diff --git a/library/init/core.lean b/library/init/core.lean
index 85ef0cc727..99e086a255 100644
--- a/library/init/core.lean
+++ b/library/init/core.lean
@@ -80,6 +80,23 @@ reserve infixl `; `:1
 
 universes u v w
 
+/-
+The kernel definitional equality test (t =?= s) has special support for id_delta applications.
+It implements the following rules
+
+   1)   (id_delta t) =?= t
+   2)   t =?= (id_delta t)
+   3)   (id_delta t) =?= s  IF (unfold_of t) =?= s
+   4)   t =?= id_delta s    IF t =?= (unfold_of s)
+
+This is mechanism for controlling the delta reduction (aka unfolding) used in the kernel.
+
+We use id_delta applications to address performance problems when type checking
+lemmas generated by the equation compiler.
+-/
+@[inline] def id_delta {α : Sort u} (a : α) : α :=
+a
+
 /-- Gadget for optional parameter support. -/
 @[reducible] def opt_param (α : Sort u) (default : α) : Sort u :=
 α
diff --git a/src/kernel/type_checker.cpp b/src/kernel/type_checker.cpp
index 4283ea8f1a..f6e517b13b 100644
--- a/src/kernel/type_checker.cpp
+++ b/src/kernel/type_checker.cpp
@@ -578,6 +578,8 @@ void type_checker::cache_failure(expr const & t, expr const & s) {
         m_failure_cache.insert(mk_pair(s, t));
 }
 
+static name * g_id_delta = nullptr;
+
 /** \brief Perform one lazy delta-reduction step.
      Return
      - l_true if t_n and s_n are definitionally equal.
@@ -590,6 +592,20 @@ auto type_checker::lazy_delta_reduction_step(expr & t_n, expr & s_n) -> reductio
     auto d_s = is_delta(s_n);
     if (!d_t && !d_s) {
         return reduction_status::DefUnknown;
+    } else if (d_t && d_t->get_name() == *g_id_delta) {
+        t_n = whnf_core(*unfold_definition(t_n));
+        if (t_n == s_n)
+            return reduction_status::DefEqual; /* id_delta t =?= t */
+        if (auto u = unfold_definition(t_n))   /* id_delta t =?= s  ===>  unfold(t) =?= s */
+            t_n = whnf_core(*u);
+        return reduction_status::Continue;
+    } else if (d_s && d_s->get_name() == *g_id_delta) {
+        s_n = whnf_core(*unfold_definition(s_n));
+        if (t_n == s_n)
+            return reduction_status::DefEqual; /* t =?= id_delta t */
+        if (auto u = unfold_definition(s_n))   /* t =?= id_delta s ===>  t =?= unfold(s) */
+            s_n = whnf_core(*u);
+        return reduction_status::Continue;
     } else if (d_t && !d_s) {
         t_n = whnf_core(*unfold_definition(t_n));
     } else if (!d_t && d_s) {
@@ -790,10 +806,12 @@ certified_declaration certify_unchecked::certify_or_check(environment const & en
 }
 
 void initialize_type_checker() {
+    g_id_delta  = new name("id_delta");
     g_dont_care = new expr(Const("dontcare"));
 }
 
 void finalize_type_checker() {
     delete g_dont_care;
+    delete g_id_delta;
 }
 }
diff --git a/src/library/app_builder.cpp b/src/library/app_builder.cpp
index 5af42fb570..7983ec9eda 100644
--- a/src/library/app_builder.cpp
+++ b/src/library/app_builder.cpp
@@ -1136,6 +1136,12 @@ expr mk_id_rhs(type_context & ctx, expr const & h) {
     return mk_app(mk_constant(get_id_rhs_name(), {lvl}), type, h);
 }
 
+expr mk_id_delta(type_context & ctx, expr const & h) {
+    expr type = ctx.infer(h);
+    level lvl = get_level(ctx, type);
+    return mk_app(mk_constant(get_id_delta_name(), {lvl}), type, h);
+}
+
 static bool is_eq_trans(expr const & h, expr & h1, expr & h2) {
     if (is_app_of(h, get_eq_trans_name(), 6)) {
         h1 = app_arg(app_fn(h));
diff --git a/src/library/app_builder.h b/src/library/app_builder.h
index edee66385e..92d9831dd5 100644
--- a/src/library/app_builder.h
+++ b/src/library/app_builder.h
@@ -186,6 +186,9 @@ expr mk_id_locked(type_context & ctx, expr const & type, expr const & h);
 /* (id_rhs h) */
 expr mk_id_rhs(type_context & ctx, expr const & h);
 
