diff --git a/packages/sitecore-jss-react/package.json b/packages/sitecore-jss-react/package.json
index 43461ba964..be844e52fb 100644
--- a/packages/sitecore-jss-react/package.json
+++ b/packages/sitecore-jss-react/package.json
@@ -27,7 +27,7 @@
     "url": "https://github.com/sitecore/jss/issues"
   },
   "devDependencies": {
-    "@sitecore-feaas/clientside": "^0.5.5",
+    "@sitecore-feaas/clientside": "^0.5.6",
     "@types/chai": "^4.3.4",
     "@types/chai-string": "^1.4.2",
     "@types/deep-equal": "^1.0.1",
@@ -58,7 +58,7 @@
     "typescript": "~4.9.3"
   },
   "peerDependencies": {
-    "@sitecore-feaas/clientside": "^0.5.5",
+    "@sitecore-feaas/clientside": "^0.5.6",
     "react": "^18.2.0",
     "react-dom": "^18.2.0"
   },
diff --git a/packages/sitecore-jss-react/src/components/BYOCComponent.test.tsx b/packages/sitecore-jss-react/src/components/BYOCComponent.test.tsx
index cb08f58e01..9768e8f52e 100644
--- a/packages/sitecore-jss-react/src/components/BYOCComponent.test.tsx
+++ b/packages/sitecore-jss-react/src/components/BYOCComponent.test.tsx
@@ -31,6 +31,99 @@ describe('BYOCComponent', () => {
     expect(fooComponent.find('#foo-content')).to.have.length(1);
   });
 
+  it('should use datasource fields when provided', () => {
+    const fields = {
+      prop1: {
+        value: 'value2',
+      },
+    };
+    const mockProps = {
+      params: {
+        ComponentName: 'Foo',
+      },
+      fetchedData: {},
+      fields,
+    };
+    const Foo = () => <p id="foo-content">Test</p>;
+    FEAAS.External.registerComponent(Foo, {
+      name: 'Foo',
+      properties: {
+        prop1: {
+          type: 'string',
+        },
+      },
+    });
+    const wrapper = mount(<BYOCComponent {...mockProps} />);
+    const fooComponent = wrapper.find('feaas-external');
+    expect(fooComponent).to.have.lengthOf(1);
+    expect(fooComponent.prop('prop1')).to.equal('value2');
+    expect(fooComponent.prop('data-external-id')).to.equal('Foo');
+    expect(fooComponent.find('#foo-content')).to.have.length(1);
+  });
+
+  it('should prefer ComponentProps over datasource fields', () => {
+    const fields = {
+      prop1: {
+        value: 'value2',
+      },
+    };
+    const mockProps = {
+      params: {
+        ComponentName: 'Foo',
+        ComponentProps: JSON.stringify({ prop1: 'value1' }),
+      },
+      fetchedData: {},
+      fields,
+    };
+    const Foo = () => <p id="foo-content">Test</p>;
+    FEAAS.External.registerComponent(Foo, {
+      name: 'Foo',
+      properties: {
+        prop1: {
+          type: 'string',
+        },
+      },
+    });
+    const wrapper = mount(<BYOCComponent {...mockProps} />);
+    const fooComponent = wrapper.find('feaas-external');
+    expect(fooComponent).to.have.lengthOf(1);
+    expect(fooComponent.prop('prop1')).to.equal('value1');
+    expect(fooComponent.prop('data-external-id')).to.equal('Foo');
+    expect(fooComponent.find('#foo-content')).to.have.length(1);
+  });
+
+  it('should combine ComponentProps and datasource fields', () => {
+    const fields = {
+      prop2: {
+        value: 'value2',
+      },
+    };
+    const mockProps = {
+      params: {
+        ComponentName: 'Foo',
+        ComponentProps: JSON.stringify({ prop1: 'value1' }),
+      },
+      fetchedData: {},
+      fields,
+    };
+    const Foo = () => <p id="foo-content">Test</p>;
+    FEAAS.External.registerComponent(Foo, {
+      name: 'Foo',
+      properties: {
+        prop1: {
+          type: 'string',
+        },
+      },
+    });
+    const wrapper = mount(<BYOCComponent {...mockProps} />);
+    const fooComponent = wrapper.find('feaas-external');
+    expect(fooComponent).to.have.lengthOf(1);
+    expect(fooComponent.prop('prop1')).to.equal('value1');
+    expect(fooComponent.prop('prop2')).to.equal('value2');
+    expect(fooComponent.prop('data-external-id')).to.equal('Foo');
+    expect(fooComponent.find('#foo-content')).to.have.length(1);
+  });
+
   it('should render with static and fetched props when props are prefetched', () => {
     const fetchedData = {
       prop2: 'prefetched_value1',
@@ -58,7 +151,7 @@ describe('BYOCComponent', () => {
     const fooComponent = wrapper.find('feaas-external');
     expect(fooComponent).to.have.lengthOf(1);
     expect(fooComponent.prop('prop1')).to.equal('value1');
-    expect(fooComponent.prop('datasources')).to.equal('{"prop2":"prefetched_value1"}');
+    expect(fooComponent.prop('datasources')).to.equal('{"prop2":"prefetched_value1","_":{}}');
     expect(fooComponent.prop('data-external-id')).to.equal('Foo');
     expect(fooComponent.find('#foo-content')).to.have.length(1);
   });
diff --git a/packages/sitecore-jss-react/src/components/BYOCComponent.tsx b/packages/sitecore-jss-react/src/components/BYOCComponent.tsx
index d2c66064be..03eb9ad535 100644
--- a/packages/sitecore-jss-react/src/components/BYOCComponent.tsx
+++ b/packages/sitecore-jss-react/src/components/BYOCComponent.tsx
@@ -135,7 +135,7 @@ export class BYOCComponent extends React.Component<BYOCComponentProps> {
 
