diff --git a/.changeset/heavy-shirts-chew.md b/.changeset/heavy-shirts-chew.md
new file mode 100644
index 000000000..9bcb5e662
--- /dev/null
+++ b/.changeset/heavy-shirts-chew.md
@@ -0,0 +1,5 @@
+---
+'@powersync/service-core': patch
+---
+
+Improved sync rules storage cached parsed sync rules, accommodating different parsing options where necessary.
diff --git a/packages/service-core/src/storage/mongo/MongoSyncBucketStorage.ts b/packages/service-core/src/storage/mongo/MongoSyncBucketStorage.ts
index 93fb87728..72e007714 100644
--- a/packages/service-core/src/storage/mongo/MongoSyncBucketStorage.ts
+++ b/packages/service-core/src/storage/mongo/MongoSyncBucketStorage.ts
@@ -9,13 +9,13 @@ import * as util from '../../util/util-index.js';
 import {
   BucketDataBatchOptions,
   BucketStorageBatch,
-  ReplicationCheckpoint,
   CompactOptions,
   DEFAULT_DOCUMENT_BATCH_LIMIT,
   DEFAULT_DOCUMENT_CHUNK_LIMIT_BYTES,
   FlushedResult,
   ParseSyncRulesOptions,
   PersistedSyncRulesContent,
+  ReplicationCheckpoint,
   ResolveTableOptions,
   ResolveTableResult,
   StartBatchOptions,
@@ -53,7 +53,7 @@ export class MongoSyncBucketStorage
     }
   });
 
-  private parsedSyncRulesCache: SqlSyncRules | undefined;
+  private parsedSyncRulesCache: {parsed: SqlSyncRules, options:  ParseSyncRulesOptions} | undefined;
   private writeCheckpointAPI: WriteCheckpointAPI;
 
   constructor(
@@ -104,8 +104,16 @@ export class MongoSyncBucketStorage
   }
 
   getParsedSyncRules(options: ParseSyncRulesOptions): SqlSyncRules {
-    this.parsedSyncRulesCache ??= this.sync_rules.parsed(options).sync_rules;
-    return this.parsedSyncRulesCache;
+    const {parsed, options: cachedOptions} = this.parsedSyncRulesCache ?? {};
+    /**
+     * Check if the cached sync rules, if present, had the same options.
+     * Parse sync rules if the options are different or if there is no cached value.
+     */
+    if (!parsed || options.defaultSchema != cachedOptions?.defaultSchema ) {
+      this.parsedSyncRulesCache = {parsed: this.sync_rules.parsed(options).sync_rules, options};
+    }
+
+    return this.parsedSyncRulesCache!.parsed;
   }
 
   async getCheckpoint(): Promise<ReplicationCheckpoint> {
diff --git a/packages/service-core/test/src/data_storage.test.ts b/packages/service-core/test/src/data_storage.test.ts
index 776043b03..df8249b6a 100644
--- a/packages/service-core/test/src/data_storage.test.ts
+++ b/packages/service-core/test/src/data_storage.test.ts
@@ -1,4 +1,5 @@
 import { BucketDataBatchOptions, SaveOperationTag } from '@/storage/BucketStorage.js';
+import { getUuidReplicaIdentityBson } from '@/util/util-index.js';
 import { RequestParameters } from '@powersync/service-sync-rules';
 import { describe, expect, test } from 'vitest';
 import { fromAsync, oneFromAsync } from './stream_utils.js';
@@ -13,7 +14,6 @@ import {
   StorageFactory,
   testRules
 } from './util.js';
-import { getUuidReplicaIdentityBson } from '@/util/util-index.js';
 
 const TEST_TABLE = makeTestTable('test', ['id']);
 
@@ -1460,4 +1460,40 @@ bucket_definitions:
       replication_size_bytes: 0
     });
   });
+
+  test('invalidate cached parsed sync rules', async () => {
+    const sync_rules_content = testRules(
+      `
+bucket_definitions:
+    by_workspace:
+      parameters:
+        - SELECT id as workspace_id FROM workspace WHERE
+          workspace."userId" = token_parameters.user_id
+      data: []
+    `
+    );
+
+    const bucketStorageFactory = await factory();
+    const syncBucketStorage = bucketStorageFactory.getInstance(sync_rules_content);
+
+    const parsedSchema1 = syncBucketStorage.getParsedSyncRules({
+      defaultSchema: 'public'
+    });
+
+    const parsedSchema2 = syncBucketStorage.getParsedSyncRules({
+      defaultSchema: 'public'
+    });
+
+    // These should be cached, this will be the same instance
+    expect(parsedSchema2).equals(parsedSchema1);
+    expect(parsedSchema1.getSourceTables()[0].schema).equals('public');
+
+    const parsedSchema3 = syncBucketStorage.getParsedSyncRules({
+      defaultSchema: 'databasename'
+    });
+
+    // The cache should not be used
+    expect(parsedSchema3).not.equals(parsedSchema2);
+    expect(parsedSchema3.getSourceTables()[0].schema).equals('databasename');
+  });
 }
diff --git a/packages/service-core/test/src/util.ts b/packages/service-core/test/src/util.ts
index 98cd613e2..421879d3c 100644
--- a/packages/service-core/test/src/util.ts
+++ b/packages/service-core/test/src/util.ts
@@ -62,7 +62,7 @@ export function testRules(content: string): PersistedSyncRulesContent {
     parsed(options) {
       return {
         id: 1,
-        sync_rules: SqlSyncRules.fromYaml(content, PARSE_OPTIONS),
+        sync_rules: SqlSyncRules.fromYaml(content, options),
         slot_name: 'test'
       };
     },