diff --git a/tests/unit/compiler/venom/test_branch_optimizer.py b/tests/unit/compiler/venom/test_branch_optimizer.py
index 82dff4777d..4c46127e1d 100644
--- a/tests/unit/compiler/venom/test_branch_optimizer.py
+++ b/tests/unit/compiler/venom/test_branch_optimizer.py
@@ -22,9 +22,9 @@ def test_simple_jump_case():
     jnz_input = bb.append_instruction("iszero", op3)
     bb.append_instruction("jnz", jnz_input, br1.label, br2.label)
 
-    br1.append_instruction("add", op3, 10)
+    br1.append_instruction("add", op3, p1)
     br1.append_instruction("stop")
-    br2.append_instruction("add", op3, p1)
+    br2.append_instruction("add", op3, 10)
     br2.append_instruction("stop")
 
     term_inst = bb.instructions[-1]
@@ -47,6 +47,6 @@ def test_simple_jump_case():
 
     # Test that the dfg is updated correctly
     dfg = ac.request_analysis(DFGAnalysis)
-    assert dfg is old_dfg, "DFG should not be invalidated by BranchOptimizationPass"
+    assert dfg is not old_dfg, "DFG should be invalidated by BranchOptimizationPass"
     assert term_inst in dfg.get_uses(op3), "jnz not using the new condition"
     assert term_inst not in dfg.get_uses(jnz_input), "jnz still using the old condition"
diff --git a/vyper/venom/passes/branch_optimization.py b/vyper/venom/passes/branch_optimization.py
index d5b0ed9809..920dc5e431 100644
--- a/vyper/venom/passes/branch_optimization.py
+++ b/vyper/venom/passes/branch_optimization.py
@@ -1,4 +1,5 @@
-from vyper.venom.analysis import DFGAnalysis
+from vyper.venom.analysis import CFGAnalysis, DFGAnalysis, LivenessAnalysis
+from vyper.venom.basicblock import IRInstruction
 from vyper.venom.passes.base_pass import IRPass
 
 
@@ -14,17 +15,30 @@ def _optimize_branches(self) -> None:
             if term_inst.opcode != "jnz":
                 continue
 
-            prev_inst = self.dfg.get_producing_instruction(term_inst.operands[0])
-            if prev_inst.opcode == "iszero":
+            fst, snd = bb.cfg_out
+
+            fst_liveness = fst.instructions[0].liveness
+            snd_liveness = snd.instructions[0].liveness
+
+            cost_a, cost_b = len(fst_liveness), len(snd_liveness)
+
+            cond = term_inst.operands[0]
+            prev_inst = self.dfg.get_producing_instruction(cond)
+            if cost_a >= cost_b and prev_inst.opcode == "iszero":
                 new_cond = prev_inst.operands[0]
                 term_inst.operands = [new_cond, term_inst.operands[2], term_inst.operands[1]]
-
-                # Since the DFG update is simple we do in place to avoid invalidating the DFG
-                # and having to recompute it (which is expensive(er))
-                self.dfg.remove_use(prev_inst.output, term_inst)
-                self.dfg.add_use(new_cond, term_inst)
+            elif cost_a > cost_b:
+                new_cond = fn.get_next_variable()
+                inst = IRInstruction("iszero", [term_inst.operands[0]], output=new_cond)
+                bb.insert_instruction(inst, index=-1)
+                term_inst.operands = [new_cond, term_inst.operands[2], term_inst.operands[1]]
 
     def run_pass(self):
+        self.liveness = self.analyses_cache.request_analysis(LivenessAnalysis)
+        self.cfg = self.analyses_cache.request_analysis(CFGAnalysis)
         self.dfg = self.analyses_cache.request_analysis(DFGAnalysis)
 
         self._optimize_branches()
+
+        self.analyses_cache.invalidate_analysis(LivenessAnalysis)
+        self.analyses_cache.invalidate_analysis(CFGAnalysis)