diff --git a/etc/circt.json b/etc/circt.json
index 13bcc12f48..c995e75ce4 100644
--- a/etc/circt.json
+++ b/etc/circt.json
@@ -1,3 +1,3 @@
 {
-  "version": "firtool-1.96.0"
+  "version": "firtool-1.97.1"
 }
diff --git a/src/test/scala/chiselTests/LayerSpec.scala b/src/test/scala/chiselTests/LayerSpec.scala
index 813e397b9e..34fbe431a5 100644
--- a/src/test/scala/chiselTests/LayerSpec.scala
+++ b/src/test/scala/chiselTests/LayerSpec.scala
@@ -5,6 +5,7 @@ package chiselTests
 import chisel3._
 import chisel3.experimental.hierarchy.core.{Definition, Instance}
 import chisel3.experimental.hierarchy.instantiable
+import chisel3.ltl.AssertProperty
 import chisel3.probe.{define, Probe, ProbeValue}
 import chiselTests.{ChiselFlatSpec, FileCheck, Utils}
 import java.nio.file.{FileSystems, Paths}
@@ -380,25 +381,60 @@ class LayerSpec extends ChiselFlatSpec with Utils with FileCheck {
     )
   }
 
-  "Inline layers" should "generated expected FIRRTL" in {
-    object A extends layer.Layer(layer.LayerConfig.Inline) {
-      object B extends layer.Layer(layer.LayerConfig.Inline)
+  "Inline layers" should "generate expected FIRRTL and SystemVerilog" in {
+    object A extends layer.Layer(layer.LayerConfig.Extract()) {
+      object B extends layer.Layer(layer.LayerConfig.Inline) {
+        object C extends layer.Layer(layer.LayerConfig.Inline)
+      }
     }
 
-    class Foo extends RawModule {
+    class Foo extends Module {
+      val a = IO(Input(UInt(2.W)))
+
       layer.block(A) {
-        layer.block(A.B) {}
+        AssertProperty(a > 0.U, "foo")
+        layer.block(A.B) {
+          AssertProperty(a > 1.U, "bar")
+          layer.block(A.B.C) {
+            AssertProperty(a > 2.U, "baz")
+          }
+        }
       }
     }
 
+    info("FIRRTL okay")
     generateFirrtlAndFileCheck(new Foo) {
-      """|CHECK:      layer A, inline :
+      """|CHECK:      layer A, bind
          |CHECK-NEXT:   layer B, inline :
+         |CHECK-NEXT:     layer C, inline :
          |""".stripMargin
     }
+
+    info("SystemVerilog okay")
+    val verilog = ChiselStage.emitSystemVerilog(
+      new Foo,
+      firtoolOpts = Array(
+        "-disable-all-randomization",
+        "-enable-layers=Verification,Verification.Assert,Verification.Assume,Verification.Cover"
+      )
+    )
+    fileCheckString(verilog) {
+      """|CHECK:      module Foo(
+         |CHECK-NOT:    assert property
+         |
+         |CHECK:      module Foo_A(
+         |CHECK-NOT:    `ifdef
+         |CHECK:        foo: assert property
+         |CHECK:        `ifdef layer_Foo$A$B
+         |CHECK-NEXT:     bar: assert property
+         |CHECK-NEXT:     `ifdef layer_Foo$A$B$C
+         |CHECK-NEXT:       baz: assert property
+         |CHECK-NEXT:     `endif
+         |CHECK-NEXT:   `endif""".stripMargin
+    }
   }
 
-  "Inline layers" should "be ignored when choosing default output directories" in {
+  they should "be ignored when choosing default output directories" in {
     object LayerWithDefaultOutputDir extends layer.Layer(layer.LayerConfig.Extract()) {
       object InlineSublayer extends layer.Layer(layer.LayerConfig.Inline) {
         object SublayerWithDefaultOutputDir extends layer.Layer(layer.LayerConfig.Extract()) {}
diff --git a/src/test/scala/circtTests/stage/ChiselStageSpec.scala b/src/test/scala/circtTests/stage/ChiselStageSpec.scala
index 0c9b7343f2..c557a97aff 100644
--- a/src/test/scala/circtTests/stage/ChiselStageSpec.scala
+++ b/src/test/scala/circtTests/stage/ChiselStageSpec.scala
@@ -1200,31 +1200,31 @@ class ChiselStageSpec extends AnyFunSpec with Matchers with chiselTests.Utils {
         new Counter,
         firtoolOpts = Array("-enable-layers=Verification,Verification.Assert,Verification.Assume,Verification.Cover")
       )
-      btor2 should include("""1 sort bitvec 1
-                             |2 input 1 reset
-                             |3 sort bitvec 32
-                             |4 state 3 count
-                             |5 state 1 hbr
-                             |6 constd 1 0
-                             |7 init 1 5 6
-                             |8 constd 3 43
-                             |9 constd 3 1
-                             |10 constd 3 42
-                             |11 constd 3 0
-                             |12 eq 1 4 10
-                             |13 add 3 4 9
-                             |14 ite 3 12 11 13
-                             |15 ult 1 4 8
-                             |16 constd 1 -1
-                             |17 or 1 2 5
-                             |18 xor 1 2 16
-                             |19 and 1 5 18
-                             |20 implies 1 19 15
-                             |21 not 1 20
-                             |22 bad 21
-                             |23 ite 3 2 11 14
-                             |24 next 3 4 23
-                             |25 next 1 5 17""".stripMargin)
+      btor2 should include("""|1 sort bitvec 1
+                              |2 input 1 reset
+                              |3 sort bitvec 32
+                              |4 state 3 count
+                              |5 constd 1 0
+                              |6 state 1 hbr
+                              |7 init 1 6 5
+                              |8 constd 3 43
+                              |9 constd 3 1
+                              |10 constd 3 42
+                              |11 constd 3 0
+                              |12 eq 1 4 10
+                              |13 add 3 4 9
+                              |14 ite 3 12 11 13
+                              |15 ult 1 4 8
+                              |16 constd 1 -1
+                              |17 or 1 2 6
+                              |18 xor 1 2 16
+                              |19 and 1 6 18
+                              |20 implies 1 19 15
+                              |21 not 1 20
+                              |22 bad 21
+                              |23 ite 3 2 11 14
+                              |24 next 3 4 23
+                              |25 next 1 6 17""".stripMargin)
     }
 
     it("""should error if give a "--target-directory" option""") {