diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/infer/infer-unit.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/infer/infer-unit.rkt
index 9dff8d9f42..c891aedde3 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/infer/infer-unit.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/infer/infer-unit.rkt
@@ -571,16 +571,10 @@
           [((Set: t) (Sequence: (list t*)))
            (cg t t*)]
 
-          ;; if we have two mu's, we rename them to have the same variable
-          ;; and then compare the bodies
-          ;; This relies on (B 0) only unifying with itself, 
-          ;; and thus only hitting the first case of this `match'
-          [((Mu-unsafe: s) (Mu-unsafe: t))
-           (cg s t)]
-
-          ;; other mu's just get unfolded
-          [(s (? Mu? t)) (cg s (unfold t))]
+          ;; Mu's just get unfolded
+          ;; We unfold S first so that unions are handled in S before T
           [((? Mu? s) t) (cg (unfold s) t)]
+          [(s (? Mu? t)) (cg s (unfold t))]
 
           ;; resolve applications
           [((App: _ _ _) _)
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/infer-tests.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/infer-tests.rkt
index 6a5b2a8777..e394eb6de5 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/infer-tests.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/infer-tests.rkt
@@ -245,6 +245,18 @@
      (-pair (->... (list) ((-v b) b) Univ) (make-ListDots (-v b) 'b))
      #:indices '(b) #:fail]
 
+    [infer-t
+      (-lst (-mu A (Un (-v b) (-lst A))))
+      (-mu C (Un (-v b2) (-lst C)))
+      #:vars '(b2)
+      #:result [(-vec (-v b2)) (-vec (-lst (-mu A (Un (-v b) (-lst A)))))]]
+
+    [infer-t
+      (-mlst (-val 'b))
+      (-mlst (-v a))
+      #:vars '(a)
+      #:result [(-seq (-v a)) (-seq (-val 'b))]]
+
     ;; Currently Broken
     ;(infer-t (make-ListDots -Symbol 'b) (-pair -Symbol (-lst -Symbol)) #:indices '(b))
     [i2-t (-v a) N ('a N)]