diff --git a/src/backend/distributed/planner/query_pushdown_planning.c b/src/backend/distributed/planner/query_pushdown_planning.c
index 4653c6e37..d1f031e1b 100644
--- a/src/backend/distributed/planner/query_pushdown_planning.c
+++ b/src/backend/distributed/planner/query_pushdown_planning.c
@@ -81,9 +81,9 @@ static bool ShouldRecurseForRecurringTuplesJoinChecks(RelOptInfo *relOptInfo);
 static bool RelationInfoContainsRecurringTuples(PlannerInfo *plannerInfo,
 												RelOptInfo *relationInfo,
 												RecurringTuplesType *recurType);
-static bool IsRecurringRTE(RangeTblEntry *rangeTableEntry,
-						   RecurringTuplesType *recurType);
-static bool IsRecurringRangeTable(List *rangeTable, RecurringTuplesType *recurType);
+static bool ContainsRecurringRTE(RangeTblEntry *rangeTableEntry,
+								 RecurringTuplesType *recurType);
+static bool ContainsRecurringRangeTable(List *rangeTable, RecurringTuplesType *recurType);
 static bool HasRecurringTuples(Node *node, RecurringTuplesType *recurType);
 static MultiNode * SubqueryPushdownMultiNodeTree(Query *queryTree);
 static List * FlattenJoinVars(List *columnList, Query *queryTree);
@@ -751,7 +751,7 @@ FromClauseRecurringTupleType(Query *queryTree)
 	 * Try to figure out which type of recurring tuples we have to produce a
 	 * relevant error message. If there are several we'll pick the first one.
 	 */
-	IsRecurringRangeTable(queryTree->rtable, &recurType);
+	ContainsRecurringRangeTable(queryTree->rtable, &recurType);
 
 	return recurType;
 }
@@ -1336,7 +1336,6 @@ static bool
 RelationInfoContainsOnlyRecurringTuples(PlannerInfo *plannerInfo,
 										RelOptInfo *relationInfo)
 {
-	RecurringTuplesType recurType;
 	Relids relids = bms_copy(relationInfo->relids);
 	int relationId = -1;
 
@@ -1344,11 +1343,19 @@ RelationInfoContainsOnlyRecurringTuples(PlannerInfo *plannerInfo,
 	{
 		RangeTblEntry *rangeTableEntry = plannerInfo->simple_rte_array[relationId];
 
-		/* relationInfo has this range table entry */
-		if (!IsRecurringRTE(rangeTableEntry, &recurType))
+		if (FindNodeCheckInRangeTableList(list_make1(rangeTableEntry),
+										  IsDistributedTableRTE))
 		{
+			/* we already found a distributed table, no need to check further */
 			return false;
 		}
+
+		/*
+		 * If there are no distributed tables, there should be at least
+		 * one recurring rte.
+		 */
+		RecurringTuplesType recurType PG_USED_FOR_ASSERTS_ONLY;
+		Assert(ContainsRecurringRTE(rangeTableEntry, &recurType));
 	}
 
 	return true;
@@ -1376,7 +1383,7 @@ RelationInfoContainsRecurringTuples(PlannerInfo *plannerInfo, RelOptInfo *relati
 		RangeTblEntry *rangeTableEntry = plannerInfo->simple_rte_array[relationId];
 
 		/* relationInfo has this range table entry */
-		if (IsRecurringRTE(rangeTableEntry, recurType))
+		if (ContainsRecurringRTE(rangeTableEntry, recurType))
 		{
 			return true;
 		}
@@ -1387,24 +1394,24 @@ RelationInfoContainsRecurringTuples(PlannerInfo *plannerInfo, RelOptInfo *relati
 
 
 /*
- * IsRecurringRTE returns whether the range table entry will generate
- * the same set of tuples when repeating it in a query on different
- * shards.
+ * ContainsRecurringRTE returns whether the range table entry contains
+ * any entry that generates the same set of tuples when repeating it in
+ * a query on different shards.
  */
 static bool
-IsRecurringRTE(RangeTblEntry *rangeTableEntry, RecurringTuplesType *recurType)
+ContainsRecurringRTE(RangeTblEntry *rangeTableEntry, RecurringTuplesType *recurType)
 {
-	return IsRecurringRangeTable(list_make1(rangeTableEntry), recurType);
+	return ContainsRecurringRangeTable(list_make1(rangeTableEntry), recurType);
 }
 
