diff --git a/src/Juvix/Compiler/Internal/Extra/InstanceInfo.hs b/src/Juvix/Compiler/Internal/Extra/InstanceInfo.hs
index 225dc83495..6bff06ade4 100644
--- a/src/Juvix/Compiler/Internal/Extra/InstanceInfo.hs
+++ b/src/Juvix/Compiler/Internal/Extra/InstanceInfo.hs
@@ -45,18 +45,18 @@ makeRigidParam p = case p of
   InstanceParamMeta v ->
     InstanceParamVar v
 
-paramToExpression :: InstanceParam -> Expression
+paramToExpression :: (Member NameIdGen r) => InstanceParam -> Sem r Expression
 paramToExpression = \case
   InstanceParamVar v ->
-    ExpressionIden (IdenVar v)
+    return $ ExpressionIden (IdenVar v)
   InstanceParamApp InstanceApp {..} ->
-    _instanceAppExpression
+    return _instanceAppExpression
   InstanceParamFun InstanceFun {..} ->
-    _instanceFunExpression
+    return _instanceFunExpression
   InstanceParamHole h ->
-    ExpressionHole h
+    return $ ExpressionHole h
   InstanceParamMeta v ->
-    ExpressionIden (IdenVar v)
+    ExpressionHole . mkHole (getLoc v) <$> freshNameId
 
 paramFromExpression :: HashSet VarName -> Expression -> Maybe InstanceParam
 paramFromExpression metaVars e = case e of
diff --git a/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Error/Types.hs b/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Error/Types.hs
index 5904a157c1..a978aee564 100644
--- a/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Error/Types.hs
+++ b/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Error/Types.hs
@@ -101,9 +101,9 @@ instance ToGenericError UnsolvedMeta where
       mkMsg = do
         m <- holeid
         let loopMsg
-              | e ^. unsolvedIsLoop = Just "The inference algorithm found a loop."
+              | e ^. unsolvedIsLoop = Just (line <> "The inference algorithm found a loop.")
               | otherwise = Nothing
-            msg = "Unable to infer the hole" <>? loopMsg <>? m
+            msg = "Unable to infer the hole." <>? loopMsg <>? m
         return msg
       holeid :: Sem r (Maybe (Doc Ann))
       holeid = runFail $ do
diff --git a/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Traits/Resolver.hs b/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Traits/Resolver.hs
index d3e2c04fab..b5085cbd7a 100644
--- a/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Traits/Resolver.hs
+++ b/src/Juvix/Compiler/Internal/Translation/FromInternal/Analysis/TypeChecking/Traits/Resolver.hs
@@ -19,8 +19,8 @@ import Juvix.Prelude
 
 type SubsI = HashMap VarName InstanceParam
 
-subsIToE :: SubsI -> Subs
-subsIToE = fmap paramToExpression
+subsIToE :: (Member NameIdGen r) => SubsI -> Sem r Subs
+subsIToE = mapM paramToExpression
 
 type CoercionChain = [(CoercionInfo, SubsI)]
 
@@ -41,8 +41,9 @@ resolveTraitInstance TypedHole {..} = do
   ty <- strongNormalize _typedHoleType
   is <- lookupInstance ctab tab (ty ^. normalizedExpression)
   case is of
-    [(cs, ii, subs)] ->
-      expandArity' loc (subsIToE subs) (ii ^. instanceInfoArgs) (ii ^. instanceInfoResult)
+    [(cs, ii, subs)] -> do
+      subs' <- subsIToE subs
+      expandArity' loc subs' (ii ^. instanceInfoArgs) (ii ^. instanceInfoResult)
         >>= applyCoercions loc cs
     [] ->
       throw (ErrNoInstance (NoInstance ty loc))
@@ -58,7 +59,7 @@ subsumingInstances ::
   InstanceInfo ->
   Sem r [(InstanceInfo)]
 subsumingInstances tab InstanceInfo {..} = do
-  is <- lookupInstance' [] False mempty tab _instanceInfoInductive (map makeRigidParam _instanceInfoParams)
+  is <- lookupInstance' [] mempty tab _instanceInfoInductive (map makeRigidParam _instanceInfoParams)
   return $
     map snd3 $
       filter (\(_, x, _) -> x ^. instanceInfoResult /= _instanceInfoResult) is
@@ -72,7 +73,8 @@ substitutionI subs p = case p of
   InstanceParamVar {} -> return p
   InstanceParamApp InstanceApp {..} -> do
     args <- mapM (substitutionI subs) _instanceAppArgs
-    e <- substitutionE (subsIToE subs) _instanceAppExpression
+    subs' <- subsIToE subs
+    e <- substitutionE subs' _instanceAppExpression
     return $
       InstanceParamApp
         InstanceApp
@@ -83,7 +85,8 @@ substitutionI subs p = case p of
   InstanceParamFun InstanceFun {..} -> do
     l <- substitutionI subs _instanceFunLeft
     r <- substitutionI subs _instanceFunRight
-    e <- substitutionE (subsIToE subs) _instanceFunExpression
+    subs' <- subsIToE subs
+    e <- substitutionE subs' _instanceFunExpression
     return $
       InstanceParamFun
         InstanceFun
@@ -91,7 +94,12 @@ substitutionI subs p = case p of
             _instanceFunRight = r,
             _instanceFunExpression = e
           }
-  InstanceParamHole {} -> return p
+  InstanceParamHole h
+    | Just p' <- HashMap.lookup (varFromHole h) subs ->
+        -- we don't need to clone here because `InstanceParam` doesn't have binders
+        return p'
+    | otherwise ->
+        return p
   InstanceParamMeta v
     | Just p' <- HashMap.lookup v subs ->
         -- we don't need to clone here because `InstanceParam` doesn't have binders
@@ -134,7 +142,8 @@ applyCoercion ::
   Expression ->
   Sem r Expression
 applyCoercion loc (CoercionInfo {..}, subs) e = do
-  e' <- expandArity' loc (subsIToE subs) _coercionInfoArgs _coercionInfoResult
+  subs' <- subsIToE subs
+  e' <- expandArity' loc subs' _coercionInfoArgs _coercionInfoResult
   return $
     ExpressionApplication (Application e' e ImplicitInstance)
 
