diff --git a/pytensor/tensor/rewriting/elemwise.py b/pytensor/tensor/rewriting/elemwise.py
index 6cdd98e11d..9e0f5fc54d 100644
--- a/pytensor/tensor/rewriting/elemwise.py
+++ b/pytensor/tensor/rewriting/elemwise.py
@@ -721,6 +721,14 @@ def elemwise_scalar_op_has_c_code(
                         # Already part of the subgraph
                         continue
 
+                    if node_bitflag & all_subgraphs_bitset:
+                        # Already part of another subgraph
+                        if is_ancestor:
+                            unfuseable_ancestors_bitset |= node_ancestors_bitset
+                        else:
+                            unfuseable_clients_bitset |= node_bitflag
+                        continue
+
                     if is_ancestor:
                         if node_bitflag & unfuseable_ancestors_bitset:
                             # An unfuseable ancestor of the subgraph depends on this node, can't fuse
@@ -827,7 +835,8 @@ def elemwise_scalar_op_has_c_code(
                     ancestors_bitsets |= (
                         (node, node_ancestors_bitset | subgraph_and_ancestors)
                         for node, node_ancestors_bitset in ancestors_bitsets.items()
-                        if node_ancestors_bitset & subgraph_bitset
+                        if (node_ancestors_bitset & subgraph_bitset)
+                        and not (nodes_bitflags[node] & subgraph_bitset)
                     )
 
                 # Collect the subgraph
diff --git a/tests/tensor/rewriting/test_fusion_cycle.py b/tests/tensor/rewriting/test_fusion_cycle.py
new file mode 100644
index 0000000000..dffa543cfd
--- /dev/null
+++ b/tests/tensor/rewriting/test_fusion_cycle.py
@@ -0,0 +1,43 @@
+import pytensor.tensor as pt
+from pytensor.graph.fg import FunctionGraph
+from pytensor.tensor.rewriting.elemwise import FusionOptimizer
+
+
+def test_fusion_no_cycle_after_multi_output():
+    """Verify that multi-output fusions do not cause cycles in later discoveries.
+
+    A bug in the ancestors_bitsets update logic for multi-output subgraphs
+    incorrectly marked ancestors within the subgraph as depending on their
+    own descendants.
+    """
+    in_a = pt.vector("a")
+    a = pt.exp(in_a)
+    b = pt.exp(a)
+    c = pt.log(a)
+    d = pt.exp(b)
+    e = pt.exp(c)
+
+    fgraph = FunctionGraph([in_a], [d, e])
+    optimizer = FusionOptimizer()
+    # Should not raise ValueError: graph contains cycles
+    optimizer.apply(fgraph)
+
+
+def test_fusion_cycle_diamond():
+    """Test fusion in a diamond-like structure with mixed fuseability.
+
+    This structure can trigger cycles if subgraphs overlap or are non-convex.
+    """
+    x = pt.matrix("x")
+    a = pt.exp(x)
+    # Path 1: fuseable
+    b = pt.exp(a)
+    # Path 2: unfuseable in the middle
+    c = a[0]
+    d = pt.exp(c)
+    # Sink
+    out = b + d
+
+    fgraph = FunctionGraph([x], [out])
+    # Should not raise ValueError: graph contains cycles
+    FusionOptimizer().apply(fgraph)