diff --git a/ghcide/session-loader/Development/IDE/Session.hs b/ghcide/session-loader/Development/IDE/Session.hs
index f8492464aa..8d6a6f6309 100644
--- a/ghcide/session-loader/Development/IDE/Session.hs
+++ b/ghcide/session-loader/Development/IDE/Session.hs
@@ -770,8 +770,17 @@ newComponentCache
          -> IO ( [TargetDetails], (IdeResult HscEnvEq, DependencyInfo))
 newComponentCache recorder exts cradlePath cfp hsc_env uids ci = do
     let df = componentDynFlags ci
-    let hscEnv' = hscSetFlags df hsc_env
-                          { hsc_IC = (hsc_IC hsc_env) { ic_dflags = df } }
+    hscEnv' <-
+      -- Add the options for the current component to the HscEnv
+      -- We want to call `setSessionDynFlags` instead of `hscSetFlags`
+      -- because `setSessionDynFlags` also initializes the package database,
+      -- which we need for any changes to the package flags in the dynflags
+      -- to be visible.
+      -- See #2693
+      evalGhcEnv hsc_env $ do
+        _ <- setSessionDynFlags $ df
+        getSession
+
 
     let newFunc = maybe newHscEnvEqPreserveImportPaths newHscEnvEq cradlePath
     henv <- newFunc hscEnv' uids
diff --git a/ghcide/test/exe/Main.hs b/ghcide/test/exe/Main.hs
index 73de4078df..e7b8ab335c 100644
--- a/ghcide/test/exe/Main.hs
+++ b/ghcide/test/exe/Main.hs
@@ -5583,8 +5583,7 @@ simpleSubDirectoryTest =
     expectNoMoreDiagnostics 0.5
 
 simpleMultiTest :: TestTree
-simpleMultiTest =  knownBrokenForGhcVersions [GHC92] "#2693" $
-  testCase "simple-multi-test" $ withLongTimeout $ runWithExtraFiles "multi" $ \dir -> do
+simpleMultiTest = testCase "simple-multi-test" $ withLongTimeout $ runWithExtraFiles "multi" $ \dir -> do
     let aPath = dir </> "a/A.hs"
         bPath = dir </> "b/B.hs"
     adoc <- openDoc aPath "haskell"
@@ -5614,7 +5613,7 @@ simpleMultiTest2 = testCase "simple-multi-test2" $ runWithExtraFiles "multi" $ \
 
 -- Now with 3 components
 simpleMultiTest3 :: TestTree
-simpleMultiTest3 = knownBrokenForGhcVersions [GHC92] "#2693" $
+simpleMultiTest3 =
   testCase "simple-multi-test3" $ runWithExtraFiles "multi" $ \dir -> do
     let aPath = dir </> "a/A.hs"
         bPath = dir </> "b/B.hs"