diff --git a/pkg/api/plugins.go b/pkg/api/plugins.go
index 2658391d2cc..93ccc222108 100644
--- a/pkg/api/plugins.go
+++ b/pkg/api/plugins.go
@@ -263,6 +263,8 @@ func (hs *HTTPServer) UpdatePluginSetting(c *contextmodel.ReqContext) response.R
 		return response.Error(500, "Failed to update plugin setting", err)
 	}
 
+	hs.PluginContextProvider.InvalidateSettingsCache(c.Req.Context(), pluginID)
+
 	return response.Success("Plugin settings updated")
 }
 
diff --git a/pkg/plugins/plugincontext/plugincontext.go b/pkg/plugins/plugincontext/plugincontext.go
index 9abfd7ab7c6..944d213e9a3 100644
--- a/pkg/plugins/plugincontext/plugincontext.go
+++ b/pkg/plugins/plugincontext/plugincontext.go
@@ -106,7 +106,7 @@ func (p *Provider) pluginContext(ctx context.Context, pluginID string, user *use
 }
 
 func (p *Provider) getCachedPluginSettings(ctx context.Context, pluginID string, user *user.SignedInUser) (*pluginsettings.DTO, error) {
-	cacheKey := pluginSettingsCachePrefix + pluginID
+	cacheKey := getCacheKey(pluginID)
 
 	if cached, found := p.cacheService.Get(cacheKey); found {
 		ps := cached.(*pluginsettings.DTO)
@@ -127,8 +127,16 @@ func (p *Provider) getCachedPluginSettings(ctx context.Context, pluginID string,
 	return ps, nil
 }
 
+func (p *Provider) InvalidateSettingsCache(_ context.Context, pluginID string) {
+	p.cacheService.Delete(getCacheKey(pluginID))
+}
+
 func (p *Provider) decryptSecureJsonDataFn(ctx context.Context) func(ds *datasources.DataSource) (map[string]string, error) {
 	return func(ds *datasources.DataSource) (map[string]string, error) {
 		return p.dataSourceService.DecryptedValues(ctx, ds)
 	}
 }
+
+func getCacheKey(pluginID string) string {
+	return pluginSettingsCachePrefix + pluginID
+}