diff --git a/module/language/cps2/utils.scm b/module/language/cps2/utils.scm
index e62966e40..eae6b69c6 100644
--- a/module/language/cps2/utils.scm
+++ b/module/language/cps2/utils.scm
@@ -293,8 +293,8 @@ intset."
              (propagate1 k))
             (($ $kfun src meta self tail clause)
              (if clause
-                 (propagate1 clause)
-                 (propagate0)))
+                 (propagate2 clause tail)
+                 (propagate1 tail)))
             (($ $kclause arity kbody kalt)
              (if kalt
                  (propagate2 kbody kalt)