diff --git a/frontend-wasm/tests/rust_source/fib.rs b/frontend-wasm/tests/rust_source/fib.rs
new file mode 100644
index 000000000..8c7b9b987
--- /dev/null
+++ b/frontend-wasm/tests/rust_source/fib.rs
@@ -0,0 +1,25 @@
+#![no_std]
+#![no_main]
+
+#[panic_handler]
+fn my_panic(_info: &core::panic::PanicInfo) -> ! {
+    loop {}
+}
+
+#[inline(never)]
+#[no_mangle]
+pub fn fib(n: u32) -> u32 {
+    let mut a = 0;
+    let mut b = 1;
+    for _ in 0..n {
+        let c = a + b;
+        a = b;
+        b = c;
+    }
+    a
+}
+
+#[no_mangle]
+pub extern "C" fn __main() -> u32 {
+    fib(25)
+}
diff --git a/frontend-wasm/tests/test_rust_comp.rs b/frontend-wasm/tests/test_rust_comp.rs
index bb7cde49e..0c646a084 100644
--- a/frontend-wasm/tests/test_rust_comp.rs
+++ b/frontend-wasm/tests/test_rust_comp.rs
@@ -12,10 +12,12 @@ use miden_diagnostics::Verbosity;
 use miden_frontend_wasm::translate_module;
 use miden_frontend_wasm::WasmTranslationConfig;
 
-fn hash_string(input: &str) -> String {
+fn hash_string(inputs: &[&str]) -> String {
     use sha2::{Digest, Sha256};
     let mut hasher = Sha256::new();
-    hasher.update(input);
+    for input in inputs {
+        hasher.update(input);
+    }
     format!("{:x}", hasher.finalize())
 }
 
@@ -23,7 +25,16 @@ fn compile_wasm(rust_source: &str) -> Vec<u8> {
     use std::fs;
     use std::process::Command;
 
-    let file_name = hash_string(rust_source);
+    let rustc_opts = [
+        "-C",
+        "opt-level=z", // optimize for size
+        "--target",
+        "wasm32-unknown-unknown",
+    ];
+
+    // include rustc_opts in the hash to ensure that the output file changes when options change
+    let file_name = hash_string(&[&rustc_opts.concat(), rust_source]);
+
     let temp_dir = std::env::temp_dir();
     let input_file = temp_dir.join(format!("{file_name}.rs"));
     let output_file = temp_dir.join(format!("{file_name}.wasm"));
@@ -36,14 +47,10 @@ fn compile_wasm(rust_source: &str) -> Vec<u8> {
     fs::write(&input_file, rust_source).unwrap();
 
     let output = Command::new("rustc")
-        .args(&[
-            "--target",
-            "wasm32-unknown-unknown",
-            input_file.to_str().unwrap(),
-            "-o",
-            output_file.to_str().unwrap(),
-            "-O",
-        ])
+        .args(&rustc_opts)
+        .arg(&input_file)
+        .arg("-o")
+        .arg(&output_file)
         .output()
         .expect("Failed to execute rustc.");
 
@@ -88,7 +95,7 @@ fn default_emitter(verbosity: Verbosity, color: ColorChoice) -> Arc<dyn Emitter>
 }
 
 #[test]
-fn test_rust_add() {
+fn rust_add() {
     check_ir(
         include_str!("rust_source/add.rs"),
         expect![[r#"
@@ -140,3 +147,93 @@ fn test_rust_add() {
         "#]],
     );
 }
+
+#[test]
+fn rust_fib() {
+    check_ir(
+        include_str!("rust_source/fib.rs"),
+        expect![[r#"
+            (module
+              (type (;0;) (func (param i32) (result i32)))
+              (type (;1;) (func (result i32)))
+              (func $fib (;0;) (type 0) (param i32) (result i32)
+                (local i32 i32 i32)
+                i32.const 0
+                local.set 1
+                i32.const 1
+                local.set 2
+                loop (result i32) ;; label = @1
+                  local.get 2
+                  local.set 3
+                  block ;; label = @2
+                    local.get 0
+                    br_if 0 (;@2;)
+                    local.get 1
+                    return
+                  end
+                  local.get 0
+                  i32.const -1
+                  i32.add
+                  local.set 0
+                  local.get 1
+                  local.get 3
+                  i32.add
+                  local.set 2
+                  local.get 3
+                  local.set 1
+                  br 0 (;@1;)
+                end
+              )
+              (func $__main (;1;) (type 1) (result i32)
+                i32.const 25
+                call $fib
+              )
+              (memory (;0;) 16)
+              (global $__stack_pointer (;0;) (mut i32) i32.const 1048576)
+              (global (;1;) i32 i32.const 1048576)
+              (global (;2;) i32 i32.const 1048576)
+              (export "memory" (memory 0))
+              (export "fib" (func $fib))
+              (export "__main" (func $__main))
+              (export "__data_end" (global 1))
+              (export "__heap_base" (global 2))
+            )"#]],
+        expect![[r#"
+            module noname
+
+            pub fn fib(i32) -> i32  {
+            block0(v0: i32):
+                v2 = const.int 0  : i32
+                v3 = const.int 0  : i32
+                v4 = const.int 1  : i32
+                br block2(v4, v0, v3)
+
+            block1(v1: i32):
+
+            block2(v6: i32, v7: i32, v8: i32):
+                condbr v7, block4, block5
+
+            block3(v5: i32):
+
+            block4:
+                v10 = const.int -1  : i32
+                v11 = add v7, v10  : i32
+                v12 = add v8, v6  : i32
+                br block2(v12, v11, v6)
+
+            block5:
+                v9 = ret v8  : ()
+            }
+
+            pub fn __main() -> i32  {
+            block0:
+                v1 = const.int 25  : i32
+                v2 = call fib(v1)  : i32
+                br block1(v2)
+
+            block1(v0: i32):
+                v3 = ret v0  : ()
+            }
+        "#]],
+    );
+}