diff --git a/src/containers/WebComponentLoader.jsx b/src/containers/WebComponentLoader.jsx
index eb96e2d26..df4aa7cc4 100644
--- a/src/containers/WebComponentLoader.jsx
+++ b/src/containers/WebComponentLoader.jsx
@@ -160,6 +160,7 @@ const WebComponentLoader = (props) => {
     remixLoadFailed,
     initialProject,
     locale,
+    embedded,
   });
 
   useProjectPersistence({
diff --git a/src/containers/WebComponentLoader.test.js b/src/containers/WebComponentLoader.test.js
index e0358e707..2278579e9 100644
--- a/src/containers/WebComponentLoader.test.js
+++ b/src/containers/WebComponentLoader.test.js
@@ -262,9 +262,28 @@ describe("When no user is in state", () => {
         loadCache: true,
         remixLoadFailed: false,
         reactAppApiEndpoint: "http://localhost:3009",
+        embedded: false,
       });
     });
 
+    test("Passes embedded prop to useProject hook", () => {
+      render(
+        <Provider store={store}>
+          <CookiesProvider cookies={cookies}>
+            <WebComponentLoader
+              code={code}
+              identifier={identifier}
+              embedded={true}
+            />
+          </CookiesProvider>
+        </Provider>,
+      );
+
+      expect(useProject).toHaveBeenLastCalledWith(
+        expect.objectContaining({ embedded: true }),
+      );
+    });
+
     test("Calls useProjectPersistence hook with correct attributes", () => {
       expect(useProjectPersistence).toHaveBeenCalledWith({
         project: {
@@ -409,6 +428,7 @@ describe("When no user is in state", () => {
         loadCache: true,
         remixLoadFailed: false,
         reactAppApiEndpoint: "http://localhost:3009",
+        embedded: false,
       });
     });
   });
@@ -536,6 +556,7 @@ describe("When user is in state", () => {
           loadCache: true,
           remixLoadFailed: false,
           reactAppApiEndpoint: "http://localhost:3009",
+          embedded: false,
         });
       });
 
@@ -568,6 +589,7 @@ describe("When user is in state", () => {
             loadCache: true,
             remixLoadFailed: false,
             reactAppApiEndpoint: "http://localhost:3009",
+            embedded: false,
           });
         });
       });
@@ -650,6 +672,7 @@ describe("When user is in state", () => {
           loadCache: true,
           remixLoadFailed: true,
           reactAppApiEndpoint: "http://localhost:3009",
+          embedded: false,
         });
       });
 
@@ -813,6 +836,7 @@ describe("when a Scratch remix updates the project identifier", () => {
         loadCache: true,
         remixLoadFailed: false,
         reactAppApiEndpoint: "http://localhost:3009",
+        embedded: false,
       });
     });
   });
diff --git a/src/hooks/useProject.js b/src/hooks/useProject.js
index dc0a71455..bb0de018e 100644
--- a/src/hooks/useProject.js
+++ b/src/hooks/useProject.js
@@ -16,17 +16,23 @@ export const useProject = ({
   loadCache = true,
   remixLoadFailed = false,
   locale = null,
+  embedded = false,
 }) => {
   const loading = useSelector((state) => state.editor.loading);
   const isEmbedded = useSelector((state) => state.editor.isEmbedded);
   const isBrowserPreview = useSelector((state) => state.editor.browserPreview);
+  const browserPreviewFromQuery =
+    new URLSearchParams(window.location.search).get("browserPreview") ===
+    "true";
+  const isEmbeddedMode = embedded || isEmbedded;
+  const canUseBrowserPreviewCache =
+    isBrowserPreview || (embedded && browserPreviewFromQuery);
+  const shouldSkipCache = isEmbeddedMode && !canUseBrowserPreviewCache;
   const project = useSelector((state) => state.editor.project);
   const loadDispatched = useRef(false);
 
   const getCachedProject = (id) =>
-    isEmbedded && !isBrowserPreview
-      ? null
-      : JSON.parse(localStorage.getItem(id || "project"));
+    shouldSkipCache ? null : JSON.parse(localStorage.getItem(id || "project"));
   const [cachedProject, setCachedProject] = useState(
     getCachedProject(projectIdentifier),
   );
@@ -51,21 +57,23 @@ export const useProject = ({
         return;
       }
 
-      const is_cached_saved_project =
+      const isCachedSavedProject =
         projectIdentifier &&
         cachedProject &&
         cachedProject.identifier === projectIdentifier;
-      const is_cached_unsaved_project =
+      const isCachedUnsavedProject =
         !projectIdentifier && cachedProject && !initialProject;
+      const cachedProjectMatchesRequest =
+        isCachedSavedProject || isCachedUnsavedProject;
 
-      // At the moment this will never match because the cachedProject doesn't have a locale attribute (yet),
-      // so this will always be false, which effectively disables the whole caching mechanism
+      // Browser previews need the current local edits. Starter projects can be
+      // served from a fallback locale, so the cached locale may not match the URL.
       const cachedLocaleMatches = cachedProject?.locale === effectiveLocale;
 
       if (
         loadCache &&
-        (is_cached_saved_project || is_cached_unsaved_project) &&
-        cachedLocaleMatches
+        cachedProjectMatchesRequest &&
+        (cachedLocaleMatches || canUseBrowserPreviewCache)
       ) {
         loadCachedProject();
         return;
diff --git a/src/hooks/useProject.test.js b/src/hooks/useProject.test.js
index 488022f01..6c1ed9893 100644
--- a/src/hooks/useProject.test.js
+++ b/src/hooks/useProject.test.js
@@ -76,7 +76,7 @@ describe("When not embedded", () => {
     expect(setProject).toHaveBeenCalledWith(initialProject);
   });
 