 
 /*
- * IsRecurringRangeTable returns whether the range table will generate
- * the same set of tuples when repeating it in a query on different
- * shards.
+ * ContainsRecurringRangeTable returns whether the range table list contains
+ * any entry that generates the same set of tuples when repeating it in
+ * a query on different shards.
  */
 static bool
-IsRecurringRangeTable(List *rangeTable, RecurringTuplesType *recurType)
+ContainsRecurringRangeTable(List *rangeTable, RecurringTuplesType *recurType)
 {
 	return range_table_walker(rangeTable, HasRecurringTuples, recurType,
 							  QTW_EXAMINE_RTES_BEFORE);
diff --git a/src/test/regress/expected/with_basics.out b/src/test/regress/expected/with_basics.out
index 153ec2651..8c7fce459 100644
--- a/src/test/regress/expected/with_basics.out
+++ b/src/test/regress/expected/with_basics.out
@@ -762,10 +762,255 @@ SELECT user_id, value_1 FROM cte_user_with_view ORDER BY 1, 2 LIMIT 10 OFFSET 2;
 ---------------------------------------------------------------------
 (0 rows)
 
+-- test case added for https://github.com/citusdata/citus/issues/3565
+CREATE TABLE test_cte
+(
+    user_id varchar
+);
+INSERT INTO test_cte
+SELECT *
+FROM (VALUES ('1'), ('1'), ('2'), ('2'), ('3'), ('4'), ('5'), ('6'), ('7'), ('8')) AS foo;
+CREATE TABLE test_cte_distributed
+(
+    user_id varchar
+);
+SELECT *
+FROM create_distributed_table('test_cte_distributed', 'user_id');
+ create_distributed_table
+---------------------------------------------------------------------
+
+(1 row)
+
+INSERT INTO test_cte_distributed
+SELECT *
+FROM (VALUES ('1'), ('3'), ('3'), ('5'), ('8')) AS foo;
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE EXISTS(SELECT *
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ user_id | user_id
+---------------------------------------------------------------------
+ 7       |
+ 6       |
+ 4       |
+ 2       |
+ 8       | 8
+ 5       | 5
+ 3       | 3
+ 1       | 1
+(8 rows)
+
+-- same query, but the CTE is written as subquery
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE EXISTS
+       (SELECT *
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+-- similar query as the above, but this time
+-- use NOT EXITS, which is pretty common struct
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed ON distinct_undistribured.user_id = exsist_in_distributed.user_id;
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+-- same NOT EXISTS struct, but with CTE
+-- so should work
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     not_exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE NOT EXISTS(SELECT NULL
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN not_exsist_in_distributed
+  ON distinct_undistribured.user_id = not_exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ user_id | user_id
+---------------------------------------------------------------------
+ 8       |
+ 7       |
+ 6       |
+ 5       |
+ 4       |
+ 3       |
+ 2       |
+ 1       |
+(8 rows)
+
+-- similar query, but this time the second
+-- part of the query is not inside a CTE
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+)
+SELECT count(*)
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT *,
+          random()
+   FROM test_cte_distributed d1
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured d2
+        WHERE d1.user_id = d2.user_id )) AS bar USING (user_id);
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+-- should work fine with cte inlinig disabled
+SET citus.enable_cte_inlining TO false;
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE EXISTS(SELECT *
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ user_id | user_id
+---------------------------------------------------------------------
+ 7       |
+ 6       |
+ 4       |
+ 2       |
+ 8       | 8
+ 5       | 5
+ 3       | 3
+ 1       | 1
+(8 rows)
+
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE EXISTS
+       (SELECT *
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed ON distinct_undistribured.user_id = exsist_in_distributed.user_id;
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+-- NOT EXISTS struct, with cte inlining disabled
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     not_exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE NOT EXISTS(SELECT NULL
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN not_exsist_in_distributed
+  ON distinct_undistribured.user_id = not_exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+ user_id | user_id
+---------------------------------------------------------------------
+ 8       |
+ 7       |
+ 6       |
+ 5       |
+ 4       |
+ 3       |
+ 2       |
+ 1       |
+(8 rows)
+
+-- similar query, but this time the second
+-- part of the query is not inside a CTE
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+)
+SELECT count(*)
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT *,
+          random()
+   FROM test_cte_distributed d1
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured d2
+        WHERE d1.user_id = d2.user_id )) AS bar USING (user_id);
+ERROR:  cannot pushdown the subquery
+DETAIL:  Complex subqueries and CTEs cannot be in the outer part of the outer join
+RESET citus.enable_cte_inlining;
 DROP VIEW basic_view;
 DROP VIEW cte_view;
 DROP SCHEMA with_basics CASCADE;
-NOTICE:  drop cascades to 3 other objects
+NOTICE:  drop cascades to 5 other objects
 DETAIL:  drop cascades to table users_table
 drop cascades to table events_table
 drop cascades to type xy
+drop cascades to table test_cte
+drop cascades to table test_cte_distributed
diff --git a/src/test/regress/sql/with_basics.sql b/src/test/regress/sql/with_basics.sql
index ac556f9cd..88e048a02 100644
--- a/src/test/regress/sql/with_basics.sql
+++ b/src/test/regress/sql/with_basics.sql
@@ -505,6 +505,199 @@ WITH cte_user_with_view AS
 )
 SELECT user_id, value_1 FROM cte_user_with_view ORDER BY 1, 2 LIMIT 10 OFFSET 2;
 
