diff --git a/cpp/grammar_functor.cc b/cpp/grammar_functor.cc
index c87dbe7fb..d2cca09c6 100644
--- a/cpp/grammar_functor.cc
+++ b/cpp/grammar_functor.cc
@@ -1981,6 +1981,182 @@ Result<FSMWithStartEnd> GrammarFSMBuilderImpl::Regex(const std::string& regex, b
   return ResultOk(std::move(result));
 }
 
+/*!
+ * \brief Lower the regular subset used by RegexToEBNF without changing terminal semantics.
+ *
+ * A shared callee entry/exit would let one call return to another call's continuation. Inline
+ * each finite call instead, and connect only direct tail self-references to that call's own
+ * entry. The entry is private even when the caller's start also has an optional exit.
+ */
+class RegularGrammarFSMBuilder {
+ public:
+  RegularGrammarFSMBuilder(const Grammar& grammar, int max_num_states)
+      : grammar_(grammar), max_num_states_(max_num_states), active_(grammar->NumRules(), false) {}
+
+  Result<FSMWithStartEnd> Build() {
+    if (max_num_states_ < 2) {
+      return ResultErr("Regular grammar FSM state limit must be at least 2");
+    }
+    int start = fsm_.AddState();
+    int end = fsm_.AddState();
+    if (!BuildRule(grammar_->GetRootRuleId(), start, end)) {
+      return ResultErr(error_);
+    }
+    auto result = FSMWithStartEnd(fsm_, start, {end}).SimplifyEpsilon();
+    return ResultOk(result.MergeEquivalentStates());
+  }
+
+ private:
+  bool Fail(const std::string& message) {
+    error_ = "Cannot flatten regular grammar: " + message;
+    return false;
+  }
+
+  int AddState() {
+    if (fsm_.NumStates() >= max_num_states_) {
+      Fail("intermediate FSM exceeds " + std::to_string(max_num_states_) + " states");
+      return -1;
+    }
+    return fsm_.AddState();
+  }
+
+  bool Append(const FSMWithStartEnd& leaf, int start, int end) {
+    if (leaf.GetFsm().NumStates() > max_num_states_ - fsm_.NumStates()) {
+      return Fail("intermediate FSM exceeds " + std::to_string(max_num_states_) + " states");
+    }
+    std::vector<int> mapping;
+    fsm_.AddFSM(leaf.GetFsm(), &mapping);
+    fsm_.AddEpsilonEdge(start, mapping[leaf.GetStart()]);
+    for (int leaf_end : leaf.GetEnds()) {
+      fsm_.AddEpsilonEdge(mapping[leaf_end], end);
+    }
+    return true;
+  }
+
+  bool BuildRule(int rule_id, int start, int end) {
+    const auto& rule = grammar_->GetRule(rule_id);
+    if (active_[rule_id]) {
+      return Fail("mutual or non-tail recursion involving rule " + rule.name);
+    }
+    if (depth_ >= 256) {
+      return Fail("rule call depth exceeds 256");
+    }
+    if (rule.lookahead_assertion_id >= 0 || rule.max_tokens >= 0 || rule.max_chars >= 0 ||
+        !rule.capture_name.empty() || rule.is_lazy || rule.temperature.has_value() ||
+        grammar_->GetSuffixStopInfo(rule_id) != nullptr) {
+      return Fail("annotated rule " + rule.name + " is not a plain regular rule");
+    }
+    int entry = AddState();
+    if (entry < 0) {
+      return false;
+    }
+    fsm_.AddEpsilonEdge(start, entry);
+    active_[rule_id] = true;
+    ++depth_;
+    bool ok = BuildExpression(
+        grammar_->GetGrammarExpr(rule.body_expr_id), entry, end, rule_id, entry, true
+    );
+    --depth_;
+    active_[rule_id] = false;
+    return ok;
+  }
+
+  bool BuildExpression(
+      const GrammarExpr& expr, int start, int end, int rule_id, int rule_start, bool tail
+  ) {
+    switch (expr.type) {
+      case ExprType::kEmptyStr:
+        fsm_.AddEpsilonEdge(start, end);
+        return true;
+      case ExprType::kByteString:
+        if (expr.size() >= max_num_states_ - fsm_.NumStates()) {
+          return Fail("byte string exceeds the intermediate FSM state limit");
+        }
+        return Append(GrammarFSMBuilderImpl::ByteString(expr), start, end);
+      case ExprType::kCharacterClass:
+      case ExprType::kCharacterClassStar:
+        return Append(GrammarFSMBuilderImpl::CharacterClass(expr), start, end);
+      case ExprType::kRuleRef:
+        if (expr[0] == rule_id) {
+          if (!tail) {
+            return Fail("non-tail self-recursion in rule " + grammar_->GetRule(rule_id).name);
+          }
+          fsm_.AddEpsilonEdge(start, rule_start);
+          return true;
+        }
+        return BuildRule(expr[0], start, end);
+      case ExprType::kChoices:
+        for (int child : expr) {
+          if (!BuildExpression(
