diff --git a/src/gretl/data_store.cpp b/src/gretl/data_store.cpp
index 7c03da4..47d2ed7 100644
--- a/src/gretl/data_store.cpp
+++ b/src/gretl/data_store.cpp
@@ -106,6 +106,7 @@ void DataStore::resize(Int newSize)
   upstreamSteps_.resize(newSize);
   evals_.resize(newSize);
   vjps_.resize(newSize);
+  requires_vjp_.resize(newSize);
   active_.resize(newSize);
   usageCount_.resize(newSize);
   lastStepUsed_.resize(newSize);
@@ -133,11 +134,14 @@ void DataStore::reverse_state()
     checkpointStrategy_->erase_step(currentStep_ - 1);
   }
   --currentStep_;
-  if (!upstreamSteps_[currentStep_].empty()) {
+  if (requires_vjp_[currentStep_] && !upstreamSteps_[currentStep_].empty()) {
     fetch_state_data(currentStep_ - 1);
     vjp(*states_[currentStep_]);
     clear_usage(currentStep_);
     checkpointStrategy_->erase_step(currentStep_ - 1);
+  } else if (!upstreamSteps_[currentStep_].empty()) {
+    clear_usage(currentStep_);
+    checkpointStrategy_->erase_step(currentStep_ - 1);
   }
 }
 
@@ -183,6 +187,7 @@ void DataStore::add_state(std::unique_ptr<StateBase> newState, const std::vector
   active_.push_back(true);
   lastStepUsed_.push_back(step);
   passthroughs_.push_back({});
+  requires_vjp_.push_back(gradients_enabled());
 
   bool persistent = upstreams.size() == 0;
   if (persistent) {
diff --git a/src/gretl/data_store.hpp b/src/gretl/data_store.hpp
index b119cbb..868839d 100644
--- a/src/gretl/data_store.hpp
+++ b/src/gretl/data_store.hpp
@@ -76,6 +76,9 @@ class DataStore {
   {
     State<T, D> state(this, lifetimeToken_, states_.size(), std::make_shared<std::any>(t), initial_zero_dual);
     add_state(std::make_unique<State<T, D>>(state), {});
+    if (!gradients_enabled()) {
+      state.set_vjp([](UpstreamStates&, const DownstreamState&) {});
+    }
     return state;
   }
 
@@ -114,6 +117,9 @@ class DataStore {
     auto t = std::make_shared<std::any>(T{});
     State<T, D> state(this, lifetimeToken_, states_.size(), t, initial_zero_dual);
     add_state(std::make_unique<State<T, D>>(state), upstreams);
+    if (!gradients_enabled()) {
+      state.set_vjp([](UpstreamStates&, const DownstreamState&) {});
+    }
     return state;
   }
 
@@ -244,6 +250,7 @@ class DataStore {
   std::vector<std::vector<Int>> upstreamSteps_;     ///< upstream step dependencies for steps
   std::vector<EvalT> evals_;                        ///< forward evaluation functions for steps
   std::vector<VjpT> vjps_;                          ///< vector-jacobian product functions for steps
+  std::vector<bool> requires_vjp_;                  ///< flag to indicate if state requires VJP evaluation
   std::vector<bool> active_;                        ///< active status for steps
   std::vector<Int> usageCount_;  ///< count how many times a step is used in some downstream still is the scope of the
                                  ///< checkpoint algorithm
@@ -262,6 +269,17 @@ class DataStore {
   /// @brief specifies if graph is in construction or back-prop mode.  This is used for internal asserts.
   bool stillConstructingGraph_ = true;
 
+  /// @brief flag to control whether states compute gradients (VJP)
+  bool gradients_enabled_ = true;
+
+  /// @brief Query if gradients are enabled for newly created states
+  bool gradients_enabled() const { return gradients_enabled_; }
+
+  /// @brief Set whether gradients (VJPs) should be recorded for newly created states
+  void set_gradients_enabled(bool enable) { gradients_enabled_ = enable; }
+
+  /// @brief flag to prevent accessing freed memory during destruction
+  bool isDestroying_ = false;
   std::shared_ptr<void> lifetimeToken_ = std::make_shared<int>(0);
 