+/* (id_delta h) */
+expr mk_id_delta(type_context & ctx, expr const & h);
+
 expr mk_iff_mp(type_context & ctx, expr const & h1, expr const & h2);
 expr mk_iff_mpr(type_context & ctx, expr const & h1, expr const & h2);
 expr mk_eq_mp(type_context & ctx, expr const & h1, expr const & h2);
diff --git a/src/library/constants.cpp b/src/library/constants.cpp
index 97dcb24124..1a8268b004 100644
--- a/src/library/constants.cpp
+++ b/src/library/constants.cpp
@@ -129,6 +129,7 @@ name const * g_heq_of_eq = nullptr;
 name const * g_hole_command = nullptr;
 name const * g_id_locked = nullptr;
 name const * g_id_rhs = nullptr;
+name const * g_id_delta = nullptr;
 name const * g_if_neg = nullptr;
 name const * g_if_pos = nullptr;
 name const * g_iff = nullptr;
@@ -510,6 +511,7 @@ void initialize_constants() {
     g_hole_command = new name{"hole_command"};
     g_id_locked = new name{"id_locked"};
     g_id_rhs = new name{"id_rhs"};
+    g_id_delta = new name{"id_delta"};
     g_if_neg = new name{"if_neg"};
     g_if_pos = new name{"if_pos"};
     g_iff = new name{"iff"};
@@ -892,6 +894,7 @@ void finalize_constants() {
     delete g_hole_command;
     delete g_id_locked;
     delete g_id_rhs;
+    delete g_id_delta;
     delete g_if_neg;
     delete g_if_pos;
     delete g_iff;
@@ -1273,6 +1276,7 @@ name const & get_heq_of_eq_name() { return *g_heq_of_eq; }
 name const & get_hole_command_name() { return *g_hole_command; }
 name const & get_id_locked_name() { return *g_id_locked; }
 name const & get_id_rhs_name() { return *g_id_rhs; }
+name const & get_id_delta_name() { return *g_id_delta; }
 name const & get_if_neg_name() { return *g_if_neg; }
 name const & get_if_pos_name() { return *g_if_pos; }
 name const & get_iff_name() { return *g_iff; }
diff --git a/src/library/constants.h b/src/library/constants.h
index 9a0331766a..77a117ec79 100644
--- a/src/library/constants.h
+++ b/src/library/constants.h
@@ -131,6 +131,7 @@ name const & get_heq_of_eq_name();
 name const & get_hole_command_name();
 name const & get_id_locked_name();
 name const & get_id_rhs_name();
+name const & get_id_delta_name();
 name const & get_if_neg_name();
 name const & get_if_pos_name();
 name const & get_iff_name();
diff --git a/src/library/constants.txt b/src/library/constants.txt
index 5f82540709..90e7505fad 100644
--- a/src/library/constants.txt
+++ b/src/library/constants.txt
@@ -124,6 +124,7 @@ heq_of_eq
 hole_command
 id_locked
 id_rhs
+id_delta
 if_neg
 if_pos
 iff
diff --git a/src/library/equations_compiler/util.cpp b/src/library/equations_compiler/util.cpp
index ef5a64c046..549b3d7c16 100644
--- a/src/library/equations_compiler/util.cpp
+++ b/src/library/equations_compiler/util.cpp
@@ -619,15 +619,107 @@ static expr prove_eqn_lemma_core(type_context & ctx, buffer<expr> const & Hs, ex
         return mk_eq_trans(ctx, H1, H2);
     }
 
