diff --git a/compiler/test/dotty/tools/dotc/CompilationTests.scala b/compiler/test/dotty/tools/dotc/CompilationTests.scala
index aeaeda4c5745..0c078cc9a219 100644
--- a/compiler/test/dotty/tools/dotc/CompilationTests.scala
+++ b/compiler/test/dotty/tools/dotc/CompilationTests.scala
@@ -56,6 +56,7 @@ class CompilationTests extends ParallelTesting {
         defaultOptions.and("-nowarn", "-Xfatal-warnings")
       ),
       compileFile("tests/pos-special/typeclass-scaling.scala", defaultOptions.and("-Xmax-inlines", "40")),
+      compileFile("tests/pos-custom-args/i7512.scala", TestFlags(basicClasspath, noCheckOptions)),
       compileFile("tests/pos-special/indent-colons.scala", defaultOptions.and("-Yindent-colons")),
       compileFile("tests/pos-special/i7296.scala", defaultOptions.and("-source", "3.1", "-deprecation", "-Xfatal-warnings")),
       compileFile("tests/pos-special/notNull.scala", defaultOptions.and("-Yexplicit-nulls")),
diff --git a/tests/pos-custom-args/i7512.scala b/tests/pos-custom-args/i7512.scala
new file mode 100644
index 000000000000..c1c1a49b7516
--- /dev/null
+++ b/tests/pos-custom-args/i7512.scala
@@ -0,0 +1,24 @@
+import scala.compiletime.S
+
+object InfiniteLoopMatchType {
+    def main(args: Array[String]): Unit = {
+        testProd(2, 3) // Infinite loop on Dotty 0.25.0-RC1
+    }
+
+    def testProd(a: Int, b: Int)(using ev: (a.type * b.type) =:= (b.type * a.type)) = true
+
+    type *[A <: Int, B <: Int] <: Int = A match {
+        case 0 => 0
+        case _ => MultiplyLoop[A, B, 0]
+    }
+
+    type MultiplyLoop[A <: Int, B <: Int, Acc <: Int] <: Int = A match {
+        case 0 => Acc
+        case S[aMinusOne] => MultiplyLoop[aMinusOne, B, B + Acc]
+    }
+
+    type +[A <: Int, B <: Int] <: Int = A match {
+        case 0 => B
+        case S[aMinusOne] => aMinusOne + S[B]
+    }
+}