+
+-- test case added for https://github.com/citusdata/citus/issues/3565
+CREATE TABLE test_cte
+(
+    user_id varchar
+);
+INSERT INTO test_cte
+SELECT *
+FROM (VALUES ('1'), ('1'), ('2'), ('2'), ('3'), ('4'), ('5'), ('6'), ('7'), ('8')) AS foo;
+CREATE TABLE test_cte_distributed
+(
+    user_id varchar
+);
+SELECT *
+FROM create_distributed_table('test_cte_distributed', 'user_id');
+INSERT INTO test_cte_distributed
+SELECT *
+FROM (VALUES ('1'), ('3'), ('3'), ('5'), ('8')) AS foo;
+
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE EXISTS(SELECT *
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+-- same query, but the CTE is written as subquery
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE EXISTS
+       (SELECT *
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+-- similar query as the above, but this time
+-- use NOT EXITS, which is pretty common struct
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed ON distinct_undistribured.user_id = exsist_in_distributed.user_id;
+
+-- same NOT EXISTS struct, but with CTE
+-- so should work
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     not_exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE NOT EXISTS(SELECT NULL
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN not_exsist_in_distributed
+  ON distinct_undistribured.user_id = not_exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+-- similar query, but this time the second
+-- part of the query is not inside a CTE
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+)
+SELECT count(*)
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT *,
+          random()
+   FROM test_cte_distributed d1
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured d2
+        WHERE d1.user_id = d2.user_id )) AS bar USING (user_id);
+
+
+-- should work fine with cte inlinig disabled
+SET citus.enable_cte_inlining TO false;
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE EXISTS(SELECT *
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE EXISTS
+       (SELECT *
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed
+  ON distinct_undistribured.user_id = exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+WITH distinct_undistribured AS
+  (SELECT DISTINCT user_id
+   FROM test_cte)
+SELECT *
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT DISTINCT user_id
+   FROM test_cte_distributed
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured
+        WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)) exsist_in_distributed ON distinct_undistribured.user_id = exsist_in_distributed.user_id;
+
+-- NOT EXISTS struct, with cte inlining disabled
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+),
+     not_exsist_in_distributed AS (
+         SELECT DISTINCT user_id
+         FROM test_cte_distributed
+         WHERE NOT EXISTS(SELECT NULL
+                      FROM distinct_undistribured
+                      WHERE distinct_undistribured.user_id = test_cte_distributed.user_id)
+     )
+SELECT
+  *
+FROM
+  distinct_undistribured LEFT JOIN not_exsist_in_distributed
+  ON distinct_undistribured.user_id = not_exsist_in_distributed.user_id
+ORDER BY 2 DESC, 1 DESC;
+
+-- similar query, but this time the second
+-- part of the query is not inside a CTE
+WITH distinct_undistribured AS (
+    SELECT DISTINCT user_id
+    FROM test_cte
+)
+SELECT count(*)
+FROM distinct_undistribured
+LEFT JOIN
+  (SELECT *,
+          random()
+   FROM test_cte_distributed d1
+   WHERE NOT EXISTS
+       (SELECT NULL
+        FROM distinct_undistribured d2
+        WHERE d1.user_id = d2.user_id )) AS bar USING (user_id);
+
+RESET citus.enable_cte_inlining;
+
+
 DROP VIEW basic_view;
 DROP VIEW cte_view;
 DROP SCHEMA with_basics CASCADE;