diff --git a/ChangeLog.md b/ChangeLog.md
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -1,5 +1,10 @@
 # Changelog for polysemy-plugin
 
+## 0.2.0.2 (2019-06-09)
+
+- Fixed a bug where the plugin wouldn't attempt to unify effects recursively
+- Updated the test suite to test against `polysemy-0.3`
+
 ## 0.2.0.1 (2019-05-28)
 
 - Fixed a bug where the plugin would get confused in the context of legitimate
diff --git a/polysemy-plugin.cabal b/polysemy-plugin.cabal
--- a/polysemy-plugin.cabal
+++ b/polysemy-plugin.cabal
@@ -4,10 +4,10 @@
 --
 -- see: https://github.com/sol/hpack
 --
--- hash: 140d529a7cdddca38bcea9f27672cebd7742b7668b1be602c699a624cbb253aa
+-- hash: 833a0e985a778fbc94a5830306c89c74928839bc5d967121db306b2744cfe1a5
 
 name:           polysemy-plugin
-version:        0.2.0.1
+version:        0.2.0.2
 synopsis:       Disambiguate obvious uses of effects.
 description:    Please see the README on GitHub at <https://github.com/isovector/polysemy/tree/master/polysemy-plugin#readme>
 category:       Polysemy
@@ -56,6 +56,7 @@
       InlineRecursiveCallsSpec
       LegitimateTypeErrorSpec
       PluginSpec
+      VDQSpec
       Paths_polysemy_plugin
   hs-source-dirs:
       test
diff --git a/src/Polysemy/Plugin/Fundep.hs b/src/Polysemy/Plugin/Fundep.hs
--- a/src/Polysemy/Plugin/Fundep.hs
+++ b/src/Polysemy/Plugin/Fundep.hs
@@ -89,14 +89,14 @@
       (g, gs) = splitAppTys given
    in (&& eqType w g) . flip all (zip ws gs) $ \(wt, gt) ->
      or [ isTyVarTy wt
-        , eqType gt wt
+        , eqType wt gt
+        , canUnify wt gt
         ]
 
 
-
 mkWanted :: Bool -> CtLoc -> Type -> Type -> TcPluginM (Maybe Ct)
-mkWanted mustUnify loc wanted given =
-  if (not mustUnify || canUnify wanted given)
+mkWanted must_unify loc wanted given =
+  if (not must_unify || canUnify wanted given)
      then do
        (ev, _) <- unsafeTcPluginTcM $ runTcSDeriveds $ newWantedEq loc Nominal wanted given
        pure $ Just $ CNonCanonical ev
diff --git a/src/Polysemy/Plugin/InlineRecursiveCalls.hs b/src/Polysemy/Plugin/InlineRecursiveCalls.hs
--- a/src/Polysemy/Plugin/InlineRecursiveCalls.hs
+++ b/src/Polysemy/Plugin/InlineRecursiveCalls.hs
@@ -14,7 +14,6 @@
 import HscTypes
 import IdInfo
 import Name
-import SrcLoc
 import UniqSupply
 import Unique
 import Var
diff --git a/test/InlineRecursiveCallsSpec.hs b/test/InlineRecursiveCallsSpec.hs
--- a/test/InlineRecursiveCallsSpec.hs
+++ b/test/InlineRecursiveCallsSpec.hs
@@ -18,10 +18,7 @@
 spec :: Spec
 spec = describe "inlining recursive calls" $ do
   it "should explicitly break recursion" $ do
-    -- TODO(sandy): This should use (===) instead of (==-), but can't due to
-    -- a bug in inspection-testing. See:
-    -- https://github.com/nomeata/inspection-testing/pull/19
-    shouldSucceed $(inspectTest $ 'recursive ==- 'mutual)
+    shouldSucceed $(inspectTest $ 'recursive === 'mutual)
 
 
 isSuccess :: Result -> Bool
@@ -44,9 +41,11 @@
     case decomp u of
         Left x -> S.StateT $ \s' ->
           k . fmap swap
-            . weave (s', ()) (uncurry $ recursive f)
+            . weave (s', ())
+                    (uncurry $ recursive f)
+                    (Just . snd)
             $ x
-        Right (Yo e z _ y) ->
+        Right (Yo e z _ y _) ->
           fmap (y . (<$ z)) $ S.mapStateT (usingSem k) $ f e
 
 
@@ -61,9 +60,11 @@
     case decomp u of
         Left x -> S.StateT $ \s' ->
           k . fmap swap
-            . weave (s', ()) (uncurry $ mutual2 f)
+            . weave (s', ())
+                    (uncurry $ mutual2 f)
+                    (Just . snd)
             $ x
-        Right (Yo e z _ y) ->
+        Right (Yo e z _ y _) ->
           fmap (y . (<$ z)) $ S.mapStateT (usingSem k) $ f e
 {-# INLINE mutual #-}
 
diff --git a/test/PluginSpec.hs b/test/PluginSpec.hs
--- a/test/PluginSpec.hs
+++ b/test/PluginSpec.hs
@@ -10,6 +10,7 @@
 import Polysemy
 import Polysemy.Error
 import Polysemy.State
+import Polysemy.Output
 import Test.Hspec
 
 
@@ -115,6 +116,13 @@
       flipShouldBe (Right @String (10 :: Int, True))  . run $ runError $ runState 0 errState
     it "should interpret against Bool/Float" $ do
       flipShouldBe (Right @Bool (10 :: Float, True))  . run $ runError $ runState 0 errState
+
+  describe "Output effect" $ do
+    it "should unify recursively" $ do
+      -- TODO(sandy): This should unify even without the type app. Bug #95
+      flipShouldBe 11 . sum @[] . fst . run . runFoldMapOutput id $ do
+        output [1]
+        output $ replicate 2 5
 
 
   describe "Lift effect" $ do
diff --git a/test/VDQSpec.hs b/test/VDQSpec.hs
new file mode 100644
--- /dev/null
+++ b/test/VDQSpec.hs
@@ -0,0 +1,30 @@
+{-# LANGUAGE TemplateHaskell #-}
+{-# LANGUAGE BlockArguments #-}
+{-# OPTIONS_GHC -fplugin=Polysemy.Plugin #-}
+
+module VDQSpec where
+
+import Polysemy
+import Polysemy.Error
+import Polysemy.Input
+import Polysemy.Output
+import Polysemy.Resource
+import Test.Hspec
+
+data Select a = Select a
+
+data DBAction whichDb m a where
+  DoSelect :: Select a -> DBAction whichDb m (Maybe a)
+
+makeSem ''DBAction
+
+runDBAction :: Sem (DBAction which ': r) a -> Sem r a
+runDBAction = interpret $ \case
+  DoSelect (Select a) -> pure $ Just a
+
+spec :: Spec
+spec = describe "example" $ do
+  it "should compile!" $ do
+    let z = run . runDBAction $ doSelect $ Select True
+    z `shouldBe` Just True
+