-    expr lhs_body = lhs;
+    /* Check if lhs =?= rhs, and create a reflexivity proof if this is the case.
+
+       We have to be careful to avoid performace problems when checking this proof in the kernel.
+       We considered different options.
+
+       Option 1) (refl rhs) or (refl lhs)
+       It will perform poorly in one of the following examples:
+
+
+          | f x 0     := 1
+          | f x (y+1) := f complex_term y
+
+          | g 0     y    := 1
+          | g (x+1) y    := g x complex_term
+
+      If we use (refl rhs), we will generate the proofs
+
+         eq.refl (f complex_term y)
+         eq.refl (g x complex_term)
+
+      These proofs trigger the following definitionally equality tests:
+
+             f x     (y+1)  =?= f complex_term y
+             g (x+1) y      =?= g x complex_term
+
+      Since, we have f/g on both sides, the type checker will try
+      first to unify the arguments, and may timeout trying to solve
+
+               x  =?= complex_term
+               y  =?= complex_term
+
+      since it may take a long time to reduce `complex_term`.
+
+      We have a similar problem if we use (refl lhs)
+
+      Commit 7ebf16ca26da82b3d0e458dbcf32cda374ec785d tried to address this issue
+      by using Option 2).
+
+      Option 2) (refl (unfold_of lhs))
+      This option fixes the performance problem above, but it is still
+      inefficient for definitions that produce many equations.
+      For example, the following definition produces 121 equations.
+
+      ```
+        universes u
+
+        inductive node (α : Type u)
+        | leaf : node
+        | red_node : node → α → node → node
+        | black_node : node → α → node → node
+
+        namespace node
+        variable {α : Type u}
+
+        def balance : node α → α → node α → node α
+        | (red_node (red_node a x b) y c) k d := red_node (black_node a x b) y (black_node c k d)
+        | (red_node a x (red_node b y c)) k d := red_node (black_node a x b) y (black_node c k d)
+        | l k r                               := black_node l k r
+
+        end node
+      ```
+
+      In each equation we will have a big (unfold_of lhs) term. This increases the size of .olean
+      files, and introduces an overhead in the mk_aux_lemma procedure.
+
+      Option 3) (refl (id_delta lhs))
+      We are currently using this option.
+      This approach relies on the fact that the kernel type checker has special support for id_delta.
+      The kernel implements the following is_def_eq rules for id_delta.
+
+          1)   (id_delta t) =?= t
+          2)   t =?= (id_delta t)
+          3)   (id_delta t) =?= s  IF (unfold_of t) =?= s
+          4)   t =?= id_delta s    IF t =?= (unfold_of s)
+
+      We can view it as a "lazy" version of Option 2. The .olean file contains `id_delta t`
+      instead of the result of delta-reducing t. Similarly, no overhead is introduced to mk_aux_lemma
+      since the proof is quite small in this case.
+
+      Finally, note that this optimization is only use when root = true.
+      That is, it is not use if the equation compiler used if-then-else compilation trick for
+      pattern matching scalar values, and/or the pack/unpack auxiliary definitions introduced
+      for nested inductive datatype declarations.
+      The problem described in Option 1 does not happen in this case since we unfold the left-hand-side
+      while building the proof. However, the performance problem described in Option 2 may happen.
+    */
     if (root) {
+        /* Remark: type_context currently does not have support for id_delta.
+           So, we unfold lhs before invoking ctx.is_def_eq. */
+        expr lhs_body = lhs;
         if (auto b = unfold_term(ctx.env(), lhs))
             lhs_body = *b;
-    }
-
-    if (ctx.is_def_eq(lhs_body, rhs)) {
-        // tout() << "DONE\n";
-        return mk_eq_refl(ctx, lhs_body);
+        if (ctx.is_def_eq(lhs_body, rhs)) {
+            if (ctx.env().find(get_id_delta_name()))
+                return mk_eq_refl(ctx, mk_id_delta(ctx, lhs));
+            else
+                return mk_eq_refl(ctx, lhs);
+        }
+    } else {
+        if (ctx.is_def_eq(lhs, rhs))
+            return mk_eq_refl(ctx, lhs);
     }
 
     throw exception("equation compiler failed to prove equation lemma (workaround: "
diff --git a/tests/lean/eqn_proof.lean b/tests/lean/eqn_proof.lean
new file mode 100644
index 0000000000..4665ce83fe
--- /dev/null
+++ b/tests/lean/eqn_proof.lean
@@ -0,0 +1,18 @@
+universes u
+
+inductive node (α : Type u)
+| leaf : node
+| red_node : node → α → node → node
+| black_node : node → α → node → node
+
+namespace node
+variable {α : Type u}
+
+def balance : node α → α → node α → node α
+| (red_node (red_node a x b) y c) k d := red_node (black_node a x b) y (black_node c k d)
+| (red_node a x (red_node b y c)) k d := red_node (black_node a x b) y (black_node c k d)
+| l k r                               := black_node l k r
+
+#print balance._main.equations._eqn_1
+
+end node
diff --git a/tests/lean/eqn_proof.lean.expected.out b/tests/lean/eqn_proof.lean.expected.out
new file mode 100644
index 0000000000..0630c2a3d0
--- /dev/null
+++ b/tests/lean/eqn_proof.lean.expected.out
@@ -0,0 +1,3 @@
+@[_refl_lemma]
+theorem node.balance._main.equations._eqn_1 : ∀ {α : Type u} (k : α) (r : node α), balance._main (leaf α) k r = black_node (leaf α) k r :=
+λ {α : Type u} (k : α) (r : node α), eq.refl (id_delta (balance._main (leaf α) k r))
diff --git a/tests/lean/run/check_constants.lean b/tests/lean/run/check_constants.lean
index 9dcb0547af..fa8ce105fd 100644
--- a/tests/lean/run/check_constants.lean
+++ b/tests/lean/run/check_constants.lean
@@ -129,6 +129,7 @@ run_cmd script_check_id `heq_of_eq
 run_cmd script_check_id `hole_command
 run_cmd script_check_id `id_locked
 run_cmd script_check_id `id_rhs
+run_cmd script_check_id `id_delta
 run_cmd script_check_id `if_neg
 run_cmd script_check_id `if_pos
 run_cmd script_check_id `iff