diff --git a/changes/bound-inline-depth.polish.md b/changes/bound-inline-depth.polish.md
new file mode 100644
index 0000000000..9fdc024a7f
--- /dev/null
+++ b/changes/bound-inline-depth.polish.md
@@ -0,0 +1 @@
+- Stop inlining nested calls more than four levels deep, so a chain of small functions that call each other no longer makes compile time and output size grow quadratically. https://github.com/rescript-lang/rescript/pull/8801
diff --git a/compiler/core/lam_pass_remove_alias.ml b/compiler/core/lam_pass_remove_alias.ml
index 83cbc15f06..44b879ab35 100644
--- a/compiler/core/lam_pass_remove_alias.ml
+++ b/compiler/core/lam_pass_remove_alias.ml
@@ -46,7 +46,15 @@ let is_const_some (cst : Lambda.structured_constant) : bool =
   | Const_some _ -> true
   | _ -> false
 
+(* How deep inlining may nest: simplifying an inlined body can inline the
+   functions it calls, and so on. Without a bound, a chain of small functions
+   that each call the previous one gets the whole chain inlined into every
+   function, which is quadratic in the length of the chain. Functions marked
+   [@inline] are always inlined. *)
+let max_inline_depth = 4
+
 let simplify_alias (meta : Lam_stats.t) (lam : Lambda.t) : Lambda.t =
+  let inline_depth = ref 0 in
   let rec simpl (lam : Lambda.t) : Lambda.t =
     match lam with
     (* Keep a JSX tag like [M.make] as it is: flattening it may give a variable
@@ -204,10 +212,19 @@ let simplify_alias (meta : Lam_stats.t) (lam : Lambda.t) : Lambda.t =
                       Lam_hit.hit_variable v lam)
                   (*avoid nontermination, e.g, `g(g)`*)
                 then normal ()
-                else
-                  simpl
-                    (Lam_beta_reduce.propagate_beta_reduce_with_map meta
-                       param_map params body ap_args))
+                else if
+                  !inline_depth >= max_inline_depth
+                  && m.attr.inline <> Always_inline
+                then normal ()
+                else (
+                  incr inline_depth;
+                  let inlined =
+                    simpl
+                      (Lam_beta_reduce.propagate_beta_reduce_with_map meta
+                         param_map params body ap_args)
+                  in
+                  decr inline_depth;
+                  inlined))
             | _ -> normal ()
           else normal ()
         else normal ()
diff --git a/tests/tests/src/inline_chain_test.mjs b/tests/tests/src/inline_chain_test.mjs
new file mode 100644
index 0000000000..4aea3e5f20
--- /dev/null
+++ b/tests/tests/src/inline_chain_test.mjs
@@ -0,0 +1,81 @@
+// Generated by ReScript, PLEASE EDIT WITH CARE
+
+import * as Mocha from "mocha";
+import * as Test_utils from "./test_utils.mjs";
+
+function f0(x) {
+  return x + 1 | 0;
+}
+
+function f1(x) {
+  return (x + 1 | 0) + 1 | 0;
+}
+
+function f2(x) {
+  return ((x + 1 | 0) + 1 | 0) + 2 | 0;
+}
+
+function f3(x) {
+  return (((x + 1 | 0) + 1 | 0) + 2 | 0) + 3 | 0;
+}
+
+function f4(x) {
+  return ((((x + 1 | 0) + 1 | 0) + 2 | 0) + 3 | 0) + 4 | 0;
+}
+
+function f5(x) {
+  return (((((x + 1 | 0) + 1 | 0) + 2 | 0) + 3 | 0) + 4 | 0) + 5 | 0;
+}
+
+function f6(x) {
+  return ((((f1(x) + 2 | 0) + 3 | 0) + 4 | 0) + 5 | 0) + 6 | 0;
+}
+
+function g0(x) {
+  return (x << 1);
+}
+
+function g1(x) {
+  return ((x << 1) << 1);
+}
+
+function g2(x) {
+  return (((x << 1) << 1) << 1);
+}
+
+function g3(x) {
+  return ((((x << 1) << 1) << 1) << 1);
+}
+
+function g4(x) {
+  return ((((x << 1) << 1) << 1) << 1) + 1 | 0;
+}
+
+let zero = {
+  contents: 0
+};
+
+Mocha.describe("Inline_chain_test", () => {
+  Mocha.test("chain of small functions", () => {
+    Test_utils.eq("File \"inline_chain_test.res\", line 28, characters 7-14", (((f2(zero.contents) + 3 | 0) + 4 | 0) + 5 | 0) + 6 | 0, 22);
+    Test_utils.eq("File \"inline_chain_test.res\", line 29, characters 7-14", ((((zero.contents + 1 | 0) + 1 | 0) + 1 | 0) + 2 | 0) + 3 | 0, 8);
+  });
+  Mocha.test("chain of @inline functions", () => Test_utils.eq("File \"inline_chain_test.res\", line 32, characters 7-14", (((((zero.contents + 1 | 0) << 1) << 1) << 1) << 1) + 1 | 0, 17));
+});
+
+export {
+  f0,
+  f1,
+  f2,
+  f3,
+  f4,
+  f5,
+  f6,
+  g0,
+  g1,
+  g2,
+  g3,
+  g4,
+  zero,
+}
+/*  Not a pure module */
diff --git a/tests/tests/src/inline_chain_test.res b/tests/tests/src/inline_chain_test.res
new file mode 100644
index 0000000000..96a088426f
--- /dev/null
+++ b/tests/tests/src/inline_chain_test.res
@@ -0,0 +1,34 @@
+// Inlining a call can inline the functions that the inlined body calls, but
+// only a few levels deep: in a chain of small functions that each call the
+// previous one, a later function calls an earlier one instead of containing
+// the whole chain. Functions marked @inline are still inlined all the way.
+
+let f0 = x => x + 1
+let f1 = x => f0(x) + 1
+let f2 = x => f1(x) + 2
+let f3 = x => f2(x) + 3
+let f4 = x => f3(x) + 4
+let f5 = x => f4(x) + 5
+let f6 = x => f5(x) + 6
+
+@inline let g0 = x => x * 2
+@inline let g1 = x => g0(x) * 2
+@inline let g2 = x => g1(x) * 2
+@inline let g3 = x => g2(x) * 2
+let g4 = x => g3(x) + 1
+
+// Read through a ref so the calls below are not evaluated at compile time
+let zero = ref(0)
+
+open Mocha
+open Test_utils
+
+describe(__MODULE__, () => {
+  test("chain of small functions", () => {
+    eq(__LOC__, f6(zero.contents), 22)
+    eq(__LOC__, f3(zero.contents + 1), 8)
+  })
+  test("chain of @inline functions", () => {
+    eq(__LOC__, g4(zero.contents + 1), 17)
+  })
+})