     const ErrorComponent = this.props.errorComponent;
 
-    let componentProps: { [key: string]: any } = null;
+    let componentProps: { [key: string]: any } = {};
 
     if (props.params?.ComponentProps) {
       try {
@@ -150,16 +150,16 @@ export class BYOCComponent extends React.Component<BYOCComponentProps> {
           <DefaultErrorComponent error={e as Error} />
         );
       }
-    } else {
-      componentProps = props.fields ? getDataFromFields(props.fields) : {};
     }
+    // apply props from item datasource
+    const dataSourcesData = { ...props.fetchedData, _: getDataFromFields(props.fields ?? {}) };
 
     // we render fallback on client to avoid problems with client-only components
     return (
       <FEAAS.ExternalComponent
         componentName={componentName}
         clientFallback={fallbackComponent}
-        datasources={props.fetchedData}
+        datasources={dataSourcesData}
         {...componentProps}
       />
     );
diff --git a/packages/sitecore-jss-react/src/components/FEaaSComponent.test.tsx b/packages/sitecore-jss-react/src/components/FEaaSComponent.test.tsx
index 00d8e92546..3ffc950027 100644
--- a/packages/sitecore-jss-react/src/components/FEaaSComponent.test.tsx
+++ b/packages/sitecore-jss-react/src/components/FEaaSComponent.test.tsx
@@ -84,13 +84,12 @@ describe('<FEaaSComponent />', () => {
   });
 
