate-0/page.tsx (3:16) @ Page
+             > 3 | export default async function Page() {
+                 |                ^",
                "stack": [
-                 "Page [Server] <anonymous>",
+                 "Page app/use-cache-revalidate-0/page.tsx (3:16)",
                  "LogSafely <anonymous>",
                ],
              }
@@ -2643,28 +2645,12 @@ describe('Cache Components Errors', () => {
                  "description": ""use cache: private" must not be used within \`unstable_cache()\`.",
                  "environmentLabel": null,
                  "label": "Runtime Error",
-                 "source": "app/use-cache-private-in-unstable-cache/page.tsx (21:38) @ module evaluation
-               > 21 | const getCachedData = unstable_cache(async () => {
-                    |                                      ^",
-                 "stack": [
-                   "module evaluation app/use-cache-private-in-unstable-cache/page.tsx (21:38)",
-                   "<FIXME-next-dist-dir>",
-                 ],
-               }
-              `)
-            } else if (isRspack) {
-              await expect(browser).toDisplayRedbox(`
-               {
-                 "description": ""use cache: private" must not be used within \`unstable_cache()\`.",
-                 "environmentLabel": null,
-                 "label": "Runtime Error",
-                 "source": "app/use-cache-private-in-unstable-cache/page.tsx (21:38) @ eval
+                 "source": "app/use-cache-private-in-unstable-cache/page.tsx (21:38) @ <unknown>
                > 21 | const getCachedData = unstable_cache(async () => {
                     |                                      ^",
                  "stack": [
-                   "eval app/use-cache-private-in-unstable-cache/page.tsx (21:38)",
-                   "<FIXME-next-dist-dir>",
-                   "<FIXME-next-dist-dir>",
+                   "<unknown> app/use-cache-private-in-unstable-cache/page.tsx (21:38)",
+                   "async ComponentWithCachedData app/use-cache-private-in-unstable-cache/page.tsx (16:16)",
                  ],
                }
               `)
@@ -2679,7 +2665,7 @@ describe('Cache Components Errors', () => {
                     |                                      ^",
                  "stack": [
                    "eval app/use-cache-private-in-unstable-cache/page.tsx (21:38)",
-                   "<FIXME-next-dist-dir>",
+                   "async ComponentWithCachedData app/use-cache-private-in-unstable-cache/page.tsx (16:16)",
                  ],
                }
               `)
@@ -2698,12 +2684,11 @@ describe('Cache Components Errors', () => {
               { isMinified: !isDebugPrerender }
             )
 
