diff --git a/src/graph.luau b/src/graph.luau
index 77db497..f911f7b 100644
--- a/src/graph.luau
+++ b/src/graph.luau
@@ -127,7 +127,7 @@ local function destroy<T>(node: Node<T>)
     while node[1] do destroy(node[1]) end
 end
 
-local update_queue = {} :: { Node<any> }
+local update_queue = { n = 0 } :: { n: number, [number]: Node<any> }
 
 local function evaluate_node<T>(node: Node<T>)
     local cur_value = node.cache
@@ -152,6 +152,7 @@ local function evaluate_node<T>(node: Node<T>)
 
     if not ok then
         table.clear(update_queue)
+        update_queue.n = 0
         throw(`side-effect error from source update\n{new_value}`)
     end
 
@@ -160,7 +161,6 @@ local function evaluate_node<T>(node: Node<T>)
     return cur_value ~= new_value -- node has changed value
 end
 
--- todo: case where owner is set from an untrack call within an effectful node, children clearing
 local function update_from<T>(node: StartNode<T>, n0: number)
     if not node[1] then return end
 
@@ -168,20 +168,32 @@ local function update_from<T>(node: StartNode<T>, n0: number)
 
     -- unparent all children and queue for eval
     do
-        local child = node[1]
-        while child do -- todo: case where child in owner context
+        local i = 1
+        local child = node[i]
+        while child do
             unparent(child)
 
             n += 1
             update_queue[n] = child
 
-            child = node[1]
+            local next_child = node[i]
+
+            -- children who have this parent as an owner will not be unparented
+            -- if such a child is encountered then skip it
+            if next_child == child then
+                i += 1
+                next_child = node[i]
+            end
+
+            child = next_child
         end
     end
 
+    update_queue.n = n
+
     -- evaluate all queued children
     for i = n0 + 1, n do
-        local child = update_queue[i] -- todo: error: index boolean
+        local child = update_queue[i]
         if not child.effect then continue end
 
         if evaluate_node(child) then
@@ -190,10 +202,12 @@ local function update_from<T>(node: StartNode<T>, n0: number)
 
         update_queue[i] = false :: any -- false instead of nil to avoid sparse
     end
+
+    update_queue.n = n0
 end
 
 local function update<T>(node: StartNode<T>)
-    update_from(node, 0)
+    update_from(node, update_queue.n)
 end
 
 local function track<T>(node: StartNode<T>)
diff --git a/test/tests.luau b/test/tests.luau
index c8844f8..1e5e074 100644
--- a/test/tests.luau
+++ b/test/tests.luau
@@ -253,6 +253,47 @@ TEST("graph", function()
         gc()
         CHECK(not wref[1])
     end
+
+    do CASE "recursive update"
+        --[[
+
+        A -> B + C
+        D -> E + F
+
+        B updates D
+
+        depth=1
+        B, C
+        ^
+
+        depth=2
+        E, F
+        ^
+
+        depth=2
+        _, F
+           ^
+
+        depth=1
+        _, _   <- attempt to update nothing
+           ^        
+
+        ]]
+
+        local a, b, c, d, e, f = node(), node(), node(), node(), node(), node()
+
+        function b.effect(x)
+            update(d)
+            return not x
+        end
+
+        add_child(a, b); add_child(a, c)
+        add_child(d, e); add_child(d, f)
+
+        update(a)
+
+        CHECK(true)
+    end
 end)
 
 TEST("mount()", function()
@@ -375,6 +416,7 @@ TEST("derive()", wrap_root(function()
     local derive = vide.derive
     local effect = vide.effect
     local cleanup = vide.cleanup
+    local untrack = vide.untrack
 
     do CASE "derive new value on source change"
         local a = source(1)
@@ -480,6 +522,39 @@ TEST("derive()", wrap_root(function()
         CHECK(count == 2)
     end
 
+    do CASE "child with parent as owner not lost"
+        local num = source(0)
+
+        local cleaned = {}
+
+        local destroy = vide.mount(function()
+            local owner = derive(function()
+                local i = num()
+
+                return untrack(function()
+                    return derive(function()
+                        cleanup(function()
+                            cleaned[i] = true
+                        end)
+                        return i
+                    end)
+                end)
+            end)
+
+            local child1 = owner()
+            num(1)
+            local child2 = owner()
+
+            CHECK(child1() == 0)
+            CHECK(child2() == 1)
+        end)
+
+        destroy()
+        
+        CHECK(cleaned[0])
+        CHECK(cleaned[1])
+    end
+
     do CASE "garbage collection"
         -- check that `b` does not allow gc of `a`        
         local a = source(1)