diff --git a/src/useField.issue-984.test.js b/src/useField.issue-984.test.js
new file mode 100644
index 0000000..2e6b69b
--- /dev/null
+++ b/src/useField.issue-984.test.js
@@ -0,0 +1,55 @@
+import * as React from "react";
+import { render, waitFor } from "@testing-library/react";
+import "@testing-library/jest-dom";
+import Form from "./ReactFinalForm";
+import { useField } from "./index";
+
+const onSubmitMock = (_values) => {};
+
+describe("useField issue #984", () => {
+  // https://github.com/final-form/react-final-form/issues/984
+  // When a parent component's useEffect changes a form value,
+  // sibling components' useField should receive the updated value.
+  it("should get newest value when sibling updates form in useEffect", async () => {
+    const Field1 = () => {
+      const { input } = useField("field1");
+      return <input {...input} data-testid="field1" />;
+    };
+
+    const Field2 = () => {
+      const { input } = useField("field1", { subscription: { value: true } });
+      // Should show "UpdatedByField1" after ParentWithEffect's useEffect runs
+      return <span data-testid="field1-value">{input.value}</span>;
+    };
+
+    const ParentWithEffect = () => {
+      const { input } = useField("field1");
+      React.useEffect(() => {
+        // Simulate programmatic change during effect phase
+        input.onChange("UpdatedByField1");
+      }, []);
+      return null;
+    };
+
+    const { getByTestId } = render(
+      <Form
+        onSubmit={onSubmitMock}
+        initialValues={{ field1: "InitialField1" }}
+      >
+        {() => (
+          <form>
+            <ParentWithEffect />
+            <Field1 />
+            <Field2 />
+          </form>
+        )}
+      </Form>
+    );
+
+    // After useEffect runs, Field2 should see the updated value
+    // This is the bug: Field2 sees stale "InitialField1" instead
+    await waitFor(() => {
+      expect(getByTestId("field1-value").textContent).toBe("UpdatedByField1");
+    });
+  });
+});
diff --git a/src/useField.ts b/src/useField.ts
index 3f97a8d..32f948e 100644
--- a/src/useField.ts
+++ b/src/useField.ts
@@ -126,13 +126,19 @@ function useField<
 
     return {
       active: false,
-      blur: () => { },
-      change: () => { },
+      blur: () => {
+        form.blur(name as keyof FormValues);
+      },
+      change: (value) => {
+        form.change(name as keyof FormValues, value);
+      },
       data: data || {},
       dirty: false,
       dirtySinceLastSubmit: false,
       error: undefined,
-      focus: () => { },
+      focus: () => {
+        form.focus(name as keyof FormValues);
+      },
       initial: initialStateValue,
       invalid: false,
       length: undefined,
@@ -184,6 +190,71 @@ function useField<
     // eslint-disable-next-line react-hooks/exhaustive-deps
   }, [name, data, defaultValue, initialValue]);
 
+  // FIX #988: When initialValue prop changes, update the form's initialValues
+  // for this field. This ensures that when a parent component updates initialValues
+  // after a save operation, the field becomes pristine if the value matches.
+  const prevInitialValueRef = React.useRef(initialValue);
+  React.useEffect(() => {
+    // Only run when initialValue actually changes (not on mount)
+    if (
+      prevInitialValueRef.current !== initialValue &&
+      initialValue !== undefined
+    ) {
+      prevInitialValueRef.current = initialValue;
+      
+      // Get current form state
+      const formState = form.getState();
+      const currentFormInitial = formState.initialValues
+        ? getIn(formState.initialValues, name)
+        : undefined;
+      
+      // Only update if the new initialValue differs from current form initial
+      if (initialValue !== currentFormInitial) {
+        const currentValue = getIn(formState.values, name);
+        
+        // If the current value matches the new initial value, update the form's
+        // initialValues to reflect this. This is needed for radio buttons where
+        // the user changes the value, then the parent saves and passes back the
+        // new initial value that matches what the user selected.
+        // 
+        // We need to manually update formState.initialValues and notify listeners.
+        // Final Form doesn't expose a public API for this, so we use internal state.
+        const fieldState = form.getFieldState(name as keyof FormValues);
+        if (fieldState) {
+          // Force an update through the field subscriber by triggering a change
+          // to the same value, which will recalculate dirty state with new initial
+          if (currentValue === initialValue) {
+            // The value matches the new initial, so field should become pristine.
+            // Re-register with new initialValue to update formState.initialValues.
+            // Final Form's registerField will update initialValues when:
+            // - value === old initial (meaning pristine before)
+            // We need to handle the case where value === new initial but value !== old initial
+            // 
+            // Workaround: We need to update formState.initialValues directly.
+            // The only public API is form.setConfig('initialValues', ...) but that
+            // resets ALL values. Instead, we use a workaround:
+            // Trigger a re-registration which will update initialValues for this field.
+            form.pauseValidation();
+            try {
+              // Manually update initialValues via registerField with silent: false
+              // to force notification
+              const unsubscribe = form.registerField(
+                name as keyof FormValues,
+                () => {},
+                {},
+                { initialValue }
+              );
+              // Immediately unsubscribe to avoid orphan subscriber
+              unsubscribe();
+            } finally {
+              form.resumeValidation();
+            }
+          }
+        }
+      }
+    }
+  }, [initialValue, name, form]);
+
   const meta: any = {};
   addLazyFieldMetaState(meta, state);
   const getInputValue = () => {
@@ -245,7 +316,7 @@ function useField<
   const input: FieldInputProps<FieldValue, T> = {
     name,
     onBlur: useConstantCallback((_event?: React.FocusEvent<any>) => {
-      state.blur();
+      form.blur(name as keyof FormValues);
       if (formatOnBlur) {
         /**
          * Here we must fetch the value directly from Final Form because we cannot
@@ -254,9 +325,9 @@ function useField<
          * before calling `onBlur()`, but before the field has had a chance to receive
          * the value update from Final Form.
          */
-        const fieldState = form.getFieldState(state.name as keyof FormValues);
+        const fieldState = form.getFieldState(name as keyof FormValues);
         if (fieldState) {
-          state.change(format(fieldState.value, state.name));
+          form.change(name as keyof FormValues, format(fieldState.value, name));
         }
       }
     }),
@@ -282,14 +353,16 @@ function useField<
         }
       }
 
+      const currentValue =
+        form.getFieldState(name as keyof FormValues)?.value ?? state.value;
       const value: any =
         event && event.target
-          ? getValue(event, state.value, _value, isReactNative)
+          ? getValue(event, currentValue, _value, isReactNative)
           : event;
-      state.change(parse(value, name));
+      form.change(name as keyof FormValues, parse(value, name));
     }),
     onFocus: useConstantCallback((_event?: React.FocusEvent<any>) =>
-      state.focus(),
+      form.focus(name as keyof FormValues),
     ),
     get value() {
       return getInputValue();