-            if (isTurbopack) {
-              if (isDebugPrerender) {
-                expect(output).toMatchInlineSnapshot(`
+            if (isDebugPrerender) {
+              expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within \`unstable_cache()\`.
-                     at module evaluation (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
-                     at a (<next-dist-dir>)
+                     at <unknown> (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
+                     at async ComponentWithCachedData (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:16:16)
                    19 | }
                    20 |
                  > 21 | const getCachedData = unstable_cache(async () => {
@@ -2717,10 +2702,12 @@ describe('Cache Components Errors', () => {
                  > Export encountered errors on following paths:
                  	/use-cache-private-in-unstable-cache/page: /use-cache-private-in-unstable-cache"
                 `)
-              } else {
+            } else {
+              if (isTurbopack) {
                 expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within \`unstable_cache()\`.
-                     at module evaluation (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
+                     at <unknown> (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
+                     at async h (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:16:16)
                    19 | }
                    20 |
                  > 21 | const getCachedData = unstable_cache(async () => {
@@ -2734,50 +2721,12 @@ describe('Cache Components Errors', () => {
                  Error occurred prerendering page "/use-cache-private-in-unstable-cache". Read more: https://nextjs.org/docs/messages/prerender-error
                  Export encountered an error on /use-cache-private-in-unstable-cache/page: /use-cache-private-in-unstable-cache, exiting the build."
                 `)
-              }
-            } else {
-              if (isDebugPrerender) {
-                if (isRspack) {
-                  expect(output).toMatchInlineSnapshot(`
-                 "Error: "use cache: private" must not be used within \`unstable_cache()\`.
-                     at 0 (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
-                     at a (<next-dist-dir>)
-                   19 | }
-                   20 |
-                 > 21 | const getCachedData = unstable_cache(async () => {
-                      |                                      ^
-                   22 |   'use cache: private'
-                   23 |
-                   24 |   return fetch('https://next-data-api-endpoint.vercel.app/api/random').then(
-                 To get a more detailed stack trace and pinpoint the issue, start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-unstable-cache" in your browser to investigate the error.
-                 Error occurred prerendering page "/use-cache-private-in-unstable-cache". Read more: https://nextjs.org/docs/messages/prerender-error
-
-                 > Export encountered errors on following paths:
-                 	/use-cache-private-in-unstable-cache/page: /use-cache-private-in-unstable-cache"
-                `)
-                } else {
-                  expect(output).toMatchInlineSnapshot(`
-                 "Error: "use cache: private" must not be used within \`unstable_cache()\`.
-                     at 0 (bundler:///app/use-cache-private-in-unstable-cache/page.tsx:21:38)
-                   19 | }
-                   20 |
-                 > 21 | const getCachedData = unstable_cache(async () => {
-                      |                                      ^
-                   22 |   'use cache: private'
-                   23 |
-                   24 |   return fetch('https://next-data-api-endpoint.vercel.app/api/random').then(
-                 To get a more detailed stack trace and pinpoint the issue, start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-unstable-cache" in your browser to investigate the error.
-                 Error occurred prerendering page "/use-cache-private-in-unstable-cache". Read more: https://nextjs.org/docs/messages/prerender-error
-
-                 > Export encountered errors on following paths:
-                 	/use-cache-private-in-unstable-cache/page: /use-cache-private-in-unstable-cache"
-                `)
-                }
               } else {
                 expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within \`unstable_cache()\`.
                      at a (<next-dist-dir>)
                      at b (<next-dist-dir>)
+                     at c (<next-dist-dir>)
                  To get a more detailed stack trace and pinpoint the issue, try one of the following:
                    - Start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-unstable-cache" in your browser to investigate the error.
                    - Rerun the production build with \`next build --debug-prerender\` to generate better stack traces.
@@ -2797,53 +2746,20 @@ describe('Cache Components Errors', () => {
               '/use-cache-private-in-use-cache'
             )
 
-            if (isTurbopack) {
-              await expect(browser).toDisplayRedbox(`
-               {
-                 "description": ""use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".",
-                 "environmentLabel": null,
-                 "label": "Runtime Error",
-                 "source": "app/use-cache-private-in-use-cache/page.tsx (15:1) @ module evaluation
-               > 15 | async function Private() {
-                    | ^",
-                 "stack": [
-                   "module evaluation app/use-cache-private-in-use-cache/page.tsx (15:1)",
-                   "<FIXME-next-dist-dir>",
-                 ],
-               }
-              `)
-            } else if (isRspack) {
-              await expect(browser).toDisplayRedbox(`
-               {
-                 "description": ""use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".",
-                 "environmentLabel": null,
-                 "label": "Runtime Error",
-                 "source": "app/use-cache-private-in-use-cache/page.tsx (15:1) @ eval
-               > 15 | async function Private() {
-                    | ^",
-                 "stack": [
-                   "eval app/use-cache-private-in-use-cache/page.tsx (15:1)",
-                   "<FIXME-next-dist-dir>",
-                   "<FIXME-next-dist-dir>",
-                 ],
-               }
-              `)
-            } else {
-              await expect(browser).toDisplayRedbox(`
+            await expect(browser).toDisplayRedbox(`
                {
                  "description": ""use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".",
                  "environmentLabel": null,
                  "label": "Runtime Error",
-                 "source": "app/use-cache-private-in-use-cache/page.tsx (15:1) @ eval
+                 "source": "app/use-cache-private-in-use-cache/page.tsx (15:1) @ Private
                > 15 | async function Private() {
                     | ^",
                  "stack": [
-                   "eval app/use-cache-private-in-use-cache/page.tsx (15:1)",
-                   "<FIXME-next-dist-dir>",
+                   "Private app/use-cache-private-in-use-cache/page.tsx (15:1)",
+                   "stringify <anonymous>",
                  ],
                }
               `)
-            }
           })
         } else {
           it('should error the build', async () => {
@@ -2859,12 +2775,11 @@ describe('Cache Components Errors', () => {
             )
 
