diff --git a/src/library/tactic/unfold_rec.cpp b/src/library/tactic/unfold_rec.cpp
index 037778eb5..0cec773b3 100644
--- a/src/library/tactic/unfold_rec.cpp
+++ b/src/library/tactic/unfold_rec.cpp
@@ -172,12 +172,14 @@ class unfold_rec_fn : public replace_visitor_aux {
         unsigned                 m_major_idx; // position of the major premise in the recursor
         unsigned                 m_main_pos;  // position of the (recursive) argument in the function being unfolded
         buffer<unsigned> const & m_rec_arg_pos; // position of the other arguments that are not fixed in the recursion
+        name                     m_prod_rec_name;
 
         fold_rec_fn(type_checker_ptr & tc, expr const & fn, buffer<expr> const & args, rec_kind k, name const & rec_name,
                     unsigned main_pos, buffer<unsigned> const & rec_arg_pos):
             m_tc(tc), m_fn(fn), m_args(args), m_kind(k), m_rec_name(rec_name),
             m_major_idx(*inductive::get_elim_major_idx(m_tc->env(), rec_name)),
             m_main_pos(main_pos), m_rec_arg_pos(rec_arg_pos) {
+            m_prod_rec_name = inductive::get_elim_name(get_prod_name());
             lean_assert(m_main_pos < args.size());
             lean_assert(std::all_of(rec_arg_pos.begin(), rec_arg_pos.end(), [&](unsigned pos) { return pos < args.size(); }));
         }
@@ -199,18 +201,21 @@ class unfold_rec_fn : public replace_visitor_aux {
             return folded_app;
         }
 
-        expr fold_brec(expr const & e, buffer<expr> const & args) {
-            if (args.size() != 3 + m_rec_arg_pos.size())
+        expr fold_brec_core(expr const & e, buffer<expr> const & args, unsigned prefix_size, unsigned major_pos) {
+            if (args.size() != prefix_size + m_rec_arg_pos.size()) {
                 throw fold_failed();
+            }
             buffer<expr> nested_args;
-            get_app_args(args[1], nested_args);
-            if (nested_args.size() != m_major_idx+1)
+            get_app_args(args[major_pos], nested_args);
+
+            if (nested_args.size() != m_major_idx+1) {
                 throw fold_failed();
+            }
             buffer<expr> new_args;
             new_args.append(m_args);
             new_args[m_main_pos] = nested_args[m_major_idx];
             for (unsigned i = 0; i < m_rec_arg_pos.size(); i++) {
-                new_args[m_rec_arg_pos[i]] = args[3 + i];
+                new_args[m_rec_arg_pos[i]] = args[prefix_size + i];
             }
             expr folded_app = mk_app(m_fn, new_args);
             if (!m_tc->is_def_eq(folded_app, e).first)
@@ -218,6 +223,14 @@ class unfold_rec_fn : public replace_visitor_aux {
             return folded_app;
         }
 
+        expr fold_brec_pr1(expr const & e, buffer<expr> const & args) {
+            return fold_brec_core(e, args, 3, 1);
+        }
+
+        expr fold_brec_prod_rec(expr const & e, buffer<expr> const & args) {
+            return fold_brec_core(e, args, 5, 4);
+        }
+
         virtual expr visit_app(expr const & e) {
             buffer<expr> args;
             expr fn = get_app_args(e, args);
@@ -226,7 +239,12 @@ class unfold_rec_fn : public replace_visitor_aux {
             if (m_kind == BREC && is_constant(fn) && const_name(fn) == get_prod_pr1_name() && args.size() >= 3) {
                 expr rec_fn = get_app_fn(args[1]);
                 if (is_constant(rec_fn) && const_name(rec_fn) == m_rec_name)
-                    return fold_brec(e, args);
+                    return fold_brec_pr1(e, args);
+            }
+            if (m_kind == BREC && is_constant(fn) && const_name(fn) == m_prod_rec_name && args.size() >= 5) {
+                expr rec_fn = get_app_fn(args[4]);
+                if (is_constant(rec_fn) && const_name(rec_fn) == m_rec_name)
+                    return fold_brec_prod_rec(e, args);
             }
             return visit_app_default(e, fn, args);
         }
diff --git a/tests/lean/run/unfold_tac_bug1.lean b/tests/lean/run/unfold_tac_bug1.lean
new file mode 100644
index 000000000..86ae5173f
--- /dev/null
+++ b/tests/lean/run/unfold_tac_bug1.lean
@@ -0,0 +1,38 @@
+/-
+Copyright (c) 2015 Microsoft Corporation. All rights reserved.
+Released under Apache 2.0 license as described in the file LICENSE.
+Author: Leonardo de Moura
+
+Show that tail recursive fib is equal to standard one.
+-/
+import data.nat
+open nat
+
+definition fib : nat → nat
+| 0     := 1
+| 1     := 1
+| (n+2) := fib (n+1) + fib n
+
+private definition fib_fast_aux : nat → nat → nat → nat
+| 0        i j := j
+| (succ n) i j := fib_fast_aux n j (j+i)
+
+lemma fib_fast_aux_lemma : ∀ n m, fib_fast_aux n (fib m) (fib (succ m)) = fib (succ (n + m))
+| 0        m := by rewrite zero_add
+| (succ n) m :=
+  begin
+    have ih : fib_fast_aux n (fib (succ m)) (fib (succ (succ m))) = fib (succ (n + succ m)), from fib_fast_aux_lemma n (succ m),
+    have h₁ : fib (succ m) + fib m = fib (succ (succ m)), from rfl,
+    unfold fib_fast_aux, rewrite [h₁, ih, succ_add, add_succ]
+  end
+
+definition fib_fast (n: nat) :=
+fib_fast_aux n 0 1
+
+lemma fib_fast_eq_fib : ∀ n, fib_fast n = fib n
+| 0        := rfl
+| (succ n) :=
+  begin
+    have h₁ : fib_fast_aux n (fib 0) (fib 1) = fib (succ n), from !fib_fast_aux_lemma,
+    unfold [fib_fast, fib_fast_aux], krewrite h₁
+  end