diff --git a/packages/yew/src/functional/hooks/use_reducer.rs b/packages/yew/src/functional/hooks/use_reducer.rs
index db81c38179d..a3003ee456e 100644
--- a/packages/yew/src/functional/hooks/use_reducer.rs
+++ b/packages/yew/src/functional/hooks/use_reducer.rs
@@ -35,7 +35,8 @@ pub struct UseReducerHandle<T>
 where
     T: Reducible,
 {
-    value: Rc<T>,
+    current_state: Rc<RefCell<Rc<T>>>,
+    snapshot: Rc<T>,
     dispatch: DispatchFn<T>,
 }
 
@@ -63,7 +64,17 @@ where
     type Target = T;
 
     fn deref(&self) -> &Self::Target {
-        &self.value
+        // Try to get the latest value from the shared RefCell.
+        // If it's currently borrowed (e.g., during dispatch/reduce), fall back to snapshot.
+        if let Ok(rc_ref) = self.current_state.try_borrow() {
+            unsafe {
+                let ptr: *const T = Rc::as_ptr(&*rc_ref);
+                &*ptr
+            }
+        } else {
+            // RefCell is mutably borrowed (during dispatch), use snapshot
+            &self.snapshot
+        }
     }
 }
 
@@ -73,7 +84,8 @@ where
 {
     fn clone(&self) -> Self {
         Self {
-            value: Rc::clone(&self.value),
+            current_state: Rc::clone(&self.current_state),
+            snapshot: Rc::clone(&self.snapshot),
             dispatch: Rc::clone(&self.dispatch),
         }
     }
@@ -84,8 +96,13 @@ where
     T: Reducible + fmt::Debug,
 {
     fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        let value = if let Ok(rc_ref) = self.current_state.try_borrow() {
+            format!("{:?}", *rc_ref)
+        } else {
+            format!("{:?}", self.snapshot)
+        };
         f.debug_struct("UseReducerHandle")
-            .field("value", &format!("{:?}", self.value))
+            .field("value", &value)
             .finish()
     }
 }
@@ -95,7 +112,7 @@ where
     T: Reducible + PartialEq,
 {
     fn eq(&self, rhs: &Self) -> bool {
-        self.value == rhs.value
+        **self == **rhs
     }
 }
 
@@ -239,10 +256,15 @@ where
                 }
             });
 
-            let value = state.current_state.borrow().clone();
+            let current_state = state.current_state.clone();
+            let snapshot = state.current_state.borrow().clone();
             let dispatch = state.dispatch.clone();
 
-            UseReducerHandle { value, dispatch }
+            UseReducerHandle {
+                current_state,
+                snapshot,
+                dispatch,
+            }
         }
     }
 
diff --git a/packages/yew/src/functional/hooks/use_state.rs b/packages/yew/src/functional/hooks/use_state.rs
index 61b4c57d71a..66638296a08 100644
--- a/packages/yew/src/functional/hooks/use_state.rs
+++ b/packages/yew/src/functional/hooks/use_state.rs
@@ -109,7 +109,7 @@ pub struct UseStateHandle<T> {
 impl<T: fmt::Debug> fmt::Debug for UseStateHandle<T> {
     fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
         f.debug_struct("UseStateHandle")
-            .field("value", &format!("{:?}", self.inner.value))
+            .field("value", &format!("{:?}", **self))
             .finish()
     }
 }
@@ -132,7 +132,7 @@ impl<T> Deref for UseStateHandle<T> {
     type Target = T;
 
     fn deref(&self) -> &Self::Target {
-        &(*self.inner).value
+        &self.inner.value
     }
 }
 
