diff --git a/test/libyul/yulInterpreterTests/recursive_function_for_loop.yul b/test/libyul/yulInterpreterTests/recursive_function_for_loop.yul
new file mode 100644
index 000000000..003c71ee6
--- /dev/null
+++ b/test/libyul/yulInterpreterTests/recursive_function_for_loop.yul
@@ -0,0 +1,37 @@
+{
+        {
+            let a := foo_0(calldataload(0))
+            sstore(0, a)
+        }
+        function foo_0(x) -> y
+        {
+            mstore8(1, 1)
+            for {
+            }
+            slt(1, keccak256(1, msize()))
+            {
+                let x_1 := foo_0(x)
+            }
+            {
+                continue
+            }
+        }
+}
+// ----
+// Trace:
+//   MSTORE_AT_SIZE(1, 1) [0101]
+//   MSIZE()
+//   MLOAD_FROM_SIZE(1, 32)
+//   MSTORE_AT_SIZE(1, 1) [0101]
+//   MSIZE()
+//   MLOAD_FROM_SIZE(1, 64)
+//   MSIZE()
+//   MLOAD_FROM_SIZE(1, 96)
+//   SSTORE(0, 0)
+// Memory dump:
+//      0: 0001000000000000000000000000000000000000000000000000000000000000
+//     20: 0000000000000000000000000000000000000000000000000000000000000000
+//     40: 0000000000000000000000000000000000000000000000000000000000000000
+//     60: 0000000000000000000000000000000000000000000000000000000000000000
+// Storage dump:
+//   0000000000000000000000000000000000000000000000000000000000000000: 0000000000000000000000000000000000000000000000000000000000000000
diff --git a/test/tools/yulInterpreter/Interpreter.cpp b/test/tools/yulInterpreter/Interpreter.cpp
index f3ce44e4d..1876da368 100644
--- a/test/tools/yulInterpreter/Interpreter.cpp
+++ b/test/tools/yulInterpreter/Interpreter.cpp
@@ -110,6 +110,7 @@ void Interpreter::operator()(ForLoop const& _forLoop)
 		if (m_state.loopState == LoopState::Break)
 			break;
 
+		m_state.loopState = LoopState::Default;
 		(*this)(_forLoop.post);
 	}
 	m_state.loopState = LoopState::Default;