diff --git a/package-lock.json b/package-lock.json
index 125cc69c01..2ead3eb333 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1163,9 +1163,9 @@
       "optional": true
     },
     "binaryen": {
-      "version": "95.0.0-nightly.20200813",
-      "resolved": "https://registry.npmjs.org/binaryen/-/binaryen-95.0.0-nightly.20200813.tgz",
-      "integrity": "sha512-xY+fhSAkVxptBoQAn9X4o21zTFycOjc+PeqbWSwcDqrSmXBXUMeq7qHhz4EWSWlFDKobHeUaiIbzLzlmciDWHw=="
+      "version": "96.0.0-nightly.20200911",
+      "resolved": "https://registry.npmjs.org/binaryen/-/binaryen-96.0.0-nightly.20200911.tgz",
+      "integrity": "sha512-/mFIOMaaGsKcWZcwcrCGVVAtqI5le0rySoZSuS1a+3W878co883NLHOtbV2owDjAT7QELnsmjeKEAh+5VC+gbQ=="
     },
     "bluebird": {
       "version": "3.7.2",
diff --git a/package.json b/package.json
index 1dc71a82c0..8536556016 100644
--- a/package.json
+++ b/package.json
@@ -21,7 +21,7 @@
     "url": "https://github.com/AssemblyScript/assemblyscript/issues"
   },
   "dependencies": {
-    "binaryen": "95.0.0-nightly.20200813",
+    "binaryen": "96.0.0-nightly.20200911",
     "long": "^4.0.0",
     "source-map-support": "^0.5.19",
     "ts-node": "^6.2.0"
diff --git a/src/glue/binaryen.d.ts b/src/glue/binaryen.d.ts
index 5c70897850..9e703eb38a 100644
--- a/src/glue/binaryen.d.ts
+++ b/src/glue/binaryen.d.ts
@@ -986,3 +986,5 @@ export declare function _BinaryenGetFlexibleInlineMaxSize(): BinaryenIndex;
 export declare function _BinaryenSetFlexibleInlineMaxSize(size: BinaryenIndex): void;
 export declare function _BinaryenGetOneCallerInlineMaxSize(): BinaryenIndex;
 export declare function _BinaryenSetOneCallerInlineMaxSize(size: BinaryenIndex): void;
+export declare function _BinaryenGetAllowInliningFunctionsWithLoops(): bool;
+export declare function _BinaryenSetAllowInliningFunctionsWithLoops(enabled: bool): void;
diff --git a/src/module.ts b/src/module.ts
index 938c122f91..a26d4b84d3 100644
--- a/src/module.ts
+++ b/src/module.ts
@@ -1434,6 +1434,14 @@ export class Module {
     binaryen._BinaryenSetOneCallerInlineMaxSize(size);
   }
 
+  getAllowInliningFunctionsWithLoops(): bool {
+    return binaryen._BinaryenGetAllowInliningFunctionsWithLoops();
+  }
+
+  setAllowInliningFunctionsWithLoops(enabled: bool): void {
+    binaryen._BinaryenSetAllowInliningFunctionsWithLoops(enabled);
+  }
+
   // meta (module)
 
   getFeatures(): FeatureFlags {
@@ -1474,23 +1482,26 @@ export class Module {
     // Implicitly run costly non-LLVM optimizations on -O3 or -Oz
     if (optimizeLevel >= 3 || shrinkLevel >= 2) optimizeLevel = 4;
 
-    binaryen._BinaryenSetOptimizeLevel(optimizeLevel);
-    binaryen._BinaryenSetShrinkLevel(shrinkLevel);
-    binaryen._BinaryenSetDebugInfo(debugInfo);
+    this.setOptimizeLevel(optimizeLevel);
+    this.setShrinkLevel(shrinkLevel);
+    this.setDebugInfo(debugInfo);
+    this.clearPassArguments();
 
     // Tweak inlining limits based on optimization levels
-    if (optimizeLevel >= 2 && shrinkLevel === 0) {
-      binaryen._BinaryenSetAlwaysInlineMaxSize(12);
-      binaryen._BinaryenSetFlexibleInlineMaxSize(70);
-      binaryen._BinaryenSetOneCallerInlineMaxSize(200);
+    if (optimizeLevel >= 2 && shrinkLevel == 0) {
+      this.setAlwaysInlineMaxSize(12);
+      this.setFlexibleInlineMaxSize(70);
+      this.setOneCallerInlineMaxSize(200);
+      this.setAllowInliningFunctionsWithLoops(optimizeLevel >= 3);
     } else {
-      binaryen._BinaryenSetAlwaysInlineMaxSize(
+      this.setAlwaysInlineMaxSize(
         optimizeLevel == 0 && shrinkLevel >= 0
           ? 2
           : 4
       );
-      binaryen._BinaryenSetFlexibleInlineMaxSize(65);
-      binaryen._BinaryenSetOneCallerInlineMaxSize(80);
+      this.setFlexibleInlineMaxSize(65);
+      this.setOneCallerInlineMaxSize(80);
+      this.setAllowInliningFunctionsWithLoops(false);
     }
 
     // Pass order here differs substantially from Binaryen's defaults
@@ -1596,7 +1607,7 @@ export class Module {
       if (optimizeLevel >= 2 || shrinkLevel >= 2) {
         passes.push("inlining-optimizing");
       }
-      if (binaryen._BinaryenGetLowMemoryUnused()) {
+      if (this.getLowMemoryUnused()) {
         if (optimizeLevel >= 3 || shrinkLevel >= 1) {
           passes.push("optimize-added-constants-propagate");
         } else {