diff --git a/src/compile/mod.rs b/src/compile/mod.rs
index 9f8dffb4..16d4ca9b 100644
--- a/src/compile/mod.rs
+++ b/src/compile/mod.rs
@@ -486,26 +486,37 @@ fn list_fold<'brand>(
         f_array: &ProgNode<'brand>,
         f_fold: &ProgNode<'brand>,
     ) -> Result<ProgNode<'brand>, simplicity::types::Error> {
-        /* (fold f)_(n + 1) :  E<2^(n + 1) × A → A
+        /* (fold f)_(n + 1) :  E^<2^(n + 1) × A → A
          * (fold f)_(n + 1) := OOH ▵ (OIH ▵ IH);
-         *                     case (drop (fold f)_n)
-         *                          ((IOH ▵ (OH ▵ IIH; f_n)); (fold f)_n)
+         *                     (IOH ▵ case IIH (OH ▵ IIH; f_n));
+         *                     (fold f)_n
+         *
+         * Uses f_fold exactly once (no DAG sharing) to avoid incorrect pruning.
          */
         let ctx = f_array.inference_context();
+        // Rearrange input: ((1+E^n) × E^<n) × A → (1+E^n, (E^<n, A))
         let case_input = ProgNode::o()
             .o()
             .h(ctx)
             .pair(ProgNode::o().i().h(ctx).pair(ProgNode::i().h(ctx)));
-        let case_left = ProgNode::drop_(f_fold);
 
-        let f_n_input = ProgNode::o().h(ctx).pair(ProgNode::i().i().h(ctx));
-        let f_n_output = f_n_input.comp(f_array)?;
-        let fold_n_input = ProgNode::i().o().h(ctx).pair(f_n_output);
-        let case_right = fold_n_input.comp(f_fold)?;
+        // acc' = case IIH (OH ▵ IIH; f_n)
+        // Left(()): head empty, keep acc unchanged (IIH)
+        let left_branch = ProgNode::i().i().h(ctx);
+        // Right(h): apply f_n(h, acc) = (OH ▵ IIH); f_n
+        let right_branch = ProgNode::o()
+            .h(ctx)
+            .pair(ProgNode::i().i().h(ctx))
+            .comp(f_array)?;
+        let acc_prime = ProgNode::case(left_branch.as_ref(), right_branch.as_ref())?;
+
+        // fold_n_input = IOH ▵ acc': gives (tail, acc')
+        let ioh = ProgNode::i().o().h(ctx).build();
+        let fold_n_input = ProgNode::pair(&ioh, &acc_prime)?;
 
-        case_input
-            .comp(&ProgNode::case(&case_left, case_right.as_ref())?)
-            .map(PairBuilder::build)
+        // Compose: case_input; (IOH ▵ acc'); f_fold
+        let middle = ProgNode::comp(&fold_n_input, f_fold)?;
+        case_input.comp(&middle).map(PairBuilder::build)
     }
 
     /* f_0 :  E × A → A
@@ -680,3 +691,153 @@ impl Match {
         input.comp(&output).with_span(self)
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use std::borrow::Cow;
+
+    use crate::{tests::TestCase, WitnessValues};
+
+    // Helper: fold with addition, f(elt, acc) = acc + elt
+    const ADD_FN: &str = r#"fn add(elt: u32, acc: u32) -> u32 {
+    let (_, sum): (bool, u32) = jet::add_32(elt, acc);
+    sum
+}
+"#;
+
+    // Helper: fold that ignores the accumulator and returns the element.
+    // When folded left-to-right over a non-empty list, the final result equals the LAST element.
+    const LAST_FN: &str = r#"fn last(elt: u32, _acc: u32) -> u32 {
+    elt
+}
+"#;
+
+    fn make_prog(fns: &str, body: &str) -> String {
+        format!("{fns}\nfn main() {{\n{body}\n}}\n")
+    }
+
+    fn run(prog: &str) {
+        TestCase::program_text(Cow::Owned(prog.to_owned()))
+            .with_witness_values(WitnessValues::default())
+            .assert_run_success();
+    }
+
+    // ── bound = 2 (list holds 0 or 1 elements) ──────────────────────────
+
+    #[test]
+    fn list_fold_empty_bound2() {
+        // Empty list: fold must return the initial accumulator unchanged.
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 2> = list![];
+    let result: u32 = fold::<add, 2>(list, 77);
+    assert!(jet::eq_32(result, 77));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_single_element_bound2() {
+        // One-element list: fold must apply f exactly once.
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 2> = list![42];
+    let result: u32 = fold::<add, 2>(list, 0);
+    assert!(jet::eq_32(result, 42));"#,
+        ));
+    }
+
+    // ── bound = 4 (list holds 0–3 elements) ──────────────────────────────
+
+    #[test]
+    fn list_fold_empty_bound4() {
+        // Empty list with larger bound: must still return initial accumulator.
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 4> = list![];
+    let result: u32 = fold::<add, 4>(list, 99);
+    assert!(jet::eq_32(result, 99));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_one_element_bound4() {
+        // Partition: head-block empty, tail = [5].
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 4> = list![5];
+    let result: u32 = fold::<add, 4>(list, 0);
+    assert!(jet::eq_32(result, 5));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_two_elements_bound4() {
+        // Partition: head-block = [10, 20], tail empty.
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 4> = list![10, 20];
+    let result: u32 = fold::<add, 4>(list, 0);
+    assert!(jet::eq_32(result, 30));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_three_elements_bound4() {
+        // Full list for bound=4: head=[1,2], tail=[3].
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 4> = list![1, 2, 3];
+    let result: u32 = fold::<add, 4>(list, 0);
+    assert!(jet::eq_32(result, 6));"#,
+        ));
+    }
+
+    // ── bound = 8 (list holds 0–7 elements) ──────────────────────────────
+
+    #[test]
+    fn list_fold_five_elements_bound8() {
+        // Partition: outer-head=[1,2,3,4], outer-tail partition [5].
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 8> = list![1, 2, 3, 4, 5];
+    let result: u32 = fold::<add, 8>(list, 0);
+    assert!(jet::eq_32(result, 15));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_seven_elements_bound8() {
+        // Full list for bound=8.
+        run(&make_prog(
+            ADD_FN,
+            r#"    let list: List<u32, 8> = list![1, 2, 3, 4, 5, 6, 7];
+    let result: u32 = fold::<add, 8>(list, 0);
+    assert!(jet::eq_32(result, 28));"#,
+        ));
+    }
+
+    // ── Ordering tests ────────────────────────────────────────────────────
+    // `last` ignores the accumulator and returns the element itself.
+    // A correct left-to-right fold over [a, b, c] returns the *last* element c.
+    // A right-to-left fold would return the *first* element a instead.
+
+    #[test]
+    fn list_fold_order_bound4() {
+        run(&make_prog(
+            LAST_FN,
+            r#"    let list: List<u32, 4> = list![1, 2, 3];
+    let result: u32 = fold::<last, 4>(list, 0);
+    assert!(jet::eq_32(result, 3));"#,
+        ));
+    }
+
+    #[test]
+    fn list_fold_order_bound8() {
+        run(&make_prog(
+            LAST_FN,
+            r#"    let list: List<u32, 8> = list![1, 2, 3, 4, 5, 6, 7];
+    let result: u32 = fold::<last, 8>(list, 0);
+    assert!(jet::eq_32(result, 7));"#,
+        ));
+    }
+}