diff --git a/regression/contracts/invar_assigns_empty/test.desc b/regression/contracts/invar_assigns_empty/test.desc
index 69966423ea5..381f619c6c1 100644
--- a/regression/contracts/invar_assigns_empty/test.desc
+++ b/regression/contracts/invar_assigns_empty/test.desc
@@ -3,8 +3,8 @@ main.c
 --apply-loop-contracts
 ^EXIT=0$
 ^SIGNAL=0$
-^\[main.1\] .* Check loop invariant before entry: SUCCESS$
-^\[main.2\] .* Check that loop invariant is preserved: SUCCESS$
+^\[main.\d+\] .* Check loop invariant before entry: SUCCESS$
+^\[main.\d+\] .* Check that loop invariant is preserved: SUCCESS$
 ^VERIFICATION SUCCESSFUL$
 --
 --
diff --git a/regression/contracts/invar_loop_constant_pass/test_unwind.desc b/regression/contracts/invar_loop_constant_pass/test_unwind.desc
new file mode 100644
index 00000000000..30b7613a13b
--- /dev/null
+++ b/regression/contracts/invar_loop_constant_pass/test_unwind.desc
@@ -0,0 +1,14 @@
+CORE
+main.c
+--apply-loop-contracts --unwind 1 --unwinding-assertions
+^EXIT=0$
+^SIGNAL=0$
+^\[main\.\d+\] .* Check loop invariant before entry: SUCCESS$
+^\[main\.\d+\] .* Check that loop invariant is preserved: SUCCESS$
+^\[main.assigns.\d+\] .* Check that s is assignable: SUCCESS$
+^\[main.assigns.\d+\] .* Check that r is assignable: SUCCESS$
+^\[main\.assertion\.\d+\] .* assertion r == 0: SUCCESS$
+^\[main\.assertion\.\d+\] .* assertion s == 1: SUCCESS$
+^VERIFICATION SUCCESSFUL$
+--
+This test checks that there is no loop after contract transforamtion.
diff --git a/src/goto-instrument/contracts/contracts.cpp b/src/goto-instrument/contracts/contracts.cpp
index 58512048d59..c9032c55707 100644
--- a/src/goto-instrument/contracts/contracts.cpp
+++ b/src/goto-instrument/contracts/contracts.cpp
@@ -36,6 +36,8 @@ Date: February 2016
 #include <ansi-c/c_expr.h>
 #include <goto-instrument/havoc_utils.h>
 #include <goto-instrument/nondet_static.h>
+#include <goto-instrument/unwind.h>
+#include <goto-instrument/unwindset.h>
 #include <langapi/language_util.h>
 
 #include "cfg_info.h"
@@ -1016,6 +1018,17 @@ void code_contractst::apply_loop_contract(
     goto_functions.update();
     natural_loops_mutablet updated_loops(goto_function.body);
 
+    // We will unwind all transformed loops twice. Store the names of
+    // to-unwind-loops here and perform the unwinding after transformation done.
+    // As described in `check_apply_loop_contracts`, loops with loop contracts
+    // will be transformed to a loop that execute exactly twice: one for base
+    // case and one for step case. So we unwind them here to avoid users
+    // incorrectly unwind them only once.
+    std::string to_unwind = id2string(function_name) + "." +
+                            std::to_string(loop_node.end_target->loop_number) +
+                            ":2";
+    loop_names.push_back(to_unwind);
+
     check_apply_loop_contracts(
       function_name,
       goto_function,
@@ -1459,6 +1472,12 @@ void code_contractst::apply_loop_contracts(
                   "of static/global variables."
                << messaget::eom;
   nondet_static(goto_model, to_exclude_from_nondet_init);
+
+  // unwind all transformed loops twice.
+  unwindsett unwindset{goto_model};
+  unwindset.parse_unwindset(loop_names, log.get_message_handler());
+  goto_unwindt goto_unwind;
+  goto_unwind(goto_model, unwindset, goto_unwindt::unwind_strategyt::ASSUME);
 }
 
 void code_contractst::enforce_contracts(
diff --git a/src/goto-instrument/contracts/contracts.h b/src/goto-instrument/contracts/contracts.h
index 6c5839f1117..2c8f7ddf63d 100644
--- a/src/goto-instrument/contracts/contracts.h
+++ b/src/goto-instrument/contracts/contracts.h
@@ -141,6 +141,9 @@ class code_contractst
 
   std::unordered_set<irep_idt> summarized;
 
+  /// Name of loops we are going to unwind.
+  std::list<std::string> loop_names;
+
 public:
   /// Translates a function_pointer_obeys_contract_exprt into an assertion
   /// ```