diff --git a/ykrt/src/compile/j2/hir_to_asm.rs b/ykrt/src/compile/j2/hir_to_asm.rs
index 8a2837b6c..8a055f7e1 100644
--- a/ykrt/src/compile/j2/hir_to_asm.rs
+++ b/ykrt/src/compile/j2/hir_to_asm.rs
@@ -2601,18 +2601,15 @@ mod test {
           %1: i8 = 4
           %2: i1 = icmp eq %0, %1
           guard true, %2, [%0], [[[reg("R2", undefined)]]]
-          %4: i8 = 1
-          %5: i8 = add %0, %4
-          term [%5]
+          term [%0]
         "#,
             |_| true,
             &[r#"
           controlpoint_loop_end
           ; term [%0]
-          ; %0: i8 = 5
+          ; %0: i8 = 4
           controlpoint_peel_start 1
-          ; term [%6]
-          ; %6: i8 = 5
+          ; term [%1]
           i_guard: [%0]
           ; guard true, %2, [%0]
           ; %2: i1 = icmp eq %0, %1
diff --git a/ykrt/src/compile/j2/opt/fullopt.rs b/ykrt/src/compile/j2/opt/fullopt.rs
index 44de2cce1..b3d7fdcdb 100644
--- a/ykrt/src/compile/j2/opt/fullopt.rs
+++ b/ykrt/src/compile/j2/opt/fullopt.rs
@@ -418,13 +418,26 @@ impl OptT for FullOpt {
         }
 
         // Feed each instruction from `entry` (except the arguments!) into the peel.
-        for (iidx, inst) in entry
-            .insts_iter(..)
-            .skip(entry.term_vars().len()) // Skip `Arg` instructions
-            .filter(|(iidx, _)| is_used[usize::from(*iidx)])
-        {
-            let mut inst = inst.clone();
+        for iidx in (entry.term_vars().len()..entry.insts_len()).map(InstIdx::new) {
+            if !is_used[usize::from(iidx)] {
+                continue;
+            }
+            let mut inst = entry.inst(iidx).clone();
             if let Inst::Guard(mut x) = inst {
+                if let Inst::Const(Const {
+                    kind: ConstKind::Int(y),
+                    ..
+                }) = self.inst(self.equiv_iidx(map[x.cond]))
+                {
+                    let v = y.to_zero_ext_u8().unwrap();
+                    if (x.expect && v == 0) || (!x.expect && v == 1) {
+                        // We've found a contradiction. The peel is semi-pointless: we could
+                        // generate it up to this instruction, but the risk of creating extra
+                        // sidetraces doesn't seem worth it.
+                        return Ok((entry, None, self.inner.tys));
+                    }
+                }
+
                 let old_gextra = &entry.guard_extras[x.geidx];
                 let gextra = GuardExtra {
                     bid: old_gextra.bid,
@@ -438,8 +451,6 @@ impl OptT for FullOpt {
                 };
                 x.cond = map[x.cond];
                 x.geidx = GuardExtraIdx::MAX;
-                // FIXME: Peeled guards can find contradictions because not all loops are
-                // control-flow stable.
                 self.feed_guard(x, gextra)?;
             } else if inst.tyidx(&*self) == self.inner.tyidx_void {
                 inst.rewrite_iidxs(&mut *self, |x| map[x]);
@@ -895,14 +906,22 @@ pub(in crate::compile::j2) mod test {
         let tyidx_ptr0 = fopt.inner.tyidx_ptr0;
         let tyidx_void = fopt.inner.tyidx_void;
         let (entry, peel, tys) = fopt.build_with_peel().unwrap();
+        let trace_end = if let Some(peel) = peel {
+            TraceEnd::TestPeel {
+                args_vlocs: args_vlocs.to_owned(),
+                entry,
+                peel,
+            }
+        } else {
+            TraceEnd::Test {
+                args_vlocs: args_vlocs.to_owned(),
+                block: entry,
+            }
+        };
         Mod {
             trid: m.trid,
             trace_start: TraceStart::Test,
-            trace_end: TraceEnd::TestPeel {
-                args_vlocs: args_vlocs.to_owned(),
-                entry,
-                peel: peel.unwrap(),
-            },
+            trace_end,
             tys,
             tyidx_int1,
             tyidx_ptr0,
@@ -1164,5 +1183,25 @@ pub(in crate::compile::j2) mod test {
           term [%0, %1]
         ",
         );
+
+        // Guard contradiction prevents a peel being created.
+        full_opt_test(
+            "
+          %0: i8 = arg [reg]
+          %1: i8 = 0
+          %2: i1 = icmp eq %0, %1
+          guard true, %2, []
+          %4: i8 = 1
+          term [%4]
+        ",
+            "
+          %0: i8 = arg
+          %1: i8 = 0
+          %2: i1 = icmp eq %0, %1
+          guard true, %2, []
+          %5: i8 = 1
+          term [%5]
+        ",
+        );
     }
 }
diff --git a/ykrt/src/compile/j2/opt/known_bits.rs b/ykrt/src/compile/j2/opt/known_bits.rs
index ae2d9570c..374827d1d 100644
--- a/ykrt/src/compile/j2/opt/known_bits.rs
+++ b/ykrt/src/compile/j2/opt/known_bits.rs
@@ -169,6 +169,12 @@ impl KnownBits {
         if let Some(cond_b) = self.as_knownbits(opt, cond)
             && cond_b.all_known()
         {
+            // Contradictions should have been spotted before we get to here.
+            let x = cond_b.as_arbbitint();
+            assert!(
+                (expect && x.to_zero_ext_u8() == Some(1))
+                    || (!expect && x.to_zero_ext_u8() == Some(0))
+            );
             return OptOutcome::NotNeeded;
         }
         if expect
diff --git a/ykrt/src/compile/j2/opt/strength_fold.rs b/ykrt/src/compile/j2/opt/strength_fold.rs
index 75679f016..756b7f003 100644
--- a/ykrt/src/compile/j2/opt/strength_fold.rs
+++ b/ykrt/src/compile/j2/opt/strength_fold.rs
@@ -376,7 +376,11 @@ fn opt_guard(opt: &mut PassOpt, mut inst @ Guard { expect, cond, .. }: Guard) ->
     // recanonicalising the guard would change the `entry_vars` in a semantically incorrect way.
 
     let cond = opt.equiv_iidx(cond);
-    if let Inst::Const(_) = opt.inst(cond) {
+    if let Some(ConstKind::Int(x)) = opt.as_constkind(cond) {
+        // Contradictions should have been spotted before we get to here.
+        assert!(
+            (expect && x.to_zero_ext_u8() == Some(1)) || (!expect && x.to_zero_ext_u8() == Some(0))
+        );
         // A guard that references a constant is, by definition, not needed and doesn't affect
         // future analyses.
         return OptOutcome::NotNeeded;