@@ -180,15 +189,14 @@ expandArity loc subs params e = case params of
 
 lookupInstance' ::
   forall r.
-  (Members '[Inference, NameIdGen] r) =>
+  (Members '[NameIdGen] r) =>
   [Name] ->
-  Bool ->
   CoercionTable ->
   InstanceTable ->
   Name ->
   [InstanceParam] ->
   Sem r [(CoercionChain, InstanceInfo, SubsI)]
-lookupInstance' visited canFillHoles ctab tab name params
+lookupInstance' visited ctab tab name params
   | name `elem` visited = return []
   | otherwise = do
       let is = fromMaybe [] $ lookupInstanceTable tab name
@@ -204,7 +212,7 @@ lookupInstance' visited canFillHoles ctab tab name params
       failUnless (length params == length _instanceInfoParams)
       (si, b) <-
         runState mempty $
-          and <$> sequence (zipWithExact goMatch _instanceInfoParams params)
+          and <$> sequence (zipWithExact (goMatch True) _instanceInfoParams params)
       failUnless b
       return ([], ii, si)
 
@@ -213,7 +221,7 @@ lookupInstance' visited canFillHoles ctab tab name params
       failUnless (length params == length _coercionInfoParams)
       (si, b) <-
         runState mempty $
-          and <$> sequence (zipWithExact goMatch _coercionInfoParams params)
+          and <$> sequence (zipWithExact (goMatch True) _coercionInfoParams params)
       failUnless b
       let name' = _coercionInfoTarget ^. instanceAppHead
       args' <- mapM (substitutionI si) (_coercionInfoTarget ^. instanceAppArgs)
@@ -221,49 +229,46 @@ lookupInstance' visited canFillHoles ctab tab name params
             if
                 | _coercionInfoDecreasing -> visited
                 | otherwise -> name : visited
-      is <- lookupInstance' visited' canFillHoles ctab tab name' args'
+      is <- lookupInstance' visited' ctab tab name' args'
       return $ map (first3 ((ci, si) :)) is
 
-    goMatch :: InstanceParam -> InstanceParam -> Sem (State SubsI ': Fail ': r) Bool
-    goMatch pat t = case (pat, t) of
-      (InstanceParamMeta v, _) ->
-        goMatchMeta v t
-      (_, InstanceParamMeta v) ->
-        goMatchMeta v pat
+    goMatch :: Bool -> InstanceParam -> InstanceParam -> Sem (State SubsI ': Fail ': r) Bool
+    goMatch assignMetas pat t = case (pat, t) of
+      (InstanceParamMeta v, _)
+        | assignMetas ->
+            goMatchMeta v t
+        | otherwise ->
+            return True
+      (_, InstanceParamMeta {}) ->
+        return True
+      (_, InstanceParamHole {}) ->
+        return True
       (InstanceParamVar v1, InstanceParamVar v2)
         | v1 == v2 ->
             return True
-      (InstanceParamHole h, _)
-        | canFillHoles && checkNoMeta t -> do
-            m <- matchTypes (ExpressionHole h) (paramToExpression t)
-            case m of
-              Just {} -> return False
-              Nothing -> return True
-        | otherwise ->
-            return False
-      (_, InstanceParamHole h)
-        | canFillHoles && checkNoMeta pat -> do
-            m <- matchTypes (paramToExpression pat) (ExpressionHole h)
-            case m of
-              Just {} -> return False
-              Nothing -> return True
       (InstanceParamApp app1, InstanceParamApp app2)
         | app1 ^. instanceAppHead == app2 ^. instanceAppHead -> do
-            and <$> sequence (zipWithExact goMatch (app1 ^. instanceAppArgs) (app2 ^. instanceAppArgs))
+            and <$> sequence (zipWithExact (goMatch assignMetas) (app1 ^. instanceAppArgs) (app2 ^. instanceAppArgs))
       (InstanceParamFun fun1, InstanceParamFun fun2) -> do
-        l <- goMatch (fun1 ^. instanceFunLeft) (fun2 ^. instanceFunLeft)
-        r <- goMatch (fun1 ^. instanceFunRight) (fun2 ^. instanceFunRight)
+        l <- goMatch assignMetas (fun1 ^. instanceFunLeft) (fun2 ^. instanceFunLeft)
+        r <- goMatch assignMetas (fun1 ^. instanceFunRight) (fun2 ^. instanceFunRight)
         return $ l && r
       (InstanceParamVar {}, _) -> return False
       (InstanceParamApp {}, _) -> return False
       (InstanceParamFun {}, _) -> return False
+      (InstanceParamHole {}, _) -> return False
 
