diff --git a/packages/toolpad-core/src/useNotifications/NotificationsProvider.test.tsx b/packages/toolpad-core/src/useNotifications/NotificationsProvider.test.tsx
deleted file mode 100644
index 3aa3f618cad..00000000000
--- a/packages/toolpad-core/src/useNotifications/NotificationsProvider.test.tsx
+++ /dev/null
@@ -1,19 +0,0 @@
-/**
- * @vitest-environment jsdom
- */
-
-import * as React from 'react';
-import { describe, test } from 'vitest';
-import describeConformance from '@toolpad/utils/describeConformance';
-import { NotificationsProvider } from './NotificationsProvider';
-
-describe('NotificationsProvider', () => {
-  describeConformance(<NotificationsProvider />, () => ({
-    skip: ['themeDefaultProps'],
-    slots: {
-      snackbar: {},
-    },
-  }));
-
-  test('dummy test', () => {});
-});
diff --git a/packages/toolpad-core/src/useNotifications/index.ts b/packages/toolpad-core/src/useNotifications/index.ts
index 38ae998b741..79ab6ed6d5c 100644
--- a/packages/toolpad-core/src/useNotifications/index.ts
+++ b/packages/toolpad-core/src/useNotifications/index.ts
@@ -1,2 +1,2 @@
 export * from './useNotifications';
-export * from './NotificationsProvider';
+export * from './notifications';
diff --git a/packages/toolpad-core/src/useNotifications/NotificationsProvider.tsx b/packages/toolpad-core/src/useNotifications/notifications.tsx
similarity index 61%
rename from packages/toolpad-core/src/useNotifications/NotificationsProvider.tsx
rename to packages/toolpad-core/src/useNotifications/notifications.tsx
index 8a7ab8cabb2..29b1eb51522 100644
--- a/packages/toolpad-core/src/useNotifications/NotificationsProvider.tsx
+++ b/packages/toolpad-core/src/useNotifications/notifications.tsx
@@ -119,10 +119,12 @@ interface NotificationsState {
 }
 
 interface NotificationsProps {
-  state: NotificationsState;
+  subscribe: (cb: () => void) => () => void;
+  getState: () => NotificationsState;
 }
 
-function Notifications({ state }: NotificationsProps) {
+function Notifications({ subscribe, getState }: NotificationsProps) {
+  const state = React.useSyncExternalStore(subscribe, getState, getState);
   const currentNotification = state.queue[0] ?? null;
 
   return currentNotification ? (
@@ -148,55 +150,83 @@ const generateId = () => {
   return id;
 };
 
-/**
- * Provider for Notifications. The subtree of this component can use the `useNotifications` hook to
- * access the notifications API. The notifications are shown in the same order they are requested.
- *
- * Demos:
- *
- * - [Sign-in Page](https://mui.com/toolpad/core/react-sign-in-page/)
- * - [useNotifications](https://mui.com/toolpad/core/react-use-notifications/)
- *
- * API:
- *
- * - [NotificationsProvider API](https://mui.com/toolpad/core/api/notifications-provider)
- */
-function NotificationsProvider(props: NotificationsProviderProps) {
-  const { children } = props;
-  const [state, setState] = React.useState<NotificationsState>({ queue: [] });
-
-  const show = React.useCallback<ShowNotification>((message, options = {}) => {
+interface NotificationsApi {
+  show: ShowNotification;
+  close: CloseNotification;
+  Provider: React.ComponentType<NotificationsProviderProps>;
+}
+
+export function createNotifications(): NotificationsApi {
+  let state: NotificationsState = { queue: [] };
+  const listeners = new Set<() => void>();
+
+  const getState = () => state;
+  const subscribeState = (listener: () => void) => {
+    listeners.add(listener);
+    return () => {
+      listeners.delete(listener);
+    };
+  };
+  const fireUpdateEvent = () => {
+    for (const listener of listeners) {
+      listener();
+    }
+  };
+
+  const show: ShowNotification = (message, options = {}) => {
     const notificationKey = options.key ?? `::toolpad-internal::notification::${generateId()}`;
-    setState((prev) => {
-      if (prev.queue.some((n) => n.notificationKey === notificationKey)) {
-        // deduplicate by key
-        return prev;
-      }
-      return {
-        ...prev,
-        queue: [...prev.queue, { message, options, notificationKey, open: true }],
+    if (!state.queue.some((n) => n.notificationKey === notificationKey)) {
+      state = {
+        ...state,
+        queue: [...state.queue, { message, options, notificationKey, open: true }],
       };
-    });
+      fireUpdateEvent();
+    }
+
     return notificationKey;
-  }, []);
+  };
 
