diff --git a/src/__tests__/client.ts b/src/__tests__/client.ts
index 7911ddd4a9e..7a1ae00777c 100644
--- a/src/__tests__/client.ts
+++ b/src/__tests__/client.ts
@@ -3312,10 +3312,16 @@ describe('@connection', () => {
 
         defaultOptions: {
           watchQuery: {
-            nextFetchPolicy(fetchPolicy) {
+            nextFetchPolicy(fetchPolicy, context) {
               expect(++nextFetchPolicyCallCount).toBe(1);
               expect(this.query).toBe(query);
               expect(fetchPolicy).toBe("cache-first");
+
+              expect(context.reason).toBe("after-fetch");
+              expect(context.observable).toBe(obs);
+              expect(context.options).toBe(obs.options);
+              expect(context.initialPolicy).toBe("cache-first");
+
               // Usually options.nextFetchPolicy applies only once, but a
               // nextFetchPolicy function can set this.nextFetchPolicy
               // again to perform an additional transition.
@@ -3323,6 +3329,7 @@ describe('@connection', () => {
                 ++nextFetchPolicyCallCount;
                 return "cache-first";
               };
+
               return "cache-and-network";
             },
           },
diff --git a/src/core/ObservableQuery.ts b/src/core/ObservableQuery.ts
index 8ffd0b6dd59..83c2b046c97 100644
--- a/src/core/ObservableQuery.ts
+++ b/src/core/ObservableQuery.ts
@@ -610,7 +610,8 @@ once, rather than every time you call fetchMore.`);
         options.fetchPolicy = options.nextFetchPolicy(fetchPolicy, {
           reason,
           options,
-          observableQuery: this,
+          observable: this,
+          initialPolicy: this.initialFetchPolicy,
         });
       } else if (reason === "variables-changed") {
         options.fetchPolicy = this.initialFetchPolicy;
diff --git a/src/core/watchQueryOptions.ts b/src/core/watchQueryOptions.ts
index 87b8e1fb9e9..dd3d1f91799 100644
--- a/src/core/watchQueryOptions.ts
+++ b/src/core/watchQueryOptions.ts
@@ -141,9 +141,10 @@ export interface WatchQueryOptions<TVariables = OperationVariables, TData = any>
 export interface NextFetchPolicyContext<TData, TVariables> {
   reason:
     | "after-fetch"
-    | "variables-changed"
-  observableQuery: ObservableQuery;
+    | "variables-changed";
+  observable: ObservableQuery<TData, TVariables>;
   options: WatchQueryOptions<TVariables, TData>;
+  initialPolicy: WatchQueryFetchPolicy;
 }
 
 export interface FetchMoreQueryOptions<TVariables, TData = any> {