diff --git a/Modules/itertoolsmodule.c b/Modules/itertoolsmodule.c
--- a/Modules/itertoolsmodule.c
+++ b/Modules/itertoolsmodule.c
@@ -861,9 +861,10 @@
 
 typedef struct {
     PyObject_HEAD
+    int firstpass;
+    Py_ssize_t index;
+    PyObject *saved;
     PyObject *it;
-    PyObject *saved;
-    int firstpass;
 } cycleobject;
 
 static PyTypeObject cycle_type;
@@ -903,6 +904,7 @@
     lz->it = it;
     lz->saved = saved;
     lz->firstpass = 0;
+    lz->index = 0;
 
     return (PyObject *)lz;
 }
@@ -919,7 +921,8 @@
 static int
 cycle_traverse(cycleobject *lz, visitproc visit, void *arg)
 {
-    Py_VISIT(lz->it);
+    if (lz->it)
+        Py_VISIT(lz->it);
     Py_VISIT(lz->saved);
     return 0;
 }
@@ -928,13 +931,11 @@
 cycle_next(cycleobject *lz)
 {
     PyObject *item;
-    PyObject *it;
-    PyObject *tmp;
-
-    while (1) {
+
+    if (!lz->firstpass) {
         item = PyIter_Next(lz->it);
         if (item != NULL) {
-            if (!lz->firstpass && PyList_Append(lz->saved, item)) {
+            if (PyList_Append(lz->saved, item)) {
                 Py_DECREF(item);
                 return NULL;
             }
@@ -942,27 +943,47 @@
         }
         /* Note:  StopIteration is already cleared by PyIter_Next() */
         if (PyErr_Occurred())
-                return NULL;
-        if (PyList_Size(lz->saved) == 0)
             return NULL;
-        it = PyObject_GetIter(lz->saved);
-        if (it == NULL)
-            return NULL;
-        tmp = lz->it;
-        lz->it = it;
         lz->firstpass = 1;
-        Py_DECREF(tmp);
+        Py_CLEAR(lz->it);
     }
+    if (Py_SIZE(lz->saved) == 0)
+        return NULL;
+    if (lz->index >= Py_SIZE(lz->saved))
+        lz->index = 0;
+    item = PyList_GET_ITEM(lz->saved, lz->index);
+    lz->index++;
+    Py_INCREF(item);
+    return item;
 }
 
 static PyObject *
 cycle_reduce(cycleobject *lz)
 {
-    /* Create a new cycle with the iterator tuple, then set
-     * the saved state on it.
-     */
-    return Py_BuildValue("O(O)(Oi)", Py_TYPE(lz),
-        lz->it, lz->saved, lz->firstpass);
+    /* Create a new cycle with the iterator tuple, then set the saved state */
+    if (lz->it == NULL) {
+        PyObject *seq, *it, *result;
+
+        if (lz->index >= Py_SIZE(lz->saved))
+            lz->index = 0;
+        seq = PyList_GetSlice(lz->saved, lz->index, Py_SIZE(lz->saved));
+        if (seq == NULL)
+            return NULL;
+        it = PyObject_GetIter(seq);
+        Py_DECREF(seq);
+        if (it == NULL)
+            return NULL;
+        seq = PyList_GetSlice(lz->saved, 0, lz->index);
+        if (seq == NULL) {
+            Py_DECREF(it);
+            return NULL;
+        }
+        result = Py_BuildValue("O(O)(Oi)", Py_TYPE(lz), it, seq, 0);
+        Py_DECREF(it);
+        Py_DECREF(seq);
+        return result;
+    }
+    return Py_BuildValue("O(O)(Oi)", Py_TYPE(lz), lz->it, lz->saved, 0);
 }
 
 static PyObject *