diff --git a/packages/react-dom/src/__tests__/ReactDOMServerIntegrationHooks-test.js b/packages/react-dom/src/__tests__/ReactDOMServerIntegrationHooks-test.js
index a27954785f7ea..d4ea8047ece9c 100644
--- a/packages/react-dom/src/__tests__/ReactDOMServerIntegrationHooks-test.js
+++ b/packages/react-dom/src/__tests__/ReactDOMServerIntegrationHooks-test.js
@@ -1975,5 +1975,56 @@ describe('ReactDOMServerHooks', () => {
         container.getElementsByTagName('span')[0].getAttribute('id'),
       ).not.toBeNull();
     });
+
+    // @gate !(replayFailedUnitOfWorkWithInvokeGuardedCallback && __DEV__)
+    it('useOpaqueIdentifier with multiple ids in nested components', async () => {
+      function DivWithId({id, children}) {
+        return <div id={id}>{children}</div>;
+      }
+
+      let setShowMore;
+      function App() {
+        Scheduler.unstable_yieldValue('App');
+        const outerId = useOpaqueIdentifier();
+        const innerId = useOpaqueIdentifier();
+        const [showMore, _setShowMore] = useState(false);
+        setShowMore = _setShowMore;
+        return showMore ? (
+          <DivWithId id={outerId}>
+            <DivWithId id={innerId} />
+          </DivWithId>
+        ) : null;
+      }
+
+      const container = document.createElement('div');
+      container.innerHTML = ReactDOMServer.renderToString(<App />);
+      expect(Scheduler).toHaveYielded(['App']);
+
+      await act(async () => {
+        ReactDOM.hydrateRoot(container, <App />);
+      });
+      expect(Scheduler).toHaveYielded(['App']);
+
+      // Show additional content that wasn't part of the initial server-
+      // rendered repsonse.
+      await act(async () => {
+        setShowMore(true);
+      });
+      expect(Scheduler).toHaveYielded([
+        // First render. This one doesn't finish because the outerId is
+        // referenced in a client-rendered tree. We upgrade the id and retry.
+        'App',
+
+        // Second render. This time innerId needs to be upgraded, so we
+        // retry again.
+        'App',
+
+        // Finally everything has upgraded.
+        'App',
+      ]);
+      const [div1, div2] = container.getElementsByTagName('div');
+      expect(typeof div1.getAttribute('id')).toBe('string');
+      expect(typeof div2.getAttribute('id')).toBe('string');
+    });
   });
 });
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.new.js b/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
index 1734d9a69122c..2cc334e9c9e8e 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.new.js
@@ -294,7 +294,9 @@ let workInProgressRootIncludedLanes: Lanes = NoLanes;
 // includes unprocessed updates, not work in bailed out children.
 let workInProgressRootSkippedLanes: Lanes = NoLanes;
 // Lanes that were updated (in an interleaved event) during this render.
-let workInProgressRootUpdatedLanes: Lanes = NoLanes;
+let workInProgressRootInterleavedUpdatedLanes: Lanes = NoLanes;
+// Lanes that were updated during the render phase (*not* an interleaved event).
+let workInProgressRootRenderPhaseUpdatedLanes: Lanes = NoLanes;
 // Lanes that were pinged (in an interleaved event) during this render.
 let workInProgressRootPingedLanes: Lanes = NoLanes;
 
@@ -474,6 +476,12 @@ export function scheduleUpdateOnFiber(
     // an implementation detail, like selective hydration
     // and useOpaqueIdentifier.
     warnAboutRenderPhaseUpdatesInDEV(fiber);
+
+    // Track lanes that were updated during the render phase
+    workInProgressRootRenderPhaseUpdatedLanes = mergeLanes(
+      workInProgressRootRenderPhaseUpdatedLanes,
+      lane,
+    );
   } else {
     // This is a normal update, scheduled from outside the render phase. For
     // example, during an input event.
@@ -514,8 +522,8 @@ export function scheduleUpdateOnFiber(
         deferRenderPhaseUpdateToNextBatch ||
         (executionContext & RenderContext) === NoContext
       ) {
-        workInProgressRootUpdatedLanes = mergeLanes(
-          workInProgressRootUpdatedLanes,
+        workInProgressRootInterleavedUpdatedLanes = mergeLanes(
+          workInProgressRootInterleavedUpdatedLanes,
           lane,
         );
       }
@@ -878,7 +886,25 @@ function recoverFromConcurrentError(root, errorRetryLanes) {
     clearContainer(root.containerInfo);
   }
 
