diff --git a/CHANGELOG.md b/CHANGELOG.md
index 43ccd59c4691..512742a01103 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@
 
 ### Fixes
 
+- `[expect]` Fix circular references in iterable equality ([#8160](https://github.com/facebook/jest/pull/8160))
 - `[jest-changed-files]` Change method of obtaining git root ([#8052](https://github.com/facebook/jest/pull/8052))
 - `[jest-each]` Fix test function type ([#8145](https://github.com/facebook/jest/pull/8145))
 - `[jest-fake-timers]` `getTimerCount` not taking immediates and ticks into account ([#8139](https://github.com/facebook/jest/pull/8139))
diff --git a/packages/expect/src/__tests__/utils.test.js b/packages/expect/src/__tests__/utils.test.js
index 180b514a1a77..7ff609a8ab87 100644
--- a/packages/expect/src/__tests__/utils.test.js
+++ b/packages/expect/src/__tests__/utils.test.js
@@ -15,6 +15,7 @@ const {
   getPath,
   hasOwnProperty,
   subsetEquality,
+  iterableEquality,
 } = require('../utils');
 
 describe('getPath()', () => {
@@ -202,3 +203,94 @@ describe('subsetEquality()', () => {
     expect(subsetEquality(undefined, {foo: 'bar'})).not.toBeTruthy();
   });
 });
+
+describe('iterableEquality', () => {
+  test('returns true when given circular iterators', () => {
+    class Iter {
+      *[Symbol.iterator]() {
+        yield this;
+      }
+    }
+
+    const a = new Iter();
+    const b = new Iter();
+
+    expect(iterableEquality(a, b)).toBe(true);
+  });
+
+  test('returns true when given circular Set', () => {
+    const a = new Set();
+    a.add(a);
+    const b = new Set();
+    b.add(b);
+    expect(iterableEquality(a, b)).toBe(true);
+  });
+
+  test('returns true when given nested Sets', () => {
+    expect(
+      iterableEquality(
+        new Set([new Set([[1]]), new Set([[2]])]),
+        new Set([new Set([[2]]), new Set([[1]])]),
+      ),
+    ).toBe(true);
+    expect(
+      iterableEquality(
+        new Set([new Set([[1]]), new Set([[2]])]),
+        new Set([new Set([[3]]), new Set([[1]])]),
+      ),
+    ).toBe(false);
+  });
+
+  test('returns true when given circular Set shape', () => {
+    const a1 = new Set();
+    const a2 = new Set();
+    a1.add(a2);
+    a2.add(a1);
+    const b = new Set();
+    b.add(b);
+
+    expect(iterableEquality(a1, b)).toBe(true);
+  });
+
+  test('returns true when given circular key in Map', () => {
+    const a = new Map();
+    a.set(a, 'a');
+    const b = new Map();
+    b.set(b, 'a');
+
+    expect(iterableEquality(a, b)).toBe(true);
+  });
+
+  test('returns true when given nested Maps', () => {
+    expect(
+      iterableEquality(
+        new Map([['hello', new Map([['world', 'foobar']])]]),
+        new Map([['hello', new Map([['world', 'qux']])]]),
+      ),
+    ).toBe(false);
+    expect(
+      iterableEquality(
+        new Map([['hello', new Map([['world', 'foobar']])]]),
+        new Map([['hello', new Map([['world', 'foobar']])]]),
+      ),
+    ).toBe(true);
+  });
+
+  test('returns true when given circular key and value in Map', () => {
+    const a = new Map();
+    a.set(a, a);
+    const b = new Map();
+    b.set(b, b);
+
+    expect(iterableEquality(a, b)).toBe(true);
+  });
+
+  test('returns true when given circular value in Map', () => {
+    const a = new Map();
+    a.set('a', a);
+    const b = new Map();
+    b.set('a', b);
+
+    expect(iterableEquality(a, b)).toBe(true);
+  });
+});
diff --git a/packages/expect/src/utils.ts b/packages/expect/src/utils.ts
index 13047d555ff1..2f3f97ffe2ea 100644
--- a/packages/expect/src/utils.ts
+++ b/packages/expect/src/utils.ts
@@ -137,7 +137,13 @@ const IteratorSymbol = Symbol.iterator;
 
