diff --git a/code/lib/api/src/modules/channel.ts b/code/lib/api/src/modules/channel.ts
index f526302b4df2..d2213348b73b 100644
--- a/code/lib/api/src/modules/channel.ts
+++ b/code/lib/api/src/modules/channel.ts
@@ -1,3 +1,4 @@
+/* eslint-disable no-param-reassign */
 import { STORIES_COLLAPSE_ALL, STORIES_EXPAND_ALL } from '@storybook/core-events';
 import { Channel } from '@storybook/channels';
 import type { Listener } from '@storybook/channels';
@@ -26,7 +27,19 @@ export const init: ModuleFn<SubAPI, SubState> = ({ provider }) => {
     },
     off: (type, cb) => provider.channel.removeListener(type, cb),
     once: (type, cb) => provider.channel.once(type, cb),
-    emit: (type, ...args) => provider.channel.emit(type, ...args),
+    emit: (type, data, ...args) => {
+      if (
+        data?.options?.target &&
+        data.options.target !== 'storybook-preview-iframe' &&
+        !data.options.target.startsWith('storybook-ref-')
+      ) {
+        data.options.target =
+          data.options.target !== 'storybook_internal'
+            ? `storybook-ref-${data.options.target}`
+            : 'storybook-preview-iframe';
+      }
+      provider.channel.emit(type, data, ...args);
+    },
 
     collapseAll: () => {
       provider.channel.emit(STORIES_COLLAPSE_ALL, {});
diff --git a/code/lib/api/src/modules/stories.ts b/code/lib/api/src/modules/stories.ts
index 6a9f9f1813db..ea4215ebcaec 100644
--- a/code/lib/api/src/modules/stories.ts
+++ b/code/lib/api/src/modules/stories.ts
@@ -1,7 +1,7 @@
 import global from 'global';
 import { toId, sanitize } from '@storybook/csf';
 import {
-  PRELOAD_STORIES,
+  PRELOAD_ENTRIES,
   STORY_PREPARED,
   UPDATE_STORY_ARGS,
   RESET_STORY_ARGS,
@@ -320,9 +320,7 @@ export const init: ModuleFn<SubAPI, SubState, true> = ({
       fullAPI.emit(UPDATE_STORY_ARGS, {
         storyId,
         updatedArgs,
-        options: {
-          target: refId ? `storybook-ref-${refId}` : 'storybook-preview-iframe',
-        },
+        options: { target: refId },
       });
     },
     resetStoryArgs: (story, argNames?: [string]) => {
@@ -330,9 +328,7 @@ export const init: ModuleFn<SubAPI, SubState, true> = ({
       fullAPI.emit(RESET_STORY_ARGS, {
         storyId,
         argNames,
-        options: {
-          target: refId ? `storybook-ref-${refId}` : 'storybook-preview-iframe',
-        },
+        options: { target: refId },
       });
     },
     fetchStoryList: async () => {
@@ -448,7 +444,7 @@ export const init: ModuleFn<SubAPI, SubState, true> = ({
       }
 
       if (sourceType === 'local') {
-        const { storyId, storiesHash } = store.getState();
+        const { storyId, storiesHash, refId } = store.getState();
 
         // create a list of related stories to be preloaded
         const toBePreloaded = Array.from(
@@ -458,7 +454,10 @@ export const init: ModuleFn<SubAPI, SubState, true> = ({
           ])
         ).filter(Boolean);
 
-        fullAPI.emit(PRELOAD_STORIES, toBePreloaded);
+        fullAPI.emit(PRELOAD_ENTRIES, {
+          ids: toBePreloaded,
+          options: { target: refId },
+        });
       }
     });
 
diff --git a/code/lib/api/src/tests/stories.test.ts b/code/lib/api/src/tests/stories.test.ts
index cffa81cbaac8..132a95733526 100644
--- a/code/lib/api/src/tests/stories.test.ts
+++ b/code/lib/api/src/tests/stories.test.ts
@@ -623,7 +623,7 @@ describe('stories API', () => {
         storyId: 'a--1',
         updatedArgs: { foo: 'bar' },
         options: {
-          target: 'storybook-preview-iframe',
+          target: undefined,
         },
       });
 
@@ -654,12 +654,12 @@ describe('stories API', () => {
         storyId: 'a--1',
         updatedArgs: { foo: 'bar' },
         options: {
-          target: 'storybook-ref-refId',
+          target: 'refId',
         },
       });
     });
 
