diff --git a/.changeset/ten-yaks-reflect.md b/.changeset/ten-yaks-reflect.md
new file mode 100644
index 00000000..e3634071
--- /dev/null
+++ b/.changeset/ten-yaks-reflect.md
@@ -0,0 +1,5 @@
+---
+"react-cool-form": patch
+---
+
+Fix(useForm): update `defaultValues` by `reset(nextValues)`
diff --git a/app/src/Playground/index.tsx b/app/src/Playground/index.tsx
index 5283af77..dd07d77a 100644
--- a/app/src/Playground/index.tsx
+++ b/app/src/Playground/index.tsx
@@ -24,7 +24,7 @@ const Playground = (): JSX.Element => {
     onSubmit: (values) => console.log("LOG ===> onSubmit: ", values),
     onError: (errors) => console.log("LOG ===> onError: ", errors),
   });
-  console.log("LOG ===> ", getState("dirtyFields"));
+  console.log("LOG ===> ", getState(["isDirty", "dirtyFields"]));
 
   useEffect(() => {
     reset({
diff --git a/src/useForm.ts b/src/useForm.ts
index c7b769c7..e676de90 100644
--- a/src/useForm.ts
+++ b/src/useForm.ts
@@ -681,9 +681,14 @@ export default <V extends FormValues = FormValues>({
         if (skip[key]) return;
 
         if (key === "values") {
-          values =
-            (isFunction(values) ? values(stateRef.current.values) : values) ||
-            initialStateRef.current.values;
+          if (!values) {
+            values = initialStateRef.current.values;
+          } else {
+            values = isFunction(values)
+              ? values(stateRef.current.values)
+              : values;
+            initialStateRef.current.values = values;
+          }
 
           state[key] = values;
           setNodesOrStateValue(values);