             // TODO: Ideally, the error should only be shown once.
-            if (isTurbopack) {
-              if (isDebugPrerender) {
-                expect(output).toMatchInlineSnapshot(`
+            if (isDebugPrerender) {
+              expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at module evaluation (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                     at a (<next-dist-dir>)
+                     at Private (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at stringify (<anonymous>)
                    13 | }
                    14 |
                  > 15 | async function Private() {
@@ -2873,8 +2788,8 @@ describe('Cache Components Errors', () => {
                    17 |
                    18 |   return <p>Private</p>
                  Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at module evaluation (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                     at b (<next-dist-dir>)
+                     at Private (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at stringify (<anonymous>)
                    13 | }
                    14 |
                  > 15 | async function Private() {
@@ -2888,10 +2803,12 @@ describe('Cache Components Errors', () => {
                  > Export encountered errors on following paths:
                  	/use-cache-private-in-use-cache/page: /use-cache-private-in-use-cache"
                 `)
-              } else {
+            } else {
+              if (isTurbopack) {
                 expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at module evaluation (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at <unknown> (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at a (<anonymous>)
                    13 | }
                    14 |
                  > 15 | async function Private() {
@@ -2900,7 +2817,8 @@ describe('Cache Components Errors', () => {
                    17 |
                    18 |   return <p>Private</p>
                  Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at module evaluation (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at <unknown> (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
+                     at b (<anonymous>)
                    13 | }
                    14 |
                  > 15 | async function Private() {
@@ -2914,72 +2832,14 @@ describe('Cache Components Errors', () => {
                  Error occurred prerendering page "/use-cache-private-in-use-cache". Read more: https://nextjs.org/docs/messages/prerender-error
                  Export encountered an error on /use-cache-private-in-use-cache/page: /use-cache-private-in-use-cache, exiting the build."
                 `)
-              }
-            } else {
-              if (isDebugPrerender) {
-                if (isRspack) {
-                  expect(output).toMatchInlineSnapshot(`
-                 "Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at 0 (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                     at a (<next-dist-dir>)
-                   13 | }
-                   14 |
-                 > 15 | async function Private() {
-                      | ^
-                   16 |   'use cache: private'
-                   17 |
-                   18 |   return <p>Private</p>
-                 Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at 1 (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                     at b (<next-dist-dir>)
-                   13 | }
-                   14 |
-                 > 15 | async function Private() {
-                      | ^
-                   16 |   'use cache: private'
-                   17 |
-                   18 |   return <p>Private</p>
-                 To get a more detailed stack trace and pinpoint the issue, start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-use-cache" in your browser to investigate the error.
-                 Error occurred prerendering page "/use-cache-private-in-use-cache". Read more: https://nextjs.org/docs/messages/prerender-error
