diff --git a/CHANGELOG.md b/CHANGELOG.md
index db85a4dfd..89ef9a7e5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,3 +11,10 @@
 ### Language Server
 
 ### Bug Fixes
+
+## v1.3.1 - 2024-07-10
+
+### Bug Fixes
+
+- Fixes a bug with import cycle detection when there is more than 2 imports in the cycle
+  ([Ameen Radwan](https://github.com/Acepie))
diff --git a/Cargo.lock b/Cargo.lock
index 3e21aa2d2..830f41639 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -286,9 +286,9 @@ checksum = "514de17de45fdb8dc022b1a7975556c53c86f9f0aa5f534b98977b171857c2c9"
 
 [[package]]
 name = "camino"
-version = "1.1.6"
+version = "1.1.7"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c59e92b5a388f549b863a7bea62612c09f24c8393560709a54558a9abdfb3b9c"
+checksum = "e0ec6b951b160caa93cc0c7b209e5a3bff7aae9062213451ac99493cd844c239"
 dependencies = [
  "serde",
 ]
@@ -1520,9 +1520,9 @@ checksum = "e3148f5046208a5d56bcfc03053e3ca6334e51da8dfb19b6cdc8b306fae3283e"
 
 [[package]]
 name = "petgraph"
-version = "0.6.4"
+version = "0.6.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e1d3afd2628e69da2be385eb6f2fd57c8ac7977ceeff6dc166ff1657b0e386a9"
+checksum = "b4c5cc86750666a3ed20bdaf5ca2a0344f9c67674cae0515bec2da16fbaa47db"
 dependencies = [
  "fixedbitset",
  "indexmap 2.2.6",
@@ -1746,9 +1746,9 @@ dependencies = [
 
 [[package]]
 name = "regex"
-version = "1.10.4"
+version = "1.10.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c117dbdfde9c8308975b6a18d71f3f385c89461f7b3fb054288ecf2a2058ba4c"
+checksum = "b91213439dad192326a0d7c6ee3955910425f441d7038e0d6933b0aec5c4517f"
 dependencies = [
  "aho-corasick",
  "memchr",
diff --git a/compiler-core/src/build/package_loader.rs b/compiler-core/src/build/package_loader.rs
index 6bb6b1e05..dbdb5092d 100644
--- a/compiler-core/src/build/package_loader.rs
+++ b/compiler-core/src/build/package_loader.rs
@@ -286,15 +286,17 @@ where
                     .enumerate()
                     .map(|(i, module)| {
                         // cycles are in order of reference so get next in list or loop back to first
-                        let ind = if i == modules.len() - 1 { 0 } else { i + 1 };
-                        let next = modules.get(ind).expect("next module must exist");
+                        let index_of_imported = if i == 0 { modules.len() - 1 } else { i - 1 };
+                        let imported_module = modules
+                            .get(index_of_imported)
+                            .expect("importing module must exist");
                         let input = dep_location_map.get(module).expect("dependency must exist");
                         let location = match input {
                             Input::New(module) => {
                                 let (_, location) = module
                                     .dependencies
                                     .iter()
-                                    .find(|d| &d.0 == next)
+                                    .find(|d| &d.0 == imported_module)
                                     .expect("import must exist for there to be a cycle");
                                 ImportCycleLocationDetails {
                                     location: *location,
@@ -306,7 +308,7 @@ where
                                 let (_, location) = cached_module
                                     .dependencies
                                     .iter()
-                                    .find(|d| &d.0 == next)
+                                    .find(|d| &d.0 == imported_module)
                                     .expect("import must exist for there to be a cycle");
                                 let src = self
                                     .io
diff --git a/nix/glistix.nix b/nix/glistix.nix
index 1a0b2a1d5..42b262a31 100644
--- a/nix/glistix.nix
+++ b/nix/glistix.nix
@@ -39,7 +39,7 @@ rustPlatform.buildRustPackage {
   buildInputs = [ openssl ] ++
     lib.optionals stdenv.isDarwin [ Security SystemConfiguration ];
 
-  cargoHash = "sha256-I5oYfY4zcuhDe5WsbWzso+CFafqymOYEmxD4DmV/NOo=";
+  cargoHash = "sha256-rifIMUYfnmVCaS+OaQ3POEaZj00cU3Biaz2ZKj2eFL4=";
 
   meta = with lib; {
     description = "A fork of the Gleam compiler with a Nix backend";
diff --git a/test-package-compiler/cases/import_cycle_multi/src/three.gleam b/test-package-compiler/cases/import_cycle_multi/src/three.gleam
new file mode 100644
index 000000000..4481f61e4
--- /dev/null
+++ b/test-package-compiler/cases/import_cycle_multi/src/three.gleam
@@ -0,0 +1 @@
+import one
diff --git a/test-package-compiler/cases/import_cycle_multi/src/two.gleam b/test-package-compiler/cases/import_cycle_multi/src/two.gleam
index 4481f61e4..9dbb4ddc0 100644
--- a/test-package-compiler/cases/import_cycle_multi/src/two.gleam
+++ b/test-package-compiler/cases/import_cycle_multi/src/two.gleam
@@ -1 +1 @@
-import one
+import three
diff --git a/test-package-compiler/src/snapshots/test_package_compiler__generated_tests__import_cycle_multi.snap b/test-package-compiler/src/snapshots/test_package_compiler__generated_tests__import_cycle_multi.snap
index 19aa07e64..7b2c1b8dc 100644
--- a/test-package-compiler/src/snapshots/test_package_compiler__generated_tests__import_cycle_multi.snap
+++ b/test-package-compiler/src/snapshots/test_package_compiler__generated_tests__import_cycle_multi.snap
@@ -3,9 +3,14 @@ source: test-package-compiler/src/generated_tests.rs
 expression: "./cases/import_cycle_multi"
 ---
 error: Import cycle
-  ┌─ src/two.gleam:1:1
+  ┌─ src/three.gleam:1:1
   │
 1 │ import one
+  │ ^ Imported here
+  │
+  ┌─ src/two.gleam:1:1
+  │
+1 │ import three
   │ ^ Imported here
   │
   ┌─ src/one.gleam:1:1
@@ -16,6 +21,8 @@ error: Import cycle
 The import statements for these modules form a cycle:
 
     ┌─────┐
+    │     three
+    │     ↓
     │     two
     │     ↓
     │     one