+                  grammar_->GetGrammarExpr(child), start, end, rule_id, rule_start, tail
+              )) {
+            return false;
+          }
+        }
+        return true;
+      case ExprType::kSequence: {
+        int current = start;
+        for (int i = 0; i < expr.size(); ++i) {
+          int next = i + 1 == expr.size() ? end : AddState();
+          if (next < 0 || !BuildExpression(
+                              grammar_->GetGrammarExpr(expr[i]),
+                              current,
+                              next,
+                              rule_id,
+                              rule_start,
+                              tail && i + 1 == expr.size()
+                          )) {
+            return false;
+          }
+          current = next;
+        }
+        if (expr.size() == 0) {
+          fsm_.AddEpsilonEdge(start, end);
+        }
+        return true;
+      }
+      case ExprType::kRepeat: {
+        int64_t lower = expr[1], upper = expr[2];
+        if (lower < 0 || (upper != -1 && upper < lower)) {
+          return Fail("invalid repetition bounds");
+        }
+        // Even empty callees should not make an enormous explicit repetition consume
+        // unbounded compilation time. Large bounded patterns need a different representation.
+        int64_t count = upper == -1 ? lower : upper;
+        if (count > max_num_states_) {
+          return Fail("repetition exceeds the intermediate FSM state limit");
+        }
+        int current = start;
+        for (int64_t i = 0; i <= count; ++i) {
+          if (i >= lower) {
+            fsm_.AddEpsilonEdge(current, end);
+          }
+          if (i == count) {
+            break;
+          }
+          int next = AddState();
+          if (next < 0 || !BuildRule(expr[0], current, next)) {
+            return false;
+          }
+          current = next;
+        }
+        return upper != -1 || BuildRule(expr[0], current, current);
+      }
+      default:
+        return Fail(
+            "unsupported terminal or expression in rule " + grammar_->GetRule(rule_id).name
+        );
+    }
+  }
+
+  const Grammar& grammar_;
+  int max_num_states_;
+  FSM fsm_;
+  std::vector<bool> active_;
+  int depth_ = 0;
+  std::string error_;
+};
+
 class RepetitionRangeExpanderImpl : public GrammarMutator {
  public:
   using GrammarMutator::Apply;
@@ -3782,6 +3958,12 @@ Result<FSMWithStartEnd> GrammarFSMBuilder::Regex(const std::string& regex, bool
   return GrammarFSMBuilderImpl::Regex(regex, json_string);
 }
 
+Result<FSMWithStartEnd> GrammarFSMBuilder::FromRegularGrammar(
+    const Grammar& grammar, int max_num_states
+) {
+  return RegularGrammarFSMBuilder(grammar, max_num_states).Build();
+}
+
 const std::bitset<256>& GrammarFSMBuilder::JSONStringForbiddenChars() {
   static const std::bitset<256> forbidden_chars = [] {
     std::bitset<256> chars;
diff --git a/cpp/grammar_functor.h b/cpp/grammar_functor.h
index 0b4da505b..e7871cab9 100644
--- a/cpp/grammar_functor.h
+++ b/cpp/grammar_functor.h
@@ -406,6 +406,16 @@ class GrammarFSMBuilder {
    * the characters in JSONStringForbiddenChars() are excluded from every character match.
    */
   static Result<FSMWithStartEnd> Regex(const std::string& regex, bool json_string = false);
+  /*!
+   * \brief Flatten a regular EBNF grammar without reinterpreting its terminal expressions.
+   * Supports finite rule calls, direct tail self-recursion, and repetition. Each call gets
+   * separate return states. Other recursion, non-byte terminals, and rule annotations return
+   * an error. Intended for the existing RegexToEBNF fallback, not arbitrary CFGs.
+   * \param max_num_states Bound on the intermediate automaton size.
+   */
+  static Result<FSMWithStartEnd> FromRegularGrammar(
+      const Grammar& grammar, int max_num_states = 100000
+  );
   /*! \brief The characters that must be escaped inside a JSON string literal: the control
    * characters 0x00-0x1F, the quote '"' and the backslash '\\'. */
   static const std::bitset<256>& JSONStringForbiddenChars();
diff --git a/tests/cpp/test_regular_grammar_fsm.cc b/tests/cpp/test_regular_grammar_fsm.cc
new file mode 100644
index 000000000..71311a1ea
--- /dev/null
+++ b/tests/cpp/test_regular_grammar_fsm.cc
@@ -0,0 +1,104 @@
+/*!
