Abstract. Loop distribution and loop fusion are two effective loop transformation techniques to optimize the execution of the programs in DSP applications. In this paper, we propose a new technique combining loop distribution with direct loop fusion, which will improve the timing performance without jeopardizing the code size. We first develop the loop distribution theorems that state the legality conditions of loop distribution for multi-level nested loops. We show that if the summation of the edge weights of the dependence cycle satisfies a certain condition, then the statements involved in the dependence cycle can be distributed; otherwise, they should be put in the same loop after loop distribution. Then, we propose the technique of maximum loop distribution with direct loop fusion. The experimental results show that the execution time of the