diff --git modules/taxonomy/taxonomy.module modules/taxonomy/taxonomy.module
index 70f4c3b..ed3223d 100644
--- modules/taxonomy/taxonomy.module
+++ modules/taxonomy/taxonomy.module
@@ -610,9 +610,13 @@ function taxonomy_node_get_terms_by_vocabulary($node, $vid, $key = 'tid') {
 /**
  * Find all terms associated with the given node, ordered by vocabulary and term weight.
  */
-function taxonomy_node_get_terms($node, $key = 'tid') {
+function taxonomy_node_get_terms($node, $key = 'tid', $reset = FALSE) {
   static $terms;
 
+  if ($reset) {
+    unset($terms[$node->vid]);
+  }
+
   if (!isset($terms[$node->vid][$key])) {
     $result = db_query(db_rewrite_sql('SELECT t.* FROM {term_node} r INNER JOIN {term_data} t ON r.tid = t.tid INNER JOIN {vocabulary} v ON t.vid = v.vid WHERE r.vid = %d ORDER BY v.weight, t.weight, t.name', 't', 'tid'), $node->vid);
     $terms[$node->vid][$key] = array();
@@ -702,6 +706,9 @@ function taxonomy_node_save($node, $terms) {
       }
     }
   }
+
+  // Flush the term "cache" for this node
+  taxonomy_node_get_terms($node, 'tid', TRUE);
 }
 
 /**
@@ -1180,7 +1187,7 @@ function taxonomy_render_nodes($result) {
 /**
  * Implementation of hook_nodeapi().
  */
-function taxonomy_nodeapi($node, $op, $arg = 0) {
+function taxonomy_nodeapi(&$node, $op, $arg = 0) {
   switch ($op) {
     case 'load':
       $output['taxonomy'] = taxonomy_node_get_terms($node);
@@ -1189,12 +1196,14 @@ function taxonomy_nodeapi($node, $op, $arg = 0) {
     case 'insert':
       if (!empty($node->taxonomy)) {
         taxonomy_node_save($node, $node->taxonomy);
+        $node->taxonomy = taxonomy_node_get_terms($node);
       }
       break;
 
     case 'update':
       if (!empty($node->taxonomy)) {
         taxonomy_node_save($node, $node->taxonomy);
+        $node->taxonomy = taxonomy_node_get_terms($node);
       }
       break;