diff --git a/mlir/python/mlir/ir.py b/mlir/python/mlir/ir.py
index 11477d061e897..f4aa2d6b051c8 100644
--- a/mlir/python/mlir/ir.py
+++ b/mlir/python/mlir/ir.py
@@ -34,11 +34,12 @@ def loc_tracebacks(*, max_depth: int | None = None) -> Iterable[None]:
     """
     old_enabled = _globals.loc_tracebacks_enabled()
     old_limit = _globals.loc_tracebacks_frame_limit()
+    max_depth = old_limit if max_depth is None else max_depth
     try:
         _globals.set_loc_tracebacks_frame_limit(max_depth)
         if not old_enabled:
             _globals.set_loc_tracebacks_enabled(True)
-            yield
+        yield
     finally:
         if not old_enabled:
             _globals.set_loc_tracebacks_enabled(False)
diff --git a/mlir/test/python/ir/auto_location.py b/mlir/test/python/ir/auto_location.py
index 83168901341a8..1747c66aa6639 100644
--- a/mlir/test/python/ir/auto_location.py
+++ b/mlir/test/python/ir/auto_location.py
@@ -15,17 +15,10 @@ def run(f):
     assert Context._get_live_count() == 0
 
 
-@contextmanager
-def with_infer_location():
-    _cext.globals.set_loc_tracebacks_enabled(True)
-    yield
-    _cext.globals.set_loc_tracebacks_enabled(False)
-
-
 # CHECK-LABEL: TEST: testInferLocations
 @run
 def testInferLocations():
-    with Context() as ctx, with_infer_location():
+    with Context() as ctx, loc_tracebacks():
         ctx.allow_unregistered_dialects = True
 
         op = Operation.create("custom.op1")
@@ -34,24 +27,26 @@ def testInferLocations():
         two = arith.constant(IndexType.get(), 2)
 
         # fmt: off
-        # CHECK: loc(callsite("testInferLocations"("{{.*}}[[SEP:[/\\]+]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":31:13 to :43) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":26:1 to :4))))
+        # CHECK: loc(callsite("testInferLocations"("{{.*}}[[SEP:[/\\]+]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:13 to :43) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:1 to :4))))
         # fmt: on
         print(op.location)
 
-        # fmt: off
-        # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]arith.py":65:12 to :76) at callsite("constant"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]arith.py":110:40 to :81) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":32:14 to :48) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":26:1 to :4))))))
-        # fmt: on
-        print(one.location)
+        # Test nesting of loc_tracebacks().
+        with loc_tracebacks():
+            # fmt: off
+            # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]arith.py":65:12 to :76) at callsite("constant"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]arith.py":110:40 to :81) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:14 to :48) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:1 to :4))))))
+            # fmt: on
+            print(one.location)
 
         # fmt: off
-        # CHECK: loc(callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":34:14 to :48) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":26:1 to :4))))
+        # CHECK: loc(callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:14 to :48) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:1 to :4))))
         # fmt: on
         print(two.location)
 
         _cext.globals.register_traceback_file_inclusion(_arith_ops_gen.__file__)
         three = arith.constant(IndexType.get(), 3)
         # fmt: off
-        # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]_arith_ops_gen.py":{{[0-9]+}}:4 to :235) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":52:16 to :50) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":26:1 to :4)))))
+        # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]_arith_ops_gen.py":{{[0-9]+}}:4 to :235) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:16 to :50) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:1 to :4)))))
         # fmt: on
         print(three.location)
 
@@ -60,7 +55,7 @@ def foo():
             print(four.location)
 
         # fmt: off
-        # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]_arith_ops_gen.py":{{[0-9]+}}:4 to :235) at callsite("testInferLocations.<locals>.foo"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":59:19 to :53) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":65:8 to :13) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":13:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":26:1 to :4))))))
+        # CHECK: loc(callsite("ConstantOp.__init__"("{{.*}}[[SEP]]mlir[[SEP]]dialects[[SEP]]_arith_ops_gen.py":{{[0-9]+}}:4 to :235) at callsite("testInferLocations.<locals>.foo"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:19 to :53) at callsite("testInferLocations"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:8 to :13) at callsite("run"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:4 to :7) at "<module>"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:1 to :4))))))
         # fmt: on
         foo()
 
@@ -86,13 +81,13 @@ def bar3():
 
         _cext.globals.set_loc_tracebacks_frame_limit(2)
         # fmt: off
-        # CHECK: loc(callsite("testInferLocations.<locals>.bar1.<locals>.bar2.<locals>.bar3"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":77:27 to :61) at "testInferLocations.<locals>.bar1.<locals>.bar2"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":80:16 to :22)))
+        # CHECK: loc(callsite("testInferLocations.<locals>.bar1.<locals>.bar2.<locals>.bar3"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:27 to :61) at "testInferLocations.<locals>.bar1.<locals>.bar2"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:16 to :22)))
         # fmt: on
         bar1()
 
         _cext.globals.set_loc_tracebacks_frame_limit(1)
         # fmt: off
-        # CHECK: loc("testInferLocations.<locals>.bar1.<locals>.bar2.<locals>.bar3"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":77:27 to :61))
+        # CHECK: loc("testInferLocations.<locals>.bar1.<locals>.bar2.<locals>.bar3"("{{.*}}[[SEP]]test[[SEP]]python[[SEP]]ir[[SEP]]auto_location.py":{{[0-9]+}}:27 to :61))
         # fmt: on
         bar1()