diff --git a/packages/react-server/src/ReactFizzHooks.js b/packages/react-server/src/ReactFizzHooks.js
new file mode 100644
index 0000000000000..1650b5bf64c04
--- /dev/null
+++ b/packages/react-server/src/ReactFizzHooks.js
@@ -0,0 +1,515 @@
+/**
+ * Copyright (c) Facebook, Inc. and its affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow
+ */
+
+import type {Dispatcher as DispatcherType} from 'react-reconciler/src/ReactInternalTypes';
+
+import type {
+  MutableSource,
+  MutableSourceGetSnapshotFn,
+  MutableSourceSubscribeFn,
+  ReactContext,
+} from 'shared/ReactTypes';
+
+import {readContext as readContextImpl} from './ReactFizzNewContext';
+
+import invariant from 'shared/invariant';
+import {enableCache} from 'shared/ReactFeatureFlags';
+import is from 'shared/objectIs';
+
+type BasicStateAction<S> = (S => S) | S;
+type Dispatch<A> = A => void;
+
+type Update<A> = {|
+  action: A,
+  next: Update<A> | null,
+|};
+
+type UpdateQueue<A> = {|
+  last: Update<A> | null,
+  dispatch: any,
+|};
+
+type Hook = {|
+  memoizedState: any,
+  queue: UpdateQueue<any> | null,
+  next: Hook | null,
+|};
+
+type OpaqueIDType = string;
+
+let currentlyRenderingComponent: Object | null = null;
+let firstWorkInProgressHook: Hook | null = null;
+let workInProgressHook: Hook | null = null;
+// Whether the work-in-progress hook is a re-rendered hook
+let isReRender: boolean = false;
+// Whether an update was scheduled during the currently executing render pass.
+let didScheduleRenderPhaseUpdate: boolean = false;
+// Lazily created map of render-phase updates
+let renderPhaseUpdates: Map<UpdateQueue<any>, Update<any>> | null = null;
+// Counter to prevent infinite loops.
+let numberOfReRenders: number = 0;
+const RE_RENDER_LIMIT = 25;
+
+let isInHookUserCodeInDev = false;
+
+// In DEV, this is the name of the currently executing primitive hook
+let currentHookNameInDev: ?string;
+
+function resolveCurrentlyRenderingComponent(): Object {
+  invariant(
+    currentlyRenderingComponent !== null,
+    'Invalid hook call. Hooks can only be called inside of the body of a function component. This could happen for' +
+      ' one of the following reasons:\n' +
+      '1. You might have mismatching versions of React and the renderer (such as React DOM)\n' +
+      '2. You might be breaking the Rules of Hooks\n' +
+      '3. You might have more than one copy of React in the same app\n' +
+      'See https://reactjs.org/link/invalid-hook-call for tips about how to debug and fix this problem.',
+  );
+  if (__DEV__) {
+    if (isInHookUserCodeInDev) {
+      console.error(
+        'Do not call Hooks inside useEffect(...), useMemo(...), or other built-in Hooks. ' +
+          'You can only call Hooks at the top level of your React function. ' +
+          'For more information, see ' +
+          'https://reactjs.org/link/rules-of-hooks',
+      );
+    }
+  }
+  return currentlyRenderingComponent;
+}
+
+function areHookInputsEqual(
+  nextDeps: Array<mixed>,
+  prevDeps: Array<mixed> | null,
+) {
+  if (prevDeps === null) {
+    if (__DEV__) {
+      console.error(
+        '%s received a final argument during this render, but not during ' +
+          'the previous render. Even though the final argument is optional, ' +
+          'its type cannot change between renders.',
+        currentHookNameInDev,
+      );
+    }
+    return false;
+  }
+
+  if (__DEV__) {
+    // Don't bother comparing lengths in prod because these arrays should be
+    // passed inline.
