diff --git a/src/__tests__/__snapshots__/macro.test.js.snap b/src/__tests__/__snapshots__/macro.test.js.snap
index b2cb53e..0957c4a 100644
--- a/src/__tests__/__snapshots__/macro.test.js.snap
+++ b/src/__tests__/__snapshots__/macro.test.js.snap
@@ -367,6 +367,183 @@ const query = {
 
 `;
 
+exports[`macros [loader] with nested circular fragments: [loader] with nested circular fragments 1`] = `
+
+import { loader } from 'graphql.macro';
+const query = loader('./fixtures/query3.graphql');
+
+      ↓ ↓ ↓ ↓ ↓ ↓
+
+const query = {
+  "kind": "Document",
+  "definitions": [{
+    "kind": "FragmentDefinition",
+    "name": {
+      "kind": "Name",
+      "value": "UserEntry1"
+    },
+    "typeCondition": {
+      "kind": "NamedType",
+      "name": {
+        "kind": "Name",
+        "value": "User"
+      }
+    },
+    "directives": [],
+    "selectionSet": {
+      "kind": "SelectionSet",
+      "selections": [{
+        "kind": "Field",
+        "name": {
+          "kind": "Name",
+          "value": "firstName"
+        },
+        "arguments": [],
+        "directives": []
+      }]
+    }
+  }, {
+    "kind": "FragmentDefinition",
+    "name": {
+      "kind": "Name",
+      "value": "UserEntry3"
+    },
+    "typeCondition": {
+      "kind": "NamedType",
+      "name": {
+        "kind": "Name",
+        "value": "User"
+      }
+    },
+    "directives": [],
+    "selectionSet": {
+      "kind": "SelectionSet",
+      "selections": [{
+        "kind": "Field",
+        "name": {
+          "kind": "Name",
+          "value": "id"
+        },
+        "arguments": [],
+        "directives": []
+      }]
+    }
+  }, {
+    "kind": "FragmentDefinition",
+    "name": {
+      "kind": "Name",
+      "value": "UserEntry5"
+    },
+    "typeCondition": {
+      "kind": "NamedType",
+      "name": {
+        "kind": "Name",
+        "value": "User"
+      }
+    },
+    "directives": [],
+    "selectionSet": {
+      "kind": "SelectionSet",
+      "selections": [{
+        "kind": "FragmentSpread",
+        "name": {
+          "kind": "Name",
+          "value": "UserEntry4"
+        },
+        "directives": []
+      }]
+    }
+  }, {
+    "kind": "FragmentDefinition",
+    "name": {
+      "kind": "Name",
+      "value": "UserEntry4"
+    },
+    "typeCondition": {
+      "kind": "NamedType",
+      "name": {
+        "kind": "Name",
+        "value": "User"
+      }
+    },
+    "directives": [],
+    "selectionSet": {
+      "kind": "SelectionSet",
+      "selections": [{
+        "kind": "FragmentSpread",
+        "name": {
+          "kind": "Name",
+          "value": "UserEntry1"
+        },
+        "directives": []
+      }, {
+        "kind": "FragmentSpread",
+        "name": {
+          "kind": "Name",
+          "value": "UserEntry5"
+        },
+        "directives": []
+      }]
+    }
+  }, {
+    "kind": "OperationDefinition",
+    "operation": "query",
+    "name": {
+      "kind": "Name",
+      "value": "User"
+    },
+    "variableDefinitions": [],
+    "directives": [],
+    "selectionSet": {
+      "kind": "SelectionSet",
+      "selections": [{
+        "kind": "Field",
+        "name": {
+          "kind": "Name",
+          "value": "user"
+        },
+        "arguments": [{
+          "kind": "Argument",
+          "name": {
+            "kind": "Name",
+            "value": "id"
+          },
+          "value": {
+            "kind": "IntValue",
+            "value": "5"
+          }
+        }],
+        "directives": [],
+        "selectionSet": {
+          "kind": "SelectionSet",
+          "selections": [{
+            "kind": "FragmentSpread",
+            "name": {
+              "kind": "Name",
+              "value": "UserEntry4"
+            },
+            "directives": []
+          }]
+        }
+      }]
+    }
+  }],
+  "loc": {
+    "start": 0,
+    "end": 371,
+    "source": {
+      "body": "fragment UserEntry1 on User {\\n  firstName\\n}\\n\\nfragment UserEntry3 on User {\\n  id\\n}\\n#import \\"./fragment3.graphql\\"\\n\\nfragment UserEntry5 on User {\\n  ...UserEntry4\\n}\\n#import \\"./fragment1.graphql\\"\\n#import \\"./fragment4.graphql\\"\\n\\nfragment UserEntry4 on User {\\n  ...UserEntry1\\n  ...UserEntry5\\n}\\n#import './fragment3.graphql'\\n\\nquery User {\\n  user(id: 5) {\\n    ...UserEntry4\\n  }\\n}\\n\\n",
+      "name": "GraphQL request",
+      "locationOffset": {
+        "line": 1,
+        "column": 1
+      }
+    }
+  }
+};
+
+`;
+
 exports[`macros [loader] without fragment: [loader] without fragment 1`] = `
 
