diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/type-contract.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/type-contract.rkt
index 719c4c5b98..8187227ac6 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/type-contract.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/type-contract.rkt
@@ -251,12 +251,14 @@
                                       (recursive-sc-use both-dep)))))
                 (define resolved-name (resolve-once type))
                 (define resolved-deps
-                  (map (λ (dep) (lookup-type-alias dep values)) dep-ids))
+                  (for/list ([dep (in-list dep-ids)])
+                    (resolve-once (lookup-type-alias dep values))))
 
                 ;; resolved-deps->scs : (U 'untyped 'typed 'both)
                 ;;                      -> (Listof Static-Contract)
                 (define (resolved-deps->scs typed-side)
-                  (for/list ([resolved-dep resolved-deps])
+                  (for/list ([resolved-dep (in-list resolved-deps)]
+                             [dep (in-list deps)])
                     (loop resolved-dep typed-side rv)))
 
                 ;; Now actually generate the static contracts
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/recursive-type-alias-terminates.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/recursive-type-alias-terminates.rkt
new file mode 100644
index 0000000000..299d590cc7
--- /dev/null
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/recursive-type-alias-terminates.rkt
@@ -0,0 +1,22 @@
+#lang racket/load
+
+;; Test that contracts for mutually recursive class types do not
+;; cause infinite loops when they execute.
+
+(module a typed/racket
+  (define-type X%
+    (Class [m (-> (Instance Y%) String)]))
+  (define-type Y%
+    (Class [m (-> (Instance X%) Any)]))
+  (: x X%)
+  (define x (class object%
+              (super-new)
+              (define/public (m y) "foo")))
+  (: y Y%)
+  (define y (class object%
+              (super-new)
+              (define/public (m x) 0)))
+  (provide x y))
+
+(require 'a)
+(send (new x) m (new y))