diff --git a/server/jetstream_cluster_2_test.go b/server/jetstream_cluster_2_test.go
index 71e36125..231feea6 100644
--- a/server/jetstream_cluster_2_test.go
+++ b/server/jetstream_cluster_2_test.go
@@ -6631,9 +6631,12 @@ func TestJetStreamClusterSnapshotBeforePurgeAndCatchup(t *testing.T) {
 	mset, err = nl.GlobalAccount().lookupStream("TEST")
 	require_NoError(t, err)
 
-	if state := mset.state(); state.FirstSeq != 2001 || state.LastSeq != 3000 {
-		t.Fatalf("Incorrect state: %+v", state)
-	}
+	checkFor(t, 2*time.Second, 100*time.Millisecond, func() error {
+		if state := mset.state(); state.FirstSeq != 2001 || state.LastSeq != 3000 {
+			return fmt.Errorf("Incorrect state: %+v", state)
+		}
+		return nil
+	})
 
 	// Make sure we only sent 1 sync catchup msg.
 	nmsgs, _, _ := sub.Pending()
diff --git a/server/jetstream_cluster_3_test.go b/server/jetstream_cluster_3_test.go
index 85c55693..d3fd566e 100644
--- a/server/jetstream_cluster_3_test.go
+++ b/server/jetstream_cluster_3_test.go
@@ -2576,3 +2576,47 @@ func TestJetStreamClusterCurrentVsHealth(t *testing.T) {
 		}
 	}
 }
+
+// Several users and customers use this setup, but many times across leafnodes.
+// This should be allowed in same account since we are really protecting against
+// multiple pub acks with cycle detection.
+func TestJetStreamClusterActiveActiveSourcedStreams(t *testing.T) {
+	c := createJetStreamClusterExplicit(t, "R3S", 3)
+	defer c.shutdown()
+
+	nc, js := jsClientConnect(t, c.randomServer())
+	defer nc.Close()
+
+	_, err := js.AddStream(&nats.StreamConfig{
+		Name:     "A",
+		Subjects: []string{"A.>"},
+	})
+	require_NoError(t, err)
+
+	_, err = js.AddStream(&nats.StreamConfig{
+		Name:     "B",
+		Subjects: []string{"B.>"},
+	})
+	require_NoError(t, err)
+
+	_, err = js.UpdateStream(&nats.StreamConfig{
+		Name:     "A",
+		Subjects: []string{"A.>"},
+		Sources: []*nats.StreamSource{{
+			Name:          "B",
+			FilterSubject: "B.>",
+		}},
+	})
+	require_NoError(t, err)
+
+	// Before this would fail.
+	_, err = js.UpdateStream(&nats.StreamConfig{
+		Name:     "B",
+		Subjects: []string{"B.>"},
+		Sources: []*nats.StreamSource{{
+			Name:          "A",
+			FilterSubject: "A.>",
+		}},
+	})
+	require_NoError(t, err)
+}
diff --git a/server/stream.go b/server/stream.go
index c3f906cf..e578e5e4 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -1180,20 +1180,33 @@ func (s *Server) checkStreamCfg(config *StreamConfig, acc *Account) (StreamConfi
 	// cycle check for source cycle
 	toVisit := []*StreamConfig{&cfg}
 	visited := make(map[string]struct{})
+	overlaps := func(subjects []string, filter string) bool {
+		if filter == _EMPTY_ {
+			return true
+		}
+		for _, subject := range subjects {
+			if SubjectsCollide(subject, filter) {
+				return true
+			}
+		}
+		return false
+	}
+
 	for len(toVisit) > 0 {
 		cfg := toVisit[0]
 		toVisit = toVisit[1:]
 		visited[cfg.Name] = struct{}{}
 		for _, src := range cfg.Sources {
 			if src.External != nil {
-				// TODO (mh) look up service imports and see if src.External.ApiPrefix returns an account
-				// this will be much easier without the delivery subject
 				continue
 			}
+			// We can detect a cycle between streams, but let's double check that the
+			// subjects actually form a cycle.
 			if _, ok := visited[src.Name]; ok {
-				return StreamConfig{}, NewJSStreamInvalidConfigError(errors.New("detected cycle"))
-			}
-			if exists, cfg := getStream(src.Name); exists {
+				if overlaps(cfg.Subjects, src.FilterSubject) {
+					return StreamConfig{}, NewJSStreamInvalidConfigError(errors.New("detected cycle"))
+				}
+			} else if exists, cfg := getStream(src.Name); exists {
 				toVisit = append(toVisit, &cfg)
 			}
 		}