diff --git a/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.kt b/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.kt
new file mode 100644
index 00000000000..d312988285f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.kt
@@ -0,0 +1,7 @@
+typealias Array2D<T> = Array<Array<T>>
+
+fun foo(a: Array2D<out Number>) = a
+
+fun bar(a: Array2D<Int>) {
+    foo(<!TYPE_MISMATCH!>a<!>)
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.txt b/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.txt
new file mode 100644
index 00000000000..cce939e20cc
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.txt
@@ -0,0 +1,5 @@
+package
+
+public typealias Array2D</*0*/ T>  = kotlin.Array<kotlin.Array<T>>
+public fun bar(/*0*/ a: Array2D<kotlin.Int> [= kotlin.Array<kotlin.Array<kotlin.Int>>]): kotlin.Unit
+public fun foo(/*0*/ a: Array2D<out kotlin.Number> [= kotlin.Array<kotlin.Array<out kotlin.Number>>]): Array2D<out kotlin.Number> [= kotlin.Array<kotlin.Array<out kotlin.Number>>]
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 7bdaee9fa81..9158f70b57b 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -19563,6 +19563,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("noApproximationInTypeAliasArgumentSubstitution.kt")
+            public void testNoApproximationInTypeAliasArgumentSubstitution() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/noApproximationInTypeAliasArgumentSubstitution.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("noRHS.kt")
             public void testNoRHS() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/noRHS.kt");