diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirClassLiteralChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirClassLiteralChecker.kt
index ad29285e43f..7e0cf9fbc58 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirClassLiteralChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirClassLiteralChecker.kt
@@ -16,6 +16,7 @@ import org.jetbrains.kotlin.fir.declarations.FirTypeParameter
 import org.jetbrains.kotlin.fir.declarations.FirTypeParameterRefsOwner
 import org.jetbrains.kotlin.fir.expressions.*
 import org.jetbrains.kotlin.fir.references.toResolvedTypeParameterSymbol
+import org.jetbrains.kotlin.fir.resolve.fullyExpandedType
 import org.jetbrains.kotlin.fir.scopes.impl.toConeType
 import org.jetbrains.kotlin.fir.symbols.SymbolInternals
 import org.jetbrains.kotlin.fir.symbols.impl.FirTypeParameterSymbol
@@ -73,7 +74,7 @@ object FirClassLiteralChecker : FirGetClassCallChecker() {
 
         if (argument !is FirResolvedQualifier) return
         // TODO: differentiate RESERVED_SYNTAX_IN_CALLABLE_REFERENCE_LHS
-        if (argument.typeArguments.isNotEmpty() && !argument.typeRef.coneType.isAllowedInClassLiteral(context)) {
+        if (argument.typeArguments.isNotEmpty() && !argument.typeRef.coneType.fullyExpandedType(context.session).isAllowedInClassLiteral(context)) {
             val symbol = argument.symbol
             symbol?.lazyResolveToPhase(FirResolvePhase.TYPES)
             @OptIn(SymbolInternals::class)
@@ -81,7 +82,9 @@ object FirClassLiteralChecker : FirGetClassCallChecker() {
             // Among type parameter references, only count actual type parameter while discarding [FirOuterClassTypeParameterRef]
             val expectedTypeArgumentSize = typeParameters?.count { it is FirTypeParameter } ?: 0
             if (expectedTypeArgumentSize != argument.typeArguments.size) {
-                // Will be reported as WRONG_NUMBER_OF_TYPE_ARGUMENTS
+                if (symbol != null) {
+                    reporter.reportOn(argument.source, FirErrors.WRONG_NUMBER_OF_TYPE_ARGUMENTS, expectedTypeArgumentSize, symbol, context)
+                }
                 return
             }
             reporter.reportOn(source, FirErrors.CLASS_LITERAL_LHS_NOT_A_CLASS, context)
diff --git a/compiler/testData/diagnostics/tests/classLiteral/parameterizedTypeAlias.fir.kt b/compiler/testData/diagnostics/tests/classLiteral/parameterizedTypeAlias.fir.kt
index cfa4c0ba0d1..8de1880203a 100644
--- a/compiler/testData/diagnostics/tests/classLiteral/parameterizedTypeAlias.fir.kt
+++ b/compiler/testData/diagnostics/tests/classLiteral/parameterizedTypeAlias.fir.kt
@@ -26,7 +26,7 @@ fun test() {
 
     Some::class
     SomeAlias::class
-    <!CLASS_LITERAL_LHS_NOT_A_CLASS!>SomeAlias<String>::class<!>
+    SomeAlias<String>::class
 
     MyPair::class
     <!CLASS_LITERAL_LHS_NOT_A_CLASS!>MyPair<Int, Int>::class<!>
@@ -50,12 +50,12 @@ fun test() {
     <!CLASS_LITERAL_LHS_NOT_A_CLASS!>Array<*>::class<!>
 
     SimpleArrayAlias::class
-    <!CLASS_LITERAL_LHS_NOT_A_CLASS!>SimpleArrayAlias<Int>::class<!>
+    SimpleArrayAlias<Int>::class
     <!CLASS_LITERAL_LHS_NOT_A_CLASS!>SimpleArrayAlias<*>::class<!>
 
     SpecificArrayAlias::class
 
     UnusedArrayAlias::class
-    <!CLASS_LITERAL_LHS_NOT_A_CLASS!>UnusedArrayAlias<Int>::class<!>
-    <!CLASS_LITERAL_LHS_NOT_A_CLASS!>UnusedArrayAlias<*>::class<!>
+    UnusedArrayAlias<Int>::class
+    UnusedArrayAlias<*>::class
 }