diff --git a/arbitrator/prover/test-cases/user.wat b/arbitrator/prover/test-cases/user.wat
index 9ecb4dcc45..68f45a610a 100644
--- a/arbitrator/prover/test-cases/user.wat
+++ b/arbitrator/prover/test-cases/user.wat
@@ -22,6 +22,12 @@
         i32.const 0xFFFFFF
         i32.load
     )
+    (func $infinite_loop (result i32)
+        (loop $loop
+            br $loop
+        )
+        i32.const 0
+    )
     (func (export "user_entrypoint") (param $args_len i32) (result i32)
         ;; this func uses $args_len to select which func to call
 
@@ -43,6 +49,12 @@
             (then (call $out_of_bounds) (return))
         )
 
+        ;; reverts due to an out-of-gas error
+        (i32.eq (local.get $args_len) (i32.const 4))
+        (if
+            (then (call $infinite_loop) (return))
+        )
+
         (i32.eq (local.get $args_len) (i32.const 32))
         (if
             (then (call $storage_load) (return))
diff --git a/system_tests/program_test.go b/system_tests/program_test.go
index ea4ccddd03..94aaef5f34 100644
--- a/system_tests/program_test.go
+++ b/system_tests/program_test.go
@@ -1005,6 +1005,31 @@ func TestProgramMemory(t *testing.T) {
 	testMemory(t, true)
 }
 
+func TestProgramInfiniteLoopShouldCauseErrOutOfGas(t *testing.T) {
+	t.Parallel()
+	testInfiniteLoopCausesErrOutOfGas(t, true)
+	testInfiniteLoopCausesErrOutOfGas(t, false)
+}
+
+func testInfiniteLoopCausesErrOutOfGas(t *testing.T, jit bool) {
+	builder, auth, cleanup := setupProgramTest(t, jit)
+	ctx := builder.ctx
+	l2info := builder.L2Info
+	l2client := builder.L2.Client
+	defer cleanup()
+
+	userWasm := deployWasm(t, ctx, auth, l2client, "../arbitrator/prover/test-cases/user.wat")
+	// Passing input of size 4 invokes $infinite_loop function that calls the infinite loop
+	tx := l2info.PrepareTxTo("Owner", &userWasm, 1000000, nil, make([]byte, 4))
+	Require(t, l2client.SendTransaction(ctx, tx))
+	receipt, err := EnsureTxSucceeded(ctx, l2client, tx)
+	if !strings.Contains(err.Error(), vm.ErrOutOfGas.Error()) {
+		t.Fatalf("transaction should have failed with out of gas error but instead failed with: %v", err)
+	}
+
+	validateBlocks(t, receipt.BlockNumber.Uint64(), jit, builder)
+}
+
 func testMemory(t *testing.T, jit bool) {
 	builder, auth, cleanup := setupProgramTest(t, jit)
 	ctx := builder.ctx