diff --git a/internal/formula/expand.go b/internal/formula/expand.go
index d980f98f..4ca9d4c6 100644
--- a/internal/formula/expand.go
+++ b/internal/formula/expand.go
@@ -10,6 +10,9 @@
 //
 // Templates use {target} and {target.description} placeholders that are
 // substituted with the target step's values during expansion.
+//
+// A maximum expansion depth (default 5) prevents runaway nested expansions.
+// This allows massive work generation while providing a safety bound.
 package formula
 
 import (
@@ -17,6 +20,11 @@ import (
 	"strings"
 )
 
+// DefaultMaxExpansionDepth is the maximum depth for recursive template expansion.
+// This prevents runaway nested expansions while still allowing substantial work
+// generation. The limit applies to template children, not to expansion rules.
+const DefaultMaxExpansionDepth = 5
+
 // ApplyExpansions applies all expand and map rules to a formula's steps.
 // Returns a new steps slice with expansions applied.
 // The original steps slice is not modified.
@@ -64,8 +72,11 @@ func ApplyExpansions(steps []*Step, compose *ComposeRules, parser *Parser) ([]*S
 			return nil, fmt.Errorf("expand: %q has no template steps", rule.With)
 		}
 
-		// Expand the target step
-		expandedSteps := expandStep(targetStep, expFormula.Template)
+		// Expand the target step (start at depth 0)
+		expandedSteps, err := expandStep(targetStep, expFormula.Template, 0)
+		if err != nil {
+			return nil, fmt.Errorf("expand %q: %w", rule.Target, err)
+		}
 
 		// Replace the target step with expanded steps
 		result = replaceStep(result, rule.Target, expandedSteps)
@@ -104,7 +115,10 @@ func ApplyExpansions(steps []*Step, compose *ComposeRules, parser *Parser) ([]*S
 
 		// Expand each matching step
 		for _, targetStep := range toExpand {
-			expandedSteps := expandStep(targetStep, expFormula.Template)
+			expandedSteps, err := expandStep(targetStep, expFormula.Template, 0)
+			if err != nil {
+				return nil, fmt.Errorf("map %q -> %q: %w", rule.Select, targetStep.ID, err)
+			}
 			result = replaceStep(result, targetStep.ID, expandedSteps)
 			expanded[targetStep.ID] = true
 
@@ -121,7 +135,14 @@ func ApplyExpansions(steps []*Step, compose *ComposeRules, parser *Parser) ([]*S
 
 // expandStep expands a target step using the given template.
 // Returns the expanded steps with placeholders substituted.
-func expandStep(target *Step, template []*Step) []*Step {
+// The depth parameter tracks recursion depth for children; if it exceeds
+// DefaultMaxExpansionDepth, an error is returned.
+func expandStep(target *Step, template []*Step, depth int) ([]*Step, error) {
+	if depth > DefaultMaxExpansionDepth {
+		return nil, fmt.Errorf("expansion depth limit exceeded: max %d levels (currently at %d) - step %q",
+			DefaultMaxExpansionDepth, depth, target.ID)
+	}
+
 	result := make([]*Step, 0, len(template))
 
 	for _, tmpl := range template {
@@ -157,15 +178,19 @@ func expandStep(target *Step, template []*Step) []*Step {
 			}
 		}
 
-		// Handle children recursively
+		// Handle children recursively with depth tracking
 		if len(tmpl.Children) > 0 {
-			expanded.Children = expandStep(target, tmpl.Children)
+			children, err := expandStep(target, tmpl.Children, depth+1)
+			if err != nil {
+				return nil, err
+			}
+			expanded.Children = children
 		}
 
 		result = append(result, expanded)
 	}
 
-	return result
+	return result, nil
 }
 
 // substituteTargetPlaceholders replaces {target} and {target.*} placeholders.
diff --git a/internal/formula/expand_test.go b/internal/formula/expand_test.go
index 54eb8006..0f4c6445 100644
--- a/internal/formula/expand_test.go
+++ b/internal/formula/expand_test.go
@@ -1,8 +1,10 @@
 package formula
 
 import (
+	"fmt"
 	"os"
 	"path/filepath"
+	"strings"
 	"testing"
 )
 
@@ -85,7 +87,10 @@ func TestExpandStep(t *testing.T) {
 		},
 	}
 
-	result := expandStep(target, template)
+	result, err := expandStep(target, template, 0)
+	if err != nil {
+		t.Fatalf("expandStep failed: %v", err)
+	}
 
 	if len(result) != 2 {
 		t.Fatalf("expected 2 steps, got %d", len(result))
@@ -111,6 +116,59 @@ func TestExpandStep(t *testing.T) {
 	}
 }
 
+func TestExpandStepDepthLimit(t *testing.T) {
+	target := &Step{
+		ID:          "root",
+		Title:       "Root step",
+		Description: "A deeply nested template",
+	}
+
+	// Create a deeply nested template that exceeds the depth limit
+	// Build from inside out: depth 6 is the deepest
+	deepChild := &Step{ID: "level-6", Title: "Level 6"}
+	for i := 5; i >= 0; i-- {
+		deepChild = &Step{
+			ID:       fmt.Sprintf("level-%d", i),
+			Title:    fmt.Sprintf("Level %d", i),
+			Children: []*Step{deepChild},
+		}
+	}
+
+	template := []*Step{deepChild}
+
+	// With depth 0 start, going to level 6 means 7 levels total (0-6)
+	// DefaultMaxExpansionDepth is 5, so this should fail
+	_, err := expandStep(target, template, 0)
+	if err == nil {
+		t.Fatal("expected depth limit error, got nil")
+	}
+
+	if !strings.Contains(err.Error(), "expansion depth limit exceeded") {
+		t.Errorf("expected depth limit error, got: %v", err)
+	}
+
+	// Verify that templates within the limit succeed
+	// Build a 5-level deep template (levels 0-4, which is exactly at the limit)
+	shallowChild := &Step{ID: "level-4", Title: "Level 4"}
+	for i := 3; i >= 0; i-- {
+		shallowChild = &Step{
+			ID:       fmt.Sprintf("level-%d", i),
+			Title:    fmt.Sprintf("Level %d", i),
+			Children: []*Step{shallowChild},
+		}
+	}
+
+	shallowTemplate := []*Step{shallowChild}
+	result, err := expandStep(target, shallowTemplate, 0)
+	if err != nil {
+		t.Fatalf("expected shallow template to succeed, got: %v", err)
+	}
+
+	if len(result) != 1 {
+		t.Fatalf("expected 1 top-level step, got %d", len(result))
+	}
+}
+
 func TestReplaceStep(t *testing.T) {
 	steps := []*Step{
 		{ID: "design", Title: "Design"},