diff --git a/packages/react-test-renderer/src/ReactShallowRenderer.js b/packages/react-test-renderer/src/ReactShallowRenderer.js
index 06e3f0f99c2dc..7472556c68954 100644
--- a/packages/react-test-renderer/src/ReactShallowRenderer.js
+++ b/packages/react-test-renderer/src/ReactShallowRenderer.js
@@ -384,7 +384,7 @@ class ReactShallowRenderer {
         'an infinite loop.',
     );
 
-    if (componentIdentity === this._previousComponentIdentity) {
+    if (componentIdentity === this._currentlyRenderingComponent) {
       // This is a render phase update. Stash it in a lazily-created map of
       // queue -> linked list of updates. After this render pass, we'll restart
       // and apply the stashed updates on top of the work-in-progress hook.
@@ -408,13 +408,10 @@ class ReactShallowRenderer {
         }
         lastRenderPhaseUpdate.next = update;
       }
-
-      if (!this._rendering) {
-        this.render(this._element, this._context);
-      }
     } else {
       // This means an update has happened after the function component has
-      // returned from a different component.
+      // returned. On the server this is a no-op. In React Fiber, the update
+      // would be scheduled for a future render.
     }
   }
 
diff --git a/packages/react-test-renderer/src/__tests__/ReactShallowRendererHooks-test.js b/packages/react-test-renderer/src/__tests__/ReactShallowRendererHooks-test.js
index 40327640e9617..da352a971e160 100644
--- a/packages/react-test-renderer/src/__tests__/ReactShallowRendererHooks-test.js
+++ b/packages/react-test-renderer/src/__tests__/ReactShallowRendererHooks-test.js
@@ -90,39 +90,6 @@ describe('ReactShallowRenderer with hooks', () => {
     );
   });
 
-  it('should work with updating a value from useState outside the render', () => {
-    function SomeComponent({defaultName}) {
-      const [name, updateName] = React.useState(defaultName);
-
-      return (
-        <div onClick={() => updateName('Dan')}>
-          <p>
-            Your name is: <span>{name}</span>
-          </p>
-        </div>
-      );
-    }
-
-    const shallowRenderer = createRenderer();
-    const element = <SomeComponent defaultName={'Dominic'} />;
-    const result = shallowRenderer.render(element);
-
-    expect(result.props.children).toEqual(
-      <p>
-        Your name is: <span>Dominic</span>
-      </p>,
-    );
-
-    result.props.onClick();
-    const updated = shallowRenderer.render(element);
-
-    expect(updated.props.children).toEqual(
-      <p>
-        Your name is: <span>Dan</span>
-      </p>,
-    );
-  });
-
   it('should work with useReducer', () => {
     function reducer(state, action) {
       switch (action.type) {