diff --git a/src/components/shared/Dialogs/ComponentDuplicateDialog.test.tsx b/src/components/shared/Dialogs/ComponentDuplicateDialog.test.tsx
index 38891bea9..2e23912a8 100644
--- a/src/components/shared/Dialogs/ComponentDuplicateDialog.test.tsx
+++ b/src/components/shared/Dialogs/ComponentDuplicateDialog.test.tsx
@@ -50,7 +50,6 @@ const createMockComponentLibraryContext = (
     removeFromComponentLibrary: vi.fn(),
     setComponentFavorite: vi.fn(),
     checkIfUserComponent: vi.fn().mockReturnValue(false),
-    checkLibraryContainsComponent: vi.fn().mockReturnValue(false),
     getComponentLibrary: vi.fn(),
   };
 };
diff --git a/src/components/shared/FavoriteComponentToggle.tsx b/src/components/shared/FavoriteComponentToggle.tsx
index b9edd3709..77f8863f0 100644
--- a/src/components/shared/FavoriteComponentToggle.tsx
+++ b/src/components/shared/FavoriteComponentToggle.tsx
@@ -14,9 +14,13 @@ import { Spinner } from "@/components/ui/spinner";
 import { useGuaranteedHydrateComponentReference } from "@/hooks/useHydrateComponentReference";
 import { cn } from "@/lib/utils";
 import { useComponentLibrary } from "@/providers/ComponentLibraryProvider";
-import { isFavoriteComponent } from "@/providers/ComponentLibraryProvider/componentLibrary";
+import {
+  flattenFolders,
+  isFavoriteComponent,
+} from "@/providers/ComponentLibraryProvider/componentLibrary";
 import { hydrateComponentReference } from "@/services/componentService";
-import type { ComponentReference } from "@/utils/componentSpec";
+import { type ComponentReference } from "@/utils/componentSpec";
+import { MINUTES } from "@/utils/constants";
 import { getComponentName } from "@/utils/getComponentName";
 
 import { withSuspenseWrapper } from "./SuspenseWrapper";
@@ -132,30 +136,63 @@ const FavoriteToggleButton = withSuspenseWrapper(
   ),
 );
 
-export const ComponentFavoriteToggle = ({
+const useComponentFlags = (component: ComponentReference) => {
+  const { checkIfUserComponent, componentLibrary } = useComponentLibrary();
+
+  const isUserComponent = useMemo(
+    () => checkIfUserComponent(component),
+    [component, checkIfUserComponent],
+  );
+
+  const flatComponentList = useMemo(
+    () => (componentLibrary ? flattenFolders(componentLibrary) : []),
+    [componentLibrary],
+  );
+
+  const { data: isInLibrary } = useSuspenseQuery({
+    queryKey: ["component", "flags", component.digest],
+    queryFn: async () => {
+      if (!componentLibrary) return false;
+
+      if (isUserComponent) return true;
+
+      for (const c of flatComponentList) {
+        if (component.name === "Chicago Taxi Trips dataset") {
+          console.log(c.name, c.digest, component.digest);
+        }
+
+        if (c.name && c.name !== component.name) {
+          // micro optimization to skip components with different names
+          continue;
+        }
+
+        const digest = c.digest ?? (await hydrateComponentReference(c))?.digest;
+
+        if (digest === component.digest) {
+          return true;
+        }
+      }
+
+      return false;
+    },
+    staleTime: 10 * MINUTES,
+  });
+
+  return { isInLibrary, isUserComponent };
+};
+
+const ComponentFavoriteToggleInternal = ({
   component,
   hideDelete = false,
 }: ComponentFavoriteToggleProps) => {
-  const {
-    addToComponentLibrary,
-    removeFromComponentLibrary,
-    checkIfUserComponent,
-    checkLibraryContainsComponent,
-  } = useComponentLibrary();
+  const { addToComponentLibrary, removeFromComponentLibrary } =
+    useComponentLibrary();
 
   const [isOpen, setIsOpen] = useState(false);
 
   const { spec, url } = component;
 
-  const isUserComponent = useMemo(
-    () => checkIfUserComponent(component),
-    [component, checkIfUserComponent],
-  );
-
-  const isInLibrary = useMemo(
-    () => checkLibraryContainsComponent(component),
-    [component, checkLibraryContainsComponent],
-  );
+  const { isInLibrary, isUserComponent } = useComponentFlags(component);
 
   const displayName = useMemo(
     () => getComponentName({ spec, url }),
@@ -228,3 +265,13 @@ export const ComponentFavoriteToggle = ({
     </>
   );
 };
+
+export const ComponentFavoriteToggle = withSuspenseWrapper(
+  ComponentFavoriteToggleInternal,
+  () => <Spinner size={10} />,
+  () => (
+    <IconStateButton disabled>
+      <Icon name="Star" />
+    </IconStateButton>
+  ),
+);
diff --git a/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.test.tsx b/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.test.tsx
index 2d31b4203..59934afc4 100644
--- a/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.test.tsx
+++ b/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.test.tsx
@@ -536,29 +536,6 @@ describe("ComponentLibraryProvider - Component Management", () => {
         result.current.checkIfUserComponent(standardComponent);
       expect(isUserComponent).toBe(false);
     });
-
-    it("should correctly check if library contains component", async () => {
-      const libraryComponent: ComponentReference = {
-        name: "library-component",
-        digest: "library-digest",
-        spec: mockComponentSpec,
-      };
-
-      mockFlattenFolders.mockReturnValue([libraryComponent]);
-      mockFilterToUniqueByDigest.mockReturnValue([libraryComponent]);
-
-      const { result } = renderHook(() => useComponentLibrary(), {
-        wrapper: createWrapper,
-      });
-
-      await waitFor(() => {
-        expect(result.current.isLoading).toBe(false);
-      });
-
-      const containsComponent =
-        result.current.checkLibraryContainsComponent(libraryComponent);
-      expect(containsComponent).toBe(true);
-    });
   });
 
   describe("Component Favoriting", () => {
diff --git a/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.tsx b/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.tsx
index 4200c05af..b3fe94be3 100644
--- a/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.tsx
+++ b/src/providers/ComponentLibraryProvider/ComponentLibraryProvider.tsx
@@ -89,7 +89,6 @@ type ComponentLibraryContextType = {
     favorited: boolean,
   ) => void;
   checkIfUserComponent: (component: ComponentReference) => boolean;
-  checkLibraryContainsComponent: (component: ComponentReference) => boolean;
 
   getComponentLibrary: (libraryName: AvailableComponentLibraries) => Library;
 };
@@ -340,21 +339,6 @@ export const ComponentLibraryProvider = ({
     [userComponentsFolder],
   );
 
-  const checkLibraryContainsComponent = useCallback(
-    (component: ComponentReference) => {
-      if (!componentLibrary) return false;
-
-      if (checkIfUserComponent(component)) return true;
-
-      const uniqueComponents = filterToUniqueByDigest(
-        flattenFolders(componentLibrary),
-      );
-
-      return uniqueComponents.some((c) => c.digest === component.digest);
-    },
-    [componentLibrary, checkIfUserComponent],
-  );
-
   /**
    * Local component library search
    */
@@ -592,7 +576,6 @@ export const ComponentLibraryProvider = ({
       removeFromComponentLibrary,
       setComponentFavorite,
       checkIfUserComponent,
-      checkLibraryContainsComponent,
     }),
     [
       componentLibrary,
@@ -609,7 +592,6 @@ export const ComponentLibraryProvider = ({
       removeFromComponentLibrary,
       setComponentFavorite,
       checkIfUserComponent,
-      checkLibraryContainsComponent,
     ],
   );