+    if (nextDeps.length !== prevDeps.length) {
+      console.error(
+        'The final argument passed to %s changed size between renders. The ' +
+          'order and size of this array must remain constant.\n\n' +
+          'Previous: %s\n' +
+          'Incoming: %s',
+        currentHookNameInDev,
+        `[${nextDeps.join(', ')}]`,
+        `[${prevDeps.join(', ')}]`,
+      );
+    }
+  }
+  for (let i = 0; i < prevDeps.length && i < nextDeps.length; i++) {
+    if (is(nextDeps[i], prevDeps[i])) {
+      continue;
+    }
+    return false;
+  }
+  return true;
+}
+
+function createHook(): Hook {
+  if (numberOfReRenders > 0) {
+    invariant(false, 'Rendered more hooks than during the previous render');
+  }
+  return {
+    memoizedState: null,
+    queue: null,
+    next: null,
+  };
+}
+
+function createWorkInProgressHook(): Hook {
+  if (workInProgressHook === null) {
+    // This is the first hook in the list
+    if (firstWorkInProgressHook === null) {
+      isReRender = false;
+      firstWorkInProgressHook = workInProgressHook = createHook();
+    } else {
+      // There's already a work-in-progress. Reuse it.
+      isReRender = true;
+      workInProgressHook = firstWorkInProgressHook;
+    }
+  } else {
+    if (workInProgressHook.next === null) {
+      isReRender = false;
+      // Append to the end of the list
+      workInProgressHook = workInProgressHook.next = createHook();
+    } else {
+      // There's already a work-in-progress. Reuse it.
+      isReRender = true;
+      workInProgressHook = workInProgressHook.next;
+    }
+  }
+  return workInProgressHook;
+}
+
+export function prepareToUseHooks(componentIdentity: Object): void {
+  currentlyRenderingComponent = componentIdentity;
+  if (__DEV__) {
+    isInHookUserCodeInDev = false;
+  }
+
+  // The following should have already been reset
+  // didScheduleRenderPhaseUpdate = false;
+  // firstWorkInProgressHook = null;
+  // numberOfReRenders = 0;
+  // renderPhaseUpdates = null;
+  // workInProgressHook = null;
+}
+
+export function finishHooks(
+  Component: any,
+  props: any,
+  children: any,
+  refOrContext: any,
+): any {
+  // This must be called after every function component to prevent hooks from
+  // being used in classes.
+
+  while (didScheduleRenderPhaseUpdate) {
+    // Updates were scheduled during the render phase. They are stored in
+    // the `renderPhaseUpdates` map. Call the component again, reusing the
+    // work-in-progress hooks and applying the additional updates on top. Keep
+    // restarting until no more updates are scheduled.
+    didScheduleRenderPhaseUpdate = false;
+    numberOfReRenders += 1;
+
+    // Start over from the beginning of the list
+    workInProgressHook = null;
+
+    children = Component(props, refOrContext);
+  }
+  resetHooksState();
+  return children;
+}
+
+// Reset the internal hooks state if an error occurs while rendering a component
+export function resetHooksState(): void {
+  if (__DEV__) {
+    isInHookUserCodeInDev = false;
+  }
+
+  currentlyRenderingComponent = null;
+  didScheduleRenderPhaseUpdate = false;
+  firstWorkInProgressHook = null;
+  numberOfReRenders = 0;
+  renderPhaseUpdates = null;
+  workInProgressHook = null;
+}
+
+function getCacheForType<T>(resourceType: () => T): T {
+  // TODO: This should silently mark this as client rendered since it's not necesssarily
+  // considered an error. It needs to work for things like Flight though.
+  invariant(false, 'Not implemented.');
+}
+
+function readContext<T>(context: ReactContext<T>): T {
+  if (__DEV__) {
+    if (isInHookUserCodeInDev) {
+      console.error(
+        'Context can only be read while React is rendering. ' +
+          'In classes, you can read it in the render method or getDerivedStateFromProps. ' +
+          'In function components, you can read it directly in the function body, but not ' +
+          'inside Hooks like useReducer() or useMemo().',
+      );
+    }
+  }
+  return readContextImpl(context);
+}
+
+function useContext<T>(context: ReactContext<T>): T {
+  if (__DEV__) {
+    currentHookNameInDev = 'useContext';
+  }
+  resolveCurrentlyRenderingComponent();
+  return readContextImpl(context);
+}
+
+function basicStateReducer<S>(state: S, action: BasicStateAction<S>): S {
+  // $FlowFixMe: Flow doesn't like mixed types
+  return typeof action === 'function' ? action(state) : action;
+}
+
+export function useState<S>(
+  initialState: (() => S) | S,
+): [S, Dispatch<BasicStateAction<S>>] {
+  if (__DEV__) {
+    currentHookNameInDev = 'useState';
+  }
+  return useReducer(
+    basicStateReducer,
+    // useReducer has a special case to support lazy useState initializers
+    (initialState: any),
+  );
+}
+
+export function useReducer<S, I, A>(
+  reducer: (S, A) => S,
+  initialArg: I,
+  init?: I => S,
+): [S, Dispatch<A>] {
+  if (__DEV__) {
+    if (reducer !== basicStateReducer) {
+      currentHookNameInDev = 'useReducer';
+    }
+  }
+  currentlyRenderingComponent = resolveCurrentlyRenderingComponent();
+  workInProgressHook = createWorkInProgressHook();
+  if (isReRender) {
+    // This is a re-render. Apply the new render phase updates to the previous
+    // current hook.