-
-                 > Export encountered errors on following paths:
-                 	/use-cache-private-in-use-cache/page: /use-cache-private-in-use-cache"
-                `)
-                } else {
-                  expect(output).toMatchInlineSnapshot(`
-                 "Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at 0 (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                   13 | }
-                   14 |
-                 > 15 | async function Private() {
-                      | ^
-                   16 |   'use cache: private'
-                   17 |
-                   18 |   return <p>Private</p>
-                 Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
-                     at 1 (bundler:///app/use-cache-private-in-use-cache/page.tsx:15:1)
-                   13 | }
-                   14 |
-                 > 15 | async function Private() {
-                      | ^
-                   16 |   'use cache: private'
-                   17 |
-                   18 |   return <p>Private</p>
-                 To get a more detailed stack trace and pinpoint the issue, start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-use-cache" in your browser to investigate the error.
-                 Error occurred prerendering page "/use-cache-private-in-use-cache". Read more: https://nextjs.org/docs/messages/prerender-error
-
-                 > Export encountered errors on following paths:
-                 	/use-cache-private-in-use-cache/page: /use-cache-private-in-use-cache"
-                `)
-                }
               } else {
                 expect(output).toMatchInlineSnapshot(`
                  "Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
                      at a (<next-dist-dir>)
-                     at b (<next-dist-dir>)
+                     at b (<anonymous>)
                  Error: "use cache: private" must not be used within "use cache". It can only be nested inside of another "use cache: private".
                      at c (<next-dist-dir>)
-                     at d (<next-dist-dir>)
+                     at d (<anonymous>)
                  To get a more detailed stack trace and pinpoint the issue, try one of the following:
                    - Start the app in development mode by running \`next dev\`, then open "/use-cache-private-in-use-cache" in your browser to investigate the error.
                    - Rerun the production build with \`next build --debug-prerender\` to generate better stack traces.
@@ -3018,10 +2878,11 @@ describe('Cache Components Errors', () => {
              Learn more: https://nextjs.org/docs/messages/blocking-route",
                "environmentLabel": "Server",
                "label": "Blocking Route",
-               "source": "app/use-cache-private-without-suspense/page.tsx (10:7) @ Page
-             > 10 |       <Private />
-                  |       ^",
+               "source": "app/use-cache-private-without-suspense/page.tsx (15:1) @ Private
+             > 15 | async function Private() {
+                  | ^",
                "stack": [
+                 "Private app/use-cache-private-without-suspense/page.tsx (15:1)",
                  "Page app/use-cache-private-without-suspense/page.tsx (10:7)",
                  "LogSafely <anonymous>",
                ],
diff --git a/test/e2e/app-dir/use-cache-hanging-inputs/use-cache-hanging-inputs.test.ts b/test/e2e/app-dir/use-cache-hanging-inputs/use-cache-hanging-inputs.test.ts
index 9afee569f1b35..8d0a5def09d35 100644
--- a/test/e2e/app-dir/use-cache-hanging-inputs/use-cache-hanging-inputs.test.ts
+++ b/test/e2e/app-dir/use-cache-hanging-inputs/use-cache-hanging-inputs.test.ts
@@ -14,7 +14,7 @@ const expectedTimeoutErrorMessage =
   'Filling a cache during prerender timed out, likely because request-specific arguments such as params, searchParams, cookies() or dynamic data were used inside "use cache".'
 
