diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 97e71074dfa..491f662972a 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -33406,6 +33406,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
                 runTest("compiler/testData/diagnostics/tests/suspendConversion/chainedFunSuspendConversionForSimpleExpression.kt");
             }
 
+            @Test
+            @TestMetadata("inGenericArgument.kt")
+            public void testInGenericArgument() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt");
+            }
+
             @Test
             @TestMetadata("overloadResolutionBySuspendModifier.kt")
             public void testOverloadResolutionBySuspendModifier() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index 0137f1e8ccb..00910487b52 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -33406,6 +33406,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
                 runTest("compiler/testData/diagnostics/tests/suspendConversion/chainedFunSuspendConversionForSimpleExpression.kt");
             }
 
+            @Test
+            @TestMetadata("inGenericArgument.kt")
+            public void testInGenericArgument() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt");
+            }
+
             @Test
             @TestMetadata("overloadResolutionBySuspendModifier.kt")
             public void testOverloadResolutionBySuspendModifier() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 973edb2679d..ae4dbd3293d 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -33406,6 +33406,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
                 runTest("compiler/testData/diagnostics/tests/suspendConversion/chainedFunSuspendConversionForSimpleExpression.kt");
             }
 
+            @Test
+            @TestMetadata("inGenericArgument.kt")
+            public void testInGenericArgument() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt");
+            }
+
             @Test
             @TestMetadata("overloadResolutionBySuspendModifier.kt")
             public void testOverloadResolutionBySuspendModifier() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index 7d107442ff5..aeeae06fbf6 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -33520,6 +33520,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/tests/suspendConversion/chainedFunSuspendConversionForSimpleExpression.kt");
             }
 
+            @Test
+            @TestMetadata("inGenericArgument.kt")
+            public void testInGenericArgument() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt");
+            }
+
             @Test
             @TestMetadata("overloadResolutionBySuspendModifier.kt")
             public void testOverloadResolutionBySuspendModifier() throws Exception {
diff --git a/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.fir.kt b/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.fir.kt
new file mode 100644
index 00000000000..6efcc16fcc9
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.fir.kt
@@ -0,0 +1,17 @@
+// ISSUE: KT-61933
+
+data class Bar(
+    val foo: Foo<suspend () -> Unit>
+)
+
+data class Foo<out TCallback : Any>(
+    val state: TCallback?,
+)
+
+fun usage(b: Boolean) {
+    Bar(
+        foo = <!ARGUMENT_TYPE_MISMATCH!>Foo(
+            state = if (b) { -> } else null,
+        )<!>
+    )
+}
diff --git a/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt b/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt
new file mode 100644
index 00000000000..01f642c345a
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt
@@ -0,0 +1,17 @@
+// ISSUE: KT-61933
+
+data class Bar(
+    val foo: Foo<suspend () -> Unit>
+)
+
+data class Foo<out TCallback : Any>(
+    val state: TCallback?,
+)
+
+fun usage(b: Boolean) {
+    Bar(
+        foo = Foo(
+            state = if (b) { -> } else null,
+        )
+    )
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index c8b191eae91..89202ee5bf8 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -35302,6 +35302,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/suspendConversion/chainedFunSuspendConversionForSimpleExpression.kt");
             }
 
+            @Test
+            @TestMetadata("inGenericArgument.kt")
+            public void testInGenericArgument() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/suspendConversion/inGenericArgument.kt");
+            }
+
             @Test
             @TestMetadata("overloadResolutionBySuspendModifier.kt")
             public void testOverloadResolutionBySuspendModifier() throws Exception {