-  const exitStatus = renderRootSync(root, errorRetryLanes);
+  let exitStatus;
+
+  const MAX_ERROR_RETRY_ATTEMPTS = 50;
+  for (let i = 0; i < MAX_ERROR_RETRY_ATTEMPTS; i++) {
+    exitStatus = renderRootSync(root, errorRetryLanes);
+    if (
+      exitStatus === RootErrored &&
+      workInProgressRootRenderPhaseUpdatedLanes !== NoLanes
+    ) {
+      // There was a render phase update during this render. This was likely a
+      // useOpaqueIdentifier hook upgrading itself to a client ID. Try rendering
+      // again. This time, the component will use a client ID and will proceed
+      // without throwing. If multiple IDs upgrade as a result of the same
+      // update, we will have to do multiple render passes. To protect against
+      // an inifinite loop, eventually we'll give up.
+      continue;
+    }
+    break;
+  }
 
   executionContext = prevExecutionContext;
 
@@ -1055,7 +1081,10 @@ function markRootSuspended(root, suspendedLanes) {
   // TODO: Lol maybe there's a better way to factor this besides this
   // obnoxiously named function :)
   suspendedLanes = removeLanes(suspendedLanes, workInProgressRootPingedLanes);
-  suspendedLanes = removeLanes(suspendedLanes, workInProgressRootUpdatedLanes);
+  suspendedLanes = removeLanes(
+    suspendedLanes,
+    workInProgressRootInterleavedUpdatedLanes,
+  );
   markRootSuspended_dontCallThisOneDirectly(root, suspendedLanes);
 }
 
@@ -1313,7 +1342,8 @@ function prepareFreshStack(root: FiberRoot, lanes: Lanes) {
   workInProgressRootExitStatus = RootIncomplete;
   workInProgressRootFatalError = null;
   workInProgressRootSkippedLanes = NoLanes;
-  workInProgressRootUpdatedLanes = NoLanes;
+  workInProgressRootInterleavedUpdatedLanes = NoLanes;
+  workInProgressRootRenderPhaseUpdatedLanes = NoLanes;
   workInProgressRootPingedLanes = NoLanes;
 
   enqueueInterleavedUpdates();
@@ -1456,7 +1486,7 @@ export function renderDidSuspendDelayIfPossible(): void {
   if (
     workInProgressRoot !== null &&
     (includesNonIdleWork(workInProgressRootSkippedLanes) ||
-      includesNonIdleWork(workInProgressRootUpdatedLanes))
+      includesNonIdleWork(workInProgressRootInterleavedUpdatedLanes))
   ) {
     // Mark the current render as suspended so that we switch to working on
     // the updates that were skipped. Usually we only suspend at the end of
diff --git a/packages/react-reconciler/src/ReactFiberWorkLoop.old.js b/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
index 6ad0298b8849b..843eb854b8429 100644
--- a/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
+++ b/packages/react-reconciler/src/ReactFiberWorkLoop.old.js
@@ -294,7 +294,9 @@ let workInProgressRootIncludedLanes: Lanes = NoLanes;
 // includes unprocessed updates, not work in bailed out children.
 let workInProgressRootSkippedLanes: Lanes = NoLanes;
 // Lanes that were updated (in an interleaved event) during this render.
-let workInProgressRootUpdatedLanes: Lanes = NoLanes;
+let workInProgressRootInterleavedUpdatedLanes: Lanes = NoLanes;
+// Lanes that were updated during the render phase (*not* an interleaved event).
+let workInProgressRootRenderPhaseUpdatedLanes: Lanes = NoLanes;
 // Lanes that were pinged (in an interleaved event) during this render.
 let workInProgressRootPingedLanes: Lanes = NoLanes;
 
@@ -474,6 +476,12 @@ export function scheduleUpdateOnFiber(
     // an implementation detail, like selective hydration
     // and useOpaqueIdentifier.
     warnAboutRenderPhaseUpdatesInDEV(fiber);
+
+    // Track lanes that were updated during the render phase
+    workInProgressRootRenderPhaseUpdatedLanes = mergeLanes(
+      workInProgressRootRenderPhaseUpdatedLanes,
+      lane,
+    );
   } else {
     // This is a normal update, scheduled from outside the render phase. For
     // example, during an input event.
@@ -514,8 +522,8 @@ export function scheduleUpdateOnFiber(
         deferRenderPhaseUpdateToNextBatch ||
         (executionContext & RenderContext) === NoContext
       ) {
-        workInProgressRootUpdatedLanes = mergeLanes(
-          workInProgressRootUpdatedLanes,
+        workInProgressRootInterleavedUpdatedLanes = mergeLanes(
+          workInProgressRootInterleavedUpdatedLanes,
           lane,
         );
       }
@@ -878,7 +886,25 @@ function recoverFromConcurrentError(root, errorRetryLanes) {
     clearContainer(root.containerInfo);
   }
 
