diff --git a/py/asmxtensa.c b/py/asmxtensa.c
index 2b36a56ead..fd71dedb16 100644
--- a/py/asmxtensa.c
+++ b/py/asmxtensa.c
@@ -41,6 +41,7 @@
 #endif
 
 #define WORD_SIZE (4)
+#define SIGNED_FIT6(x) ((((x) & 0xffffffe0) == 0) || (((x) & 0xffffffe0) == 0xffffffe0))
 #define SIGNED_FIT8(x) ((((x) & 0xffffff80) == 0) || (((x) & 0xffffff80) == 0xffffff80))
 #define SIGNED_FIT12(x) ((((x) & 0xfffff800) == 0) || (((x) & 0xfffff800) == 0xfffff800))
 #define SIGNED_FIT18(x) ((((x) & 0xfffe0000) == 0) || (((x) & 0xfffe0000) == 0xfffe0000))
@@ -158,13 +159,36 @@ void asm_xtensa_j_label(asm_xtensa_t *as, uint label) {
     asm_xtensa_op_j(as, rel);
 }
 
+static bool calculate_branch_displacement(asm_xtensa_t *as, uint label, ptrdiff_t *displacement) {
+    assert(displacement != NULL && "Displacement pointer is NULL");
+
+    uint32_t label_offset = get_label_dest(as, label);
+    *displacement = (ptrdiff_t)(label_offset - as->base.code_offset - 4);
+    return (label_offset != (uint32_t)-1) && (*displacement < 0);
+}
+
 void asm_xtensa_bccz_reg_label(asm_xtensa_t *as, uint cond, uint reg, uint label) {
-    uint32_t dest = get_label_dest(as, label);
-    int32_t rel = dest - as->base.code_offset - 4;
-    if (as->base.pass == MP_ASM_PASS_EMIT && !SIGNED_FIT12(rel)) {
+    ptrdiff_t rel = 0;
+    bool can_emit_short_jump = calculate_branch_displacement(as, label, &rel);
+
+    if (can_emit_short_jump && SIGNED_FIT12(rel)) {
+        // Backwards BCCZ opcodes with an offset that fits in 12 bits can
+        // be emitted without any change.
+        asm_xtensa_op_bccz(as, cond, reg, rel);
+        return;
+    }
+
+    // Range is effectively extended to 18 bits, as a more complex jump code
+    // sequence is emitted.
+    if (as->base.pass == MP_ASM_PASS_EMIT && !SIGNED_FIT18(rel - 6)) {
         mp_raise_msg_varg(&mp_type_RuntimeError, ET_OUT_OF_RANGE, MP_QSTR_bccz);
     }
-    asm_xtensa_op_bccz(as, cond, reg, rel);
+
+    // ~BCCZ skip ; +0  <- Condition is flipped here (EQ -> NE, etc.)
+    //  J    addr ; +3
+    // skip:      ; +6
+    asm_xtensa_op_bccz(as, cond ^ 1, reg, 6 - 4);
+    asm_xtensa_op_j(as, rel - 3);
 }
 
 void asm_xtensa_bcc_reg_reg_label(asm_xtensa_t *as, uint cond, uint reg1, uint reg2, uint label) {