diff --git a/core/vm/common.go b/core/vm/common.go
index ae79afc35bb0..ec3aac3cd051 100644
--- a/core/vm/common.go
+++ b/core/vm/common.go
@@ -17,6 +17,8 @@
 package vm
 
 import (
+	"strings"
+
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/common/math"
 	"github.com/holiman/uint256"
@@ -94,3 +96,7 @@ func minInt(a int, b int) int {
 	}
 	return b
 }
+
+func contains(haystack []byte, needle []byte) bool {
+	return strings.Contains(string(haystack), string(needle))
+}
diff --git a/core/vm/contracts.go b/core/vm/contracts.go
index e0b24e5e1809..6ae5acd649a4 100644
--- a/core/vm/contracts.go
+++ b/core/vm/contracts.go
@@ -1102,7 +1102,7 @@ func (e *verifyCiphertext) RequiredGas(input []byte) uint64 {
 func (e *verifyCiphertext) Run(accessibleState PrecompileAccessibleState, caller common.Address, addr common.Address, input []byte, readOnly bool) (ret []byte, err error) {
 	// TODO: Accept a proof from `input` too
 	ctHash := crypto.Keccak256Hash(input)
-	accessibleState.Interpreter().verifiedCiphertexts[ctHash] = verifiedCiphertext{accessibleState.Interpreter().evm.depth, input}
+	accessibleState.Interpreter().verifiedCiphertexts[ctHash] = &verifiedCiphertext{accessibleState.Interpreter().evm.depth, input}
 	return ctHash.Bytes(), nil
 }
 
@@ -1140,11 +1140,9 @@ func (e *delegateCiphertext) Run(accessibleState PrecompileAccessibleState, call
 	if len(input) != 32 {
 		return nil, errors.New("invalid ciphertext handle")
 	}
-	hash := common.BytesToHash(input)
-	ct, ok := accessibleState.Interpreter().verifiedCiphertexts[hash]
+	ct, ok := accessibleState.Interpreter().verifiedCiphertexts[common.BytesToHash(input)]
 	if ok {
 		ct.depth = minInt(ct.depth, accessibleState.Interpreter().evm.depth-1)
-		accessibleState.Interpreter().verifiedCiphertexts[hash] = ct
 		return nil, nil
 	}
 	return nil, errors.New("unverified ciphertext handle")
diff --git a/core/vm/instructions.go b/core/vm/instructions.go
index d8a0b0b064ca..59c6613ff1fb 100644
--- a/core/vm/instructions.go
+++ b/core/vm/instructions.go
@@ -569,8 +569,7 @@ func verifyIfCiphertextHandle(val common.Hash, interpreter *EVMInterpreter, cont
 		if alreadyVerified {
 			verifiedCt.depth = minInt(verifiedCt.depth, interpreter.evm.depth)
 		} else {
-			verifiedCt.depth = interpreter.evm.depth
-			verifiedCt.ciphertext = ctBytes
+			verifiedCt = &verifiedCiphertext{interpreter.evm.depth, ctBytes}
 		}
 		interpreter.verifiedCiphertexts[val] = verifiedCt
 	}
@@ -941,9 +940,12 @@ func opReturn(pc *uint64, interpreter *EVMInterpreter, scope *ScopeContext) ([]b
 	offset, size := scope.Stack.pop(), scope.Stack.pop()
 	ret := scope.Memory.GetPtr(int64(offset.Uint64()), int64(size.Uint64()))
 
-	// Remove all verified ciphertexts that have depth > current depth - 1
 	for key, verifiedCiphertext := range interpreter.verifiedCiphertexts {
-		if verifiedCiphertext.depth > interpreter.evm.depth-1 {
+		if contains(ret, key.Bytes()) {
+			// If a handle is returned, automatically make it available to the caller.
+			verifiedCiphertext.depth = minInt(verifiedCiphertext.depth, interpreter.evm.depth-1)
+		} else if verifiedCiphertext.depth > interpreter.evm.depth-1 {
+			// Remove any ciphertexts that are not delegated for use by the caller.
 			delete(interpreter.verifiedCiphertexts, key)
 		}
 	}
diff --git a/core/vm/interpreter.go b/core/vm/interpreter.go
index 7cd2869f0150..85c1c6c573a3 100644
--- a/core/vm/interpreter.go
+++ b/core/vm/interpreter.go
@@ -68,7 +68,7 @@ type EVMInterpreter struct {
 	readOnly   bool   // Whether to throw on stateful modifications
 	returnData []byte // Last CALL's return data for subsequent reuse
 
-	verifiedCiphertexts map[common.Hash]verifiedCiphertext // A map from a ciphertext hash to itself and stack depth at which it is verified
+	verifiedCiphertexts map[common.Hash]*verifiedCiphertext // A map from a ciphertext hash to itself and stack depth at which it is verified
 }
 
 // NewEVMInterpreter returns a new instance of the Interpreter.
@@ -111,7 +111,7 @@ func NewEVMInterpreter(evm *EVM, cfg Config) *EVMInterpreter {
 	return &EVMInterpreter{
 		evm:                 evm,
 		cfg:                 cfg,
-		verifiedCiphertexts: make(map[common.Hash]verifiedCiphertext),
+		verifiedCiphertexts: make(map[common.Hash]*verifiedCiphertext),
 	}
 }
 
diff --git a/tests/solidity/zama/handles.sol b/tests/solidity/zama/handles.sol
index 44fa73f38ff5..e72623fe0865 100644
--- a/tests/solidity/zama/handles.sol
+++ b/tests/solidity/zama/handles.sol
@@ -67,9 +67,11 @@ contract HandleOwner is Precompiles {
         handle = bogus_handle;
     }
 
-    // Returns the handle without delegation. Callers using it must fail.
+    // Returns the handle without delegation. Callers using it must succeed
+    // due to automatic delegation.
     function get_handle_without_delegate() public view returns (uint256) {
-        return handle;
+        uint256 h = handle;
+        return h;
     }
 
     // Returns the handle with delegation. Callers using it must succeed.
@@ -82,6 +84,11 @@ contract HandleOwner is Precompiles {
     function callee_reencrypt() public view returns (uint256) {
         return callee.reencrypt(handle);
     }
+
+    function load_handle_without_returning_it() public view returns(uint256) {
+        uint256 h = handle + 1;
+        return h;
+    }
 }
 
 contract Callee is Precompiles {
@@ -97,13 +104,19 @@ contract Caller is Precompiles {
         owner = HandleOwner(owner_addr);
     }
 
-    // Fails, because the owner hasn't delegated.
+    // Succeeds, because we do automatic delegation on return.
     function reencrypt_without_delegate() public view returns (uint256) {
         return precompile_reencrypt(owner.get_handle_without_delegate());
     }
 
-    // Succeeds, because the owner hasn't delegated.
+    // Succeeds, because there is an explicit delegate by the caller.
     function reencrypt_with_delegate() public view returns (uint256) {
         return precompile_reencrypt(owner.get_handle_with_delegate());
     }
+
+    // Fails, because the owner hasn't delegated, even though the handle is valid.
+    function reencrypt_with_a_valid_handle(uint256 handle) public view returns (uint256) {
+        owner.load_handle_without_returning_it();
+        return precompile_reencrypt(handle);
+    }
 }