+    const queue: UpdateQueue<A> = (workInProgressHook.queue: any);
+    const dispatch: Dispatch<A> = (queue.dispatch: any);
+    if (renderPhaseUpdates !== null) {
+      // Render phase updates are stored in a map of queue -> linked list
+      const firstRenderPhaseUpdate = renderPhaseUpdates.get(queue);
+      if (firstRenderPhaseUpdate !== undefined) {
+        renderPhaseUpdates.delete(queue);
+        let newState = workInProgressHook.memoizedState;
+        let update = firstRenderPhaseUpdate;
+        do {
+          // Process this render phase update. We don't have to check the
+          // priority because it will always be the same as the current
+          // render's.
+          const action = update.action;
+          if (__DEV__) {
+            isInHookUserCodeInDev = true;
+          }
+          newState = reducer(newState, action);
+          if (__DEV__) {
+            isInHookUserCodeInDev = false;
+          }
+          update = update.next;
+        } while (update !== null);
+
+        workInProgressHook.memoizedState = newState;
+
+        return [newState, dispatch];
+      }
+    }
+    return [workInProgressHook.memoizedState, dispatch];
+  } else {
+    if (__DEV__) {
+      isInHookUserCodeInDev = true;
+    }
+    let initialState;
+    if (reducer === basicStateReducer) {
+      // Special case for `useState`.
+      initialState =
+        typeof initialArg === 'function'
+          ? ((initialArg: any): () => S)()
+          : ((initialArg: any): S);
+    } else {
+      initialState =
+        init !== undefined ? init(initialArg) : ((initialArg: any): S);
+    }
+    if (__DEV__) {
+      isInHookUserCodeInDev = false;
+    }
+    workInProgressHook.memoizedState = initialState;
+    const queue: UpdateQueue<A> = (workInProgressHook.queue = {
+      last: null,
+      dispatch: null,
+    });
+    const dispatch: Dispatch<A> = (queue.dispatch = (dispatchAction.bind(
+      null,
+      currentlyRenderingComponent,
+      queue,
+    ): any));
+    return [workInProgressHook.memoizedState, dispatch];
+  }
+}
+
+function useMemo<T>(nextCreate: () => T, deps: Array<mixed> | void | null): T {
+  currentlyRenderingComponent = resolveCurrentlyRenderingComponent();
+  workInProgressHook = createWorkInProgressHook();
+
+  const nextDeps = deps === undefined ? null : deps;
+
+  if (workInProgressHook !== null) {
+    const prevState = workInProgressHook.memoizedState;
+    if (prevState !== null) {
+      if (nextDeps !== null) {
+        const prevDeps = prevState[1];
+        if (areHookInputsEqual(nextDeps, prevDeps)) {
+          return prevState[0];
+        }
+      }
+    }
+  }
+
+  if (__DEV__) {
+    isInHookUserCodeInDev = true;
+  }
+  const nextValue = nextCreate();
+  if (__DEV__) {
+    isInHookUserCodeInDev = false;
+  }
+  workInProgressHook.memoizedState = [nextValue, nextDeps];
+  return nextValue;
+}
+
+function useRef<T>(initialValue: T): {|current: T|} {
+  currentlyRenderingComponent = resolveCurrentlyRenderingComponent();
+  workInProgressHook = createWorkInProgressHook();
+  const previousRef = workInProgressHook.memoizedState;
+  if (previousRef === null) {
+    const ref = {current: initialValue};
+    if (__DEV__) {
+      Object.seal(ref);
+    }
+    workInProgressHook.memoizedState = ref;
+    return ref;
+  } else {
+    return previousRef;
+  }
+}
+
+export function useLayoutEffect(
+  create: () => (() => void) | void,
+  inputs: Array<mixed> | void | null,
+) {
+  if (__DEV__) {
+    currentHookNameInDev = 'useLayoutEffect';
+    console.error(
+      'useLayoutEffect does nothing on the server, because its effect cannot ' +
+        "be encoded into the server renderer's output format. This will lead " +
+        'to a mismatch between the initial, non-hydrated UI and the intended ' +
+        'UI. To avoid this, useLayoutEffect should only be used in ' +
+        'components that render exclusively on the client. ' +
+        'See https://reactjs.org/link/uselayouteffect-ssr for common fixes.',
+    );
+  }
+}
+
+function dispatchAction<A>(
+  componentIdentity: Object,
+  queue: UpdateQueue<A>,
+  action: A,
+) {
+  invariant(
+    numberOfReRenders < RE_RENDER_LIMIT,
+    'Too many re-renders. React limits the number of renders to prevent ' +
+      'an infinite loop.',
+  );
+
+  if (componentIdentity === currentlyRenderingComponent) {
+    // This is a render phase update. Stash it in a lazily-created map of
+    // queue -> linked list of updates. After this render pass, we'll restart
+    // and apply the stashed updates on top of the work-in-progress hook.
