diff --git a/.changeset/giant-coats-teach.md b/.changeset/giant-coats-teach.md
new file mode 100644
index 0000000000000..247f7c47f497d
--- /dev/null
+++ b/.changeset/giant-coats-teach.md
@@ -0,0 +1,8 @@
+---
+"@refinedev/core": patch
+---
+
+- Invalidate queries on logout.
+- Resolves cached error state being there after login from forced logout.
+
+[Resolves #6944](https://github.com/refinedev/refine/issues/6997)
diff --git a/packages/core/src/contexts/auth/index.tsx b/packages/core/src/contexts/auth/index.tsx
index 1e555dcf31d18..d4ae25c972842 100644
--- a/packages/core/src/contexts/auth/index.tsx
+++ b/packages/core/src/contexts/auth/index.tsx
@@ -1,6 +1,7 @@
 import React, { type PropsWithChildren } from "react";
 
 import type { IAuthContext } from "./types";
+import { useQueryClient } from "@tanstack/react-query";
 
 export const AuthProviderContext = React.createContext<Partial<IAuthContext>>(
   {},
@@ -9,6 +10,8 @@ export const AuthProviderContext = React.createContext<Partial<IAuthContext>>(
 export const AuthProviderContextProvider: React.FC<
   PropsWithChildren<IAuthContext>
 > = ({ children, isProvided, ...authProvider }) => {
+  const queryClient = useQueryClient();
+
   const handleLogin = async (params: unknown) => {
     try {
       const result = await authProvider.login?.(params);
@@ -40,6 +43,7 @@ export const AuthProviderContextProvider: React.FC<
   const handleLogout = async (params: unknown) => {
     try {
       const result = await authProvider.logout?.(params);
+      queryClient.invalidateQueries();
 
       return result;
     } catch (error) {