diff --git a/src/SplitFactoryProvider.tsx b/src/SplitFactoryProvider.tsx
index 9253ce8..4ecfd3c 100644
--- a/src/SplitFactoryProvider.tsx
+++ b/src/SplitFactoryProvider.tsx
@@ -3,7 +3,7 @@ import React from 'react';
 import { SplitComponent } from './SplitClient';
 import { ISplitFactoryProps } from './types';
 import { WARN_SF_CONFIG_AND_FACTORY } from './constants';
-import { getSplitFactory, destroySplitFactory, IFactoryWithClients, getSplitClient, getStatus } from './utils';
+import { getSplitFactory, destroySplitFactory, IFactoryWithClients, getSplitClient, getStatus, __factories } from './utils';
 import { DEFAULT_UPDATE_OPTIONS } from './useSplitClient';
 
 /**
@@ -27,24 +27,39 @@ export function SplitFactoryProvider(props: ISplitFactoryProps) {
     config = undefined;
   }
 
-  const [stateFactory, setStateFactory] = React.useState(propFactory || null);
-  const factory = propFactory || (stateFactory && config === (stateFactory as IFactoryWithClients).config ? stateFactory : null);
+  const [configFactory, setConfigFactory] = React.useState<IFactoryWithClients | null>(null);
+  const factory = propFactory || (configFactory && config === configFactory.config ? configFactory : null);
   const client = factory ? getSplitClient(factory) : null;
 
+  // Effect to initialize and destroy the factory
   React.useEffect(() => {
     if (config) {
       const factory = getSplitFactory(config);
+
+      return () => {
+        destroySplitFactory(factory);
+      }
+    }
+  }, [config]);
+
+  // Effect to subscribe/unsubscribe to events
+  React.useEffect(() => {
+    const factory = config && __factories.get(config);
+    if (factory) {
       const client = getSplitClient(factory);
       const status = getStatus(client);
 
-      // Update state and unsubscribe from events when first event is emitted
-      const update = () => {
+      // Unsubscribe from events and update state when first event is emitted
+      const update = () => { // eslint-disable-next-line no-use-before-define
+        unsubscribe();
+        setConfigFactory(factory);
+      }
+
+      const unsubscribe = () => {
         client.off(client.Event.SDK_READY, update);
         client.off(client.Event.SDK_READY_FROM_CACHE, update);
         client.off(client.Event.SDK_READY_TIMED_OUT, update);
         client.off(client.Event.SDK_UPDATE, update);
-
-        setStateFactory(factory);
       }
 
       if (updateOnSdkReady) {
@@ -61,10 +76,7 @@ export function SplitFactoryProvider(props: ISplitFactoryProps) {
       }
       if (updateOnSdkUpdate) client.on(client.Event.SDK_UPDATE, update);
 
-      return () => {
-        // Factory destroy unsubscribes from events
-        destroySplitFactory(factory as IFactoryWithClients);
-      }
+      return unsubscribe;
     }
   }, [config, updateOnSdkReady, updateOnSdkReadyFromCache, updateOnSdkTimedout, updateOnSdkUpdate]);
 
diff --git a/src/__tests__/SplitFactoryProvider.test.tsx b/src/__tests__/SplitFactoryProvider.test.tsx
index a77d4af..6745a4d 100644
--- a/src/__tests__/SplitFactoryProvider.test.tsx
+++ b/src/__tests__/SplitFactoryProvider.test.tsx
@@ -336,39 +336,43 @@ describe('SplitFactoryProvider', () => {
     logSpy.mockRestore();
   });
 
