diff --git a/controller/cache/cache.go b/controller/cache/cache.go
index 20879ae4f920a..ddfe2b17fdc31 100644
--- a/controller/cache/cache.go
+++ b/controller/cache/cache.go
@@ -290,7 +290,8 @@ func isRootAppNode(r *clustercache.Resource) bool {
 }
 
 func getApp(r *clustercache.Resource, ns map[kube.ResourceKey]*clustercache.Resource) string {
-	return getAppRecursive(r, ns, map[kube.ResourceKey]bool{})
+	name, _ := getAppRecursive(r, ns, map[kube.ResourceKey]bool{})
+	return name
 }
 
 func ownerRefGV(ownerRef metav1.OwnerReference) schema.GroupVersion {
@@ -301,27 +302,31 @@ func ownerRefGV(ownerRef metav1.OwnerReference) schema.GroupVersion {
 	return gv
 }
 
-func getAppRecursive(r *clustercache.Resource, ns map[kube.ResourceKey]*clustercache.Resource, visited map[kube.ResourceKey]bool) string {
+func getAppRecursive(r *clustercache.Resource, ns map[kube.ResourceKey]*clustercache.Resource, visited map[kube.ResourceKey]bool) (string, bool) {
 	if !visited[r.ResourceKey()] {
 		visited[r.ResourceKey()] = true
 	} else {
 		log.Warnf("Circular dependency detected: %v.", visited)
-		return resInfo(r).AppName
+		return resInfo(r).AppName, false
 	}
 
 	if resInfo(r).AppName != "" {
-		return resInfo(r).AppName
+		return resInfo(r).AppName, true
 	}
 	for _, ownerRef := range r.OwnerRefs {
 		gv := ownerRefGV(ownerRef)
 		if parent, ok := ns[kube.NewResourceKey(gv.Group, ownerRef.Kind, r.Ref.Namespace, ownerRef.Name)]; ok {
-			app := getAppRecursive(parent, ns, visited)
-			if app != "" {
-				return app
+			visited_branch := make(map[kube.ResourceKey]bool, len(visited))
+			for k, v := range visited {
+				visited_branch[k] = v
+			}
+			app, ok := getAppRecursive(parent, ns, visited_branch)
+			if app != "" || !ok {
+				return app, ok
 			}
 		}
 	}
-	return ""
+	return "", true
 }
 
 var (
diff --git a/controller/cache/cache_test.go b/controller/cache/cache_test.go
index 53a03ca81995e..584f311f2ee30 100644
--- a/controller/cache/cache_test.go
+++ b/controller/cache/cache_test.go
@@ -18,6 +18,7 @@ import (
 	"github.com/argoproj/gitops-engine/pkg/cache"
 	"github.com/argoproj/gitops-engine/pkg/cache/mocks"
 	"github.com/argoproj/gitops-engine/pkg/health"
+	"github.com/argoproj/gitops-engine/pkg/utils/kube"
 	"github.com/stretchr/testify/mock"
 	"k8s.io/client-go/kubernetes/fake"
 
@@ -319,6 +320,216 @@ func Test_asResourceNode_owner_refs(t *testing.T) {
 	assert.Equal(t, expected, resNode)
 }
 
+func Test_getAppRecursive(t *testing.T) {
+	for _, tt := range []struct {
+		name     string
+		r        *cache.Resource
+		ns       map[kube.ResourceKey]*cache.Resource
+		wantName string
+		wantOK   assert.BoolAssertionFunc
+	}{
+		{
+			name: "ok: cm1->app1",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "app1"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "app1"): {
+					Info: &ResourceInfo{
+						AppName: "app1",
+					},
+				},
+			},
+			wantName: "app1",
+			wantOK:   assert.True,
+		},
+		{
+			name: "ok: cm1->cm2->app1",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "cm2"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "cm2"): {
+					Ref: v1.ObjectReference{
+						Name: "cm2",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "app1"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "app1"): {
+					Info: &ResourceInfo{
+						AppName: "app1",
+					},
+				},
+			},
+			wantName: "app1",
+			wantOK:   assert.True,
+		},
+		{
+			name: "cm1->cm2->app1 & cm1->cm3->app1",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "cm2"},
+					{Name: "cm3"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "cm2"): {
+					Ref: v1.ObjectReference{
+						Name: "cm2",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "app1"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "cm3"): {
+					Ref: v1.ObjectReference{
+						Name: "cm3",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "app1"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "app1"): {
+					Info: &ResourceInfo{
+						AppName: "app1",
+					},
+				},
+			},
+			wantName: "app1",
+			wantOK:   assert.True,
+		},
+		{
+			// Nothing cycle.
+			// Issue #11699, fixed #12667.
+			name: "ok: cm1->cm2 & cm1->cm3->cm2 & cm1->cm3->app1",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "cm2"},
+					{Name: "cm3"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "cm2"): {
+					Ref: v1.ObjectReference{
+						Name: "cm2",
+					},
+				},
+				kube.NewResourceKey("", "", "", "cm3"): {
+					Ref: v1.ObjectReference{
+						Name: "cm3",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm2"},
+						{Name: "app1"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "app1"): {
+					Info: &ResourceInfo{
+						AppName: "app1",
+					},
+				},
+			},
+			wantName: "app1",
+			wantOK:   assert.True,
+		},
+		{
+			name: "cycle: cm1<->cm2",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "cm2"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "cm1"): {
+					Ref: v1.ObjectReference{
+						Name: "cm1",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm2"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "cm2"): {
+					Ref: v1.ObjectReference{
+						Name: "cm2",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm1"},
+					},
+				},
+			},
+			wantName: "",
+			wantOK:   assert.False,
+		},
+		{
+			name: "cycle: cm1->cm2->cm3->cm1",
+			r: &cache.Resource{
+				Ref: v1.ObjectReference{
+					Name: "cm1",
+				},
+				OwnerRefs: []metav1.OwnerReference{
+					{Name: "cm2"},
+				},
+			},
+			ns: map[kube.ResourceKey]*cache.Resource{
+				kube.NewResourceKey("", "", "", "cm1"): {
+					Ref: v1.ObjectReference{
+						Name: "cm1",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm2"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "cm2"): {
+					Ref: v1.ObjectReference{
+						Name: "cm2",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm3"},
+					},
+				},
+				kube.NewResourceKey("", "", "", "cm3"): {
+					Ref: v1.ObjectReference{
+						Name: "cm3",
+					},
+					OwnerRefs: []metav1.OwnerReference{
+						{Name: "cm1"},
+					},
+				},
+			},
+			wantName: "",
+			wantOK:   assert.False,
+		},
+	} {
+		t.Run(tt.name, func(t *testing.T) {
+			visited := map[kube.ResourceKey]bool{}
+			got, ok := getAppRecursive(tt.r, tt.ns, visited)
+			assert.Equal(t, tt.wantName, got)
+			tt.wantOK(t, ok)
+		})
+	}
+}
+
 func TestSkipResourceUpdate(t *testing.T) {
 	var (
 		hash1_x string = "x"