 describe('use-cache-hanging-inputs', () => {
-  const { next, isNextDev, isTurbopack, skipped } = nextTestSetup({
+  const { next, isNextDev, skipped } = nextTestSetup({
     files: __dirname,
     skipDeployment: true,
     skipStart: process.env.NEXT_TEST_MODE !== 'dev',
@@ -45,37 +45,20 @@ describe('use-cache-hanging-inputs', () => {
 
         const cliOutput = stripAnsi(next.cliOutput.slice(outputIndex))
 
-        if (isTurbopack) {
-          expect(errorSource).toMatchInlineSnapshot(`
-           "app/uncached-promise/page.tsx (10:13) @ module evaluation
-
-              8 | }
-              9 |
-           > 10 | const Foo = async ({ promise }) => {
-                |             ^
-             11 |   'use cache'
-             12 |
-             13 |   return ("
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at module evaluation`)
-        } else {
-          expect(errorSource).toMatchInlineSnapshot(`
-           "app/uncached-promise/page.tsx (10:13) @ eval
-
-              8 | }
-              9 |
-           > 10 | const Foo = async ({ promise }) => {
-                |             ^
-             11 |   'use cache'
-             12 |
-             13 |   return ("
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at eval (app/uncached-promise/page.tsx:10:13)`)
-        }
+        expect(errorSource).toMatchInlineSnapshot(`
+         "app/uncached-promise/page.tsx (10:13) @ Foo
+
+            8 | }
+            9 |
+         > 10 | const Foo = async ({ promise }) => {
+              |             ^
+           11 |   'use cache'
+           12 |
+           13 |   return ("
+        `)
+
+        expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
+    at Foo (app/uncached-promise/page.tsx:10:13)`)
       }, 180_000)
     })
 
@@ -99,37 +82,21 @@ describe('use-cache-hanging-inputs', () => {
 
         const cliOutput = stripAnsi(next.cliOutput.slice(outputIndex))
 
-        if (isTurbopack) {
-          expect(errorSource).toMatchInlineSnapshot(`
-           "app/uncached-promise-nested/page.tsx (16:1) @ module evaluation
-
-             14 | }
-             15 |
-           > 16 | async function indirection(promise: Promise<number>) {
-                | ^
-             17 |   'use cache'
-             18 |
-             19 |   return getCachedData(promise)"
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at module evaluation`)
-        } else {
-          expect(errorSource).toMatchInlineSnapshot(`
-           "app/uncached-promise-nested/page.tsx (16:1) @ eval
-
-             14 | }
-             15 |
-           > 16 | async function indirection(promise: Promise<number>) {
-                | ^
-             17 |   'use cache'
-             18 |
-             19 |   return getCachedData(promise)"
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at eval (app/uncached-promise-nested/page.tsx:16:1)`)
-        }
+        expect(errorSource).toMatchInlineSnapshot(`
+         "app/uncached-promise-nested/page.tsx (16:1) @ indirection
+
+           14 | }
+           15 |
+         > 16 | async function indirection(promise: Promise<number>) {
+              | ^
+           17 |   'use cache'
+           18 |
+           19 |   return getCachedData(promise)"
+        `)
+
+        expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
+    at indirection (app/uncached-promise-nested/page.tsx:16:1)
+    at Page (app/uncached-promise-nested/page.tsx:23:22)`)
       }, 180_000)
     })
 
@@ -154,37 +121,20 @@ describe('use-cache-hanging-inputs', () => {
 
         expect(errorDescription).toBe(expectedTimeoutErrorMessage)
 
-        if (isTurbopack) {
-          expect(errorSource).toMatchInlineSnapshot(`
-           "app/bound-args/page.tsx (13:15) @ module evaluation
-
-             11 |   const uncachedDataPromise = fetchUncachedData()
-             12 |
-           > 13 |   const Foo = async () => {
-                |               ^
-             14 |     'use cache'
-             15 |
-             16 |     return ("
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at module evaluation`)
-        } else {
-          expect(errorSource).toMatchInlineSnapshot(`
-            "app/bound-args/page.tsx (13:15) @ eval
-
-              11 |   const uncachedDataPromise = fetchUncachedData()
-              12 |
-            > 13 |   const Foo = async () => {
-                 |               ^
-              14 |     'use cache'
-              15 |
-              16 |     return ("
-          `)
-
-          expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
-    at eval (app/bound-args/page.tsx:13:15)`)
-        }
+        expect(errorSource).toMatchInlineSnapshot(`
+         "app/bound-args/page.tsx (13:15) @ Foo
+
+           11 |   const uncachedDataPromise = fetchUncachedData()
+           12 |
+         > 13 |   const Foo = async () => {
+              |               ^
+           14 |     'use cache'
+           15 |
+           16 |     return ("
+        `)
+
+        expect(cliOutput).toContain(`Error: ${expectedTimeoutErrorMessage}
+    at Foo (app/bound-args/page.tsx:13:15)`)
       }, 180_000)
     })