-  const close = React.useCallback<CloseNotification>((key) => {
-    setState((prev) => ({
-      ...prev,
-      queue: prev.queue.filter((n) => n.notificationKey !== key),
-    }));
-  }, []);
+  const close: CloseNotification = (key) => {
+    state = {
+      ...state,
+      queue: state.queue.filter((n) => n.notificationKey !== key),
+    };
+    fireUpdateEvent();
+  };
 
-  const contextValue = React.useMemo(() => ({ show, close }), [show, close]);
+  const contextValue = { show, close };
 
-  return (
-    <RootPropsContext.Provider value={props}>
-      <NotificationsContext.Provider value={contextValue}>
-        {children}
-        <Notifications state={state} />
-      </NotificationsContext.Provider>
-    </RootPropsContext.Provider>
-  );
+  /**
+   * Provider for Notifications. The subtree of this component can use the `useNotifications` hook to
+   * access the notifications API. The notifications are shown in the same order they are requested.
+   *
+   * Demos:
+   *
+   * - [Sign-in Page](https://mui.com/toolpad/core/react-sign-in-page/)
+   * - [useNotifications](https://mui.com/toolpad/core/react-use-notifications/)
+   *
+   * API:
+   *
+   * - [NotificationsProvider API](https://mui.com/toolpad/core/api/notifications-provider)
+   */
+  function Provider(props: NotificationsProviderProps) {
+    return (
+      <RootPropsContext.Provider value={props}>
+        <NotificationsContext.Provider value={contextValue}>
+          {props.children}
+          <Notifications getState={getState} subscribe={subscribeState} />
+        </NotificationsContext.Provider>
+      </RootPropsContext.Provider>
+    );
+  }
+
+  return {
+    show,
+    close,
+    Provider,
+  };
 }
 
-export { NotificationsProvider };
+const { show, close, Provider } = createNotifications();
+
+export { show, close, Provider as NotificationsProvider };
diff --git a/packages/toolpad-core/src/useNotifications/useNotifications.test.tsx b/packages/toolpad-core/src/useNotifications/useNotifications.test.tsx
index 9c3d719200d..311e4944f45 100644
--- a/packages/toolpad-core/src/useNotifications/useNotifications.test.tsx
+++ b/packages/toolpad-core/src/useNotifications/useNotifications.test.tsx
@@ -7,7 +7,7 @@ import { describe, test, expect } from 'vitest';
 import { renderHook, within, screen } from '@testing-library/react';
 import { userEvent } from '@testing-library/user-event';
 import { useNotifications } from './useNotifications';
-import { NotificationsProvider } from './NotificationsProvider';
+import { NotificationsProvider } from './notifications';
 
 interface TestWrapperProps {
   children: React.ReactNode;
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index e72272457bc..c0b29908ea5 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -201,7 +201,7 @@ importers:
         version: 7.37.3(eslint@8.57.1)
       eslint-plugin-react-compiler:
         specifier: latest
-        version: 19.0.0-beta-e552027-20250112(eslint@8.57.1)
+        version: 19.0.0-beta-decd7b8-20250118(eslint@8.57.1)
       eslint-plugin-react-hooks:
         specifier: 5.1.0
         version: 5.1.0(eslint@8.57.1)
@@ -6090,8 +6090,8 @@ packages:
     peerDependencies:
       eslint: '>=7.0.0'
 
-  eslint-plugin-react-compiler@19.0.0-beta-e552027-20250112:
-    resolution: {integrity: sha512-VjkIXHouCYyJHgk5HmZ1LH+fAK5CX+ULRX9iNYtwYJ+ljbivFhIT+JJyxNT/USQpCeS2Dt5ahjFeeMv0RRwTww==}
+  eslint-plugin-react-compiler@19.0.0-beta-decd7b8-20250118:
+    resolution: {integrity: sha512-qfs+Xo+VcYPbbVLI2tCP+KBGwm0oksAhjFJO1GwOvP+4b18LLcPZu7xopRhUTOaNd+nn1vOp9EQLZC1wMNxSrQ==}
     engines: {node: ^14.17.0 || ^16.0.0 || >= 18.0.0}
     peerDependencies:
       eslint: '>=7'
@@ -16276,7 +16276,7 @@ snapshots:
       globals: 13.24.0
       rambda: 7.5.0
 
-  eslint-plugin-react-compiler@19.0.0-beta-e552027-20250112(eslint@8.57.1):
+  eslint-plugin-react-compiler@19.0.0-beta-decd7b8-20250118(eslint@8.57.1):
     dependencies:
       '@babel/core': 7.26.0
       '@babel/parser': 7.26.2