diff --git a/code_to_optimize/code_directories/circular_deps/api_client.py b/code_to_optimize/code_directories/circular_deps/api_client.py
new file mode 100644
index 00000000..bc93193d
--- /dev/null
+++ b/code_to_optimize/code_directories/circular_deps/api_client.py
@@ -0,0 +1,25 @@
+from os import getenv
+
+from attrs import define, evolve
+
+from constants import DEFAULT_API_URL, DEFAULT_APP_URL
+
+
+@define
+class ApiClient():
+    api_key_header_name: str = "API-Key"
+    client_type_header_name: str = "client-type"
+    client_type_header_value: str = "sdk-python"
+
+    @staticmethod
+    def get_console_url() -> str:
+        console_url = getenv("CONSOLE_URL", DEFAULT_API_URL)
+        if DEFAULT_API_URL == console_url:
+            return DEFAULT_APP_URL
+
+        return console_url
+
+    def with_api_key(self, api_key: str) -> "ApiClient": # ---> here is the problem with circular dependency, this makes libcst thinks that ApiClient needs an import despite it's already in the same file.
+        """Get a new client matching this one with a new API key"""
+        return evolve(self, api_key=api_key)
+
diff --git a/code_to_optimize/code_directories/circular_deps/constants.py b/code_to_optimize/code_directories/circular_deps/constants.py
new file mode 100644
index 00000000..dc4b0638
--- /dev/null
+++ b/code_to_optimize/code_directories/circular_deps/constants.py
@@ -0,0 +1,8 @@
+DEFAULT_API_URL = "https://api.galileo.ai/"
+DEFAULT_APP_URL = "https://app.galileo.ai/"
+
+
+# function_names: GalileoApiClient.get_console_url
+# module_abs_path : /home/mohammed/Work/galileo-python/src/galileo/api_client.py
+# preexisting_objects: {('GalileoApiClient', ()), ('_set_destination', ()), ('get_console_url', (FunctionParent(name='GalileoApiClient', type='ClassDef'),))}
+# project_root_path: /home/mohammed/Work/galileo-python/src
diff --git a/code_to_optimize/code_directories/circular_deps/optimized.py b/code_to_optimize/code_directories/circular_deps/optimized.py
new file mode 100644
index 00000000..2fa5d9bd
--- /dev/null
+++ b/code_to_optimize/code_directories/circular_deps/optimized.py
@@ -0,0 +1,37 @@
+from __future__ import annotations
+
+import urllib.parse
+from os import getenv
+
+from attrs import define
+from api_client import ApiClient
+from constants import DEFAULT_API_URL, DEFAULT_APP_URL
+
+
+@define
+class ApiClient():
+
+    @staticmethod
+    def get_console_url() -> str:
+        # Cache env lookup for speed
+        console_url = getenv("CONSOLE_URL")
+        if not console_url or console_url == DEFAULT_API_URL:
+            return DEFAULT_APP_URL
+        return console_url
+
+# Pre-parse netlocs that are checked frequently to avoid parsing repeatedly
+_DEFAULT_APP_URL_NETLOC = urllib.parse.urlparse(DEFAULT_APP_URL).netloc
+_DEFAULT_API_URL_NETLOC = urllib.parse.urlparse(DEFAULT_API_URL).netloc
+
+def get_dest_url(url: str) -> str:
+    destination = url if url else ApiClient.get_console_url()
+    # Replace only if 'console.' is at the beginning to avoid partial matches
+    if destination.startswith("console."):
+        destination = "api." + destination[len("console."):]
+    else:
+        destination = destination.replace("console.", "api.", 1)
+
+    parsed_url = urllib.parse.urlparse(destination)
+    if parsed_url.netloc == _DEFAULT_APP_URL_NETLOC or parsed_url.netloc == _DEFAULT_API_URL_NETLOC:
+        return f"{DEFAULT_APP_URL}api/traces"
+    return f"{parsed_url.scheme}://{parsed_url.netloc}/traces"
\ No newline at end of file
diff --git a/code_to_optimize/code_directories/circular_deps/pyproject.toml b/code_to_optimize/code_directories/circular_deps/pyproject.toml
new file mode 100644
index 00000000..bddef0ed
--- /dev/null
+++ b/code_to_optimize/code_directories/circular_deps/pyproject.toml
@@ -0,0 +1,7 @@
+[tool.codeflash]
+# All paths are relative to this pyproject.toml's directory.
+module-root = "."
+tests-root = "tests"
+test-framework = "pytest"
+ignore-paths = []
+formatter-cmds = ["black $file"]
diff --git a/codeflash/code_utils/code_extractor.py b/codeflash/code_utils/code_extractor.py
index 0dcc2357..73a1c326 100644
--- a/codeflash/code_utils/code_extractor.py
+++ b/codeflash/code_utils/code_extractor.py
@@ -331,7 +331,9 @@ def add_needed_imports_from_module(
             RemoveImportsVisitor.remove_unused_import(dst_context, mod)
         for mod, obj_seq in gatherer.object_mapping.items():
             for obj in obj_seq:
-                if f"{mod}.{obj}" in helper_functions_fqn:
+                if (
+                    f"{mod}.{obj}" in helper_functions_fqn or dst_context.full_module_name == mod  # avoid circular deps
+                ):
                     continue  # Skip adding imports for helper functions already in the context
                 AddImportsVisitor.add_needed_import(dst_context, mod, obj)
                 RemoveImportsVisitor.remove_unused_import(dst_context, mod, obj)
diff --git a/codeflash/code_utils/code_replacer.py b/codeflash/code_utils/code_replacer.py
index f0964aae..3c73c591 100644
--- a/codeflash/code_utils/code_replacer.py
+++ b/codeflash/code_utils/code_replacer.py
@@ -415,12 +415,16 @@ def replace_function_definitions_in_module(
 ) -> bool:
     source_code: str = module_abspath.read_text(encoding="utf8")
     new_code: str = replace_functions_and_add_imports(
-        source_code, function_names, optimized_code, module_abspath, preexisting_objects, project_root_path
+        add_global_assignments(optimized_code, source_code),
+        function_names,
+        optimized_code,
+        module_abspath,
+        preexisting_objects,
+        project_root_path,
     )
     if is_zero_diff(source_code, new_code):
         return False
-    code_with_global_assignments = add_global_assignments(optimized_code, new_code)
-    module_abspath.write_text(code_with_global_assignments, encoding="utf8")
+    module_abspath.write_text(new_code, encoding="utf8")
     return True
 
