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