diff --git a/packages/compiler-vapor/__tests__/transforms/__snapshots__/transformRef.spec.ts.snap b/packages/compiler-vapor/__tests__/transforms/__snapshots__/transformRef.spec.ts.snap
index ba867bd75..cc0147649 100644
--- a/packages/compiler-vapor/__tests__/transforms/__snapshots__/transformRef.spec.ts.snap
+++ b/packages/compiler-vapor/__tests__/transforms/__snapshots__/transformRef.spec.ts.snap
@@ -1,12 +1,13 @@
 // Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
 
 exports[`compiler: template ref transform > dynamic ref 1`] = `
-"import { setRef as _setRef, template as _template } from 'vue/vapor';
+"import { renderEffect as _renderEffect, setRef as _setRef, template as _template } from 'vue/vapor';
 const t0 = _template("<div></div>")
 
 export function render(_ctx) {
   const n0 = t0()
-  _setRef(n0, _ctx.foo)
+  let r0
+  _renderEffect(() => r0 = _setRef(n0, _ctx.foo, r0))
   return n0
 }"
 `;
@@ -18,7 +19,7 @@ const t0 = _template("<div></div>")
 export function render(_ctx) {
   const n0 = _createFor(() => ([1,2,3]), (_block) => {
     const n2 = t0()
-    _setRef(n2, "foo", true)
+    _setRef(n2, "foo", undefined, true)
     return [n2, () => {}]
   })
   return n0
@@ -32,7 +33,7 @@ const t0 = _template("<div></div>")
 export function render(_ctx) {
   const n0 = _createIf(() => (true), () => {
     const n2 = t0()
-    _setRef(n2, "foo")
+    _setRef(n2, "foo", undefined)
     return n2
   })
   return n0
@@ -45,7 +46,7 @@ const t0 = _template("<div></div>")
 
 export function render(_ctx) {
   const n0 = t0()
-  _setRef(n0, "foo")
+  _setRef(n0, "foo", undefined)
   return n0
 }"
 `;
diff --git a/packages/compiler-vapor/__tests__/transforms/transformRef.spec.ts b/packages/compiler-vapor/__tests__/transforms/transformRef.spec.ts
index 78b7694ad..83d19816f 100644
--- a/packages/compiler-vapor/__tests__/transforms/transformRef.spec.ts
+++ b/packages/compiler-vapor/__tests__/transforms/transformRef.spec.ts
@@ -45,7 +45,7 @@ describe('compiler: template ref transform', () => {
     })
 
     expect(code).matchSnapshot()
-    expect(code).contains('_setRef(n0, "foo")')
+    expect(code).contains('_setRef(n0, "foo", undefined)')
   })
 
   test('dynamic ref', () => {
@@ -70,7 +70,7 @@ describe('compiler: template ref transform', () => {
       },
     })
     expect(code).matchSnapshot()
-    expect(code).contains('_setRef(n0, _ctx.foo)')
+    expect(code).contains('_setRef(n0, _ctx.foo, r0)')
   })
 
   test('ref + v-if', () => {
@@ -98,7 +98,7 @@ describe('compiler: template ref transform', () => {
     })
 
     expect(code).matchSnapshot()
-    expect(code).contains('_setRef(n2, "foo")')
+    expect(code).contains('_setRef(n2, "foo", undefined)')
   })
 
   test('ref + v-for', () => {
@@ -122,6 +122,6 @@ describe('compiler: template ref transform', () => {
       refFor: true,
     })
     expect(code).matchSnapshot()
-    expect(code).contains('_setRef(n2, "foo", true)')
+    expect(code).contains('_setRef(n2, "foo", undefined, true)')
   })
 })
diff --git a/packages/compiler-vapor/src/generators/ref.ts b/packages/compiler-vapor/src/generators/ref.ts
index 248221844..753a861bf 100644
--- a/packages/compiler-vapor/src/generators/ref.ts
+++ b/packages/compiler-vapor/src/generators/ref.ts
@@ -8,13 +8,21 @@ export function genSetRef(
   context: CodegenContext,
 ): CodeFragment[] {
   const { vaporHelper } = context
+  const dynamicExp = oper.refCount !== -1
   return [
     NEWLINE,
+    dynamicExp && `let r${oper.refCount}`,
+    dynamicExp && NEWLINE,
+    ...(!!dynamicExp
+      ? [`${vaporHelper('renderEffect')}(() => `, `r${oper.refCount} = `]
+      : []),
     ...genCall(
       vaporHelper('setRef'),
       [`n${oper.element}`],
       genExpression(oper.value, context),
+      [dynamicExp ? `r${oper.refCount}` : 'undefined'],
       oper.refFor && 'true',
     ),
+    !!dynamicExp && ')',
   ]
 }
diff --git a/packages/compiler-vapor/src/ir.ts b/packages/compiler-vapor/src/ir.ts
index 40ccf3bf1..5a68ce0fb 100644
--- a/packages/compiler-vapor/src/ir.ts
+++ b/packages/compiler-vapor/src/ir.ts
@@ -145,6 +145,7 @@ export interface SetRefIRNode extends BaseIRNode {
   element: number
   value: SimpleExpressionNode
   refFor: boolean
+  refCount: number
 }
 
 export interface SetModelValueIRNode extends BaseIRNode {
diff --git a/packages/compiler-vapor/src/transform.ts b/packages/compiler-vapor/src/transform.ts
index bc2de550a..27aa62d2f 100644
--- a/packages/compiler-vapor/src/transform.ts
+++ b/packages/compiler-vapor/src/transform.ts
@@ -79,6 +79,8 @@ export interface TransformContext<T extends AllNode = AllNode> {
 
