diff --git a/.changeset/strange-dolls-refuse.md b/.changeset/strange-dolls-refuse.md
new file mode 100644
index 0000000..e2ce7f9
--- /dev/null
+++ b/.changeset/strange-dolls-refuse.md
@@ -0,0 +1,5 @@
+---
+"ember-provide-consume-context": patch
+---
+
+Avoid infinite loops when reading context values at construct time
diff --git a/ember-provide-consume-context/src/-private/provide-consume-context-container.ts b/ember-provide-consume-context/src/-private/provide-consume-context-container.ts
index b92663e..5b8c373 100644
--- a/ember-provide-consume-context/src/-private/provide-consume-context-container.ts
+++ b/ember-provide-consume-context/src/-private/provide-consume-context-container.ts
@@ -52,7 +52,13 @@ export class ProvideConsumeContextContainer {
   // not the VM ones).
   // The values are objects that map a string ID (provider ID) to the provider
   // component instance.
-  contexts = new WeakMap<any, Contexts>();
+  // "parentContexts" contain references to contexts coming from "above", and
+  // are used to read values from (which allows a component to provide and consume the same key)
+  parentContexts = new WeakMap<any, Contexts>();
+  // "nextContexts" are context maps used to propagate context values down
+  // into the component tree, which includes the merged providers from the
+  // current component (if any)
+  nextContexts = new WeakMap<any, Contexts>();
 
   // Global contexts are registered by test-support helpers to allow easily
   // providing context values in tests.
@@ -135,9 +141,11 @@ export class ProvideConsumeContextContainer {
   }
 
   private registerProvider(provider: any) {
-    const providerContexts: Contexts = this.currentContexts();
+    const parentContexts: Contexts = this.currentContexts();
+    const mergedContexts: Contexts = { ...parentContexts };
 
     const registeredContexts = provider[EMBER_PROVIDE_CONSUME_CONTEXT_KEY];
+
     // If the provider has registered contexts, store references
     // to them on the current contexts object
     if (registeredContexts != null) {
@@ -145,7 +153,7 @@ export class ProvideConsumeContextContainer {
         registeredContexts as Record<keyof ContextRegistry, string>,
       ).forEach(([contextKey, key]) => {
         if (key in provider) {
-          providerContexts[contextKey] = {
+          mergedContexts[contextKey] = {
             instance: provider,
             key,
           };
@@ -153,16 +161,15 @@ export class ProvideConsumeContextContainer {
       });
     }
 
-    this.contexts.set(provider, providerContexts);
+    this.parentContexts.set(provider, parentContexts);
+    this.nextContexts.set(provider, mergedContexts);
   }
 
   private registerComponent(component: any) {
     const currentContexts = this.currentContexts();
 
-    // If a current context reference or global contexts exist, register them to the component
-    if (Object.keys(currentContexts).length > 0) {
-      this.contexts.set(component, currentContexts);
-    }
+    this.parentContexts.set(component, currentContexts);
+    this.nextContexts.set(component, currentContexts);
   }
 
   currentContexts() {
@@ -170,8 +177,11 @@ export class ProvideConsumeContextContainer {
 
     const globalContexts = this.#globalContexts ?? {};
 
-    if (this.contexts.has(current) || Object.keys(globalContexts).length > 0) {
-      const context = this.contexts.get(current);
+    if (
+      this.nextContexts.has(current) ||
+      Object.keys(globalContexts).length > 0
+    ) {
+      const context = this.nextContexts.get(current);
       return { ...globalContexts, ...context };
     }
 
@@ -179,8 +189,8 @@ export class ProvideConsumeContextContainer {
   }
 
   contextsFor(component: any) {
-    if (this.contexts.has(component)) {
-      return this.contexts.get(component);
+    if (this.parentContexts.has(component)) {
+      return this.parentContexts.get(component);
     }
 
     // If a context for this component is not yet registered, but
diff --git a/test-app/tests/integration/components/decorators-test.ts b/test-app/tests/integration/components/decorators-test.ts
index 5747d28..754d454 100644
--- a/test-app/tests/integration/components/decorators-test.ts
+++ b/test-app/tests/integration/components/decorators-test.ts
@@ -972,4 +972,117 @@ module('Integration | Decorators', function (hooks) {
     assert.dom('#content-1').hasText('1');
     assert.dom('#content-2').hasText('2');
   });
+
+  test('provider that references its own context and reading context value at construct time', async function (assert) {
+    class TestProviderComponent extends Component<{
+      Element: HTMLDivElement;
+      Blocks: {
+        default: [];
+      };
+    }> {
+      @consume('my-test-context') parentContextValue!: number;
+
+      get nextContextValue() {
+        return (this.parentContextValue ?? 0) + 1;
+      }
+    }
+
+    setComponentTemplate(
+      // @ts-ignore
+      hbs`{{! @glint-ignore }}
+        <ContextProvider @key="my-test-context" @value={{this.nextContextValue}}>{{yield}}</ContextProvider>
+      `,
+      TestProviderComponent,
+    );
+
+    class TestConsumerComponent extends Component<{
+      Element: HTMLDivElement;
+    }> {
+      @consume('my-test-context') contextValue!: number;
+
+      readValue = this.contextValue;
+    }
+
+    setComponentTemplate(
+      // @ts-ignore
+      hbs`{{! @glint-ignore }}
+        <div id="content">{{this.readValue}}</div>
+      `,
+      TestConsumerComponent,
+    );
+
+    interface TestContext {
+      TestProviderComponent: typeof TestProviderComponent;
+      TestConsumerComponent: typeof TestConsumerComponent;
+    }
+    (this as unknown as TestContext).TestProviderComponent =
+      TestProviderComponent;
+    (this as unknown as TestContext).TestConsumerComponent =
+      TestConsumerComponent;
+
+    await render<TestContext>(hbs`
+      <this.TestProviderComponent>
+        <this.TestConsumerComponent />
+      </this.TestProviderComponent>
+    `);
+
+    assert.dom('#content').hasText('1');
+  });
+
+  test('ContextProvider that references its components context and reading context value at construct time', async function (assert) {
+    class TestProviderComponent extends Component<{
+      Element: HTMLDivElement;
+      Blocks: {
+        default: [];
+      };
+    }> {
+      @consume('my-test-context') parentContextValue!: number;
+
+      @provide('my-test-context')
+      get nextContextValue() {
+        return (this.parentContextValue ?? 0) + 1;
+      }
+    }
+
+    setComponentTemplate(
+      // @ts-ignore
+      hbs`{{! @glint-ignore }}
+        {{yield}}
+      `,
+      TestProviderComponent,
+    );
+
+    class TestConsumerComponent extends Component<{
+      Element: HTMLDivElement;
+    }> {
+      @consume('my-test-context') contextValue!: number;
+
+      readValue = this.contextValue;
+    }
+
+    setComponentTemplate(
+      // @ts-ignore
+      hbs`{{! @glint-ignore }}
+        <div id="content">{{this.readValue}}</div>
+      `,
+      TestConsumerComponent,
+    );
+
+    interface TestContext {
+      TestProviderComponent: typeof TestProviderComponent;
+      TestConsumerComponent: typeof TestConsumerComponent;
+    }
+    (this as unknown as TestContext).TestProviderComponent =
+      TestProviderComponent;
+    (this as unknown as TestContext).TestConsumerComponent =
+      TestConsumerComponent;
+
+    await render<TestContext>(hbs`
+      <this.TestProviderComponent>
+        <this.TestConsumerComponent />
+      </this.TestProviderComponent>
+    `);
+
+    assert.dom('#content').hasText('1');
+  });
 });