diff --git a/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.kt b/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.kt
new file mode 100644
index 00000000000..f9611264f24
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.kt
@@ -0,0 +1,8 @@
+// See KT-9529 Smart cast causes code to be incompilable
+
+fun <T : Any> foo(o: T): Collection<T> {
+    if (o is String) {
+        return listOf(o)
+    }
+    return listOf(o)
+}
diff --git a/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.txt b/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.txt
new file mode 100644
index 00000000000..f136b15e1ab
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.txt
@@ -0,0 +1,3 @@
+package
+
+public fun </*0*/ T : kotlin.Any> foo(/*0*/ o: T): kotlin.collections.Collection<T>
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
index 10868f7c5c1..bfb3ae4b025 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
@@ -1168,6 +1168,12 @@ public class DiagnosticsTestWithStdLibGenerated extends AbstractDiagnosticsTestW
             doTest(fileName);
         }
 
+        @TestMetadata("listOfGeneric.kt")
+        public void testListOfGeneric() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithStdLib/smartcasts/listOfGeneric.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("withChangesToNull.kt")
         public void testWithChangesToNull() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithStdLib/smartcasts/withChangesToNull.kt");