diff --git a/.changeset/neat-apples-shout.md b/.changeset/neat-apples-shout.md
new file mode 100644
index 000000000..63972609f
--- /dev/null
+++ b/.changeset/neat-apples-shout.md
@@ -0,0 +1,7 @@
+---
+"ember-resources": patch
+---
+
+`trackedFunction`: Fix timing issue where updating tracked data consumed in `trackedFunction` would not re-cause the `isLoading` state to become `true` again.
+
+Resolves #1010
diff --git a/ember-resources/src/util/function.ts b/ember-resources/src/util/function.ts
index bf1a1d1d0..897b35536 100644
--- a/ember-resources/src/util/function.ts
+++ b/ember-resources/src/util/function.ts
@@ -272,6 +272,13 @@ export class State<Value> {
   retry = async () => {
     if (isDestroyed(this) || isDestroying(this)) return;
 
+    // We've previously had data, but we're about to run-again.
+    // we need to do this again so `isLoading` goes back to `true` when re-running.
+    // NOTE: we want to do this _even_ if this.data is already null.
+    //       it's all in the same tracking frame and the important thing is taht
+    //       we can't *read* data here.
+    this.data = null;
+
     // We need to invoke this before going async so that tracked properties are consumed (entangled with) synchronously
     this.promise = this.#fn();
 
diff --git a/test-app/tests/utils/function/rendering-test.gts b/test-app/tests/utils/function/rendering-test.gts
index ef11d6a3a..c3e2bd4b9 100644
--- a/test-app/tests/utils/function/rendering-test.gts
+++ b/test-app/tests/utils/function/rendering-test.gts
@@ -7,7 +7,7 @@ import { module, test } from 'qunit';
 import { setupRenderingTest } from 'ember-qunit';
 import { setOwner } from '@ember/application';
 
-import { use, resource, resourceFactory } from 'ember-resources';
+import { cell, use, resource, resourceFactory } from 'ember-resources';
 import { trackedFunction } from 'ember-resources/util/function';
 
 const timeout = (ms: number) => new Promise((resolve) => setTimeout(resolve, ms));
diff --git a/test-app/tests/utils/function/timing-test.gts b/test-app/tests/utils/function/timing-test.gts
new file mode 100644
index 000000000..fcd477927
--- /dev/null
+++ b/test-app/tests/utils/function/timing-test.gts
@@ -0,0 +1,111 @@
+import Component from '@glimmer/component';
+import { concat } from '@ember/helper';
+import { render, settled } from '@ember/test-helpers';
+import { module, test } from 'qunit';
+import { setupRenderingTest } from 'ember-qunit';
+
+import { cell, resource, resourceFactory } from 'ember-resources';
+import { trackedFunction } from 'ember-resources/util/function';
+
+module('Utils | trackedFunction | timing', function (hooks) {
+  setupRenderingTest(hooks);
+
+  test('With Argument', async function (assert) {
+    let step = (msg: string) => assert.step(msg);
+
+    let state = cell(0);
+
+    async function fn(value: number) {
+      step(`fn:begin:${value}`);
+      await Promise.resolve();
+      step(`fn:end:${value}`);
+      return `yay:${value}`;
+    }
+
+    const WithArgument = resourceFactory(num => resource(({ use }) => {
+      let reactive = use(trackedFunction(() => fn(num)));
+
+      // TODO: the types should allow us to directly return the use,
+      // but they don't currently
+      return () => reactive.current;
+    }));
+
+    await render(
+      <template>
+        {{#let (WithArgument state.current) as |request|}}
+          {{#if request.isLoading}}
+            {{step 'loading'}}
+          {{/if}}
+          {{#if request.isError}}
+            {{step 'error'}}
+          {{/if}}
+          {{#if request.value}}
+            {{step (concat 'loaded:' request.value)}}
+          {{/if}}
+        {{/let}}
+      </template>
+    );
+
+    assert.verifySteps([
+      'fn:begin:0', 'loading', 'fn:end:0', 'loaded:yay:0'
+    ]);
+
+    state.current = 1;
+    await settled();
+
+    assert.verifySteps([
+      'fn:begin:1', 'loading', 'fn:end:1', 'loaded:yay:1'
+    ]);
+  });
+
+  test('From a component class', async function (assert) {
+    let step = (msg: string) => assert.step(msg);
+
+    let state = cell(0);
+
+    class Example extends Component<{ Args: { value: unknown } }> {
+      request = trackedFunction(this, async () => {
+        let value = this.args.value;
+        step(`fn:begin:${value}`);
+        await Promise.resolve();
+        step(`fn:end:${value}`);
+        return `yay:${value}`;
+      });
+
+      <template>
+        {{#if this.request.isPending}}
+          {{step 'pending'}}
+        {{/if}}
+        {{#if this.request.isLoading}}
+          {{step 'loading'}}
+        {{/if}}
+        {{#if this.request.isError}}
+          {{step 'error'}}
+        {{/if}}
+        {{#if this.request.value}}
+          {{step (concat 'loaded:' this.request.value)}}
+        {{/if}}
+        {{#if this.request.isFinished}}
+          {{step 'finished'}}
+        {{/if}}
+      </template>
+    }
+
+    await render(
+      <template>
+        <Example @value={{state.current}} />
+      </template>
+    );
+
+    assert.verifySteps([
+      'fn:begin:0', 'pending', 'loading', 'fn:end:0', 'loaded:yay:0', 'finished'
+    ]);
+
+    state.current = 1;
+    await settled();
+
+    assert.verifySteps([
+      'fn:begin:1', 'pending', 'loading', 'fn:end:1', 'loaded:yay:1', 'finished'
+    ]);
+  });
+});