Abstract: In this paper, a BIST scheme based on selecting state transition of folding counters is presented. On the basis of folding counters, LFSR is used to encode the seeds of the folding counters, where folding distances are stored to control deterministic test pattern generation, so that the generated test set is completely equal to the original test set. This scheme solves compression of the deterministic test set as well as overcomes overlapping and redundancy of test patterns produced by the different seeds. Experimental results prove that it not only achieves high test data compression ratio, but efficiently reduces test application time, and the average test application time is only four percent of the same type scheme.