diff --git a/src/useStateWithHistory.ts b/src/useStateWithHistory.ts
index 7e2b442cbf..8d17299a61 100644
--- a/src/useStateWithHistory.ts
+++ b/src/useStateWithHistory.ts
@@ -30,7 +30,8 @@ export function useStateWithHistory<S, I extends S>(
   }
 
   const isFirstMount = useFirstMountState();
-  const [state, innerSetState] = useState<S>(initialState as S);
+  const [state, innerSetState] = useState<S>(resolveHookState(initialState) as S);
+
   const history = useRef<S[]>((initialHistory ?? []) as S[]);
   const historyPosition = useRef(0);
 
@@ -38,8 +39,8 @@ export function useStateWithHistory<S, I extends S>(
   if (isFirstMount) {
     if (history.current.length) {
       // if last element of history !== initial - push initial to history
-      if (history.current[history.current.length - 1] !== initialState) {
-        history.current.push(initialState as I);
+      if (history.current[history.current.length - 1] !== state) {
+        history.current.push(state as I);
       }
 
       // if initial history bigger that capacity - crop the first elements out
@@ -48,7 +49,7 @@ export function useStateWithHistory<S, I extends S>(
       }
     } else {
       // initiate the history with initial state
-      history.current.push(initialState as I);
+      history.current.push(state);
     }
 
     historyPosition.current = history.current.length && history.current.length - 1;
diff --git a/tests/useStateWithHistory.test.ts b/tests/useStateWithHistory.test.ts
index 5261daa8dc..a2f4ae8d65 100644
--- a/tests/useStateWithHistory.test.ts
+++ b/tests/useStateWithHistory.test.ts
@@ -172,6 +172,12 @@ describe('useStateWithHistory', () => {
       });
       expect(hook.result.current[0][0]).toBe(1);
     });
+
+    it('should not contain function as initial state', () => {
+      let hook = getHook(() => 1, 3);
+
+      expect(hook.result.current[0][2].history[0]).toEqual(1);
+    });
   });
 
   describe('history.forward()', () => {