diff --git a/compiler/fir/analysis-tests/testData/resolve/diagnostics/propertyTypeMismatchOnOverride.kt b/compiler/fir/analysis-tests/testData/resolve/diagnostics/propertyTypeMismatchOnOverride.kt
index 5c5c24fb52e..848b59e325a 100644
--- a/compiler/fir/analysis-tests/testData/resolve/diagnostics/propertyTypeMismatchOnOverride.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/diagnostics/propertyTypeMismatchOnOverride.kt
@@ -3,7 +3,7 @@ open class A {
 }
 
 open class B : A {
-    override var test: Double = 20.0
+    override var test: <!VAR_TYPE_MISMATCH_ON_OVERRIDE!>Double<!> = 20.0
 }
 
 class C() : A() {
@@ -15,7 +15,7 @@ open class D() : B() {
 }
 
 class E<T : Double>(val value: T) : B() {
-    override var test: T = value
+    override var test: <!VAR_TYPE_MISMATCH_ON_OVERRIDE!>T<!> = value
 }
 
 open class F<T : Number>(val value: T) {
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirOverrideChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirOverrideChecker.kt
index c059eb565ec..094a6426000 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirOverrideChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirOverrideChecker.kt
@@ -61,13 +61,13 @@ object FirOverrideChecker : FirRegularClassChecker() {
 
     private fun ConeKotlinType.substituteAllTypeParameters(
         overrideDeclaration: FirCallableMemberDeclaration<*>,
-        baseDeclarationSymbol: FirCallableSymbol<*>,
+        baseDeclaration: FirCallableDeclaration<*>,
     ): ConeKotlinType {
         if (overrideDeclaration.typeParameters.isEmpty()) {
             return this
         }
 
-        val parametersOwner = baseDeclarationSymbol.fir.safeAs<FirTypeParametersOwner>()
+        val parametersOwner = baseDeclaration.safeAs<FirTypeParametersOwner>()
             ?: return this
 
         val map = mutableMapOf<FirTypeParameterSymbol, ConeKotlinType>()
@@ -130,27 +130,35 @@ object FirOverrideChecker : FirRegularClassChecker() {
         }
     }
 
+    // See [OverrideResolver#isReturnTypeOkForOverride]
     private fun FirCallableMemberDeclaration<*>.checkReturnType(
         overriddenSymbols: List<FirCallableSymbol<*>>,
         typeCheckerContext: AbstractTypeCheckerContext,
         context: CheckerContext,
     ): FirMemberDeclaration? {
-        val returnType = returnTypeRef.safeAs<FirResolvedTypeRef>()?.type
+        val overridingReturnType = returnTypeRef.safeAs<FirResolvedTypeRef>()?.type
             ?: return null
 
         // Don't report *_ON_OVERRIDE diagnostics according to an error return type. That should be reported separately.
-        if (returnType is ConeKotlinErrorType) {
+        if (overridingReturnType is ConeKotlinErrorType) {
             return null
         }
 
         val bounds = overriddenSymbols.map { context.returnTypeCalculator.tryCalculateReturnType(it.fir).coneType.upperBoundIfFlexible() }
 
         for (it in bounds.indices) {
-            val restriction = bounds[it]
-                .substituteAllTypeParameters(this, overriddenSymbols[it])
+            val overriddenDeclaration = overriddenSymbols[it].fir
 
-            if (!AbstractTypeChecker.isSubtypeOf(typeCheckerContext, returnType, restriction)) {
-                return overriddenSymbols[it].fir.safeAs()
+            val overriddenReturnType = bounds[it].substituteAllTypeParameters(this, overriddenDeclaration)
+
+            val isReturnTypeOkForOverride =
+                if (overriddenDeclaration is FirProperty && overriddenDeclaration.isVar)
+                    AbstractTypeChecker.equalTypes(typeCheckerContext, overridingReturnType, overriddenReturnType)
+                else
+                    AbstractTypeChecker.isSubtypeOf(typeCheckerContext, overridingReturnType, overriddenReturnType)
+
+            if (!isReturnTypeOkForOverride) {
+                return overriddenDeclaration.safeAs()
             }
         }
 
diff --git a/compiler/testData/diagnostics/tests/subtyping/kt3159.fir.kt b/compiler/testData/diagnostics/tests/subtyping/kt3159.fir.kt
deleted file mode 100644
index 2d736b76b07..00000000000
--- a/compiler/testData/diagnostics/tests/subtyping/kt3159.fir.kt
+++ /dev/null
@@ -1,9 +0,0 @@
-interface Super {
-    var v: CharSequence
-    val v2: CharSequence
-}
-
-class Sub: Super {
-    override var v: String = "fail"
-    override val v2: String = "ok"
-}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/subtyping/kt3159.kt b/compiler/testData/diagnostics/tests/subtyping/kt3159.kt
index 11c335546d3..c4f6d9bca85 100644
--- a/compiler/testData/diagnostics/tests/subtyping/kt3159.kt
+++ b/compiler/testData/diagnostics/tests/subtyping/kt3159.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface Super {
     var v: CharSequence
     val v2: CharSequence
diff --git a/compiler/tests-spec/testData/diagnostics/linked/declarations/classifier-declaration/class-declaration/abstract-classes/p-2/neg/1.3.fir.kt b/compiler/tests-spec/testData/diagnostics/linked/declarations/classifier-declaration/class-declaration/abstract-classes/p-2/neg/1.3.fir.kt
index 57af86eaa66..3f25c0fadc5 100644
--- a/compiler/tests-spec/testData/diagnostics/linked/declarations/classifier-declaration/class-declaration/abstract-classes/p-2/neg/1.3.fir.kt
+++ b/compiler/tests-spec/testData/diagnostics/linked/declarations/classifier-declaration/class-declaration/abstract-classes/p-2/neg/1.3.fir.kt
@@ -18,7 +18,7 @@ class Case1 : Base() {
 
     override val a: <!PROPERTY_TYPE_MISMATCH_ON_OVERRIDE!>Any?<!>
     get() = TODO()
-    override var b: String
+    override var b: <!VAR_TYPE_MISMATCH_ON_OVERRIDE!>String<!>
     get() = TODO()
     set(value)
     {}
@@ -29,7 +29,7 @@ class Case1 : Base() {
 * TESTCASE NUMBER: 2
 */
 
-class Case2(override val a: String, override var b: String) : Base() {
+class Case2(override val a: String, override var b: <!VAR_TYPE_MISMATCH_ON_OVERRIDE!>String<!>) : Base() {
     override fun foo(): <!RETURN_TYPE_MISMATCH_ON_OVERRIDE!>CharSequence?<!> {
         return ""
     }