diff --git a/test/test_setitem.py b/test/test_setitem.py
index d03d28322d..270bfa8c89 100644
--- a/test/test_setitem.py
+++ b/test/test_setitem.py
@@ -89,10 +89,7 @@ class TestSetitem(unittest.TestCase):
     t[[1,1]] = Tensor([0,1])
     np.testing.assert_allclose(t.numpy(), [1,1,3,4])
 
-  # TODO: #7739 fix when setting value 0 to overlapping indices
-  # error occurs when previous overlapped values are non-zero and last overlapping value is zero
-  @unittest.expectedFailure
-  def test_setitem_overlapping_indices_failure(self):
+  def test_setitem_overlapping_indices_with_0(self):
     t = Tensor([1,2,3,4])
     t[[1,1]] = Tensor([1,0])
     np.testing.assert_allclose(t.numpy(), [1,0,3,4])
diff --git a/tinygrad/tensor.py b/tinygrad/tensor.py
index 602a692a1e..63bd57cf03 100644
--- a/tinygrad/tensor.py
+++ b/tinygrad/tensor.py
@@ -1192,11 +1192,11 @@ class Tensor(SimpleMathTrait):  # pylint: disable=abstract-method
         for dim in sum_axis: vb = vb.unsqueeze(dim)
         # axis to be reduced to match self.shape
         axis = tuple(range(first_dim, first_dim + len(big_shape)))
-        # apply mask to v(broadcasted) and reduce such that if v contains repeated indices the last one remains
+        # apply mask to vb(broadcasted) and reduce such that if mask contains repeated indices the last one remains
         vb = vb * mask
-        for dim in axis: vb = functools.reduce(lambda x,y: y.where(y, x), vb.split(1, dim))
-        # reduce mask and select from v(get rid of extra dims from reduce) for each True element in mask else select from self
-        ret = mask.any(axis).where(vb.squeeze(), self)
+        for dim in axis: mask, vb = functools.reduce(lambda x,y: (x[0]|y[0], y[0].where(y[1], x[1])), zip(mask.split(1, dim), vb.split(1, dim)))
+        # select from vb for each True element in mask else select from self, squeeze to remove extra dims from reduce
+        ret = mask.squeeze().where(vb.squeeze(), self)
 
     return ret