diff --git a/src/compyre/api.py b/src/compyre/api.py
index 0184745..369ba19 100644
--- a/src/compyre/api.py
+++ b/src/compyre/api.py
@@ -118,6 +118,7 @@ def compare(
     )
 
     pairs: Deque[Pair] = deque([Pair(index=(), actual=actual, expected=expected)])
+    seen: set[tuple[int, int]] = {(id(actual), id(expected))}
     errors: list[CompareError] = []
     while pairs:
         pair = pairs.popleft()
@@ -133,7 +134,10 @@ def compare(
                 errors.append(CompareError(pair=pair, exception=unpack_result))
             else:
                 for p in reversed(unpack_result):
-                    pairs.appendleft(p)
+                    key = (id(p.actual), id(p.expected))
+                    if key not in seen:
+                        seen.add(key)
+                        pairs.appendleft(p)
             continue
 
         equal_result: EqualFnResult = None
diff --git a/tests/test_api.py b/tests/test_api.py
index 02e1f89..9e574e3 100644
--- a/tests/test_api.py
+++ b/tests/test_api.py
@@ -1,10 +1,11 @@
+import dataclasses
 import inspect
 from copy import deepcopy
 from typing import Annotated, Any
 
 import pytest
 
-from compyre import alias, api, builtin
+from compyre import alias, api, builtin, utils
 
 
 class TestParametrizeFns:
@@ -228,6 +229,100 @@ def test_alias(self):
 
 
 class TestCompare:
+    def test_circular_reference_two_nodes(self):
+        @dataclasses.dataclass
+        class Node:
+            value: int
+            peer: Any = None
+
+        a = Node(value=1)
+        b = Node(value=1)
+        a.peer = b
+        b.peer = a
+
+        c = Node(value=1)
+        d = Node(value=1)
+        c.peer = d
+        d.peer = c
+
+        def unpack_node(p, /):
+            if not utils.both_isinstance(p, Node):
+                return None
+
+            return [
+                api.Pair(
+                    index=(*p.index, "value"),
+                    actual=p.actual.value,
+                    expected=p.expected.value,
+                ),
+                api.Pair(
+                    index=(*p.index, "peer"),
+                    actual=p.actual.peer,
+                    expected=p.expected.peer,
+                ),
+            ]
+
+        def equal_fn(p, /):
+            return p.actual == p.expected
+
+        errors = api.compare(
+            [a, b],
+            [c, d],
+            unpack_fns=[
+                builtin.unpack_fns.collections_sequence,
+                unpack_node,
+            ],
+            equal_fns=[equal_fn],
+        )
+        assert not errors
+
+    def test_circular_reference_mismatch(self):
+        @dataclasses.dataclass
+        class Node:
+            value: int
+            peer: Any = None
+
+        a = Node(value=1)
+        b = Node(value=2)
+        a.peer = b
+        b.peer = a
+
+        c = Node(value=1)
+        d = Node(value=3)
+        c.peer = d
+        d.peer = c
+
+        def unpack_node(p, /):
+            if not (isinstance(p.actual, Node) and isinstance(p.expected, Node)):
+                return None
+            return [
+                api.Pair(
+                    index=(*p.index, "value"),
+                    actual=p.actual.value,
+                    expected=p.expected.value,
+                ),
+                api.Pair(
+                    index=(*p.index, "peer"),
+                    actual=p.actual.peer,
+                    expected=p.expected.peer,
+                ),
+            ]
+
+        def equal_fn(p, /):
+            return p.actual == p.expected
+
+        errors = api.compare(
+            [a, b],
+            [c, d],
+            unpack_fns=[
+                builtin.unpack_fns.collections_sequence,
+                unpack_node,
+            ],
+            equal_fns=[equal_fn],
+        )
+        assert len(errors) == 1
+        assert errors[0].pair.index == (1, "value")
+
     def test_unpack_fn_exception(self):
         exc = Exception()