diff --git a/packages/vest/src/core/Runtime.ts b/packages/vest/src/core/Runtime.ts
index caadb302d..4d389cbaf 100644
--- a/packages/vest/src/core/Runtime.ts
+++ b/packages/vest/src/core/Runtime.ts
@@ -118,6 +118,6 @@ export function useResetSuite() {
 }
 
 export function useLoadSuite(rootNode: TIsolateSuite): void {
-  VestRuntime.useLoadRootNode(rootNode);
+  VestRuntime.useSetHistoryRoot(rootNode);
   useExpireSuiteResultCache();
 }
diff --git a/packages/vest/src/core/test/test.memo.ts b/packages/vest/src/core/test/test.memo.ts
index 2df21ef30..a6808f00a 100644
--- a/packages/vest/src/core/test/test.memo.ts
+++ b/packages/vest/src/core/test/test.memo.ts
@@ -66,7 +66,11 @@ function useGetTestFromCache(
     return cache(dependencies, cacheAction);
   }
 
-  VestRuntime.addNodeToHistory(cachedValue);
+  // FIXME(@ealush 2024-08-12): This is some kind of a hack. Instead organically letting Vest set the next
+  // child of the isolate, we're forcing it from the outside.
+  // Instead, an ideal solution would probably be to have test.memo be its own isolate
+  // that just injects a historic output from a previous test run.
+  VestRuntime.useSetNextIsolateChild(cachedValue);
 
   return cachedValue;
 }
diff --git a/packages/vest/src/hooks/__tests__/mode.test.ts b/packages/vest/src/hooks/__tests__/mode.test.ts
index e36d3a053..ea680b379 100644
--- a/packages/vest/src/hooks/__tests__/mode.test.ts
+++ b/packages/vest/src/hooks/__tests__/mode.test.ts
@@ -184,12 +184,12 @@ describe('mode', () => {
       it('Should follow the same behavior as if it was not nested', () => {
         const suite = create(() => {
           group('group_1', () => {
-            dummyTest.failing('field_1', 'first-of-field_1');
-            dummyTest.failing('field_1', 'second-of-field_1');
-            dummyTest.failing('field_2', 'first-of-field_2');
-            dummyTest.failing('field_2', 'second-of-field_2');
-            dummyTest.failing('field_3', 'first-of-field_3');
-            dummyTest.failing('field_3', 'second-of-field_3');
+            Vest.test('field_1', 'first-of-field_1', () => false);
+            Vest.test('field_1', 'second-of-field_1', () => false);
+            Vest.test('field_2', 'first-of-field_2', () => false);
+            Vest.test('field_2', 'second-of-field_2', () => false);
+            Vest.test('field_3', 'first-of-field_3', () => false);
+            Vest.test('field_3', 'second-of-field_3', () => false);
           });
         });
         expect(suite.get().testCount).toBe(0); // sanity
diff --git a/packages/vestjs-runtime/src/Isolate/Isolate.ts b/packages/vestjs-runtime/src/Isolate/Isolate.ts
index 2ec4874d8..011e5dab6 100644
--- a/packages/vestjs-runtime/src/Isolate/Isolate.ts
+++ b/packages/vestjs-runtime/src/Isolate/Isolate.ts
@@ -29,6 +29,7 @@ type UsedFeaturesOnly<P extends IsolatePayload> = Pick<
 >;
 
 export class Isolate {
+  // eslint-disable-next-line max-statements
   static create<Payload extends IsolatePayload>(
     type: string,
     callback: CB,
@@ -48,12 +49,18 @@ export class Isolate {
 
     const shouldRunNew = Object.is(nextIsolateChild, newCreatedNode);
 
-    VestRuntime.addNodeToHistory(nextIsolateChild);
+    if (parent) {
+      VestRuntime.useSetNextIsolateChild(nextIsolateChild);
+    }
 
     const output = shouldRunNew
       ? useRunAsNew(localHistoryNode, newCreatedNode, callback)
       : nextIsolateChild.output;
 
