diff --git a/cmd/cmd_utils.go b/cmd/cmd_utils.go
index 2ae20cee7..51f08296b 100644
--- a/cmd/cmd_utils.go
+++ b/cmd/cmd_utils.go
@@ -50,6 +50,95 @@ func getAtmosCommandMaxDepth() int {
 	return AtmosCommandDefaultDepth
 }
 
+func detectCycle(commands []schema.Command) bool {
+	// Create a map of valid commands for quick lookup
+	validCommands := make(map[string]bool)
+	for _, cmd := range commands {
+		validCommands[cmd.Name] = true
+	}
+	// Build a command graph
+	graph := make(map[string][]string)
+	for _, cmd := range commands {
+		for _, step := range cmd.Steps {
+			cmdName := parseCommandName(step)
+			if cmdName != "" && !validCommands[cmdName] {
+				return true
+			}
+			graph[cmd.Name] = append(graph[cmd.Name], cmdName)
+		}
+	}
+
+	// To track visited nodes and detect cycles
+	visited := make(map[string]bool)
+	recStack := make(map[string]bool)
+
+	// Track the maximum recursion depth
+	maxDepth := getAtmosCommandMaxDepth()
+
+	// Run DFS for each command to detect cycles and compute depth
+	for cmd := range graph {
+		if detectCycleUtil(cmd, graph, visited, recStack, 0, &maxDepth) {
+			return true // Cycle detected
+		}
+	}
+
+	// Print or return the max depth if needed
+	fmt.Println("Maximum Recursion Depth:", maxDepth)
+	return false // No cycle detected
+}
+
+func detectCycleUtil(command string, graph map[string][]string, visited, recStack map[string]bool, depth int, maxDepth *int) bool {
+	// Update the maximum recursion depth
+	if depth > *maxDepth {
+		*maxDepth = depth
+	}
+
+	// If the current command is in the recursion stack, there's a cycle
+	if recStack[command] {
+		return true
+	}
+
+	// If already visited, no need to explore again
+	if visited[command] {
+		return false
+	}
+
+	// Mark as visited and add to recursion stack
+	visited[command] = true
+	recStack[command] = true
+
+	// Recurse for all dependencies
+	for _, dep := range graph[command] {
+		if detectCycleUtil(dep, graph, visited, recStack, depth+1, maxDepth) {
+			return true
+		}
+	}
+
+	// Remove from recursion stack before backtracking
+	recStack[command] = false
+	return false
+}
+
+// Helper function to parse command name from the step
+func parseCommandName(step string) string {
+	// Split the step into parts
+	parts := strings.Split(step, " ")
+
+	// Check if the command starts with "atmos" and has additional parts
+	if len(parts) > 1 && parts[0] == "atmos" {
+		// Extract the actual command name, handling flags and arguments
+		cmdParts := []string{}
+		for _, part := range parts[1:] {
+			if strings.HasPrefix(part, "-") {
+				break
+			}
+			cmdParts = append(cmdParts, part)
+		}
+		return strings.Join(cmdParts, " ")
+	}
+	return ""
+}
+
 // processCustomCommands processes and executes custom commands
 func processCustomCommands(
 	cliConfig schema.CliConfiguration,
@@ -64,9 +153,9 @@ func processCustomCommands(
 		existingTopLevelCommands = getTopLevelCommands()
 	}
 
-	// Track the execution count for each command
-	visitCount := make(map[string]int)
-	maxIterations := getAtmosCommandMaxDepth() // Default to 10 or from environment
+	if detectCycle(commands) {
+		return fmt.Errorf("cycle detected in custom CLI commands - this could lead to infinite recursion")
+	}
 
 	for _, commandCfg := range commands {
 		// Clone the 'commandCfg' struct into a local variable because of the automatic closure in the `Run` function of the Cobra command.
@@ -88,14 +177,6 @@ func processCustomCommands(
 					preCustomCommand(cmd, args, parentCommand, commandConfig)
 				},
 				Run: func(cmd *cobra.Command, args []string) {
-					// Increment the visit count for the command
-					visitCount[commandConfig.Name]++
-					if visitCount[commandConfig.Name] > maxIterations {
-						u.LogWarning(cliConfig, fmt.Sprintf("Command '%s' reached max iteration limit (%d). Skipping further execution.\n", commandConfig.Name, maxIterations))
-						return
-					}
-
-					// Execute the command if under the limit
 					executeCustomCommand(cliConfig, cmd, args, parentCommand, commandConfig)
 				},
 			}