   friend struct StateBase;
diff --git a/src/gretl/state.hpp b/src/gretl/state.hpp
index a74aa61..401b11b 100644
--- a/src/gretl/state.hpp
+++ b/src/gretl/state.hpp
@@ -49,7 +49,11 @@ struct State : public StateBase {
   /// plus-equals into the upstream duals.
   void set_vjp(const std::function<void(UpstreamStates& upstreams, const DownstreamState& downstream)>& v)
   {
-    data_store().vjps_[step()] = v;
+    if (!data_store().gradients_enabled()) {
+      data_store().vjps_[step()] = [](UpstreamStates&, const DownstreamState&) {};
+    } else {
+      data_store().vjps_[step()] = v;
+    }
   }
 
   /// @brief Helper function to clone an existing state (keeping its type).
diff --git a/src/tests/CMakeLists.txt b/src/tests/CMakeLists.txt
index e6ae7da..a9be41e 100644
--- a/src/tests/CMakeLists.txt
+++ b/src/tests/CMakeLists.txt
@@ -10,7 +10,8 @@ set(gretl_test_sources
     test_gretl_dynamics.cpp
     test_gretl_graph.cpp
     test_gretl_robustness.cpp
-    test_persistent_scope.cpp)
+    test_persistent_scope.cpp
+    test_tracking_disable.cpp)
 
 foreach(test ${gretl_test_sources})
     get_filename_component( test_name ${test} NAME_WE )
diff --git a/src/tests/test_tracking_disable.cpp b/src/tests/test_tracking_disable.cpp
new file mode 100644
index 0000000..fd8f967
--- /dev/null
+++ b/src/tests/test_tracking_disable.cpp
@@ -0,0 +1,71 @@
+#include <gtest/gtest.h>
+#include "gretl/data_store.hpp"
+#include "gretl/state.hpp"
+#include "gretl/create_state.hpp"
+#include "gretl/wang_checkpoint_strategy.hpp"
+#include "gretl/double_state.hpp"
+
+using namespace gretl;
+
+namespace {
+
+State<double> picard_step(const State<double>& x, const State<double>& p, bool vjp_implemented = true)
+{
+  if (vjp_implemented) {
+    return create_state<double, double>([](const double&) { return 0.0; },
+                                        [](const double& x_val, const double& p_val) {
+                                          // simple iteration: x = x * 0.5 + p
+                                          return x_val * 0.5 + p_val;
+                                        },
+                                        [](const double& /*x_val*/, const double& /*p_val*/, const double& /*f_val*/,
+                                           double& dx, double& dp, const double& df) {
+                                          dx += 0.5 * df;
+                                          dp += 1.0 * df;
+                                        },
+                                        x, p);
+  } else {
+    return create_state<double, double>(
+        [](const double&) { return 0.0; },
+        [](const double& x_val, const double& p_val) {
+          // simple iteration: x = x * 0.5 + p
+          return x_val * 0.5 + p_val;
+        },
+        [](const double&, const double&, const double&, double&, double&, const double&) {
+          gretl_assert_msg(false, "VJP should not be called for stop-gradient nodes");
+        },
+        x, p);
+  }
+}
+
+}  // namespace
+
+TEST(GraphTracking, PicardIterationNoOpVjp)
+{
+  DataStore ds(std::make_unique<WangCheckpointStrategy>(3));
+
+  // Parameter p
+  auto p = ds.create_state<double, double>(0.1);
+
+  // Initial guess x0
+  auto x = ds.create_state<double, double>(1.0);
+
+  // Iterate 10 times without tracking gradients (stop-gradient nodes)
+  ds.set_gradients_enabled(false);
+  for (int i = 0; i < 10; ++i) {
+    x = picard_step(x, p, false);
+  }
+
+  // Re-enable gradients for the final step
+  ds.set_gradients_enabled(true);
+
+  // One final iteration to connect the parameter sensitivity
+  auto x_final = picard_step(x, p, true);
+  auto obj = set_as_objective(x_final);
+  ds.finalize_graph();
+  ds.back_prop();
+
+  // Since x_final = 0.5 * x_10 + p,
+  // dx_final / dp = 1.0 (from the direct dependency of x_final on p)
+  // The dependency through x_10 is killed because x_10 has no-op VJP.
+  EXPECT_EQ(p.get_dual(), 1.0);
+}