   describe('data', () => {
-    it('should send override data', () => {
+    it('should send fetched data', () => {
       const props: FEaaSComponentProps = {
         params: {
           ...requiredParams,
-          ComponentDataOverride: '{ "foo": "bar", "baz": 1 }',
         },
-        fetchedData: undefined,
+        fetchedData: { foo: 'bar', baz: 1 },
         template: '<h1 data-path="foo"></h1><h2 data-path="baz"></h2>',
       };
       const wrapper = shallow(<FEaaSComponent {...props} />);
@@ -123,10 +122,10 @@ describe('<FEaaSComponent />', () => {
         },
       };
       const template = `
-      <h1 data-path="sampleText"></h1>
-      <img data-path-src="sampleImage.src" data-path-alt="sampleImage.alt"></img>
-      <p data-path="sampleNumber"></p>
-      <a data-path-href="sampleLink.href" data-path-id="sampleLink.id"></a>`;
+      <h1 data-path="xm.sampleText"></h1>
+      <img data-path-src="xm.sampleImage.src" data-path-alt="xm.sampleImage.alt"></img>
+      <p data-path="xm.sampleNumber"></p>
+      <a data-path-href="xm.sampleLink.href" data-path-id="xm.sampleLink.id"></a>`;
       const props: FEaaSComponentProps = {
         params: {
           ...requiredParams,
@@ -137,58 +136,37 @@ describe('<FEaaSComponent />', () => {
       const wrapper = shallow(<FEaaSComponent {...props} />);
       expect(wrapper).to.have.length(1);
       const output = wrapper.html();
-      expect(output).to.contain(`<h1 data-path="sampleText">${fields.sampleText.value}</h1>`);
+      expect(output).to.contain(`<h1 data-path="xm.sampleText">${fields.sampleText.value}</h1>`);
       expect(output).to.contain(
-        `<img data-path-src="sampleImage.src" data-path-alt="sampleImage.alt" src="${fields.sampleImage.value.src}" alt="${fields.sampleImage.value.alt}"/>`
+        `<img data-path-src="xm.sampleImage.src" data-path-alt="xm.sampleImage.alt" src="${fields.sampleImage.value.src}" alt="${fields.sampleImage.value.alt}"/>`
       );
-      expect(output).to.contain(`<p data-path="sampleNumber">${fields.sampleNumber.value}</p>`);
+      expect(output).to.contain(`<p data-path="xm.sampleNumber">${fields.sampleNumber.value}</p>`);
       expect(output).to.contain(
-        `<a data-path-href="sampleLink.href" data-path-id="sampleLink.id" href="${fields.sampleLink.value.href}" id="${fields.sampleLink.value.id}"></a>`
+        `<a data-path-href="xm.sampleLink.href" data-path-id="xm.sampleLink.id" href="${fields.sampleLink.value.href}" id="${fields.sampleLink.value.id}"></a>`
       );
     });
 
-    it('should prefer override data over datasource fields', () => {
+    it('should combine fetched data with datasource fields', () => {
       const fields: ComponentFields = {
-        sampleText: {
+        fieldText: {
           value: 'Welcome to Sitecore JSS',
         },
       };
-      const override = JSON.stringify({ sampleText: { value: 'Welcome to FEAAS' } });
+      const fetched = { customDatasourceId: { fetchedText: 'Welcome to FEAAS' } };
       const props: FEaaSComponentProps = {
         params: {
           ...requiredParams,
-          ComponentDataOverride: override,
         },
+        fetchedData: fetched,
         fields,
-        template: '<h1 data-path="sampleText.value"></h1>',
+        template:
+          '<h1 data-path="xm.fieldText"></h1><h1 data-path="customDatasourceId.fetchedText"></h1>',
       };
 
       const wrapper = shallow(<FEaaSComponent {...props} />);
       expect(wrapper).to.have.length(1);
       expect(wrapper.html()).to.contain('Welcome to FEAAS');
-    });
-
-    it('should send prefetched data', () => {
-      const fetchedData = {
-        foo: 'bar',
-        baz: 42,
-      };
-
-      const props: FEaaSComponentProps = {
-        params: {
-          ...requiredParams,
-          ComponentDataOverride: '{ "foo": "test", "baz": 22 }',
-        },
-        fetchedData,
-        template: '<h1 data-path="foo"></h1> <h2 data-path="baz"></h2>',
-      };
-
-      const wrapper = shallow(<FEaaSComponent {...props} />);
-
-      expect(wrapper).to.have.length(1);
-      const output = wrapper.html();
-      expect(output).to.contain(`<h1 data-path=\"foo\">${fetchedData.foo}</h1>`);
-      expect(output).to.contain(`<h2 data-path=\"baz\">${fetchedData.baz}</h2>`);
+      expect(wrapper.html()).to.contain('Welcome to Sitecore JSS');
     });
   });
 });
diff --git a/packages/sitecore-jss-react/src/components/FEaaSComponent.tsx b/packages/sitecore-jss-react/src/components/FEaaSComponent.tsx
index 1d8a9aee1f..2fe52efc34 100644
--- a/packages/sitecore-jss-react/src/components/FEaaSComponent.tsx
+++ b/packages/sitecore-jss-react/src/components/FEaaSComponent.tsx
@@ -75,21 +75,8 @@ export const FEaaSComponent = (props: FEaaSComponentProps): JSX.Element => {
     // Missing FEaaS component required props
     return null;
   }
-
-  let data: { [key: string]: unknown } = null;
-  if (props.fetchedData === null || props.fetchedData === undefined) {
-    if (props.params?.ComponentDataOverride) {
-      // Use override data if provided
-      try {
-        data = JSON.parse(props.params.ComponentDataOverride);
-      } catch (e) {
-        data = null;
-      }
-    } else if (props.fields) {
-      // Otherwise use datasource data (provided in fields)
-      data = getDataFromFields(props.fields);
-    }
-  }
+  // combine fetchedData from server with datasource data (if present)
+  const data = { ...props.fetchedData, _: getDataFromFields(props.fields ?? {}) };
 