-    it('resetStoryArgs emits RESET_STORY_ARGS to the local frame and does not change anything', () => {
+    it('refId to the local frame and does not change anything', () => {
       const navigate = jest.fn();
       const emit = jest.fn();
       const on = jest.fn();
@@ -681,7 +681,7 @@ describe('stories API', () => {
         storyId: 'a--1',
         argNames: ['foo'],
         options: {
-          target: 'storybook-preview-iframe',
+          target: undefined,
         },
       });
 
@@ -712,7 +712,7 @@ describe('stories API', () => {
         storyId: 'a--1',
         argNames: ['foo'],
         options: {
-          target: 'storybook-ref-refId',
+          target: 'refId',
         },
       });
     });
diff --git a/code/lib/core-events/src/index.ts b/code/lib/core-events/src/index.ts
index 291eb9050601..0fb8d7bed579 100644
--- a/code/lib/core-events/src/index.ts
+++ b/code/lib/core-events/src/index.ts
@@ -19,7 +19,7 @@ enum events {
   // Force the current story to re-render from scratch, with its initial args
   FORCE_REMOUNT = 'forceRemount',
   // Request the story has been loaded into the store, ahead of time, before it's actually
-  PRELOAD_STORIES = 'preloadStories',
+  PRELOAD_ENTRIES = 'preloadStories',
   // The story has been loaded into the store, we have parameters/args/etc
   STORY_PREPARED = 'storyPrepared',
   // The next 6 events are emitted by the StoryRenderer when rendering the current story
@@ -78,7 +78,7 @@ export const {
   STORY_PREPARED,
   STORY_CHANGED,
   STORY_UNCHANGED,
-  PRELOAD_STORIES,
+  PRELOAD_ENTRIES,
   STORY_RENDERED,
   STORY_MISSING,
   STORY_ERRORED,
diff --git a/code/lib/preview-web/src/PreviewWeb.test.ts b/code/lib/preview-web/src/PreviewWeb.test.ts
index 674a938cffe7..940bd56acfbb 100644
--- a/code/lib/preview-web/src/PreviewWeb.test.ts
+++ b/code/lib/preview-web/src/PreviewWeb.test.ts
@@ -1104,7 +1104,7 @@ describe('PreviewWeb', () => {
       await waitForRender();
 
       importFn.mockClear();
-      await preview.onPreloadStories(['component-two--c']);
+      await preview.onPreloadStories({ ids: ['component-two--c'] });
       expect(importFn).toHaveBeenCalledWith('./src/ComponentTwo.stories.js');
     });
 
@@ -1114,7 +1114,7 @@ describe('PreviewWeb', () => {
       await waitForRender();
 
       importFn.mockClear();
-      await preview.onPreloadStories(['component-one--docs']);
+      await preview.onPreloadStories({ ids: ['component-one--docs'] });
       expect(importFn).toHaveBeenCalledWith('./src/ComponentOne.stories.js');
     });
 
@@ -1124,7 +1124,7 @@ describe('PreviewWeb', () => {
       await waitForRender();
 
       importFn.mockClear();
-      await preview.onPreloadStories(['introduction--docs']);
+      await preview.onPreloadStories({ ids: ['introduction--docs'] });
       expect(importFn).toHaveBeenCalledWith('./src/Introduction.mdx');
     });
     it('loads imports of modern docs entries', async () => {
@@ -1133,7 +1133,7 @@ describe('PreviewWeb', () => {
       await waitForRender();
 
       importFn.mockClear();
-      await preview.onPreloadStories(['introduction--docs']);
+      await preview.onPreloadStories({ ids: ['introduction--docs'] });
       expect(importFn).toHaveBeenCalledWith('./src/ComponentTwo.stories.js');
     });
   });
diff --git a/code/lib/preview-web/src/PreviewWeb.tsx b/code/lib/preview-web/src/PreviewWeb.tsx
index 101e26f96c6c..6b6014236f9a 100644
--- a/code/lib/preview-web/src/PreviewWeb.tsx
+++ b/code/lib/preview-web/src/PreviewWeb.tsx
@@ -4,7 +4,7 @@ import global from 'global';
 import {
   CURRENT_STORY_WAS_SET,
   IGNORED_EXCEPTION,
-  PRELOAD_STORIES,
+  PRELOAD_ENTRIES,
   PREVIEW_KEYDOWN,
   SET_CURRENT_STORY,
   SET_STORIES,
@@ -93,7 +93,7 @@ export class PreviewWeb<TFramework extends AnyFramework> extends Preview<TFramew
 
     this.channel.on(SET_CURRENT_STORY, this.onSetCurrentStory.bind(this));
     this.channel.on(UPDATE_QUERY_PARAMS, this.onUpdateQueryParams.bind(this));
-    this.channel.on(PRELOAD_STORIES, this.onPreloadStories.bind(this));
+    this.channel.on(PRELOAD_ENTRIES, this.onPreloadStories.bind(this));
   }
 
   initializeWithProjectAnnotations(projectAnnotations: WebProjectAnnotations<TFramework>) {
@@ -240,8 +240,14 @@ export class PreviewWeb<TFramework extends AnyFramework> extends Preview<TFramew
     super.onUpdateArgs({ storyId, updatedArgs });
   }
 