+    didScheduleRenderPhaseUpdate = true;
+    const update: Update<A> = {
+      action,
+      next: null,
+    };
+    if (renderPhaseUpdates === null) {
+      renderPhaseUpdates = new Map();
+    }
+    const firstRenderPhaseUpdate = renderPhaseUpdates.get(queue);
+    if (firstRenderPhaseUpdate === undefined) {
+      renderPhaseUpdates.set(queue, update);
+    } else {
+      // Append the update to the end of the list.
+      let lastRenderPhaseUpdate = firstRenderPhaseUpdate;
+      while (lastRenderPhaseUpdate.next !== null) {
+        lastRenderPhaseUpdate = lastRenderPhaseUpdate.next;
+      }
+      lastRenderPhaseUpdate.next = update;
+    }
+  } else {
+    // This means an update has happened after the function component has
+    // returned. On the server this is a no-op. In React Fiber, the update
+    // would be scheduled for a future render.
+  }
+}
+
+export function useCallback<T>(
+  callback: T,
+  deps: Array<mixed> | void | null,
+): T {
+  return useMemo(() => callback, deps);
+}
+
+// TODO Decide on how to implement this hook for server rendering.
+// If a mutation occurs during render, consider triggering a Suspense boundary
+// and falling back to client rendering.
+function useMutableSource<Source, Snapshot>(
+  source: MutableSource<Source>,
+  getSnapshot: MutableSourceGetSnapshotFn<Source, Snapshot>,
+  subscribe: MutableSourceSubscribeFn<Source, Snapshot>,
+): Snapshot {
+  resolveCurrentlyRenderingComponent();
+  return getSnapshot(source._source);
+}
+
+function useDeferredValue<T>(value: T): T {
+  resolveCurrentlyRenderingComponent();
+  return value;
+}
+
+function unsupportedStartTransition() {
+  invariant(false, 'startTransition cannot be called during server rendering.');
+}
+
+function useTransition(): [(callback: () => void) => void, boolean] {
+  resolveCurrentlyRenderingComponent();
+  return [unsupportedStartTransition, false];
+}
+
+function useOpaqueIdentifier(): OpaqueIDType {
+  throw new Error('Not yet implemented.');
+}
+
+function unsupportedRefresh() {
+  invariant(false, 'Cache cannot be refreshed during server rendering.');
+}
+
+function useCacheRefresh(): <T>(?() => T, ?T) => void {
+  return unsupportedRefresh;
+}
+
+function noop(): void {}
+
+export const Dispatcher: DispatcherType = {
+  readContext,
+  useContext,
+  useMemo,
+  useReducer,
+  useRef,
+  useState,
+  useLayoutEffect,
+  useCallback,
+  // useImperativeHandle is not run in the server environment
+  useImperativeHandle: noop,
+  // Effects are not run in the server environment.
+  useEffect: noop,
+  // Debugging effect
+  useDebugValue: noop,
+  useDeferredValue,
+  useTransition,
+  useOpaqueIdentifier,
+  // Subscriptions are not setup in a server environment.