+    if (!parent) {
+      VestRuntime.useSetHistoryRoot(nextIsolateChild);
+    }
+
     IsolateMutator.saveOutput(nextIsolateChild, output);
 
     return nextIsolateChild as TIsolate<Payload>;
diff --git a/packages/vestjs-runtime/src/Isolate/__tests__/reconciliation.test.ts b/packages/vestjs-runtime/src/Isolate/__tests__/reconciliation.test.ts
new file mode 100644
index 000000000..0c1adc8fc
--- /dev/null
+++ b/packages/vestjs-runtime/src/Isolate/__tests__/reconciliation.test.ts
@@ -0,0 +1,48 @@
+import { CB } from 'vest-utils';
+import { describe, it, expect, beforeEach, vi } from 'vitest';
+
+import { TIsolate, Isolate } from 'Isolate';
+import { StateRefType, useAvailableRoot } from 'VestRuntime';
+import { IRecociler, IsolateMutator, VestRuntime } from 'vestjs-runtime';
+
+describe('Reconciliation', () => {
+  let stateRef: StateRefType;
+
+  beforeEach(() => {
+    stateRef = VestRuntime.createRef(testReconciler, () => null);
+  });
+
+  it('Should return the current node if there is no history node', () => {
+    let rootIsolate;
+    const output = VestRuntime.Run(stateRef, () => {
+      rootIsolate = Isolate.create(IsolateType.RunOne, () => {});
+    });
+
+    const [historyRoot] = stateRef.historyRoot();
+
+    expect(historyRoot).toBe(rootIsolate);
+  });
+
+  it("should return the result of the reconciler's function when runs the second time", () => {
+    const isolate1 = VestRuntime.Run(stateRef, () => {
+      return Isolate.create(IsolateType.RunOne, () => ({ foo: 'bar' }));
+    });
+    const isolate2 = VestRuntime.Run(stateRef, () => {
+      return Isolate.create(IsolateType.RunTwo, () => ({ foo: 'baz' }));
+    });
+
+    const [historyRoot] = stateRef.historyRoot();
+
+    expect(historyRoot).toBe(isolate2);
+  });
+});
+
+enum IsolateType {
+  RunOne = 'RunOne',
+  RunTwo = 'RunTwo',
+}
+
+const testReconciler: IRecociler = (
+  currentNode: TIsolate,
+  historyNode: TIsolate,
+): TIsolate => currentNode;
diff --git a/packages/vestjs-runtime/src/VestRuntime.ts b/packages/vestjs-runtime/src/VestRuntime.ts
index 402816a46..bab120672 100644
--- a/packages/vestjs-runtime/src/VestRuntime.ts
+++ b/packages/vestjs-runtime/src/VestRuntime.ts
@@ -59,14 +59,14 @@ export const Run = PersistedContext.run;
 
 export const RuntimeApi = {
   Run,
-  addNodeToHistory,
   createRef,
   persist,
   reset,
   useAvailableRoot,
   useCurrentCursor,
   useHistoryRoot,
-  useLoadRootNode,
+  useSetHistoryRoot,
+  useSetNextIsolateChild,
   useXAppData,
 };
 
@@ -131,18 +131,7 @@ export function useHistoryIsolateAtCurrentPosition() {
   return historyNode;
 }
 
-export function addNodeToHistory(node: TIsolate): void {
-  const parent = useIsolate();
-  if (parent) {
-    useSetNextIsolateChild(node);
-  } else {
-    useSetHistory(node);
-  }
-
-  IsolateMutator.setParent(node, parent);
-}
-
-export function useSetHistory(history: TIsolate) {
+export function useSetHistoryRoot(history: TIsolate) {
   const [, setHistoryRoot] = useHistoryRoot();
   setHistoryRoot(history);
 }
@@ -172,6 +161,7 @@ export function useSetNextIsolateChild(child: TIsolate): void {
   invariant(currentIsolate, ErrorStrings.NO_ACTIVE_ISOLATE);
 
   IsolateMutator.addChild(currentIsolate, child);
+  IsolateMutator.setParent(child, currentIsolate);
 }
 export function useSetIsolateKey(key: Nullable<string>, node: TIsolate): void {
   if (!key) {
@@ -207,7 +197,3 @@ export function reset() {
 
   resetHistoryRoot();
 }
-
-export function useLoadRootNode(root: TIsolate): void {
-  useSetHistory(root);
-}