diff --git a/server/api.go b/server/api.go
index 724c4807..202fef36 100644
--- a/server/api.go
+++ b/server/api.go
@@ -470,6 +470,11 @@ func (d dexAPI) CreateConnector(ctx context.Context, req *api.CreateConnectorReq
 		return nil, fmt.Errorf("create connector: %v", err)
 	}
 
+	// Make sure we don't reuse stale entries in the cache
+	if d.server != nil {
+		d.server.CloseConnector(req.Connector.Id)
+	}
+
 	return &api.CreateConnectorResp{}, nil
 }
 
@@ -538,6 +543,7 @@ func (d dexAPI) DeleteConnector(ctx context.Context, req *api.DeleteConnectorReq
 		d.logger.Error("api: failed to delete connector", "err", err)
 		return nil, fmt.Errorf("delete connector: %v", err)
 	}
+
 	return &api.DeleteConnectorResp{}, nil
 }
 
diff --git a/server/api_cache_test.go b/server/api_cache_test.go
new file mode 100644
index 00000000..64564c46
--- /dev/null
+++ b/server/api_cache_test.go
@@ -0,0 +1,133 @@
+package server
+
+import (
+	"context"
+	"encoding/json"
+	"testing"
+
+	"github.com/dexidp/dex/api/v2"
+	"github.com/dexidp/dex/connector"
+	"github.com/dexidp/dex/connector/mock"
+	"github.com/dexidp/dex/storage/memory"
+)
+
+func TestConnectorCacheInvalidation(t *testing.T) {
+	t.Setenv("DEX_API_CONNECTORS_CRUD", "true")
+
+	logger := newLogger(t)
+	s := memory.New(logger)
+
+	serv := &Server{
+		storage:    s,
+		logger:     logger,
+		connectors: make(map[string]Connector),
+	}
+
+	apiServer := NewAPI(s, logger, "test", serv)
+	ctx := context.Background()
+
+	connID := "mock-conn"
+
+	// 1. Create a connector via API
+	config1 := mock.PasswordConfig{
+		Username: "user",
+		Password: "first-password",
+	}
+	config1Bytes, _ := json.Marshal(config1)
+
+	_, err := apiServer.CreateConnector(ctx, &api.CreateConnectorReq{
+		Connector: &api.Connector{
+			Id:     connID,
+			Type:   "mockPassword",
+			Name:   "Mock",
+			Config: config1Bytes,
+		},
+	})
+	if err != nil {
+		t.Fatalf("failed to create connector: %v", err)
+	}
+
+	// 2. Load it into server cache
+	c1, err := serv.getConnector(ctx, connID)
+	if err != nil {
+		t.Fatalf("failed to get connector: %v", err)
+	}
+
+	pc1 := c1.Connector.(connector.PasswordConnector)
+	_, valid, err := pc1.Login(ctx, connector.Scopes{}, "user", "first-password")
+	if err != nil || !valid {
+		t.Fatalf("failed to login with first password: %v", err)
+	}
+
+	// 3. Delete it via API
+	_, err = apiServer.DeleteConnector(ctx, &api.DeleteConnectorReq{Id: connID})
+	if err != nil {
+		t.Fatalf("failed to delete connector: %v", err)
+	}
+
+	// 4. Create it again with different password
+	config2 := mock.PasswordConfig{
+		Username: "user",
+		Password: "second-password",
+	}
+	config2Bytes, _ := json.Marshal(config2)
+
+	_, err = apiServer.CreateConnector(ctx, &api.CreateConnectorReq{
+		Connector: &api.Connector{
+			Id:     connID,
+			Type:   "mockPassword",
+			Name:   "Mock",
+			Config: config2Bytes,
+		},
+	})
+	if err != nil {
+		t.Fatalf("failed to create connector: %v", err)
+	}
+
+	// 5. Load it again
+	c2, err := serv.getConnector(ctx, connID)
+	if err != nil {
+		t.Fatalf("failed to get connector second time: %v", err)
+	}
+
+	pc2 := c2.Connector.(connector.PasswordConnector)
+
+	// If the fix works, it should now use the second password.
+	_, valid2, err := pc2.Login(ctx, connector.Scopes{}, "user", "second-password")
+	if err != nil || !valid2 {
+		t.Errorf("failed to login with second password, cache might still be stale")
+	}
+
+	_, valid1, _ := pc2.Login(ctx, connector.Scopes{}, "user", "first-password")
+	if valid1 {
+		t.Errorf("unexpectedly logged in with first password, cache is definitely stale")
+	}
+
+	// 6. Update it via API with a third password
+	config3 := mock.PasswordConfig{
+		Username: "user",
+		Password: "third-password",
+	}
+	config3Bytes, _ := json.Marshal(config3)
+
+	_, err = apiServer.UpdateConnector(ctx, &api.UpdateConnectorReq{
+		Id:        connID,
+		NewConfig: config3Bytes,
+	})
+	if err != nil {
+		t.Fatalf("failed to update connector: %v", err)
+	}
+
+	// 7. Load it again
+	c3, err := serv.getConnector(ctx, connID)
+	if err != nil {
+		t.Fatalf("failed to get connector third time: %v", err)
+	}
+
+	pc3 := c3.Connector.(connector.PasswordConnector)
+
+	_, valid3, err := pc3.Login(ctx, connector.Scopes{}, "user", "third-password")
+	if err != nil || !valid3 {
+		t.Errorf("failed to login with third password, UpdateConnector might be missing cache invalidation")
+	}
+}
diff --git a/server/server.go b/server/server.go
index e923e3e0..ea87aa1c 100644
--- a/server/server.go
+++ b/server/server.go
@@ -745,6 +745,13 @@ func (s *Server) OpenConnector(conn storage.Connector) (Connector, error) {
 	return connector, nil
 }
 
+// CloseConnector removes the connector from the server's in-memory map.
+func (s *Server) CloseConnector(id string) {
+	s.mu.Lock()
+	delete(s.connectors, id)
+	s.mu.Unlock()
+}
+
 // getConnector retrieves the connector object with the given id from the storage
 // and updates the connector list for server if necessary.
 func (s *Server) getConnector(ctx context.Context, id string) (Connector, error) {