 import { loader } from 'graphql.macro';
diff --git a/src/__tests__/fixtures/fragment3.graphql b/src/__tests__/fixtures/fragment3.graphql
new file mode 100644
index 0000000..85534da
--- /dev/null
+++ b/src/__tests__/fixtures/fragment3.graphql
@@ -0,0 +1,7 @@
+#import "./fragment1.graphql"
+#import "./fragment4.graphql"
+
+fragment UserEntry4 on User {
+  ...UserEntry1
+  ...UserEntry5
+}
diff --git a/src/__tests__/fixtures/fragment4.graphql b/src/__tests__/fixtures/fragment4.graphql
new file mode 100644
index 0000000..a559461
--- /dev/null
+++ b/src/__tests__/fixtures/fragment4.graphql
@@ -0,0 +1,5 @@
+#import "./fragment3.graphql"
+
+fragment UserEntry5 on User {
+  ...UserEntry4
+}
diff --git a/src/__tests__/fixtures/query3.graphql b/src/__tests__/fixtures/query3.graphql
new file mode 100644
index 0000000..6515451
--- /dev/null
+++ b/src/__tests__/fixtures/query3.graphql
@@ -0,0 +1,8 @@
+#import './fragment3.graphql'
+
+query User {
+  user(id: 5) {
+    ...UserEntry4
+  }
+}
+
diff --git a/src/__tests__/macro.test.js b/src/__tests__/macro.test.js
index e472d56..e1892b3 100644
--- a/src/__tests__/macro.test.js
+++ b/src/__tests__/macro.test.js
@@ -65,6 +65,13 @@ pluginTester({
         const query = loader('./fixtures/query1.graphql');
       `,
     },
+    '[loader] with nested circular fragments': {
+      error: false,
+      code: `
+        import { loader } from '../macro';
+        const query = loader('./fixtures/query3.graphql');
+      `,
+    },
     // '[loader] multiple operations': {
     //   error: false,
     //   code: `
diff --git a/src/utils/expandImports.js b/src/utils/expandImports.js
index c8c04f9..0262744 100644
--- a/src/utils/expandImports.js
+++ b/src/utils/expandImports.js
@@ -6,7 +6,10 @@ import fs from 'fs';
  * import .graphql file directly
  * ref: https://github.com/apollographql/graphql-tag/blob/master/loader.js
  */
-export default function expandImports(queryPath: string): string {
+export default function expandImports(
+  queryPath: string,
+  processedFiles: Set<string> = new Set(),
+): string {
   const source = fs.readFileSync(queryPath, 'utf8');
   const lines = source.split(/\r\n|\r|\n/);
   const importContent = lines
@@ -17,7 +20,13 @@ export default function expandImports(queryPath: string): string {
         .split(' ')[1]
         .replace(/('|")/g, '');
       const relativeQueryPath = path.join(queryPath, '..', value);
-      const raw = fs.readFileSync(relativeQueryPath, 'utf8');
+
+      if (processedFiles.has(relativeQueryPath)) {
+        return '';
+      }
+
+      processedFiles.add(relativeQueryPath);
+      const raw = expandImports(relativeQueryPath, processedFiles);
 
       return raw;
     })