   // FEaaS control would still be hydrated by client
   // we pass all the props as a workaround to avoid hydration error, until we convert all JSS components to server side
@@ -97,7 +84,7 @@ export const FEaaSComponent = (props: FEaaSComponentProps): JSX.Element => {
   // FEAAS should not fetch anything, since JSS does the fetching - so we pass empty array into fetch param
   return (
     <FEAAS.Component
-      data={props.fetchedData || data}
+      data={data}
       template={props.template}
       cdn={props.params?.ComponentHostName}
       library={props.params?.LibraryId}
@@ -126,7 +113,7 @@ export async function fetchFEaaSComponentServerProps(
     pageState && pageState !== LayoutServicePageState.Normal ? 'staged' : 'published';
   const src = endpointOverride || composeComponentEndpoint(params, revisionFallback);
   let template = '';
-  let fetchedData: FEAAS.DataScopes = null;
+  let fetchedData: FEAAS.DataScopes = {};
   const fetchDataOptions: FEAAS.DataOptions = params.ComponentDataOverride
     ? JSON.parse(params.ComponentDataOverride)
     : {};
diff --git a/yarn.lock b/yarn.lock
index 5a307954aa..b21a591384 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -6806,14 +6806,14 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@sitecore-feaas/clientside@npm:^0.5.5":
-  version: 0.5.5
-  resolution: "@sitecore-feaas/clientside@npm:0.5.5"
+"@sitecore-feaas/clientside@npm:^0.5.6":
+  version: 0.5.6
+  resolution: "@sitecore-feaas/clientside@npm:0.5.6"
   dependencies:
     "@sitecore/byoc": ^0.2.5
   peerDependencies:
     react-dom: ">=16.8.0"
-  checksum: 108ed61488f7f5777d3ae846f6d1c188a245440a511b7bc06200f4b236cf5e140075646efa4e3a1070ce7737fb4a2a808383e65d6570bd7c6a540dc183cc6e29
+  checksum: 6346d7cac5dc295ddf377fd802404229256fdfb4e2cabdf0cbd0ae8350a2fafe7e2b49abe31025a9dec848f4545e96178ec2173369a328799845ed6253c4cb90
   languageName: node
   linkType: hard
 
@@ -7143,7 +7143,7 @@ __metadata:
   version: 0.0.0-use.local
   resolution: "@sitecore-jss/sitecore-jss-react@workspace:packages/sitecore-jss-react"
   dependencies:
-    "@sitecore-feaas/clientside": ^0.5.5
+    "@sitecore-feaas/clientside": ^0.5.6
     "@sitecore-jss/sitecore-jss": 21.7.0-canary.33
     "@types/chai": ^4.3.4
     "@types/chai-string": ^1.4.2
@@ -7177,7 +7177,7 @@ __metadata:
     ts-node: ^10.9.1
     typescript: ~4.9.3
   peerDependencies:
-    "@sitecore-feaas/clientside": ^0.5.5
+    "@sitecore-feaas/clientside": ^0.5.6
     react: ^18.2.0
     react-dom: ^18.2.0
   languageName: unknown