diff --git a/inject/src/main/java/io/micronaut/context/env/PropertySourcePropertyResolver.java b/inject/src/main/java/io/micronaut/context/env/PropertySourcePropertyResolver.java
index 4b9b8d7b5c..77fe817aa6 100644
--- a/inject/src/main/java/io/micronaut/context/env/PropertySourcePropertyResolver.java
+++ b/inject/src/main/java/io/micronaut/context/env/PropertySourcePropertyResolver.java
@@ -99,6 +99,8 @@ public class PropertySourcePropertyResolver implements PropertyResolver, AutoClo
     private final Map<ConversionCacheKey, Object> resolvedValueCache = new ConcurrentHashMap<>(20);
     private final EnvironmentProperties environmentProperties = EnvironmentProperties.fork(CURRENT_ENV);
 
+    private volatile boolean refreshing = false;
+
     /**
      * Creates a new, initially empty, {@link PropertySourcePropertyResolver} for the given {@link ConversionService}.
      *
@@ -143,8 +145,15 @@ public PropertySourcePropertyResolver(PropertySource... propertySources) {
 
     void reset() {
         synchronized (catalog) {
-            Arrays.fill(catalog, null);
-            resetCaches();
+            refreshing = true;
+            try {
+                Arrays.fill(nonGenerated, null);
+                Arrays.fill(rawCatalog, null);
+                Arrays.fill(catalog, null);
+                resetCaches();
+            } finally {
+                refreshing = false;
+            }
         }
     }
 
@@ -283,7 +292,9 @@ public boolean containsProperty(@Nullable String name) {
             if (result == null) {
                 result = false;
             }
-            containsCache.put(name, result);
+            if (!refreshing) {
+                containsCache.put(name, result);
+            }
         }
         return result;
     }
@@ -488,12 +499,15 @@ public <T> Optional<T> getProperty(@NonNull String name, @NonNull ArgumentConver
                 }
             }
 
+            boolean inRefresh = refreshing;
             if (value != null) {
                 Optional<T> converted;
                 if (entries != null) {
                     // iff entries is null, the value is from placeholderResolutionCache and doesn't need this step
                     value = resolvePlaceHoldersIfNecessary(value);
-                    placeholderResolutionCache.put(name, value);
+                    if (!inRefresh) {
+                        placeholderResolutionCache.put(name, value);
+                    }
                 }
                 if (requiredType.isInstance(value) && !CollectionUtils.isIterableOrMap(requiredType)) {
                     converted = (Optional<T>) Optional.of(value);
@@ -509,12 +523,14 @@ public <T> Optional<T> getProperty(@NonNull String name, @NonNull ArgumentConver
                     }
                 }
 
-                if (cacheableType) {
+                if (cacheableType && !inRefresh) {
                     resolvedValueCache.put(cacheKey, converted.orElse((T) NO_VALUE));
                 }
                 return converted;
             } else if (cacheableType) {
-                resolvedValueCache.put(cacheKey, NO_VALUE);
+                if (!inRefresh) {
+                    resolvedValueCache.put(cacheKey, NO_VALUE);
+                }
                 return Optional.empty();
             } else if (Properties.class.isAssignableFrom(requiredType)) {
                 Properties properties = resolveSubProperties(name, entries, conversionContext);
diff --git a/inject/src/test/groovy/io/micronaut/context/env/DefaultEnvironmentSpec.groovy b/inject/src/test/groovy/io/micronaut/context/env/DefaultEnvironmentSpec.groovy
index 06be96bb53..42cbda6993 100644
--- a/inject/src/test/groovy/io/micronaut/context/env/DefaultEnvironmentSpec.groovy
+++ b/inject/src/test/groovy/io/micronaut/context/env/DefaultEnvironmentSpec.groovy
@@ -22,10 +22,13 @@ import io.micronaut.context.exceptions.ConfigurationException
 import io.micronaut.core.naming.NameUtils
 import io.micronaut.core.order.OrderUtil
 import io.micronaut.core.util.StringUtils
+import io.micronaut.core.value.PropertyCatalog
+import io.micronaut.core.value.PropertyNotFoundException
 import spock.lang.Issue
 import spock.lang.Specification
 import spock.util.environment.RestoreSystemProperties
 
+import java.util.concurrent.Executors
 import java.util.function.Function
 
 /**
@@ -95,6 +98,66 @@ class DefaultEnvironmentSpec extends Specification {
         diff.isEmpty()
     }
 
+    void "test cache related issue when refresh method is executed"() {
+        given:
+        def propertyMap = ['testPropKey': 'testPropValueOld']
+        def propertySource = new MapPropertySource('CustomPS', propertyMap)
+        def env = new DefaultEnvironment({['test']})
+        env.addPropertySource(propertySource)
+        env.start()
+
+        expect:
+        env.getRequiredProperty("testPropKey", String.class) == 'testPropValueOld'
+
+        and:
+        def testFinished = false
+        def executor = Executors.newSingleThreadExecutor()
+        executor.submit(new Runnable() {
+            @Override
+            void run() {
+                while (!testFinished) {
+                    env.getRequiredProperty("testPropKey", String.class)
+                }
+            }
+        })
+
+        when:
+        propertyMap.put('testPropKey', 'testPropValueNew')
+        def diff = env.refreshAndDiff()
+        testFinished = true
+
+        then:
+        env.getRequiredProperty("testPropKey", String.class) == 'testPropValueNew'
+        diff.get('test-prop-key') == 'testPropValueOld'
+    }
+
+    void "test all catalogs are cleared when properties are dropped"() {
+        given:
+        def propertyMap = ['testPropKey': 'testPropValueOld']
+        def propertySource = new MapPropertySource('CustomPS', propertyMap)
+        def env = new DefaultEnvironment({['test']})
+        env.addPropertySource(propertySource)
+        env.start()
+
+        expect:
+        env.getProperty("testPropKey", String.class).get() == 'testPropValueOld'
+        env.getProperty("test-prop-key", String.class).get() == 'testPropValueOld'
+
+        when:
+        env.stop()  // Using this to invoke dropProperties() -> reset() method since they are private
+
+        then:
+        env.getProperty("testPropKey", String.class).isEmpty()  // Retrieves from rawCatalog
+        env.getProperty("test-prop-key", String.class).isEmpty()  // Retrieves from catalog
+
+        when:
+        env.start()
+
+        then:
+        env.getProperty("testPropKey", String.class).get() == 'testPropValueOld'
+        env.getProperty("test-prop-key", String.class).get() == 'testPropValueOld'
+    }
+
     void "test environment system property refresh"() {
         when:
         System.setProperty("test.foo.bar", "10")