+ * \file tests/cpp/test_regular_grammar_fsm.cc
+ * \brief Preserve EBNF terminal and call semantics when flattening regular grammars.
+ */
+
+#include <gtest/gtest.h>
+#include <xgrammar/xgrammar.h>
+
+#include "grammar_functor.h"
+
+using namespace xgrammar;
+
+TEST(RegularGrammarFSM, RepeatedCallsHaveSeparateReturns) {
+  auto grammar = Grammar::FromEBNF(R"(
+root ::= part "x" part "y"
+part ::= "a" part | "b"
+)");
+  auto result = GrammarFSMBuilder::FromRegularGrammar(grammar);
+  ASSERT_TRUE(result.IsOk());
+  auto fsm = std::move(result).Unwrap();
+  for (const auto* text : {"bxby", "abxby", "bxaaby", "aaabxaaaby"}) {
+    EXPECT_TRUE(fsm.AcceptString(text)) << text;
+  }
+  for (const auto* text : {"", "by", "bxy", "bxay", "abxay", "bybx", "bxbyy"}) {
+    EXPECT_FALSE(fsm.AcceptString(text)) << text;
+  }
+}
+
+TEST(RegularGrammarFSM, RecursiveCalleeCannotUseCallersOptionalExit) {
+  auto grammar = Grammar::FromEBNF(R"(
+root ::= part? "z" part*
+part ::= "a" part | "b"
+)");
+  auto result = GrammarFSMBuilder::FromRegularGrammar(grammar);
+  ASSERT_TRUE(result.IsOk());
+  auto fsm = std::move(result).Unwrap();
+  for (const auto* text : {"z", "bz", "abz", "zb", "zaab", "bzab", "abzbaab"}) {
+    EXPECT_TRUE(fsm.AcceptString(text)) << text;
+  }
+  for (const auto* text : {"az", "za", "bza", "aaz", "zba"}) {
+    EXPECT_FALSE(fsm.AcceptString(text)) << text;
+  }
+}
+
+TEST(RegularGrammarFSM, RegexFallbackMatchesOriginalGrammar) {
+  GrammarCompiler compiler(TokenizerInfo(std::vector<std::string>{}), 1, false);
+  const std::vector<std::string> patterns = {
+      R"((ab|c){1,3}d?)",
+      R"((a*b)+c{2,})",
+      R"((ab|){0,3}z)",
+      R"([é你]+|\u0061\s\D)",
+      R"([^你])",
+      R"(^[a-zA-Z0-9\.!#$%&'*+/=?^_`{|}~-]+@[a-zA-Z0-9-]+\.[a-zA-Z]{2,}$)"
+  };
+  const std::vector<std::string> samples = {
+      "",
+      "ab",
+      "abc",
+      "abccd",
+      "d",
+      "cccc",
+      "bcc",
+      "aabbccc",
+      "abcc",
+      "acccc",
+      "z",
+      "abz",
+      "ababz",
+      "abababz",
+      "ababababz",
+      "é你é",
+      "你",
+      "a b",
+      "a 1",
+      "a\tb",
+      "name@example.com",
+      "name@example",
+      "name@.com",
+      "<|close|>"
+  };
+  for (const auto& pattern : patterns) {
+    auto grammar = Grammar::FromRegex(pattern);
+    auto result = GrammarFSMBuilder::FromRegularGrammar(grammar);
+    ASSERT_TRUE(result.IsOk()) << pattern;
+    auto fsm = std::move(result).Unwrap();
+    GrammarMatcher matcher(compiler.CompileGrammar(grammar), std::nullopt, true);
+    for (const auto& sample : samples) {
+      matcher.Reset();
+      bool expected = matcher.AcceptString(sample) && matcher.IsTerminated();
+      EXPECT_EQ(fsm.AcceptString(sample), expected) << pattern << " input=" << sample;
+    }
+  }
+}
+
+TEST(RegularGrammarFSM, RejectsUnsupportedRecursionAndBounds) {
+  for (const auto* source :
+       {"root ::= \"a\" root \"b\" | \"\"",
+        "root ::= \"a\" child | \"\"\nchild ::= \"b\" root | \"c\"",
+        "root ::= Token(1)"}) {
+    EXPECT_TRUE(GrammarFSMBuilder::FromRegularGrammar(Grammar::FromEBNF(source)).IsErr()) << source;
+  }
+  auto grammar = Grammar::FromRegex("(ab){100}");
+  EXPECT_TRUE(GrammarFSMBuilder::FromRegularGrammar(grammar, 10).IsErr());
+}