diff --git a/lib/ast.js b/lib/ast.js
index 9b243f16..99415446 100644
--- a/lib/ast.js
+++ b/lib/ast.js
@@ -91,19 +91,23 @@ var AST_Token = DEFNODE("Token", "type value line col pos endline endcol endpos
 }, null);
 
 var AST_Node = DEFNODE("Node", "start end", {
-    _clone: function(deep) {
+    _clone: function(deep, depth) {
+        if (typeof depth == "undefined") depth = 0;
+        if (depth++ > 1000) {
+            throw new Error("clone depth exceeded (" + this.start.line + ", " + this.start.col + ")");
+        }
         if (deep) {
-            var self = this.clone();
+            var self = this.clone(false, depth);
             return self.transform(new TreeTransformer(function(node) {
                 if (node !== self) {
-                    return node.clone(true);
+                    return node.clone(true, depth);
                 }
             }));
         }
         return new this.CTOR(this);
     },
-    clone: function(deep) {
-        return this._clone(deep);
+    clone: function(deep, depth) {
+        return this._clone(deep, depth);
     },
     $documentation: "Base class of all AST nodes",
     $propdoc: {
@@ -202,8 +206,8 @@ var AST_LabeledStatement = DEFNODE("LabeledStatement", "label", {
             this.body._walk(visitor);
         });
     },
-    clone: function(deep) {
-        var node = this._clone(deep);
+    clone: function(deep, depth) {
+        var node = this._clone(deep, depth);
         if (deep) {
             var label = node.label;
             var def = this.label;
diff --git a/lib/compress.js b/lib/compress.js
index c1232420..332bb68a 100644
--- a/lib/compress.js
+++ b/lib/compress.js
@@ -4243,7 +4243,11 @@ merge(Compressor.prototype, {
             }
             if (fixed && d.single_use) {
                 var value = fixed.optimize(compressor);
-                return value === fixed ? fixed.clone(true) : value;
+                try {
+                    return value === fixed ? fixed.clone(true) : value;
+                } catch (x) {
+                    // infinite clone - do nothing
+                }
             }
             if (fixed && d.should_replace === undefined) {
                 var init;
diff --git a/test/compress/reduce_vars.js b/test/compress/reduce_vars.js
index 25f95ff8..fa455e7d 100644
--- a/test/compress/reduce_vars.js
+++ b/test/compress/reduce_vars.js
@@ -3654,3 +3654,183 @@ issue_2440_with_2: {
         }
     }
 }
+
+recursive_inlining_1: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        !function(){
+            function foo() { bar(); }
+            function bar() { foo(); }
+            console.log("PASS");
+        }();
+    }
+    expect: {
+        !function() {
+            console.log("PASS");
+        }();
+    }
+}
+
+recursive_inlining_2: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        !function(){
+            function foo() { qux(); }
+            function bar() { foo(); }
+            function qux() { bar(); }
+            console.log("PASS");
+        }();
+    }
+    expect: {
+        !function() {
+            console.log("PASS");
+        }();
+    }
+}
+
+recursive_inlining_3: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        !function() {
+            function foo(x) { console.log("foo", x); if (x) bar(x-1); }
+            function bar(x) { console.log("bar", x); if (x) qux(x-1); }
+            function qux(x) { console.log("qux", x); if (x) foo(x-1); }
+            qux(4);
+        }();
+    }
+    expect: {
+        !function() {
+            function qux(x) {
+                console.log("qux", x);
+                if (x) (function(x) {
+                    console.log("foo", x);
+                    if (x) (function(x) {
+                        console.log("bar", x);
+                        if (x) qux(x - 1);
+                    })(x - 1);
+                })(x - 1);
+            }
+            qux(4);
+        }();
+    }
+    expect_stdout: [
+        "qux 4",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+    ]
+}
+
+recursive_inlining_4: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        !function() {
+            function foo(x) { console.log("foo", x); if (x) bar(x-1); }
+            function bar(x) { console.log("bar", x); if (x) qux(x-1); }
+            function qux(x) { console.log("qux", x); if (x) foo(x-1); }
+            qux(4);
+            bar(5);
+        }();
+    }
+    expect: {
+        !function() {
+            function bar(x) {
+                console.log("bar", x);
+                if (x) qux(x - 1);
+            }
+            function qux(x) {
+                console.log("qux", x);
+                if (x) (function(x) {
+                    console.log("foo", x);
+                    if (x) bar(x - 1);
+                })(x - 1);
+            }
+            qux(4);
+            bar(5);
+        }();
+    }
+    expect_stdout: [
+        "qux 4",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+        "bar 5",
+        "qux 4",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+    ]
+}
+
+recursive_inlining_5: {
+    options = {
+        reduce_vars: true,
+        toplevel: true,
+        unused: true,
+    }
+    input: {
+        !function() {
+            function foo(x) { console.log("foo", x); if (x) bar(x-1); }
+            function bar(x) { console.log("bar", x); if (x) qux(x-1); }
+            function qux(x) { console.log("qux", x); if (x) foo(x-1); }
+            qux(4);
+            bar(5);
+            foo(3);
+        }();
+    }
+    expect: {
+        !function() {
+            function foo(x) {
+                console.log("foo", x);
+                if (x) bar(x - 1);
+            }
+            function bar(x) {
+                console.log("bar", x);
+                if (x) qux(x - 1);
+            }
+            function qux(x) {
+                console.log("qux", x);
+                if (x) foo(x - 1);
+            }
+            qux(4);
+            bar(5);
+            foo(3);
+        }();
+    }
+    expect_stdout: [
+        "qux 4",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+        "bar 5",
+        "qux 4",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+        "foo 3",
+        "bar 2",
+        "qux 1",
+        "foo 0",
+    ]
+}