diff --git a/tests/api_test.py b/tests/api_test.py
index e404ba8151b4..42c03e80bf36 100644
--- a/tests/api_test.py
+++ b/tests/api_test.py
@@ -4103,6 +4103,33 @@ def __call__(self, y):
 
     jax.make_jaxpr(Foo(1))(3)  # don't crash
 
+  def test_inner_jit_function_retracing(self):
+    # https://github.com/google/jax/issues/7155
+    inner_count = outer_count = 0
+
+    @jax.jit
+    def inner_fn(state):
+      nonlocal inner_count
+      inner_count += 1
+      return 2*state
+
+    @jax.jit
+    def outer_fn(x):
+      nonlocal outer_count
+      outer_count += 1
+      old_x = x
+      for _ in range(10):
+        x = inner_fn(x)
+      x = x + old_x
+      return x
+
+    state = jnp.arange(5, dtype=jnp.uint32)
+    inner_fn(state)
+    outer_fn(state)
+
+    self.assertEqual(inner_count, 1)
+    self.assertEqual(outer_count, 1)
+
 
 class RematTest(jtu.JaxTestCase):