diff --git a/src/ast/sls/sls_datatype_plugin.cpp b/src/ast/sls/sls_datatype_plugin.cpp
index 3a30c6a19..92f1347cf 100644
--- a/src/ast/sls/sls_datatype_plugin.cpp
+++ b/src/ast/sls/sls_datatype_plugin.cpp
@@ -51,6 +51,7 @@ Axioms:
 --*/
 
 #include "ast/sls/sls_datatype_plugin.h"
+#include "ast/ast_pp.h"
 
 namespace sls {
     
@@ -257,13 +258,7 @@ namespace sls {
             m_values.reserve(id + 1);
             if (!dt.is_datatype(e))
                 continue;
-            euf::enode* con = nullptr;
-            for (auto sib : euf::enode_class(n)) {
-                if (dt.is_constructor(sib->get_expr())) {
-                    con = sib;
-                    break;
-                }
-            }
+            euf::enode* con = get_constructor(n);
             if (con) {
                 auto f = con->get_decl();
                 args.reset();
@@ -284,13 +279,7 @@ namespace sls {
     void datatype_plugin::add_dep(euf::enode* n, top_sort<euf::enode>& dep) {
         if (!dt.is_datatype(n->get_expr()))
             return;
-        euf::enode* con = nullptr;
-        for (auto sib : euf::enode_class(n)) {
-            if (dt.is_constructor(sib->get_expr())) {
-                con = sib;
-                break;
-            }
-        }
+        euf::enode* con = get_constructor(n);
         TRACE("dt", display(tout) << g->bpp(n) << " con: " << g->bpp(con) << "\n";);
         if (!con)
             dep.insert(n, nullptr);
@@ -304,16 +293,101 @@ namespace sls {
     void datatype_plugin::start_propagation() {
         m_values.reset();
     }
-    
-    void datatype_plugin::propagate_literal(sat::literal lit) {}
-    bool datatype_plugin::propagate() { return false; }       
-    bool datatype_plugin::is_sat() { return true; }
-    void datatype_plugin::register_term(expr* e) {}
+
+    euf::enode* datatype_plugin::get_constructor(euf::enode* n) {
+        euf::enode* con = nullptr;
+        for (auto sib : euf::enode_class(n))
+            if (dt.is_constructor(sib->get_expr()))
+                return sib;
+        return nullptr;
+    }
+
+    bool datatype_plugin::propagate() {       
+        enum color_t { white, grey, black };
+        svector<color_t> color;
+        unsigned_vector dfsnum;
+        svector<std::tuple<unsigned, euf::enode*, unsigned>> todo;
+        for (auto n : g->nodes()) {
+            if (!n->is_root())
+                continue;
+            expr* e = n->get_expr();
+            if (!dt.is_datatype(e))
+                continue;
+
+            auto c = color.get(e->get_id(), white);
+            SASSERT(c != grey);
+            if (c == black)
+                continue;
+
+            dfsnum.setx(e->get_id(), 0, UINT_MAX);
+
+            // dfs traversal of enodes, starting with n, 
+            // with outgoing edges the arguments of con, where con
+            // is a node in the same congruence class as n that is a constructor.
+            // For every cycle accumulate a conflict.
+
+            todo.push_back({ 0, n, 0 });
+            while (!todo.empty()) {
+                auto [depth, n, parent_idx] = todo.back();
+                unsigned id = n->get_root_id();
+                c = color[id];
+                euf::enode* con;
+                unsigned idx; 
+
+                switch (c) {
+                case black:
+                    todo.pop_back();
+                    break;
+                case grey:
+                    if (dfsnum.get(id, UINT_MAX) < depth) {
+                        expr_ref_vector diseqs(m);
+                        while (true) {
+                            auto [depth2, n2, parent_idx2] = todo[parent_idx];
+                            auto con2 = get_constructor(n2);
+                            if (n2 != con2)
+                                diseqs.push_back(m.mk_not(m.mk_eq(n2->get_expr(), con2->get_expr())));
+                            parent_idx = parent_idx2;
+                            if (n2->get_root() == n->get_root()) {
+                                diseqs.push_back(m.mk_not(m.mk_eq(n->get_expr(), n2->get_expr())));
+                                break;
+                            }
+                        }
+                        verbose_stream() << "cycle\n";
+                        for (auto e : diseqs)
+                            verbose_stream() << mk_pp(e, m) << "\n";
+                        ctx.add_clause(m.mk_or(diseqs));
+                        return true;                       
+                    }
+                    color[id] = black;
+                    todo.pop_back();
+                    break;
+                case white:
+                    color[id] = grey;
+                    dfsnum.setx(id, depth, UINT_MAX);
+                    con = get_constructor(n);
+                    idx = todo.size() - 1;
+                    if (con)
+                        for (auto child : euf::enode_args(con))
+                            if (color.get(child->get_root_id(), white) == white && dt.is_datatype(child->get_expr()))
+                                todo.push_back({ depth + 1, child, idx });
+                    break;
+                }
+            }                    
+        }
+        return false;
+    }
+
     std::ostream& datatype_plugin::display(std::ostream& out) const {
         for (auto a : m_axioms)
             out << mk_bounded_pp(a, m, 3) << "\n";
         return out;
     }
+    
+    void datatype_plugin::propagate_literal(sat::literal lit) {}
+   
+    bool datatype_plugin::is_sat() { return true; }
+    void datatype_plugin::register_term(expr* e) {}
+
     void datatype_plugin::mk_model(model& mdl) {
     }
         
diff --git a/src/ast/sls/sls_datatype_plugin.h b/src/ast/sls/sls_datatype_plugin.h
index 61cc2b938..bacfa9d63 100644
--- a/src/ast/sls/sls_datatype_plugin.h
+++ b/src/ast/sls/sls_datatype_plugin.h
@@ -48,6 +48,8 @@ namespace sls {
         void init_values();
         void add_dep(euf::enode* n, top_sort<euf::enode>& dep);
 
+        euf::enode* get_constructor(euf::enode* n);
+
     public:
         datatype_plugin(context& c);
         ~datatype_plugin() override;