diff --git a/code/addons/actions/src/runtime/action.ts b/code/addons/actions/src/runtime/action.ts
index f6779d1a1a64..a647a8eb0d1b 100644
--- a/code/addons/actions/src/runtime/action.ts
+++ b/code/addons/actions/src/runtime/action.ts
@@ -103,6 +103,7 @@ export function action(name: string, options: ActionOptions = {}): HandlerFuncti
     channel.emit(EVENT_ID, actionDisplayToEmit);
   };
   handler.isAction = true;
+  handler.implicit = options.implicit;
 
   return handler;
 }
diff --git a/code/addons/interactions/src/preview.ts b/code/addons/interactions/src/preview.ts
index d751cbf7bc58..ef10d79b3ca0 100644
--- a/code/addons/interactions/src/preview.ts
+++ b/code/addons/interactions/src/preview.ts
@@ -1,22 +1,41 @@
 /* eslint-disable no-underscore-dangle */
-import type {
-  Args,
-  LoaderFunction,
-  PlayFunction,
-  PlayFunctionContext,
-  StepLabel,
-} from '@storybook/types';
+import type { Args, ArgsEnhancer, Renderer } from '@storybook/types';
 import { instrument } from '@storybook/instrumenter';
+import { fn } from '@storybook/test';
 
-export const { step: runStep } = instrument(
-  {
-    step: (label: StepLabel, play: PlayFunction, context: PlayFunctionContext<any>) =>
-      play(context),
-  },
-  { intercept: true }
-);
+const addSpies = (value: unknown, depth = 0): any => {
+  // Make sure to not get in infinite loops with self referencing args
+  if (depth > 5) return value;
 
-const instrumentSpies: LoaderFunction = ({ initialArgs }) => {
+  if (value == null) return value;
+  if (
+    typeof value === 'function' &&
+    'isAction' in value &&
+    value.isAction &&
+    !('implicit' in value && value.implicit) &&
+    !('_isMockFunction' in value && value._isMockFunction)
+  ) {
+    return fn(value as any);
+  }
+
+  if (Array.isArray(value)) {
+    return value.map((item) => addSpies(item, depth++));
+  }
+
+  if (typeof value === 'object') {
+    // We have to mutate the original object for this to survive HMR.
+
+    for (const [k, v] of Object.entries(value)) {
+      (value as Record<string, unknown>)[k] = addSpies(v, depth++);
+    }
+    return value;
+  }
+  return value;
+};
+
+const wrapActionsInSpyFns: ArgsEnhancer<Renderer> = ({ initialArgs }) => addSpies(initialArgs);
+
+const instrumentSpies: ArgsEnhancer = ({ initialArgs }) => {
   const argTypesWithAction = Object.entries(initialArgs).filter(
     ([, value]) =>
       typeof value === 'function' &&
@@ -29,13 +48,12 @@ const instrumentSpies: LoaderFunction = ({ initialArgs }) => {
     const instrumented = instrument({ [key]: () => value }, { retain: true })[key];
     acc[key] = instrumented();
     // this enhancer is being called multiple times
-
     value._instrumented = true;
     return acc;
   }, {} as Args);
 };
 
-export const argsEnhancers = [instrumentSpies];
+export const argsEnhancers = [wrapActionsInSpyFns, instrumentSpies];
 
 export const parameters = {
   throwPlayFunctionExceptions: false,