     goMatchMeta :: VarName -> InstanceParam -> Sem (State SubsI ': Fail ': r) Bool
     goMatchMeta v t = do
       m <- gets (HashMap.lookup v)
       case m of
-        Just t' ->
-          return (t' == t)
+        Just t'
+          | t' == t ->
+              return True
+          | otherwise ->
+              -- Here, we need to match without assigning meta-variables to
+              -- avoid possible infinite loops
+              goMatch False t' t
         Nothing -> do
           modify (HashMap.insert v t)
           return True
@@ -278,6 +283,6 @@ lookupInstance ::
 lookupInstance ctab tab ty =
   case traitFromExpression mempty ty of
     Just InstanceApp {..} ->
-      lookupInstance' [] False ctab tab _instanceAppHead _instanceAppArgs
+      lookupInstance' [] ctab tab _instanceAppHead _instanceAppArgs
     _ ->
       return []
diff --git a/test/Typecheck/Negative.hs b/test/Typecheck/Negative.hs
index b25edea502..4d8208f59f 100644
--- a/test/Typecheck/Negative.hs
+++ b/test/Typecheck/Negative.hs
@@ -217,6 +217,13 @@ tests =
       $ \case
         ErrTraitNotTerminating {} -> Nothing
         _ -> wrongError,
+    negTest
+      "Instance search termination"
+      $(mkRelDir "Internal")
+      $(mkRelFile "InstanceSearchTermination.juvix")
+      $ \case
+        ErrUnsolvedMeta {} -> Nothing
+        _ -> wrongError,
     negTest
       "Default value wrong type"
       $(mkRelDir "Internal")
diff --git a/tests/Compilation/positive/out/test061.out b/tests/Compilation/positive/out/test061.out
index ebfc489bee..0472a76c70 100644
--- a/tests/Compilation/positive/out/test061.out
+++ b/tests/Compilation/positive/out/test061.out
@@ -14,3 +14,4 @@ abba3
 a :: b :: c :: d :: nil
 \{ true := false | false := true }
 3, 1 :: 2 :: nil
+6
diff --git a/tests/Compilation/positive/test061.juvix b/tests/Compilation/positive/test061.juvix
index 0fc77ee840..68f06d61ed 100644
--- a/tests/Compilation/positive/test061.juvix
+++ b/tests/Compilation/positive/test061.juvix
@@ -104,4 +104,9 @@ main : IO :=
     >>> printStringLn (f5 "abba" 3)
     >>> printStringLn (Show.show {{_}} ["a"; "b"; "c"; "d"])
     >>> printStringLn (Show.show λ {x := not x})
-    >>> printStringLn (Show.show (3, [1; 2 + T.a 0]));
+    >>> printStringLn (Show.show (3, [1; 2 + T.a 0]))
+    >>> (for (acc := 0) ((x, _) in [1, 1; 2, 2; 3, 3]) {
+          acc + x
+         }
+         |> Show.show
+         |> printStringLn);
diff --git a/tests/Compilation/positive/test091.juvix b/tests/Compilation/positive/test091.juvix
index 5769a2e9ce..54c1e5cff8 100644
--- a/tests/Compilation/positive/test091.juvix
+++ b/tests/Compilation/positive/test091.juvix
@@ -233,7 +233,7 @@ Identity-Monad : Monad Identity :=
 
 readAndAdd {E : Type -> Type} {{Monad E}} {{Reader Nat E}} {{State Nat E}} : E Nat :=
   do {
-    s <- Reader.ask {Nat};
+    s <- Reader.ask;
     modify ((+) s);
     State.get
   };
diff --git a/tests/negative/Internal/InstanceSearchTermination.juvix b/tests/negative/Internal/InstanceSearchTermination.juvix
new file mode 100644
index 0000000000..b489315669
--- /dev/null
+++ b/tests/negative/Internal/InstanceSearchTermination.juvix
@@ -0,0 +1,25 @@
+module InstanceSearchTermination;
+
+import Stdlib.Prelude open;
+
+trait
+type T1 A B C := mkT1;
+
+trait
+type T2 A B := mkT2;
+
+trait
+type T3 A := mkT3;
+
+coercion instance
+coe1 {A B} {{T2 A B}} : T3 A := mkT3;
+
+coercion instance
+coe2 {A B} {{T1 A A A}} : T2 B A := mkT2;
+
+instance
+inst1 {A} : T1 A (List A) (List A) := mkT1;
+
+f {A} {{T3 A}} : A -> A := id;
+
+main : Nat := f 0;