   component: Set<string>
 
+  refCount: number
+
   enterBlock(ir: TransformContext['block'], isVFor?: boolean): () => void
   reference(): number
   increaseId(): number
@@ -152,6 +154,7 @@ function createRootContext(
     inVFor: 0,
     comment: [],
     component: root.component,
+    refCount: 0,
 
     increaseId: () => globalId++,
     reference() {
diff --git a/packages/compiler-vapor/src/transforms/transformRef.ts b/packages/compiler-vapor/src/transforms/transformRef.ts
index 7da99ebfc..402999026 100644
--- a/packages/compiler-vapor/src/transforms/transformRef.ts
+++ b/packages/compiler-vapor/src/transforms/transformRef.ts
@@ -6,7 +6,7 @@ import {
 import type { NodeTransform } from '../transform'
 import { IRNodeTypes } from '../ir'
 import { normalizeBindShorthand } from './vBind'
-import { findProp } from '../utils'
+import { findProp, isConstantExpression } from '../utils'
 import { EMPTY_EXPRESSION } from './utils'
 
 export const transformRef: NodeTransform = (node, context) => {
@@ -24,11 +24,14 @@ export const transformRef: NodeTransform = (node, context) => {
       : EMPTY_EXPRESSION
   }
 
-  return () =>
+  return () => {
+    const dynamicExp = !isConstantExpression(value)
     context.registerOperation({
       type: IRNodeTypes.SET_REF,
       element: context.reference(),
       value,
       refFor: !!context.inVFor,
+      refCount: dynamicExp ? context.refCount++ : -1,
     })
+  }
 }
diff --git a/packages/runtime-vapor/__tests__/dom/templateRef.spec.ts b/packages/runtime-vapor/__tests__/dom/templateRef.spec.ts
index 6dc10eff3..7ae406723 100644
--- a/packages/runtime-vapor/__tests__/dom/templateRef.spec.ts
+++ b/packages/runtime-vapor/__tests__/dom/templateRef.spec.ts
@@ -1,4 +1,12 @@
-import { ref, setRef, template } from '../../src'
+import type { NodeRef } from 'packages/runtime-vapor/src/dom/templateRef'
+import {
+  createIf,
+  nextTick,
+  ref,
+  renderEffect,
+  setRef,
+  template,
+} from '../../src'
 import { makeRender } from '../_utils'
 
 const define = makeRender()
@@ -23,4 +31,67 @@ describe('api: template ref', () => {
     const { host } = render()
     expect(el.value).toBe(host.children[0])
   })
+
+  it('string ref update', async () => {
+    const t0 = template('<div></div>')
+    const fooEl = ref(null)
+    const barEl = ref(null)
+    const refKey = ref('foo')
+
+    const { render } = define({
+      setup() {
+        return {
+          foo: fooEl,
+          bar: barEl,
+        }
+      },
+      render() {
+        const n0 = t0()
+        let r0: NodeRef | undefined
+        renderEffect(() => {
+          r0 = setRef(n0 as Element, refKey.value, r0)
+        })
+        return n0
+      },
+    })
+    const { host } = render()
+    expect(fooEl.value).toBe(host.children[0])
+    expect(barEl.value).toBe(null)
+
+    refKey.value = 'bar'
+    await nextTick()
+    expect(barEl.value).toBe(host.children[0])
+    expect(fooEl.value).toBe(null)
+  })
+
+  it('string ref unmount', async () => {
+    const t0 = template('<div></div>')
+    const el = ref(null)
+    const toggle = ref(true)
+
+    const { render } = define({
+      setup() {
+        return {
+          refKey: el,
+        }
+      },
+      render() {
+        const n0 = createIf(
+          () => toggle.value,
+          () => {
+            const n1 = t0()
+            setRef(n1 as Element, 'refKey')
+            return n1
+          },
+        )
+        return n0
+      },
+    })
+    const { host } = render()
+    expect(el.value).toBe(host.children[0])
+
+    toggle.value = false
+    await nextTick()
+    expect(el.value).toBe(null)
+  })
 })
diff --git a/packages/runtime-vapor/src/dom/templateRef.ts b/packages/runtime-vapor/src/dom/templateRef.ts
index 25a9b014b..b3770739a 100644
--- a/packages/runtime-vapor/src/dom/templateRef.ts
+++ b/packages/runtime-vapor/src/dom/templateRef.ts
@@ -27,7 +27,12 @@ export type RefEl = Element | ComponentInternalInstance
 /**
  * Function for handling a template ref
  */
-export function setRef(el: RefEl, ref: NodeRef, refFor = false) {
+export function setRef(
+  el: RefEl,
+  ref: NodeRef,
+  oldRef?: NodeRef,
+  refFor = false,
+) {
   if (!currentInstance) return
   const { setupState, isUnmounted } = currentInstance
 
@@ -42,6 +47,18 @@ export function setRef(el: RefEl, ref: NodeRef, refFor = false) {
       ? (currentInstance.refs = {})
       : currentInstance.refs
 
+  // dynamic ref changed. unset old ref
+  if (oldRef != null && oldRef !== ref) {
+    if (isString(oldRef)) {
+      refs[oldRef] = null
+      if (hasOwn(setupState, oldRef)) {
+        setupState[oldRef] = null
+      }
+    } else if (isRef(oldRef)) {
+      oldRef.value = null
+    }
+  }
+
   if (isFunction(ref)) {
     const invokeRefSetter = (value?: Element | Record<string, any>) => {
       callWithErrorHandling(
@@ -117,4 +134,5 @@ export function setRef(el: RefEl, ref: NodeRef, refFor = false) {
       warn('Invalid template ref type:', ref, `(${typeof ref})`)
     }
   }
+  return ref
 }