diff --git a/src/hotspot/share/opto/cfgnode.cpp b/src/hotspot/share/opto/cfgnode.cpp
index 09cae67fa2f..46016bceaf8 100644
--- a/src/hotspot/share/opto/cfgnode.cpp
+++ b/src/hotspot/share/opto/cfgnode.cpp
@@ -3108,17 +3108,11 @@ class PushInlineTypeDown {
 
   Node* do_transform(PhiNode* phi) {
     assert(_inline_klass != nullptr, "must be");
-    InlineTypeNode *vt = InlineTypeNode::make_null(*_phase, _inline_klass, /* transform = */ false)->clone_with_phis(
+    InlineTypeNode* vt = InlineTypeNode::make_null(*_phase, _inline_klass, /* transform = */ false)->clone_with_phis(
       _phase, phi->in(0), nullptr, !phi->type()->maybe_null(), true);
-    if (_can_reshape) {
-      // Replace phi right away to be able to use the inline
-      // type node when reaching the phi again through data loops.
-      PhaseIterGVN* igvn = _phase->is_IterGVN();
-      igvn->replace_in_uses(phi, vt);
-      igvn->rehash_node_delayed(phi);
-      assert(phi->outcnt() == 0, "should be dead now");
-    }
-    ResourceMark rm;
+    // Record that vt was created to replace phi to be able to use the inline type node when reaching the phi again
+    // through data loops.
+    _clones.map(phi->_idx, vt);
     Node_List casts;
     for (uint i = 1; i < phi->req(); ++i) {
       Node* n = phi->in(i);
@@ -3133,7 +3127,12 @@ class PushInlineTypeDown {
         n = InlineTypeNode::make_null(*_phase, _inline_klass);
       } else if (n->is_Phi()) {
         assert(_can_reshape, "can only handle phis during IGVN");
-        n = _phase->transform(do_transform(n->as_Phi()));
+        Node* clone = get_clone(n);
+        if (clone != nullptr) {
+          n = clone;
+        } else {
+          n = _phase->transform(do_transform(n->as_Phi()));
+        }
       }
       while (casts.size() != 0) {
         // Push the cast(s) through the InlineTypeNode
@@ -3228,10 +3227,10 @@ class PushInlineTypeDown {
 
   Node* do_it() {
     if (_can_reshape) {
-      Node_List clones;
       collect_nodes_to_clone();
       clone_subgraph();
       DEBUG_ONLY(verify_clone());
+      _clones.clear();
     }
     return do_transform(_root_phi);
   }
diff --git a/test/hotspot/jtreg/compiler/valhalla/inlinetypes/TestInlineTypeInfinitePushThruPhi.java b/test/hotspot/jtreg/compiler/valhalla/inlinetypes/TestInlineTypeInfinitePushThruPhi.java
new file mode 100644
index 00000000000..9bb53506271
--- /dev/null
+++ b/test/hotspot/jtreg/compiler/valhalla/inlinetypes/TestInlineTypeInfinitePushThruPhi.java
@@ -0,0 +1,79 @@
+/*
+ * Copyright (c) 2026, Oracle and/or its affiliates. All rights reserved.
+ * DO NOT ALTER OR REMOVE COPYRIGHT NOTICES OR THIS FILE HEADER.
+ *
+ * This code is free software; you can redistribute it and/or modify it
+ * under the terms of the GNU General Public License version 2 only, as
+ * published by the Free Software Foundation.
+ *
+ * This code is distributed in the hope that it will be useful, but WITHOUT
+ * ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+ * FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License
+ * version 2 for more details (a copy is included in the LICENSE file that
+ * accompanied this code).
+ *
+ * You should have received a copy of the GNU General Public License version
+ * 2 along with this work; if not, write to the Free Software Foundation,
+ * Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA.
+ *
+ * Please contact Oracle, 500 Oracle Parkway, Redwood Shores, CA 94065 USA
+ * or visit www.oracle.com if you need additional information or have any
+ * questions.
+ */
+
+/**
+ * @test
+ * @bug 8386676
+ * @summary [lworld] Infinite loop when pushing inline types down though phis during IGVN
+ * @enablePreview
+ * @modules java.base/jdk.internal.value
+ *          java.base/jdk.internal.vm.annotation
+ * @run main/othervm -XX:+UnlockDiagnosticVMOptions -XX:+IgnoreUnrecognizedVMOptions -XX:+StressIGVN
+ *                   -XX:CompileCommand=compileonly,${test.main.class}::test -Xbatch
+ *                   -XX:-UseOnStackReplacement -XX:StressSeed=3696073068 -XX:CompileTaskTimeout=8000 ${test.main.class}
+ * @run main/othervm -XX:+UnlockDiagnosticVMOptions  -XX:+IgnoreUnrecognizedVMOptions -XX:+StressIGVN
+ *                   -XX:CompileCommand=compileonly,${test.main.class}::test -Xbatch
+ *                   -XX:-UseOnStackReplacement -XX:CompileTaskTimeout=8000 ${test.main.class}
+ */
+
+package compiler.valhalla.inlinetypes;
+
+import jdk.internal.vm.annotation.LooselyConsistentValue;
+import jdk.internal.vm.annotation.NullRestricted;
+
+public class TestInlineTypeInfinitePushThruPhi {
+    static V2 v2 = new V2(3);
+
+    public static void main(String[] args) {
+        for (int i = 0; i < 20_000; i++) {
+            test();
+        }
+    }
+
+    public static void test() {
+        V1 v1 = new V1(null, v2);
+        for (int i = 0; i < 100; i++) {
+            v1 = new V1(v1.x, v1.y);
+        }
+    }
+
+    @LooselyConsistentValue
+    static value class V1 {
+        V2 x;
+        @NullRestricted
+        V2 y;
+
+        V1(V2 x, V2 y) {
+            this.x = x;
+            this.y = y;
+        }
+    }
+
+    static value class V2 {
+        int i;
+
+        V2(int i) {
+            this.i = i;
+        }
+    }
+}