diff --git a/.changeset/giant-doors-like.md b/.changeset/giant-doors-like.md
new file mode 100644
index 0000000000..68eddf6658
--- /dev/null
+++ b/.changeset/giant-doors-like.md
@@ -0,0 +1,16 @@
+---
+'xstate': minor
+---
+
+Add `maxIterations` option to configure the maximum number of microsteps allowed before throwing an infinite loop error. The default is `Infinity` (no limit) to avoid breaking existing machines.
+
+You can configure it when creating a machine:
+
+```ts
+const machine = createMachine({
+  // ... machine config
+  options: {
+    maxIterations: 1000 // set a limit to enable infinite loop detection
+  }
+});
+```
diff --git a/packages/core/src/StateMachine.ts b/packages/core/src/StateMachine.ts
index f070310083..9870b1017e 100644
--- a/packages/core/src/StateMachine.ts
+++ b/packages/core/src/StateMachine.ts
@@ -38,6 +38,7 @@ import type {
   MachineConfig,
   MachineContext,
   MachineImplementationsSimplified,
+  MachineOptions,
   MetaObject,
   ParameterizedObject,
   ProvidedActor,
@@ -94,6 +95,9 @@ export class StateMachine<
 
   public implementations: MachineImplementationsSimplified<TContext, TEvent>;
 
+  /** Runtime options for machine execution. */
+  public options: MachineOptions;
+
   /** @internal */
   public __xstatenode = true as const;
 
@@ -135,6 +139,10 @@ export class StateMachine<
     };
     this.version = this.config.version;
     this.schemas = this.config.schemas;
+    this.options = {
+      maxIterations: Infinity,
+      ...this.config.options
+    };
 
     this.transition = this.transition.bind(this);
     this.getInitialSnapshot = this.getInitialSnapshot.bind(this);
diff --git a/packages/core/src/stateUtils.ts b/packages/core/src/stateUtils.ts
index 2eacb67493..606b064c80 100644
--- a/packages/core/src/stateUtils.ts
+++ b/packages/core/src/stateUtils.ts
@@ -1648,8 +1648,17 @@ export function macrostep(
   }
 
   let shouldSelectEventlessTransitions = true;
+  const maxIterations = snapshot.machine.options?.maxIterations ?? Infinity;
+  let iterationCount = 0;
 
   while (nextSnapshot.status === 'active') {
+    iterationCount++;
+    if (iterationCount > maxIterations) {
+      throw new Error(
+        `Infinite loop detected: the machine has processed more than ${maxIterations} microsteps without reaching a stable state. This usually happens when there's a cycle of transitions (e.g., eventless transitions or raised events causing state A -> B -> C -> A).`
+      );
+    }
+
     let enabledTransitions: AnyTransitionDefinition[] =
       shouldSelectEventlessTransitions
         ? selectEventlessTransitions(nextSnapshot, nextEvent)
diff --git a/packages/core/src/types.ts b/packages/core/src/types.ts
index 7e516e7948..1a38609235 100644
--- a/packages/core/src/types.ts
+++ b/packages/core/src/types.ts
@@ -1343,6 +1343,32 @@ export type ContextFactory<
   >;
 }) => TContext;
 
+/**
+ * Runtime options for state machine execution.
+ *
+ * @example
+ *
+ * ```ts
+ * const machine = createMachine({
+ *   // ... machine config
+ *   options: {
+ *     maxIterations: 5000
+ *     // other runtime options can be added here
+ *   }
+ * });
+ * ```
+ */
+export interface MachineOptions {
+  /**
+   * Maximum number of microsteps allowed before throwing an infinite loop
+   * error. Defaults to `Infinity` (no limit). Set to a number to enable
+   * infinite loop detection, or `-1` to explicitly disable the limit.
+   *
+   * @default Infinity
+   */
+  maxIterations?: number;
+}
+
 export type MachineConfig<
   TContext extends MachineContext,
   TEvent extends EventObject,
@@ -1375,6 +1401,8 @@ export type MachineConfig<
   version?: string;
   // TODO: make it conditionally required
   output?: Mapper<TContext, DoneStateEvent, TOutput, TEvent> | TOutput;
+  /** Runtime options for machine execution. */
+  options?: MachineOptions;
 }) &
   (MachineContext extends TContext
     ? { context?: InitialContext<LowInfer<TContext>, TActor, TInput, TEvent> }
diff --git a/packages/core/test/transient.test.ts b/packages/core/test/transient.test.ts
index a7d1b57108..78aef75e54 100644
--- a/packages/core/test/transient.test.ts
+++ b/packages/core/test/transient.test.ts
@@ -566,6 +566,81 @@ describe('transient states (eventless transitions)', () => {
     service.send({ type: 'EVENT', value: 42 });
   });
 
+  it('should avoid infinite loops with eventless transitions', () => {
+    expect.assertions(1);
+    const machine = createMachine({
+      initial: 'a',
+      options: {
+        maxIterations: 100
+      },
+      states: {
+        a: {
+          always: {
+            target: 'b'
+          }
+        },
+        b: {
+          always: {
+            target: 'c'
+          }
+        },
+        c: {
+          always: {
+            target: 'a'
+          }
+        }
+      }
+    });
+    const actor = createActor(machine);
+
+    actor.subscribe({
+      error: (err) => {
+        expect((err as any).message).toMatch(/infinite loop/i);
+      }
+    });
+
+    actor.start();
+  });
+
+  it('should avoid infinite loops with raised events', () => {
+    expect.assertions(1);
+    const machine = createMachine({
+      initial: 'a',
+      states: {
+        a: {
+          always: {
+            target: 'b'
+          }
+        },
+        b: {
+          entry: raise({ type: 'EVENT' }),
+          on: {
+            EVENT: {
+              target: 'c'
+            }
+          }
+        },
+        c: {
+          always: {
+            target: 'a'
+          }
+        }
+      },
+      options: {
+        maxIterations: 100
+      }
+    });
+    const actor = createActor(machine);
+
+    actor.subscribe({
+      error: (err) => {
+        expect((err as any).message).toMatch(/infinite loop/i);
+      }
+    });
+
+    actor.start();
+  });
+
   it("shouldn't end up in an infinite loop when selecting the fallback target", () => {
     const machine = createMachine({
       initial: 'idle',