-  test('cleans up on update and unmount.', () => {
+  test('cleans up on update and unmount if config prop is provided.', () => {
     let renderTimes = 0;
     const createdFactories = new Set<SplitIO.ISDK>();
     const clientDestroySpies: jest.SpyInstance[] = [];
+    const outerFactory = SplitSdk(sdkBrowser);
 
     const Component = ({ factory, isReady, hasTimedout }: ISplitFactoryChildProps) => {
       renderTimes++;
-      if (factory) createdFactories.add(factory);
 
       switch (renderTimes) {
         case 1:
-        case 3:
+          expect(factory).toBe(outerFactory);
+          return null;
+        case 2:
+        case 5:
           expect(isReady).toBe(false);
           expect(hasTimedout).toBe(false);
           expect(factory).toBe(null);
           return null;
-
-        case 2:
+        case 3:
         case 4:
+        case 6:
           expect(isReady).toBe(true);
           expect(hasTimedout).toBe(true);
-          expect(__factories.size).toBe(1);
-          clientDestroySpies.push(jest.spyOn((factory as SplitIO.ISDK).client(), 'destroy'));
+          expect(factory).not.toBe(null);
+          createdFactories.add(factory!);
+          clientDestroySpies.push(jest.spyOn(factory!.client(), 'destroy'));
           return (
             <SplitClient splitKey='other_key' >
               {({ client }) => {
-                clientDestroySpies.push(jest.spyOn(client as SplitIO.IClient, 'destroy'));
+                clientDestroySpies.push(jest.spyOn(client!, 'destroy'));
                 return null;
               }}
             </SplitClient>
           );
-        case 5:
-          throw new Error('Child must not be rerendered');
+        case 7:
+          throw new Error('Must not rerender');
       }
     };
 
@@ -378,24 +382,41 @@ describe('SplitFactoryProvider', () => {
       factory.client().__emitter__.emit(Event.SDK_READY)
     };
 
-    // 1st render
+    // 1st render: factory provided
     const wrapper = render(
+      <SplitFactoryProvider factory={outerFactory} >
+        {Component}
+      </SplitFactoryProvider>
+    );
+
+    // 2nd render: factory created, not ready (null)
+    wrapper.rerender(
       <SplitFactoryProvider config={sdkBrowser} >
         {Component}
       </SplitFactoryProvider>
     );
 
-    // 2nd render: SDK ready (timeout is ignored due to updateOnSdkTimedout=false)
+    // 3rd render: SDK ready (timeout is ignored due to updateOnSdkTimedout=false)
     act(emitSdkEvents);
 
-    // 3rd render: Update config prop -> factory is recreated
+    // 4th render: same config prop -> factory is not recreated
+    wrapper.rerender(
+      <SplitFactoryProvider config={sdkBrowser} updateOnSdkReady={false} updateOnSdkTimedout={true} >
+        {Component}
+      </SplitFactoryProvider>
+    );
+
+    act(emitSdkEvents); // Emitting events again has no effect
+    expect(createdFactories.size).toBe(1);
+
+    // 5th render: Update config prop -> factory is recreated, not ready yet (null)
     wrapper.rerender(
       <SplitFactoryProvider config={{ ...sdkBrowser }} updateOnSdkReady={false} updateOnSdkTimedout={true} >
         {Component}
       </SplitFactoryProvider>
     );
 
-    // 4th render: SDK timeout (ready is ignored due to updateOnSdkReady=false)
+    // 6th render: SDK timeout (ready is ignored due to updateOnSdkReady=false)
     act(emitSdkEvents);
 
     wrapper.unmount();
@@ -415,11 +436,11 @@ describe('SplitFactoryProvider', () => {
         {({ factory }) => {
           // if factory is provided as a prop, `factories` cache is not modified
           expect(__factories.size).toBe(0);
-          destroyMainClientSpy = jest.spyOn((factory as SplitIO.ISDK).client(), 'destroy');
+          destroyMainClientSpy = jest.spyOn(factory!.client(), 'destroy');
           return (
             <SplitClient splitKey='other_key' >
               {({ client }) => {
-                destroySharedClientSpy = jest.spyOn(client as SplitIO.IClient, 'destroy');
+                destroySharedClientSpy = jest.spyOn(client!, 'destroy');
                 return null;
               }}
             </SplitClient>