-  async onPreloadStories(ids: string[]) {
-    await Promise.all(ids.map((id) => this.storyStore.loadEntry(id)));
+  async onPreloadStories({ ids }: { ids: string[] }) {
+    /**
+     * It's possible that we're trying to preload a story in a ref we haven't loaded the iframe for yet.
+     * Because of the way the targeting works, if we can't find the targeted iframe,
+     * we'll use the currently active iframe which can cause the event to be targeted
+     * to the wrong iframe, causing an error if the storyId does not exists there.
+     */
+    await Promise.allSettled(ids.map((id) => this.storyStore.loadEntry(id)));
   }
 
   // RENDERING
diff --git a/code/lib/ui/src/components/preview/preview.tsx b/code/lib/ui/src/components/preview/preview.tsx
index d6ab8d99081f..67c9c2f2f8c4 100644
--- a/code/lib/ui/src/components/preview/preview.tsx
+++ b/code/lib/ui/src/components/preview/preview.tsx
@@ -164,9 +164,7 @@ const Preview = React.memo<PreviewProps>((props) => {
           api.emit(SET_CURRENT_STORY, {
             storyId: id,
             viewMode,
-            options: {
-              target: refId ? `storybook-ref-${refId}` : 'storybook-preview-iframe',
-            },
+            options: { target: refId },
           });
         }
       }
diff --git a/code/lib/ui/src/components/sidebar/SearchResults.tsx b/code/lib/ui/src/components/sidebar/SearchResults.tsx
index eb1c7cbb9832..bc8dcf1b9164 100644
--- a/code/lib/ui/src/components/sidebar/SearchResults.tsx
+++ b/code/lib/ui/src/components/sidebar/SearchResults.tsx
@@ -4,6 +4,8 @@ import global from 'global';
 import React, { FC, MouseEventHandler, ReactNode, useCallback, useEffect } from 'react';
 import { ControllerStateAndHelpers } from 'downshift';
 
+import { useStorybookApi } from '@storybook/api';
+import { PRELOAD_ENTRIES } from '@storybook/core-events';
 import { ComponentNode, DocumentNode, Path, RootNode, StoryNode } from './TreeNode';
 import {
   Match,
@@ -121,6 +123,17 @@ const Result: FC<
     [onClick]
   );
 
+  const api = useStorybookApi();
+  useEffect(() => {
+    if (api && props.isHighlighted && item.isComponent) {
+      api.emit(
+        PRELOAD_ENTRIES,
+        { ids: [item.isLeaf ? item.id : item.children[0]] },
+        { options: { target: item.refId } }
+      );
+    }
+  }, [props.isHighlighted, item]);
+
   const nameMatch = matches.find((match: Match) => match.key === 'name');
   const pathMatches = matches.filter((match: Match) => match.key === 'path');
   const label = (
@@ -175,6 +188,7 @@ export const SearchResults: FC<{
     isLoading = false,
     enableShortcuts = true,
   }) => {
+    const api = useStorybookApi();
     useEffect(() => {
       const handleEscape = (event: KeyboardEvent) => {
         if (!enableShortcuts || isLoading || event.repeat) return;
@@ -190,6 +204,20 @@ export const SearchResults: FC<{
       return () => document.removeEventListener('keydown', handleEscape);
     }, [enableShortcuts, isLoading]);
 