-  const exitStatus = renderRootSync(root, errorRetryLanes);
+  let exitStatus;
+
+  const MAX_ERROR_RETRY_ATTEMPTS = 50;
+  for (let i = 0; i < MAX_ERROR_RETRY_ATTEMPTS; i++) {
+    exitStatus = renderRootSync(root, errorRetryLanes);
+    if (
+      exitStatus === RootErrored &&
+      workInProgressRootRenderPhaseUpdatedLanes !== NoLanes
+    ) {
+      // There was a render phase update during this render. This was likely a
+      // useOpaqueIdentifier hook upgrading itself to a client ID. Try rendering
+      // again. This time, the component will use a client ID and will proceed
+      // without throwing. If multiple IDs upgrade as a result of the same
+      // update, we will have to do multiple render passes. To protect against
+      // an inifinite loop, eventually we'll give up.
+      continue;
+    }
+    break;
+  }
 
   executionContext = prevExecutionContext;
 
@@ -1055,7 +1081,10 @@ function markRootSuspended(root, suspendedLanes) {
   // TODO: Lol maybe there's a better way to factor this besides this
   // obnoxiously named function :)
   suspendedLanes = removeLanes(suspendedLanes, workInProgressRootPingedLanes);
-  suspendedLanes = removeLanes(suspendedLanes, workInProgressRootUpdatedLanes);
+  suspendedLanes = removeLanes(
+    suspendedLanes,
+    workInProgressRootInterleavedUpdatedLanes,
+  );
   markRootSuspended_dontCallThisOneDirectly(root, suspendedLanes);
 }
 
@@ -1313,7 +1342,8 @@ function prepareFreshStack(root: FiberRoot, lanes: Lanes) {
   workInProgressRootExitStatus = RootIncomplete;
   workInProgressRootFatalError = null;
   workInProgressRootSkippedLanes = NoLanes;
-  workInProgressRootUpdatedLanes = NoLanes;
+  workInProgressRootInterleavedUpdatedLanes = NoLanes;
+  workInProgressRootRenderPhaseUpdatedLanes = NoLanes;
   workInProgressRootPingedLanes = NoLanes;
 
   enqueueInterleavedUpdates();
@@ -1456,7 +1486,7 @@ export function renderDidSuspendDelayIfPossible(): void {
   if (
     workInProgressRoot !== null &&
     (includesNonIdleWork(workInProgressRootSkippedLanes) ||
-      includesNonIdleWork(workInProgressRootUpdatedLanes))
+      includesNonIdleWork(workInProgressRootInterleavedUpdatedLanes))
   ) {
     // Mark the current render as suspended so that we switch to working on
     // the updates that were skipped. Usually we only suspend at the end of
diff --git a/packages/react-reconciler/src/__tests__/ReactIncrementalErrorHandling-test.internal.js b/packages/react-reconciler/src/__tests__/ReactIncrementalErrorHandling-test.internal.js
index 716771a3778dd..cc842bd16d22f 100644
--- a/packages/react-reconciler/src/__tests__/ReactIncrementalErrorHandling-test.internal.js
+++ b/packages/react-reconciler/src/__tests__/ReactIncrementalErrorHandling-test.internal.js
@@ -1915,6 +1915,65 @@ describe('ReactIncrementalErrorHandling', () => {
     expect(root).toMatchRenderedOutput('Everything is fine.');
   });
 
+  it("does not infinite loop if there's a render phase update in the same render as an error", async () => {
+    // useOpaqueIdentifier uses an render phase update as an implementation
+    // detail. When an error is accompanied by a render phase update, we assume
+    // that it comes from useOpaqueIdentifier, because render phase updates
+    // triggered from userspace are not allowed (we log a warning). So we keep
+    // attempting to recover until no more opaque identifiers need to be
+    // upgraded. However, we should give up after some point to prevent an
+    // infinite loop in the case where there is (by accident) a render phase
+    // triggered from userspace.
+
+    spyOnDev(console, 'error');
+
+    let numberOfThrows = 0;
+
+    let setStateInRenderPhase;
+    function Child() {
+      const [, setState] = React.useState(0);
+      setStateInRenderPhase = setState;
+      return 'All good';
+    }
+
+    function App({shouldThrow}) {
+      if (shouldThrow) {
+        setStateInRenderPhase();
+        numberOfThrows++;
+        throw new Error('Oops!');
+      }
+      return <Child />;
+    }
+
+    const root = ReactNoop.createRoot();
+    await act(async () => {
+      root.render(<App shouldThrow={false} />);
+    });
+    expect(root).toMatchRenderedOutput('All good');
+
+    let error;
+    try {
+      await act(async () => {
+        root.render(<App shouldThrow={true} />);
+      });
+    } catch (e) {
+      error = e;
+    }
+
+    expect(error.message).toBe('Oops!');
+    expect(numberOfThrows < 100).toBe(true);
+
+    if (__DEV__) {
+      expect(console.error).toHaveBeenCalledTimes(2);
+      expect(console.error.calls.argsFor(0)[0]).toContain(
+        'Cannot update a component (`%s`) while rendering a different component',
+      );
+      expect(console.error.calls.argsFor(1)[0]).toContain(
+        'The above error occurred in the <App> component',
+      );
+    }
+  });
+
   if (global.__PERSISTENT__) {
     it('regression test: should fatal if error is thrown at the root', () => {
       const root = ReactNoop.createRoot();