diff --git a/packages/ts/react-crud/src/data-provider.ts b/packages/ts/react-crud/src/data-provider.ts
index e2cce61547..e3251fe669 100644
--- a/packages/ts/react-crud/src/data-provider.ts
+++ b/packages/ts/react-crud/src/data-provider.ts
@@ -1,5 +1,4 @@
-import type { GridDataProviderCallback, GridDataProviderParams } from '@vaadin/react-components/Grid';
-import type { GridDataProvider } from '@vaadin/react-components/Grid';
+import type { GridDataProvider, GridDataProviderCallback, GridDataProviderParams } from '@vaadin/react-components/Grid';
 import { useMemo, useState } from 'react';
 import type { CountService, ListService } from './crud';
 import type FilterUnion from './types/com/vaadin/hilla/crud/filter/FilterUnion';
@@ -220,7 +219,14 @@ export type UseGridDataProviderResult<TItem> = GridDataProvider<TItem> & {
 export type GridFetchCallback<TItem> = (pageable: Pageable) => Promise<TItem[]>;
 
 export function useGridDataProvider<TItem>(list: GridFetchCallback<TItem>): UseGridDataProviderResult<TItem> {
-  const result = useDataProvider({ list: async (pageable) => list(pageable) });
+  const result = useDataProvider(
+    useMemo(
+      () => ({
+        list: async (pageable: Pageable) => list(pageable),
+      }),
+      [],
+    ),
+  );
   const dataProvider: UseGridDataProviderResult<TItem> = result.dataProvider as UseGridDataProviderResult<TItem>;
   dataProvider.refresh = result.refresh;
   return dataProvider;
diff --git a/packages/ts/react-crud/test/dataprovider.spec.tsx b/packages/ts/react-crud/test/dataprovider.spec.tsx
index c80b138b0a..5f9926a7a9 100644
--- a/packages/ts/react-crud/test/dataprovider.spec.tsx
+++ b/packages/ts/react-crud/test/dataprovider.spec.tsx
@@ -11,6 +11,7 @@ import {
   InfiniteDataProvider,
   useDataProvider,
   useGridDataProvider,
+  type GridFetchCallback,
   type ItemCounts,
 } from '../src/data-provider.js';
 import type AndFilter from '../src/types/com/vaadin/hilla/crud/filter/AndFilter.js';
@@ -263,6 +264,20 @@ describe('@hilla/react-crud', () => {
       await grid.requestPage(0);
       expect(called).to.be.equal(1);
     });
+    it('does not reassign data provider for an inline fetch function', async () => {
+      const method1 = async (_pageable: Pageable) => await Promise.resolve([{ id: 1, name: 'Product 1' }]);
+      const method2 = async (_pageable: Pageable) => await Promise.resolve([{ id: 2, name: 'Product 2' }]);
+      type PropsType = { fetchCallback: GridFetchCallback<unknown> };
+
+      const hook = renderHook((props: PropsType) => useGridDataProvider(props.fetchCallback), {
+        initialProps: { fetchCallback: method1 },
+      });
+
+      const dataprovider1 = hook.result.current;
+      hook.rerender({ fetchCallback: method2 });
+      const dataprovider2 = hook.result.current;
+      expect(dataprovider1).to.be.eq(dataprovider2);
+    });
   });
 
   describe('createDataProvider', () => {