diff --git a/interpreter/src/cursor_aleo.rs b/interpreter/src/cursor_aleo.rs
index 8f98d36198..769239fb0b 100644
--- a/interpreter/src/cursor_aleo.rs
+++ b/interpreter/src/cursor_aleo.rs
@@ -444,6 +444,10 @@ impl Cursor {
                 }
             }
             CastLossy(cast_lossy) => {
+                let destination = cast_lossy.destinations()[0].clone();
+
+                self.increment_instruction_index();
+
                 match cast_lossy.cast_type() {
                     CastType::Plaintext(PlaintextType::Literal(literal_type)) => {
                         // This is the only variant supported for lossy casts.
@@ -451,7 +455,6 @@ impl Cursor {
                         let Some(value) = operand.cast_lossy(literal_type) else {
                             halt_no_span!("Cast failure");
                         };
-                        let destination = cast_lossy.destinations()[0].clone();
                         (value, destination)
                     }
                     _ => tc_fail!(),
diff --git a/interpreter/src/test.rs b/interpreter/src/test.rs
index ffb0447453..5d8c6cffea 100644
--- a/interpreter/src/test.rs
+++ b/interpreter/src/test.rs
@@ -16,10 +16,10 @@
 
 //! These tests compare interpreter runs against previous interpreter runs.
 
-use crate::{Interpreter, InterpreterAction};
+use crate::{Element, Interpreter, InterpreterAction};
 
-use leo_ast::NetworkName;
-use leo_span::create_session_if_not_set_then;
+use leo_ast::{NetworkName, interpreter_value::Value};
+use leo_span::{Span, Symbol, create_session_if_not_set_then};
 
 use snarkvm::prelude::{PrivateKey, TestnetV0};
 
@@ -179,3 +179,65 @@ fn runner_leo_test(test: &str) -> String {
 fn test_interpreter() {
     leo_test_framework::run_tests("interpreter-leo", runner_leo_test);
 }
+
+#[test]
+fn cast_lossy_advances_instruction_index() {
+    let tempdir = tempfile::tempdir().expect("tempdir");
+
+    // Minimal Aleo program with a single cast.lossy instruction in a function.
+    let aleo_source = r"program test_castlossy.aleo;
+
+function cast_lossy_test:
+    input r0 as field.private;
+    cast.lossy r0 into r1 as u8;
+    output r1 as u8.private;
+";
+
+    let filename = tempdir.path().join("test_castlossy.aleo");
+    fs::write(&filename, aleo_source).expect("write failed");
+
+    let private_key: PrivateKey<TestnetV0> = PrivateKey::from_str(TEST_PRIVATE_KEY).expect("should parse private key");
+
+    let leo_files: [(PathBuf, Vec<PathBuf>); 0] = [];
+    let aleo_files = [filename.clone()];
+
+    let mut interpreter = Interpreter::new(
+        &leo_files,
+        &aleo_files,
+        private_key.to_string(),
+        0,
+        chrono::Utc::now().timestamp(),
+        NetworkName::TestnetV0,
+    )
+    .expect("creating interpreter");
+
+    let program = Symbol::intern("test_castlossy");
+    let function = Symbol::intern("cast_lossy_test");
+
+    // Single field argument value.
+    let arg = Value::from_str("1field").expect("parse field literal");
+
+    interpreter
+        .cursor
+        .do_call(program, &[function], std::iter::once(arg), false, Span::default())
+        .expect("do_call failed");
+
+    // Ensure we have an AleoExecution frame on top of the stack.
+    assert!(matches!(interpreter.cursor.frames.last().map(|f| &f.element), Some(Element::AleoExecution { .. })));
+
+    // Step through Aleo execution a few times at most; with a single cast.lossy
+    // instruction, the frame must be popped quickly if the instruction index advances.
+    let mut steps = 0usize;
+    while matches!(interpreter.cursor.frames.last().map(|f| &f.element), Some(Element::AleoExecution { .. }))
+        && steps < 10
+    {
+        interpreter.cursor.step_aleo().expect("step_aleo failed");
+        steps += 1;
+    }
+
+    assert!(steps <= 2, "CastLossy should complete in at most a couple of steps, got {steps}");
+    assert!(
+        !matches!(interpreter.cursor.frames.last().map(|f| &f.element), Some(Element::AleoExecution { .. })),
+        "AleoExecution frame should be popped after executing CastLossy-only function",
+    );
+}