diff --git a/src/__tests__/createAppContainer-test.js b/src/__tests__/createAppContainer-test.js
index a3dd106..2b6864d 100644
--- a/src/__tests__/createAppContainer-test.js
+++ b/src/__tests__/createAppContainer-test.js
@@ -1,8 +1,7 @@
 import React from 'react';
-import { View } from 'react-native';
-
-import renderer from 'react-test-renderer';
-
+import { View, Linking } from 'react-native';
+import TestRenderer from 'react-test-renderer';
+import flushPromises from '../utils/flushPromises';
 import createAppContainer, {
   _TESTING_ONLY_reset_container_count,
 } from '../createAppContainer';
@@ -59,10 +58,16 @@ describe('NavigationContainer', () => {
   const NavigationContainer = createAppContainer(Stack);
 
   describe('state.nav', () => {
-    it("should be preloaded with the router's initial state", () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it("should be preloaded with the router's initial state", async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // thus on the first render the component returns null (or the result of renderLoadingExperimental)
+      expect(testRenderer.toJSON()).toEqual(null);
+      // wait for the state to be set
+      await flushPromises();
+
       expect(navigationContainer.state.nav).toMatchObject({ index: 0 });
       expect(navigationContainer.state.nav.routes).toBeInstanceOf(Array);
       expect(navigationContainer.state.nav.routes.length).toBe(1);
@@ -70,14 +75,38 @@ describe('NavigationContainer', () => {
         routeName: 'foo',
       });
     });
+    it('should be preloaded with the state corresponding to the URL', async () => {
+      const standardGetInitialURL = Linking.getInitialURL;
+      Linking.getInitialURL = () => Promise.resolve('host://elk');
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
+
+      expect(navigationContainer.state.nav).toMatchObject({ index: 0 });
+      expect(navigationContainer.state.nav.routes).toBeInstanceOf(Array);
+      expect(navigationContainer.state.nav.routes.length).toBe(1);
+      expect(navigationContainer.state.nav.routes[0]).toMatchObject({
+        routeName: 'elk',
+      });
+
+      Linking.getInitialURL = standardGetInitialURL;
+    });
   });
 
   describe('dispatch', () => {
-    it('returns true when given a valid action', () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it('returns true when given a valid action', async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
+
       jest.runOnlyPendingTimers();
+
       expect(
         navigationContainer.dispatch(
           NavigationActions.navigate({ routeName: 'bar' })
@@ -85,20 +114,28 @@ describe('NavigationContainer', () => {
       ).toEqual(true);
     });
 
-    it('returns false when given an invalid action', () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it('returns false when given an invalid action', async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
+
       jest.runOnlyPendingTimers();
+
       expect(navigationContainer.dispatch(NavigationActions.back())).toEqual(
         false
       );
     });
 
-    it('updates state.nav with an action by the next tick', () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it('updates state.nav with an action by the next tick', async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
 
       expect(
         navigationContainer.dispatch(
@@ -115,10 +152,14 @@ describe('NavigationContainer', () => {
       });
     });
 
-    it('does not discard actions when called twice in one tick', () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it('does not discard actions when called twice in one tick', async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
+
       const initialState = JSON.parse(
         JSON.stringify(navigationContainer.state.nav)
       );
@@ -153,10 +194,14 @@ describe('NavigationContainer', () => {
       });
     });
 
-    it('does not discard actions when called more than 2 times in one tick', () => {
-      const navigationContainer = renderer
-        .create(<NavigationContainer />)
-        .getInstance();
+    it('does not discard actions when called more than 2 times in one tick', async () => {
+      const testRenderer = TestRenderer.create(<NavigationContainer />);
+      const navigationContainer = testRenderer.getInstance();
+
+      // the state only actually gets set asynchronously on componentDidMount
+      // wait for the state to be set
+      await flushPromises();
+
       const initialState = JSON.parse(
         JSON.stringify(navigationContainer.state.nav)
       );
@@ -238,7 +283,7 @@ describe('NavigationContainer', () => {
 
       let spy = spyConsole();
 
-      it('warns when you render more than one container explicitly', () => {
+      it('warns when you render more than one container explicitly', async () => {
         class BlankScreen extends React.Component {
           render() {
             return <View />;
@@ -267,7 +312,12 @@ describe('NavigationContainer', () => {
           })
         );
 
-        renderer.create(<RootStack />).toJSON();
+        TestRenderer.create(<RootStack />);
+
+        // the state only actually gets set asynchronously on componentDidMount
+        // wait for the state to be set
+        await flushPromises();
+
         expect(spy).toMatchSnapshot();
       });
     });
diff --git a/src/createAppContainer.js b/src/createAppContainer.js
index 0c0daf5..56840b5 100644
--- a/src/createAppContainer.js
+++ b/src/createAppContainer.js
@@ -97,7 +97,9 @@ export default function createNavigationContainer(Component) {
 
       this.state = {
         nav:
-          this._isStateful() && !props.persistenceKey
+          this._isStateful() &&
+          !props.persistenceKey &&
+          props.enableURLHandling === false
             ? Component.router.getStateForAction(this._initialAction)
             : null,
       };
@@ -220,23 +222,8 @@ export default function createNavigationContainer(Component) {
       // Initialize state. This must be done *after* any async code
       // so we don't end up with a different value for this.state.nav
       // due to changes while async function was resolving
-      let action = this._initialAction;
+      let action = null;
       let startupState = this.state.nav;
-      if (!startupState) {
-        !!process.env.REACT_NAV_LOGGING &&
-          console.log('Init new Navigation State');
-        startupState = Component.router.getStateForAction(action);
-      }
-
-      // Pull persisted state from AsyncStorage
-      if (startupStateJSON) {
-        try {
-          startupState = JSON.parse(startupStateJSON);
-          _reactNavigationIsHydratingState = true;
-        } catch (e) {
-          /* do nothing */
-        }
-      }
 
       // Pull state out of URL
       if (parsedUrl) {
@@ -252,13 +239,29 @@ export default function createNavigationContainer(Component) {
               parsedUrl
             );
           action = urlAction;
-          startupState = Component.router.getStateForAction(
-            urlAction,
-            startupState
-          );
+          // This is an **initial** URL, hence the null state as parameter
+          startupState = Component.router.getStateForAction(urlAction, null);
         }
       }
 
+      // Pull persisted state from AsyncStorage
+      if (startupStateJSON) {
+        try {
+          startupState = JSON.parse(startupStateJSON);
+          _reactNavigationIsHydratingState = true;
+        } catch (e) {
+          /* do nothing */
+        }
+      }
+
+      // Initialize state if there was no valid initial URL nor valid persisted state
+      if (!startupState) {
+        !!process.env.REACT_NAV_LOGGING &&
+          console.log('Init new Navigation State');
+        action = this._initialAction;
+        startupState = Component.router.getStateForAction(action);
+      }
+
       const dispatchActions = () =>
         this._actionEventSubscribers.forEach(subscriber =>
           subscriber({
diff --git a/src/utils/flushPromises.js b/src/utils/flushPromises.js
new file mode 100644
index 0000000..ab7436b
--- /dev/null
+++ b/src/utils/flushPromises.js
@@ -0,0 +1,4 @@
+// see https://github.com/facebook/jest/issues/2157#issuecomment-279171856
+export default function flushPromises() {
+  return new Promise(resolve => setImmediate(resolve));
+}