diff --git a/packages/yew/tests/use_state.rs b/packages/yew/tests/use_state.rs
index 1a04c0ce27d..0da09a9c7b0 100644
--- a/packages/yew/tests/use_state.rs
+++ b/packages/yew/tests/use_state.rs
@@ -106,3 +106,113 @@ async fn use_state_eq_works() {
     assert_eq!(result.as_str(), "1");
     assert_eq!(RENDER_COUNT.load(Ordering::Relaxed), 2);
 }
+
+/// Regression test for issue #3796
+/// Tests that state handles always read the latest value even when accessed
+/// from callbacks before a rerender occurs.
+///
+/// The bug occurred when:
+/// 1. State A is updated via set()
+/// 2. State B is updated via set()
+/// 3. A callback reads both states before rerender
+/// 4. The callback would see stale value for B because the handle was caching a snapshot instead of
+///    reading from the RefCell
+#[wasm_bindgen_test]
+async fn use_state_handles_read_latest_value_issue_3796() {
+    use std::cell::RefCell;
+
+    use gloo::utils::document;
+    use wasm_bindgen::JsCast;
+    use web_sys::HtmlElement;
+
+    // Shared storage for the values read by the submit handler
+    thread_local! {
+        static CAPTURED_VALUES: RefCell<Option<(String, String)>> = const { RefCell::new(None) };
+    }
+
+    #[component(FormComponent)]
+    fn form_comp() -> Html {
+        let field_a = use_state(String::new);
+        let field_b = use_state(String::new);
+
+        let update_a = {
+            let field_a = field_a.clone();
+            Callback::from(move |_| {
+                field_a.set("value_a".to_string());
+            })
+        };
+
+        let update_b = {
+            let field_b = field_b.clone();
+            Callback::from(move |_| {
+                field_b.set("value_b".to_string());
+            })
+        };
+
+        // This callback reads both states - the bug caused field_b to be stale
+        let submit = {
+            let field_a = field_a.clone();
+            let field_b = field_b.clone();
+            Callback::from(move |_| {
+                let a = (*field_a).clone();
+                let b = (*field_b).clone();
+                CAPTURED_VALUES.with(|v| {
+                    *v.borrow_mut() = Some((a.clone(), b.clone()));
+                });
+            })
+        };
+
+        html! {
+            <div>
+                <button id="update-a" onclick={update_a}>{"Update A"}</button>
+                <button id="update-b" onclick={update_b}>{"Update B"}</button>
+                <button id="submit" onclick={submit}>{"Submit"}</button>
+                <div id="result">{format!("a={}, b={}", *field_a, *field_b)}</div>
+            </div>
+        }
+    }
+
+    yew::Renderer::<FormComponent>::with_root(document().get_element_by_id("output").unwrap())
+        .render();
+    sleep(Duration::ZERO).await;
+
+    // Initial state
+    let result = obtain_result();
+    assert_eq!(result.as_str(), "a=, b=");
+
+    // Click update-a, then update-b, then submit WITHOUT waiting for rerender
+    // This simulates rapid user interaction (like the Firefox bug in issue #3796)
+    document()
+        .get_element_by_id("update-a")
+        .unwrap()
+        .unchecked_into::<HtmlElement>()
+        .click();
+
+    document()
+        .get_element_by_id("update-b")
+        .unwrap()
+        .unchecked_into::<HtmlElement>()
+        .click();
+
+    document()
+        .get_element_by_id("submit")
+        .unwrap()
+        .unchecked_into::<HtmlElement>()
+        .click();
+
+    // Now wait for rerenders to complete
+    sleep(Duration::ZERO).await;
+
+    // Check the values captured by the submit handler
+    // Before the fix, field_b would be empty because the callback captured a stale handle
+    let captured = CAPTURED_VALUES.with(|v| v.borrow().clone());
+    assert_eq!(
+        captured,
+        Some(("value_a".to_string(), "value_b".to_string())),
+        "Submit handler should see latest values for both fields"
+    );
+
+    // Also verify the DOM shows correct values after rerender
+    let result = obtain_result();
+    assert_eq!(result.as_str(), "a=value_a, b=value_b");
+}