diff --git a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.kt b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.kt
new file mode 100644
index 00000000000..be4ad0ff937
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.kt
@@ -0,0 +1,34 @@
+// !USE_EXPERIMENTAL: kotlin.RequiresOptIn
+// !DIAGNOSTICS: -UNUSED_PARAMETER -UNUSED_VARIABLE -UNUSED_EXPRESSION
+
+import kotlin.experimental.ExperimentalTypeInference
+
+abstract class AnimationVector
+class AnimationVector1D : AnimationVector()
+interface PropKey<T, V : AnimationVector>
+class IntPropKey : PropKey<Int, AnimationVector1D>
+abstract class AnimationBuilder<T>
+abstract class DurationBasedAnimationBuilder<T> : AnimationBuilder<T>()
+class TweenBuilder<T> : DurationBasedAnimationBuilder<T>()
+class TransitionSpec<S> {
+    fun <T> tween(init: TweenBuilder<T>.() -> Unit): DurationBasedAnimationBuilder<T> = TweenBuilder<T>().apply(init)
+    infix fun <T, V : AnimationVector> PropKey<T, V>.using(builder: AnimationBuilder<T>) {}
+}
+class TransitionDefinition<T> {
+    fun transition(fromState: T? = null, toState: T? = null, init: TransitionSpec<T>.() -> Unit) {}
+}
+@OptIn(ExperimentalTypeInference::class)
+fun <T> transitionDefinition(@BuilderInference init: TransitionDefinition<T>.() -> Unit) = TransitionDefinition<T>().apply(init)
+
+fun main() {
+    val intProp = IntPropKey()
+    val defn = transitionDefinition {
+        transition(1, 2) {
+            intProp using tween {
+
+            }
+        }
+    }
+
+    <!DEBUG_INFO_EXPRESSION_TYPE("TransitionDefinition<kotlin.Int>")!>defn<!>
+}
diff --git a/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.txt b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.txt
new file mode 100644
index 00000000000..d36d1fbd985
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.txt
@@ -0,0 +1,69 @@
+package
+
+public fun main(): kotlin.Unit
+@kotlin.OptIn(markerClass = {kotlin.experimental.ExperimentalTypeInference::class}) public fun </*0*/ T> transitionDefinition(/*0*/ @kotlin.BuilderInference init: TransitionDefinition<T>.() -> kotlin.Unit): TransitionDefinition<T>
+
+public abstract class AnimationBuilder</*0*/ T> {
+    public constructor AnimationBuilder</*0*/ T>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public abstract class AnimationVector {
+    public constructor AnimationVector()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class AnimationVector1D : AnimationVector {
+    public constructor AnimationVector1D()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public abstract class DurationBasedAnimationBuilder</*0*/ T> : AnimationBuilder<T> {
+    public constructor DurationBasedAnimationBuilder</*0*/ T>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class IntPropKey : PropKey<kotlin.Int, AnimationVector1D> {
+    public constructor IntPropKey()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface PropKey</*0*/ T, /*1*/ V : AnimationVector> {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class TransitionDefinition</*0*/ T> {
+    public constructor TransitionDefinition</*0*/ T>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    public final fun transition(/*0*/ fromState: T? = ..., /*1*/ toState: T? = ..., /*2*/ init: TransitionSpec<T>.() -> kotlin.Unit): kotlin.Unit
+}
+
+public final class TransitionSpec</*0*/ S> {
+    public constructor TransitionSpec</*0*/ S>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    public final fun </*0*/ T> tween(/*0*/ init: TweenBuilder<T>.() -> kotlin.Unit): DurationBasedAnimationBuilder<T>
+    public final infix fun </*0*/ T, /*1*/ V : AnimationVector> PropKey<T, V>.using(/*0*/ builder: AnimationBuilder<T>): kotlin.Unit
+}
+
+public final class TweenBuilder</*0*/ T> : DurationBasedAnimationBuilder<T> {
+    public constructor TweenBuilder</*0*/ T>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
index ca2455fc8d8..6e26eb2267d 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestWithStdLibGenerated.java
@@ -2047,6 +2047,11 @@ public class DiagnosticsTestWithStdLibGenerated extends AbstractDiagnosticsTestW
                 runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38420.kt");
             }
 
+            @TestMetadata("kt38667.kt")
+            public void testKt38667() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.kt");
+            }
+
             @TestMetadata("nestedLambdaInferenceWithListMap.kt")
             public void testNestedLambdaInferenceWithListMap() throws Exception {
                 runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/nestedLambdaInferenceWithListMap.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsTestWithStdLibUsingJavacGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsTestWithStdLibUsingJavacGenerated.java
index e8000fe3c24..2cd3a0c4643 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsTestWithStdLibUsingJavacGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsTestWithStdLibUsingJavacGenerated.java
@@ -2047,6 +2047,11 @@ public class DiagnosticsTestWithStdLibUsingJavacGenerated extends AbstractDiagno
                 runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38420.kt");
             }
 
+            @TestMetadata("kt38667.kt")
+            public void testKt38667() throws Exception {
+                runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/kt38667.kt");
+            }
+
             @TestMetadata("nestedLambdaInferenceWithListMap.kt")
             public void testNestedLambdaInferenceWithListMap() throws Exception {
                 runTest("compiler/testData/diagnostics/testsWithStdLib/coroutines/inference/nestedLambdaInferenceWithListMap.kt");