diff --git a/python/ql/lib/change-notes/2026-06-30-instance-attribute-typetracking-performance.md b/python/ql/lib/change-notes/2026-06-30-instance-attribute-typetracking-performance.md
new file mode 100644
index 000000000000..53532f6e65ce
--- /dev/null
+++ b/python/ql/lib/change-notes/2026-06-30-instance-attribute-typetracking-performance.md
@@ -0,0 +1,4 @@
+---
+category: minorAnalysis
+---
+* Type tracking of values stored in instance attributes and read from outside the class (for example `instance.attr` where the value was assigned to `self.attr` in a method) no longer relies on a dedicated instance type-tracker. This avoids a structural mutual recursion that could cause catastrophic query slowdowns on some OOP-heavy code bases. Such reads are now resolved using local flow from the constructor call, which is slightly less precise for instances that flow across a call or return before being read.
diff --git a/python/ql/lib/semmle/python/dataflow/new/internal/TypeTrackingImpl.qll b/python/ql/lib/semmle/python/dataflow/new/internal/TypeTrackingImpl.qll
index 13afd6a4276d..865c4767aba1 100644
--- a/python/ql/lib/semmle/python/dataflow/new/internal/TypeTrackingImpl.qll
+++ b/python/ql/lib/semmle/python/dataflow/new/internal/TypeTrackingImpl.qll
@@ -349,11 +349,23 @@ module TypeTrackingInput implements Shared::TypeTrackingInput<Location> {
    * `instance.attr`, where `instance` is a reference to an instance of `cls`).
    *
    * This complements `selfAttrRef`, which only handles `self.attr` accesses inside the
-   * methods of `cls`. Unlike `selfAttrRef`, this depends on the call graph (via
-   * `classInstanceTracker`), so steps using it must be reported as `levelStepCall`.
+   * methods of `cls`. The instance is identified using *local* flow from a constructor
+   * call `cls(...)` (resolved via the call graph by `resolveClassCall`), rather than a
+   * dedicated instance type-tracker (`classInstanceTracker`).
+   *
+   * Using `classInstanceTracker` here would make `levelStepCall` mutually recursive with
+   * `classInstanceTracker` -- itself a full type-tracker run -- which caused catastrophic
+   * query slowdowns on some OOP-heavy Python code bases (e.g. `mypy` and `dask`). Relying
+   * on local flow from a resolved constructor call instead depends only on `classTracker`
+   * (the same call-graph machinery already used by `inheritedFieldStep`), avoiding that
+   * blow-up. The trade-off is reduced precision: instances that flow across a call or
+   * return before being read are no longer covered by this step.
    */
   private predicate instanceAttrRead(Class cls, string attr, DataFlowPublic::AttrRead read) {
-    read.getObject() = DataFlowDispatch::classInstanceTracker(cls) and
+    exists(DataFlowPublic::CallCfgNode construction |
+      DataFlowDispatch::resolveClassCall(construction.asCfgNode(), cls) and
+      read.getObject().getALocalSource() = construction
+    ) and
     read.mayHaveAttributeName(attr)
   }
 
@@ -432,9 +444,9 @@ module TypeTrackingInput implements Shared::TypeTrackingInput<Location> {
    * This is the cross-instance counterpart of `localFieldStep`: it relates a write of
    * `self.attr` inside a class to a read of `attr` on a reference to an instance of that
    * class or one of its subclasses. Identifying instances relies on the call graph (via
-   * `classInstanceTracker`), so this step is reported as `levelStepCall` rather than
-   * `levelStepNoCall`. The write may occur in the instance's own class or in any of its
-   * superclasses, since those methods are inherited.
+   * `resolveClassCall`, see `instanceAttrRead`), so this step is reported as
+   * `levelStepCall` rather than `levelStepNoCall`. The write may occur in the instance's
+   * own class or in any of its superclasses, since those methods are inherited.
    *
    * Like `localFieldStep`, this is an over-approximation: it is both instance-insensitive
    * and order-insensitive.
diff --git a/python/ql/test/library-tests/dataflow/typetracking/attribute_tests.py b/python/ql/test/library-tests/dataflow/typetracking/attribute_tests.py
index b6bca72507f6..724be1091a4a 100644
--- a/python/ql/test/library-tests/dataflow/typetracking/attribute_tests.py
+++ b/python/ql/test/library-tests/dataflow/typetracking/attribute_tests.py
@@ -161,6 +161,18 @@ def possibly_uncalled_method(self): # $ MISSING: tracked=foo
 instance.print_foo() # $ MISSING: tracked=foo
 
 
+# attribute set in method, but the instance flows across a call/return before the read.
+# `instanceFieldStep` identifies the instance using only local flow from the constructor
+# call, so a value stored on `self.foo` is not seen once the instance has crossed a
+# function boundary.
+
+def make_my_class2():
+    return MyClass2()
+
+returned_instance = make_my_class2()
+print(returned_instance.foo) # $ MISSING: tracked
+
+
 # attribute set from outside of class
 
 class MyClass3(object):