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Abstract Large-scale quantum computers will inevitably need quantum error correction to protect information against decoherence. Traditional error correction typically requires many qubits, along with high-efficiency error syndrome measurement and real-time feedback. Autonomous quantum error correction instead uses steady-state bath engineering to perform the correction in a hardware-efficient manner. In this work, we develop a new autonomous quantum error correction scheme that actively corrects single-photon loss and passively suppresses low-frequency dephasing, and we demonstrate an important experimental step towards its full implementation with transmons. Compared to uncorrected encoding, improvements are experimentally witnessed for the logical zero, one, and superposition states. Our results show the potential of implementing hardware-efficient autonomous quantum error correction to enhance the reliability of a transmon-based quantum information processor.