+  useMutableSource,
+};
+
+if (enableCache) {
+  Dispatcher.getCacheForType = getCacheForType;
+  Dispatcher.useCacheRefresh = useCacheRefresh;
+}
diff --git a/packages/react-server/src/ReactFizzServer.js b/packages/react-server/src/ReactFizzServer.js
index 4febbbe98163e..edeaebbe56693 100644
--- a/packages/react-server/src/ReactFizzServer.js
+++ b/packages/react-server/src/ReactFizzServer.js
@@ -7,7 +7,6 @@
  * @flow
  */
 
-import type {Dispatcher as DispatcherType} from 'react-reconciler/src/ReactInternalTypes';
 import type {
   Destination,
   Chunk,
@@ -70,6 +69,12 @@ import {
   pushProvider,
   popProvider,
 } from './ReactFizzNewContext';
+import {
+  prepareToUseHooks,
+  finishHooks,
+  resetHooksState,
+  Dispatcher,
+} from './ReactFizzHooks';
 
 import {
   getIteratorFn,
@@ -199,6 +204,8 @@ function defaultErrorHandler(error: mixed) {
   console['error'](error); // Don't transform to our wrapper
 }
 
+function noop(): void {}
+
 export function createRequest(
   children: ReactNodeList,
   destination: Destination,
@@ -474,8 +481,10 @@ function renderWithHooks<Props, SecondArg>(
   props: Props,
   secondArg: SecondArg,
 ): any {
-  // TODO: Set up Hooks etc.
-  const children = Component(props, secondArg);
+  const componentIdentity = {};
+  prepareToUseHooks(componentIdentity);
+  const result = Component(props, secondArg);
+  const children = finishHooks(Component, props, result, secondArg);
   if (children === undefined) {
     invalidRenderResult(Component);
   }
@@ -1102,6 +1111,7 @@ function renderNode(request: Request, task: Task, node: ReactNodeList): void {
   try {
     return renderNodeDestructive(request, task, node);
   } catch (x) {
+    resetHooksState();
     if (typeof x === 'object' && x !== null && typeof x.then === 'function') {
       spawnNewSuspendedTask(request, task, x);
       // Restore the context. We assume that this will be restored by the inner
@@ -1290,6 +1300,7 @@ function retryTask(request: Request, task: Task): void {
     segment.status = COMPLETED;
     finishedTask(request, task.blockedBoundary, segment);
   } catch (x) {
+    resetHooksState();
     if (typeof x === 'object' && x !== null && typeof x.then === 'function') {
       // Something suspended again, let's pick it back up later.
       const ping = task.ping;
@@ -1704,51 +1715,3 @@ export function abort(request: Request): void {
     fatalError(request, error);
   }
 }
-
-function notYetImplemented(): void {
-  throw new Error('Not yet implemented.');
-}
-
-function unsupportedRefresh() {
-  invariant(false, 'Cache cannot be refreshed during server rendering.');
-}
-
-function unsupportedStartTransition() {
-  invariant(false, 'startTransition cannot be called during server rendering.');
-}
-
-function noop(): void {}
-
-const Dispatcher: DispatcherType = {
-  useMemo<T>(nextCreate: () => T): T {
-    return nextCreate();
-  },
-  useCallback<T>(callback: T): T {
-    return callback;
-  },
-  useDebugValue(): void {},
-  useDeferredValue<T>(value: T): T {
-    return value;
-  },
-  useTransition(): [(callback: () => void) => void, boolean] {
-    return [unsupportedStartTransition, false];
-  },
-  getCacheForType<T>(resourceType: () => T): T {
-    throw new Error('Not yet implemented. Should mark as client rendered.');
-  },
-  readContext: (notYetImplemented: any),
-  useContext: (notYetImplemented: any),
-  useReducer: (notYetImplemented: any),
-  useRef: (notYetImplemented: any),
-  useState: (notYetImplemented: any),
-  useLayoutEffect: noop,
-  // useImperativeHandle is not run in the server environment
-  useImperativeHandle: noop,
-  // Effects are not run in the server environment.
-  useEffect: noop,
-  useOpaqueIdentifier: (notYetImplemented: any),
-  useMutableSource: (notYetImplemented: any),
-  useCacheRefresh(): <T>(?() => T, ?T) => void {
-    return unsupportedRefresh;
-  },
-};