diff --git a/frontend/dockerfile/dockerfile2llb/convert.go b/frontend/dockerfile/dockerfile2llb/convert.go
index 3213e7a5151b..082c6c1cb3e4 100644
--- a/frontend/dockerfile/dockerfile2llb/convert.go
+++ b/frontend/dockerfile/dockerfile2llb/convert.go
@@ -2603,8 +2603,20 @@ func buildMetaArgs(args *llb.EnvList, shlex *shell.Lex, argCommands []instructio
 					if err != nil {
 						return nil, nil, parser.WithLocation(err, cmd.Location())
 					}
+
 					kp.Value = &result.Result
 					info.deps = result.Matched
+					if _, ok := result.Matched[kp.Key]; ok {
+						delete(info.deps, kp.Key)
+						if old, ok := allArgs[kp.Key]; ok {
+							for k := range old.deps {
+								if info.deps == nil {
+									info.deps = make(map[string]struct{})
+								}
+								info.deps[k] = struct{}{}
+							}
+						}
+					}
 				}
 			} else {
 				kp.Value = &v
diff --git a/frontend/dockerfile/dockerfile2llb/outline.go b/frontend/dockerfile/dockerfile2llb/outline.go
index b3d80999c413..72593af289a1 100644
--- a/frontend/dockerfile/dockerfile2llb/outline.go
+++ b/frontend/dockerfile/dockerfile2llb/outline.go
@@ -52,17 +52,21 @@ func (o outlineCapture) clone() outlineCapture {
 	}
 }
 
-func (o outlineCapture) markAllUsed(in map[string]struct{}) {
+func (o outlineCapture) markAllUsed(in map[string]struct{}, visited map[string]struct{}) {
 	for k := range in {
+		if _, ok := visited[k]; ok {
+			continue
+		}
+		visited[k] = struct{}{}
 		if a, ok := o.allArgs[k]; ok {
-			o.markAllUsed(a.deps)
+			o.markAllUsed(a.deps, visited)
 		}
 		o.usedArgs[k] = struct{}{}
 	}
 }
 
 func (ds *dispatchState) args(visited map[string]struct{}) []outline.Arg {
-	ds.outline.markAllUsed(ds.outline.usedArgs)
+	ds.outline.markAllUsed(ds.outline.usedArgs, map[string]struct{}{})
 
 	args := make([]outline.Arg, 0, len(ds.outline.usedArgs))
 	for k := range ds.outline.usedArgs {
diff --git a/frontend/dockerfile/dockerfile_outline_test.go b/frontend/dockerfile/dockerfile_outline_test.go
index 79afed412b44..985ad66ac6b4 100644
--- a/frontend/dockerfile/dockerfile_outline_test.go
+++ b/frontend/dockerfile/dockerfile_outline_test.go
@@ -23,6 +23,7 @@ var outlineTests = integration.TestFuncs(
 	testOutlineArgs,
 	testOutlineSecrets,
 	testOutlineDescribeDefinition,
+	testOutlineRecursiveArgs,
 )
 
 func testOutlineArgs(t *testing.T, sb integration.Sandbox) {
@@ -268,6 +269,86 @@ FROM second
 	require.True(t, called)
 }
 
+func testOutlineRecursiveArgs(t *testing.T, sb integration.Sandbox) {
+	integration.SkipOnPlatform(t, "windows")
+	workers.CheckFeatureCompat(t, sb, workers.FeatureFrontendOutline)
+	f := getFrontend(t, sb)
+	if _, ok := f.(*clientFrontend); !ok {
+		t.Skip("only test with client frontend")
+	}
+
+	dockerfile := []byte(`
+ARG FOO=123
+ARG ABC=abc
+ARG DEF=def
+ARG FOO=${FOO}${ABC}
+ARG BAR=${FOO}456
+ARG FOO=${FOO}456${BAR}
+FROM scratch
+ARG FOO
+ARG INFOO=123
+ARG INBAR=${INFOO}456
+ARG INFOO=${INFOO}456${INBAR}
+`)
+
+	dir := integration.Tmpdir(
+		t,
+		fstest.CreateFile("Dockerfile", []byte(dockerfile), 0600),
+	)
+
+	c, err := client.New(sb.Context(), sb.Address())
+	require.NoError(t, err)
+	defer c.Close()
+
+	destDir, err := os.MkdirTemp("", "buildkit")
+	require.NoError(t, err)
+	defer os.RemoveAll(destDir)
+
+	called := false
+	frontend := func(ctx context.Context, c gateway.Client) (*gateway.Result, error) {
+		res, err := c.Solve(ctx, gateway.SolveRequest{
+			FrontendOpt: map[string]string{
+				"frontend.caps": "moby.buildkit.frontend.subrequests",
+				"requestid":     "frontend.outline",
+			},
+			Frontend: "dockerfile.v0",
+		})
+		require.NoError(t, err)
+
+		outline, err := unmarshalOutline(res)
+		require.NoError(t, err)
+
+		require.Len(t, outline.Args, 5)
+
+		require.Equal(t, "ABC", outline.Args[0].Name)
+		require.Equal(t, "abc", outline.Args[0].Value)
+
+		require.Equal(t, "BAR", outline.Args[1].Name)
+		require.Equal(t, "123abc456", outline.Args[1].Value)
+
+		require.Equal(t, "FOO", outline.Args[2].Name)
+		require.Equal(t, "123abc456123abc456", outline.Args[2].Value)
+
+		require.Equal(t, "INBAR", outline.Args[3].Name)
+		require.Equal(t, "123456", outline.Args[3].Value)
+
+		require.Equal(t, "INFOO", outline.Args[4].Name)
+		require.Equal(t, "123456123456", outline.Args[4].Value)
+
+		called = true
+		return nil, nil
+	}
+
+	_, err = c.Build(sb.Context(), client.SolveOpt{
+		LocalMounts: map[string]fsutil.FS{
+			dockerui.DefaultLocalNameDockerfile: dir,
+		},
+	}, "", frontend, nil)
+	require.NoError(t, err)
+
+	require.True(t, called)
+}
+
 func testOutlineDescribeDefinition(t *testing.T, sb integration.Sandbox) {
 	workers.CheckFeatureCompat(t, sb, workers.FeatureFrontendOutline)
 	f := getFrontend(t, sb)