+    const mouseOverHandler = useCallback((event: MouseEvent) => {
+      const currentTarget = event.currentTarget as HTMLElement;
+      const storyId = currentTarget.getAttribute('data-id');
+      const refId = currentTarget.getAttribute('data-refid');
+      const item = api.getData(storyId, refId === 'storybook_internal' ? undefined : refId);
+
+      if (item.isComponent) {
+        api.emit(PRELOAD_ENTRIES, {
+          ids: [item.isLeaf ? item.id : item.children[0]],
+          options: { target: refId },
+        });
+      }
+    }, []);
+
     return (
       <ResultsList {...getMenuProps()}>
         {results.length > 0 && !query && (
@@ -255,6 +283,9 @@ export const SearchResults: FC<{
               {...result}
               {...getItemProps({ key, index, item: result })}
               isHighlighted={highlightedIndex === index}
+              data-id={result.item.id}
+              data-refid={result.item.refId}
+              onMouseOver={mouseOverHandler}
               className="search-result-item"
             />
           );
diff --git a/code/lib/ui/src/components/sidebar/Tree.tsx b/code/lib/ui/src/components/sidebar/Tree.tsx
index e99a572008cc..dd68ff0db5ca 100644
--- a/code/lib/ui/src/components/sidebar/Tree.tsx
+++ b/code/lib/ui/src/components/sidebar/Tree.tsx
@@ -1,9 +1,11 @@
+import { useStorybookApi } from '@storybook/api';
 import type { StoriesHash, GroupEntry, ComponentEntry, StoryEntry } from '@storybook/api';
 import { styled } from '@storybook/theming';
 import { Button, Icons } from '@storybook/components';
 import { transparentize } from 'polished';
 import React, { MutableRefObject, useCallback, useMemo, useRef } from 'react';
 
+import { PRELOAD_ENTRIES } from '@storybook/core-events';
 import {
   ComponentNode,
   DocumentNode,
@@ -147,6 +149,7 @@ const Node = React.memo<NodeProps>(
     setExpanded,
     onSelectStoryId,
   }) => {
+    const api = useStorybookApi();
     if (!isDisplayed) return null;
 
     const id = createId(item.id, refId);
@@ -246,6 +249,14 @@ const Node = React.memo<NodeProps>(
           setExpanded({ ids: [item.id], value: !isExpanded });
           if (item.type === 'component' && !isExpanded) onSelectStoryId(item.id);
         }}
+        onMouseEnter={() => {
+          if (item.isComponent) {
+            api.emit(PRELOAD_ENTRIES, {
+              ids: [item.children[0]],
+              options: { target: refId },
+            });
+          }
+        }}
       >
         {(item.renderLabel as (i: typeof item) => React.ReactNode)?.(item) || item.name}
       </BranchNode>
diff --git a/code/lib/ui/src/components/sidebar/useHighlighted.ts b/code/lib/ui/src/components/sidebar/useHighlighted.ts
index 8c87e56805ab..5aa2d8e8ce4e 100644
--- a/code/lib/ui/src/components/sidebar/useHighlighted.ts
+++ b/code/lib/ui/src/components/sidebar/useHighlighted.ts
@@ -8,6 +8,8 @@ import {
   useRef,
   useState,
 } from 'react';
+import { useStorybookApi } from '@storybook/api';
+import { PRELOAD_ENTRIES } from '@storybook/core-events';
 import { matchesKeyCode, matchesModifiers } from '../../keybinding';
 
 import { CombinedDataset, Highlight, Selection } from './types';
@@ -40,6 +42,7 @@ export const useHighlighted = ({
   const initialHighlight = fromSelection(selected);
   const highlightedRef = useRef<Highlight>(initialHighlight);
   const [highlighted, setHighlighted] = useState<Highlight>(initialHighlight);
+  const api = useStorybookApi();
 
   const updateHighlighted = useCallback(
     (highlight) => {
@@ -109,6 +112,17 @@ export const useHighlighted = ({
         const nextIndex = cycle(highlightable, currentIndex, isArrowUp ? -1 : 1);
         const didRunAround = isArrowUp ? nextIndex === highlightable.length - 1 : nextIndex === 0;
         highlightElement(highlightable[nextIndex], didRunAround);
+
+        if (highlightable[nextIndex].getAttribute('data-nodetype') === 'component') {
+          const { itemId, refId } = highlightedRef.current;
+          const item = api.getData(itemId, refId === 'storybook_internal' ? undefined : refId);
+          if (item.isComponent) {
+            api.emit(PRELOAD_ENTRIES, {
+              ids: [item.isLeaf ? item.id : item.children[0]],
+              options: { target: refId },
+            });
+          }
+        }
       });
     };
 
diff --git a/code/lib/ui/src/globals/exports.ts b/code/lib/ui/src/globals/exports.ts
index 041f408c1191..b7fcfc8d3d30 100644
--- a/code/lib/ui/src/globals/exports.ts
+++ b/code/lib/ui/src/globals/exports.ts
@@ -120,7 +120,7 @@ export default {
     'IGNORED_EXCEPTION',
     'NAVIGATE_URL',
     'PLAY_FUNCTION_THREW_EXCEPTION',
-    'PRELOAD_STORIES',
+    'PRELOAD_ENTRIES',
     'PREVIEW_KEYDOWN',
     'REGISTER_SUBSCRIPTION',
     'RESET_STORY_ARGS',