diff --git a/core/src/main/scala/cats/Foldable.scala b/core/src/main/scala/cats/Foldable.scala
index 9d2e1e10d9..e3d2d4dab8 100644
--- a/core/src/main/scala/cats/Foldable.scala
+++ b/core/src/main/scala/cats/Foldable.scala
@@ -97,12 +97,15 @@ import scala.annotation.implicitNotFound
    */
   def foldRight[A, B](fa: F[A], lb: Eval[B])(f: (A, Eval[B]) => Eval[B]): Eval[B]
 
-  def foldRightDefer[G[_]: Defer, A, B](fa: F[A], gb: G[B])(fn: (A, G[B]) => G[B]): G[B] =
-    Defer[G].defer(
-      foldLeft(fa, (z: G[B]) => z) { (acc, elem) => z =>
-        Defer[G].defer(acc(fn(elem, z)))
-      }(gb)
-    )
+  def foldRightDefer[G[_]: Defer, A, B](fa: F[A], gb: G[B])(fn: (A, G[B]) => G[B]): G[B] = {
+    def loop(source: Source[A]): G[B] = {
+      source.uncons match {
+        case Some((next, s)) => fn(next, Defer[G].defer(loop(s.value)))
+        case None            => gb
+      }
+    }
+    Defer[G].defer(loop(Source.fromFoldable(fa)(self)))
+  }
 
   def reduceLeftToOption[A, B](fa: F[A])(f: A => B)(g: (B, A) => B): Option[B] =
     foldLeft(fa, Option.empty[B]) {
diff --git a/tests/src/test/scala-2.13+/cats/tests/LazyListSuite.scala b/tests/src/test/scala-2.13+/cats/tests/LazyListSuite.scala
index ea5f545446..6232c2543c 100644
--- a/tests/src/test/scala-2.13+/cats/tests/LazyListSuite.scala
+++ b/tests/src/test/scala-2.13+/cats/tests/LazyListSuite.scala
@@ -17,8 +17,11 @@ import cats.laws.discipline.{
 import cats.laws.discipline.arbitrary._
 import cats.syntax.show._
 import cats.syntax.eq._
+import cats.syntax.foldable._
 import org.scalacheck.Prop._
 
+import scala.util.control.TailCalls
+
 class LazyListSuite extends CatsSuite {
   checkAll("LazyList[Int]", SemigroupalTests[LazyList].semigroupal[Int, Int, Int])
   checkAll("Semigroupal[LazyList]", SerializableTests.serializable(Semigroupal[LazyList]))
@@ -52,6 +55,16 @@ class LazyListSuite extends CatsSuite {
     assert(LazyList.empty[Int].show === (s"LazyList()"))
   }
 
+  test("Avoid all evaluation of LazyList#foldRightDefer") {
+    val sum = LazyList
+      .from(1)
+      .foldRightDefer(TailCalls.done(0)) { (elem, acc) =>
+        if (elem <= 100) acc.map(_ + elem) else TailCalls.done(0)
+      }
+      .result
+    (1 to 100).sum === sum
+  }
+
   test("Show[LazyList] is referentially transparent, unlike LazyList.toString") {
     forAll { (lazyList: LazyList[Int]) =>
       if (!lazyList.isEmpty) {