-  test("If cached project matches identifer and locale, uses cached project", () => {
+  test("If cached project matches identifier and locale, uses cached project", () => {
     localStorage.setItem(
       cachedProject.identifier,
       JSON.stringify(cachedProject),
@@ -92,7 +92,7 @@ describe("When not embedded", () => {
     expect(setProject).toHaveBeenCalledWith(cachedProject);
   });
 
-  test("If cached project matches identifer and locale, clears cached project", () => {
+  test("If cached project matches identifier and locale, keeps cached project", () => {
     localStorage.setItem(
       cachedProject.identifier,
       JSON.stringify(cachedProject),
@@ -105,10 +105,33 @@ describe("When not embedded", () => {
         }),
       { wrapper },
     );
-    expect(localStorage.getItem("project")).toBeNull();
+    expect(JSON.parse(localStorage.getItem(cachedProject.identifier))).toEqual(
+      cachedProject,
+    );
   });
 
-  test("If cached project does not match identifer, does not use cached project", async () => {
+  test("If embedded prop is true before embedded state is set, loads from server instead of cache", () => {
+    syncProject.mockImplementation(jest.fn((_) => jest.fn()));
+    localStorage.setItem(
+      cachedProject.identifier,
+      JSON.stringify(cachedProject),
+    );
+    renderHook(
+      () =>
+        useProject({
+          projectIdentifier: cachedProject.identifier,
+          locale: cachedProject.locale,
+          embedded: true,
+          accessToken,
+          reactAppApiEndpoint,
+        }),
+      { wrapper },
+    );
+    expect(syncProject).toHaveBeenCalledWith("load");
+    expect(setProject).not.toHaveBeenCalledWith(cachedProject);
+  });
+
+  test("If cached project does not match identifier, does not use cached project", async () => {
     syncProject.mockImplementationOnce(jest.fn((_) => jest.fn()));
     localStorage.setItem("project", JSON.stringify(cachedProject));
     renderHook(
@@ -140,6 +163,31 @@ describe("When not embedded", () => {
     );
   });
 
+  test("If cached project does not match locale and browserPreview query is used outside embedded viewer, does not use cached project", () => {
+    syncProject.mockImplementation(jest.fn((_) => jest.fn()));
+    window.history.pushState(
+      {},
+      "",
+      "/en-US/projects/hello-world-project?browserPreview=true&page=index.html",
+    );
+    localStorage.setItem(
+      cachedProject.identifier,
+      JSON.stringify(cachedProject),
+    );
+    renderHook(
+      () =>
+        useProject({
+          projectIdentifier: cachedProject.identifier,
+          locale: "en-US",
+          accessToken,
+          reactAppApiEndpoint,
+        }),
+      { wrapper },
+    );
+    expect(syncProject).toHaveBeenCalledWith("load");
+    expect(setProject).not.toHaveBeenCalledWith(cachedProject);
+  });
+
   test("If cached project does not match identifier and locale, loads correct uncached project", async () => {
     syncProject.mockImplementationOnce(jest.fn((_) => loadProject));
     localStorage.setItem("project", JSON.stringify(cachedProject));
@@ -559,6 +607,7 @@ describe("When not embedded", () => {
 
   afterEach(() => {
     localStorage.clear();
+    window.history.pushState({}, "", "/");
   });
 });
 
@@ -575,6 +624,35 @@ describe("When embedded", () => {
     wrapper = ({ children }) => <Provider store={store}>{children}</Provider>;
   });
 
+  test("If embedded browser preview and cached project locale does not match, uses cached project", () => {
+    const browserPreviewCachedProject = {
+      ...cachedProject,
+      identifier: "blank-html-starter",
+      locale: "en",
+    };
+    window.history.pushState(
+      {},
+      "",
+      "/en-US/embed/viewer/blank-html-starter?browserPreview=true&page=index.html",
+    );
+    localStorage.setItem(
+      browserPreviewCachedProject.identifier,
+      JSON.stringify(browserPreviewCachedProject),
+    );
+    renderHook(
+      () =>
+        useProject({
+          projectIdentifier: browserPreviewCachedProject.identifier,
+          locale: "en-US",
+          embedded: true,
+          accessToken,
+          reactAppApiEndpoint,
+        }),
+      { wrapper },
+    );
+    expect(setProject).toHaveBeenCalledWith(browserPreviewCachedProject);
+  });
+
   test("If embedded and cached project, loads from server", async () => {
     syncProject.mockImplementationOnce(jest.fn((_) => loadProject));
     localStorage.setItem("hello-world-project", JSON.stringify(cachedProject));
@@ -601,5 +679,6 @@ describe("When embedded", () => {
 
   afterEach(() => {
     localStorage.clear();
+    window.history.pushState({}, "", "/");
   });
 });