 const hasIterator = (object: any) =>
   !!(object != null && object[IteratorSymbol]);
-export const iterableEquality = (a: any, b: any) => {
+
+export const iterableEquality = (
+  a: any,
+  b: any,
+  aStack: Array<any> = [],
+  bStack: Array<any> = [],
+) => {
   if (
     typeof a !== 'object' ||
     typeof b !== 'object' ||
@@ -152,6 +158,22 @@ export const iterableEquality = (a: any, b: any) => {
     return false;
   }
 
+  let length = aStack.length;
+  while (length--) {
+    // Linear search. Performance is inversely proportional to the number of
+    // unique nested structures.
+    // circular references at same depth are equal
+    // circular reference is not equal to non-circular one
+    if (aStack[length] === a) {
+      return bStack[length] === b;
+    }
+  }
+  aStack.push(a);
+  bStack.push(b);
+
+  const iterableEqualityWithStack = (a: any, b: any) =>
+    iterableEquality(a, b, aStack, bStack);
+
   if (a.size !== undefined) {
     if (a.size !== b.size) {
       return false;
@@ -161,7 +183,7 @@ export const iterableEquality = (a: any, b: any) => {
         if (!b.has(aValue)) {
           let has = false;
           for (const bValue of b) {
-            const isEqual = equals(aValue, bValue, [iterableEquality]);
+            const isEqual = equals(aValue, bValue, [iterableEqualityWithStack]);
             if (isEqual === true) {
               has = true;
             }
@@ -173,25 +195,29 @@ export const iterableEquality = (a: any, b: any) => {
           }
         }
       }
-      if (allFound) {
-        return true;
-      }
+      // Remove the first value from the stack of traversed values.
+      aStack.pop();
+      bStack.pop();
+      return allFound;
     } else if (isA('Map', a) || isImmutableUnorderedKeyed(a)) {
       let allFound = true;
       for (const aEntry of a) {
         if (
           !b.has(aEntry[0]) ||
-          !equals(aEntry[1], b.get(aEntry[0]), [iterableEquality])
+          !equals(aEntry[1], b.get(aEntry[0]), [iterableEqualityWithStack])
         ) {
           let has = false;
           for (const bEntry of b) {
-            const matchedKey = equals(aEntry[0], bEntry[0], [iterableEquality]);
+            const matchedKey = equals(aEntry[0], bEntry[0], [
+              iterableEqualityWithStack,
+            ]);
 
             let matchedValue = false;
             if (matchedKey === true) {
-              matchedValue = equals(aEntry[1], bEntry[1], [iterableEquality]);
+              matchedValue = equals(aEntry[1], bEntry[1], [
+                iterableEqualityWithStack,
+              ]);
             }
-
             if (matchedValue === true) {
               has = true;
             }
@@ -203,9 +229,10 @@ export const iterableEquality = (a: any, b: any) => {
           }
         }
       }
-      if (allFound) {
-        return true;
-      }
+      // Remove the first value from the stack of traversed values.
+      aStack.pop();
+      bStack.pop();
+      return allFound;
     }
   }
 
@@ -213,13 +240,20 @@ export const iterableEquality = (a: any, b: any) => {
 
   for (const aValue of a) {
     const nextB = bIterator.next();
-    if (nextB.done || !equals(aValue, nextB.value, [iterableEquality])) {
+    if (
+      nextB.done ||
+      !equals(aValue, nextB.value, [iterableEqualityWithStack])
+    ) {
       return false;
     }
   }
   if (!bIterator.next().done) {
     return false;
   }
+
+  // Remove the first value from the stack of traversed values.
+  aStack.pop();
+  bStack.pop();
   return true;
 };