diff --git a/Cargo.lock b/Cargo.lock
index 2f19ed704b2..f414a126495 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -48,6 +48,7 @@ dependencies = [
  "ark-bn254",
  "bn254_blackbox_solver",
  "brillig_vm",
+ "fxhash",
  "indexmap 1.9.3",
  "num-bigint",
  "proptest",
diff --git a/acvm-repo/acvm/Cargo.toml b/acvm-repo/acvm/Cargo.toml
index e513ae4e727..ba01ac8ec16 100644
--- a/acvm-repo/acvm/Cargo.toml
+++ b/acvm-repo/acvm/Cargo.toml
@@ -17,7 +17,7 @@ workspace = true
 thiserror.workspace = true
 tracing.workspace = true
 serde.workspace = true
-
+fxhash.workspace = true
 acir.workspace = true
 brillig_vm.workspace = true
 acvm_blackbox_solver.workspace = true
diff --git a/acvm-repo/acvm/src/compiler/transformers/mod.rs b/acvm-repo/acvm/src/compiler/transformers/mod.rs
index 8f9ef63be1f..85a5ac8bb96 100644
--- a/acvm-repo/acvm/src/compiler/transformers/mod.rs
+++ b/acvm-repo/acvm/src/compiler/transformers/mod.rs
@@ -19,6 +19,10 @@ use super::{
     optimizers::MergeExpressionsOptimizer, transform_assert_messages, AcirTransformationMap,
 };
 
+/// The `MergeExpressionOptimizer` needs multiple passes to stabilize the output.
+/// Testing showed two passes to be enough.
+const MAX_OPTIMIZER_PASSES: usize = 10;
+
 /// Applies [`ProofSystemCompiler`][crate::ProofSystemCompiler] specific optimizations to a [`Circuit`].
 pub fn transform<F: AcirField>(
     acir: Circuit<F>,
@@ -153,24 +157,37 @@ pub(super) fn transform_internal<F: AcirField>(
 
     let current_witness_index = next_witness_index - 1;
 
-    let acir = Circuit {
+    let mut acir = Circuit {
         current_witness_index,
         expression_width,
         opcodes: transformed_opcodes,
         // The transformer does not add new public inputs
         ..acir
     };
-    let mut merge_optimizer = MergeExpressionsOptimizer::new();
 
-    let (opcodes, new_acir_opcode_positions) =
-        merge_optimizer.eliminate_intermediate_variable(&acir, new_acir_opcode_positions);
+    // Allow multiple passes until we have stable output.
+    let mut prev_circuit_hash = fxhash::hash64(&acir);
+    for _ in 0..MAX_OPTIMIZER_PASSES {
+        let mut merge_optimizer = MergeExpressionsOptimizer::new();
 
-    // n.b. if we do not update current_witness_index after the eliminate_intermediate_variable pass, the real index could be less.
-    let mut acir = Circuit {
-        opcodes,
-        // The optimizer does not add new public inputs
-        ..acir
-    };
+        let (next_opcodes, next_acir_opcode_positions) =
+            merge_optimizer.eliminate_intermediate_variable(&acir, new_acir_opcode_positions);
+
+        // n.b. if we do not update current_witness_index after the eliminate_intermediate_variable pass, the real index could be less.
+        acir = Circuit {
+            opcodes: next_opcodes,
+            // The optimizer does not add new public inputs
+            ..acir
+        };
+
+        let next_circuit_hash = fxhash::hash64(&acir);
+        new_acir_opcode_positions = next_acir_opcode_positions;
+
+        if next_circuit_hash == prev_circuit_hash {
+            break;
+        }
+        prev_circuit_hash = next_circuit_hash;
+    }
 
     // After the elimination of intermediate variables the `current_witness_index` is potentially higher than it needs to be,
     // which would cause gaps if we ran the optimization a second time, making it look like new variables were added.
diff --git a/tooling/nargo_cli/src/cli/compile_cmd.rs b/tooling/nargo_cli/src/cli/compile_cmd.rs
index f134374f89e..4c7f55fa0cc 100644
--- a/tooling/nargo_cli/src/cli/compile_cmd.rs
+++ b/tooling/nargo_cli/src/cli/compile_cmd.rs
@@ -413,6 +413,11 @@ mod tests {
 
                 let width = get_target_width(package.expression_width, None);
 
+                // Figure out if there is an upper bound to repeating the entire optimization step after which the results are stable:
+                // for _ in 0..2 {
+                //     program_0 = nargo::ops::transform_program(program_0, width);
+                // }
+
                 let program_1 = nargo::ops::transform_program(program_0, width);
                 let program_2 = nargo::ops::transform_program(program_1.clone(), width);