diff --git a/guidance/_parser.py b/guidance/_parser.py
index 600d0cb43..5974e998c 100644
--- a/guidance/_parser.py
+++ b/guidance/_parser.py
@@ -535,12 +535,16 @@ def _record_captures_partial(self, data, log_prob_data):
     def _record_captures_from_root(self, initial_item, data, log_prob_data):
         byte_data = self.bytes
         stack = [(initial_item, 0)]
-        used_names = (
-            set()
-        )  # track which capture names have been used so self-recursive children don't overwrite their parents
-
+        # track which capture names have been used so self-recursive children don't overwrite their parents
+        used_names = set()
+        # track which items we have seen so we don't process them multiple times, leading to infinite loops
+        seen = set()
         while stack:
             item, byte_pos = stack.pop()
+            if (item, byte_pos) in seen:
+                # skip items we have already processed
+                continue
+            seen.add((item, byte_pos))
             # terminal nodes
             if isinstance(item, Terminal):
 
@@ -594,10 +598,14 @@ def _record_captures_from_root(self, initial_item, data, log_prob_data):
 
     def _compute_parse_tree(self, initial_pos, initial_item, reversed_state_sets):
         stack = [(initial_pos, initial_item)]
-
+        # track which items we have seen so we don't process them multiple times, leading to infinite loops
+        seen = set()
         while stack:
             pos, item = stack.pop()
-
+            if (pos, item) in seen:
+                # skip items we have already processed
+                continue
+            seen.add((pos, item))
             # compute the children for this item
             assert self._compute_children(pos, item, reversed_state_sets)
 
diff --git a/setup.py b/setup.py
index 19cec3a39..b5d54b062 100644
--- a/setup.py
+++ b/setup.py
@@ -61,6 +61,7 @@
     "papermill",
     "pytest",
     "pytest-cov",
+    "pytest-timeout",
     "torch",
     "transformers",
     "mypy==1.9.0",
diff --git a/tests/test_parser.py b/tests/test_parser.py
index 63fafbd93..8d9e8ef43 100644
--- a/tests/test_parser.py
+++ b/tests/test_parser.py
@@ -1,5 +1,8 @@
+import pytest
+from unittest.mock import patch
+
 from guidance import char_set, one_or_more, select, string, zero_or_more
-from guidance._grammar import Byte, ByteRange
+from guidance._grammar import Byte, ByteRange, Select, Join
 from guidance._parser import EarleyCommitParser
 
 
@@ -131,3 +134,120 @@ def test_string_utf8():
     parser.consume_byte(b[:1])
     assert parser.valid_next_bytes() == set([Byte(b[1:])])
     parser.consume_byte(b[1:])
+
+
+class TestRecursiveNullableGrammars:
+    """
+    Computing parse tree of recursive nullable grammars will cause an infinite
+    loop if not handled correctly
+    """
+
+    @pytest.mark.timeout(5)
+    def test_no_infinite_loop(self):
+        """
+        A -> A
+        A ->
+
+        Loop occurs because `A -> A` is a nullable rule
+        """
+        # Note that we get a different grammar if we made `A = select([''], recurse=True)`
+        A = Select([], recursive=True)
+        A.values = [A, ""]
+        parser = EarleyCommitParser(A)
+        # Test that computing the parse tree doesn't hang
+        parser.parse_tree()
+
+    @pytest.mark.timeout(5)
+    def test_no_infinite_loop_with_terminal(self):
+        """
+        A -> A B
+        A ->
+        B -> 'x'
+        B ->
+
+        Loop occurs because `A -> A B` is a nullable rule
+        """
+        B = select(["x", ""])
+        A = select([B, ""], recurse=True)
+        parser = EarleyCommitParser(A)
+        # Test that computing the parse tree doesn't hang
+        parser.parse_tree()
+
+    @pytest.mark.timeout(5)
+    def test_no_infinite_loop_extra_indirection(self):
+        """
+        A -> A C
+        A -> B
+        A ->
+        B -> A
+        C -> 'x'
+
+        Loop occurs because `A -> B`, `B -> A` are nullable rules
+        """
+        C = Join(["x"])
+        # Initialize as nullable -- quirk in how nullability is determined in Select
+        B = Select([""])
+        # Initialize as nullable -- quirk in how nullability is determined in Select
+        A = Select([""])
+        B.values = [A]
+        A.values = [A + C, B, ""]
+        assert A.nullable
+        assert B.nullable
+        parser = EarleyCommitParser(A)
+        # Test that computing the parse tree doesn't hang
+        parser.parse_tree()
+
+    @pytest.mark.timeout(5)
+    def test_captures_from_root(self):
+        B = select(["x", "y", ""], name="B")
+        A = select([B, ""], recurse=True, name="A")
+        parser = EarleyCommitParser(A)
+
+        with patch.object(
+            parser,
+            "_record_captures_from_root",
+            wraps=parser._record_captures_from_root,
+        ) as mock:
+            parser.consume_byte(b"x")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 1
+            assert captures == {"B": b"x", "A": b"x"}
+
+            parser.consume_byte(b"y")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 2
+            assert captures == {"B": b"y", "A": b"xy"}
+
+            parser.consume_byte(b"x")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 3
+            assert captures == {"B": b"x", "A": b"xyx"}
+
+    @pytest.mark.timeout(5)
+    def test_partial_captures(self):
+        B = select(["x", "y", ""], name="B")
+        A = select([B, ""], recurse=True, name="A")
+        C = A + "z"
+        parser = EarleyCommitParser(C)
+
+        with patch.object(
+            parser,
+            "_record_captures_partial",
+            wraps=parser._record_captures_partial,
+        ) as mock:
+            parser.consume_byte(b"x")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 1
+            assert captures == {"B": b"", "A": b"x"}
+
+            parser.consume_byte(b"y")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 2
+            assert captures == {"B": b"", "A": b"xy"}
+
+            # No new call to _record_captures_partial, but make sure that the captures are updated
+            # when finally called from root
+            parser.consume_byte(b"z")
+            captures, _ = parser.get_captures()
+            assert mock.call_count == 2  # no new call
+            assert captures == {"B": b"y", "A": b"xy"}