 
diff --git a/tests/test_code_context_extractor.py b/tests/test_code_context_extractor.py
index 010d3bc6..25200cb9 100644
--- a/tests/test_code_context_extractor.py
+++ b/tests/test_code_context_extractor.py
@@ -11,6 +11,8 @@
 from codeflash.discovery.functions_to_optimize import FunctionToOptimize
 from codeflash.models.models import FunctionParent
 from codeflash.optimization.optimizer import Optimizer
+from codeflash.code_utils.code_replacer import replace_functions_and_add_imports
+from codeflash.code_utils.code_extractor import add_global_assignments
 
 
 class HelperClass:
@@ -2434,3 +2436,22 @@ def simple_method(self):
         assert "class SimpleClass:" in code_content
         assert "def simple_method(self):" in code_content
         assert "return 42" in code_content
+
+
+
+def test_replace_functions_and_add_imports():
+    path_to_root = Path(__file__).resolve().parent.parent / "code_to_optimize" / "code_directories" / "circular_deps"
+    file_abs_path = path_to_root / "api_client.py"
+    optimized_code = Path(path_to_root / "optimized.py").read_text(encoding="utf-8")
+    content = Path(file_abs_path).read_text(encoding="utf-8")
+    new_code = replace_functions_and_add_imports(
+        source_code= add_global_assignments(optimized_code, content),
+        function_names= ["ApiClient.get_console_url"],
+        optimized_code= optimized_code,
+        module_abspath= Path(file_abs_path),
+        preexisting_objects= {('ApiClient', ()), ('get_console_url', (FunctionParent(name='ApiClient', type='ClassDef'),))},
+        project_root_path= Path(path_to_root),
+    )
+    assert "import ApiClient" not in new_code, "Error: Circular dependency found"
+    
+    assert "import urllib.parse" in new_code, "Make sure imports for optimization global assignments exist" 
diff --git a/tests/test_code_replacement.py b/tests/test_code_replacement.py
index 363dbaee..7272163d 100644
--- a/tests/test_code_replacement.py
+++ b/tests/test_code_replacement.py
@@ -1693,8 +1693,8 @@ def new_function2(value):
 print("Hello world")
     """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 a=2
 print("Hello world")
 def some_fn():
@@ -1712,8 +1712,7 @@ def __init__(self, name):
     def __call__(self, value):
         return "I am still old"
     def new_function2(value):
-        return cst.ensure_type(value, str)
-"""
+        return cst.ensure_type(value, str)"""
     code_path = (Path(__file__).parent.resolve() / "../code_to_optimize/global_var_original.py").resolve()
     code_path.write_text(original_code, encoding="utf-8")
     tests_root = Path("/Users/codeflash/Downloads/codeflash-dev/codeflash/code_to_optimize/tests/pytest/")
@@ -1769,8 +1768,8 @@ def new_function2(value):
 print("Hello world")
         """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 print("Hello world")
 def some_fn():
     a=np.zeros(10)
@@ -1846,8 +1845,8 @@ def new_function2(value):
 print("Hello world")
     """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 a=3
 print("Hello world")
 def some_fn():
@@ -1922,8 +1921,8 @@ def new_function2(value):
 print("Hello world")
     """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 a=2
 print("Hello world")
 def some_fn():
@@ -1999,8 +1998,8 @@ def new_function2(value):
 print("Hello world")
     """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 a=3
 print("Hello world")
 def some_fn():
@@ -2082,8 +2081,8 @@ def new_function2(value):
 print("Hello world")
 """
     expected_code = """import numpy as np
-print("Hello world")
 
+print("Hello world")
 if 2<3:
     a=4
 else: