diff --git a/compiler/resolution/src/org/jetbrains/kotlin/types/TypeApproximator.kt b/compiler/resolution/src/org/jetbrains/kotlin/types/TypeApproximator.kt
index 9f82cb0a48a..17412b2ded0 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/types/TypeApproximator.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/types/TypeApproximator.kt
@@ -470,6 +470,9 @@ internal fun UnwrappedType.typeDepth() =
 
 internal fun SimpleType.typeDepth(): Int {
     if (this is TypeUtils.SpecialType) return 0
+    if (this is NewCapturedType) {
+        return constructor.projection.type.unwrap().typeDepth()
+    }
 
     val maxInArguments = arguments.asSequence().map {
         if (it.isStarProjection) 1 else it.type.unwrap().typeDepth()
diff --git a/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.kt b/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.kt
new file mode 100644
index 00000000000..7088456f9f2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.kt
@@ -0,0 +1,36 @@
+// !LANGUAGE: +NewInference
+// !DIAGNOSTICS: -UNUSED_VARIABLE -UNUSED_PARAMETER
+
+class Inv<T>(val x: T)
+
+fun case_1(a: Inv<out Inv<Inv<Inv<Inv<Inv<Int?>?>?>?>?>?>?) {
+    if (a != null) {
+        val b: Inv<out Inv<out Inv<out Inv<out Inv<Int?>?>?>?>?>? = a.x
+    }
+}
+
+fun case_2(a: Inv<out Inv<Inv<Inv<Inv<Inv<Int?>?>?>?>?>?>?) {
+    if (a != null) {
+        val b: Inv<out Inv<out Inv<out Inv<out Inv<Int?>?>?>?>?>? = a.x
+        if (b != null) {
+            val c = b.x
+            if (c != null) {
+                val d = c.x
+                if (d != null) {
+                    val e = d.x
+                    if (e != null) {
+                        val f = e.x
+                        if (f != null) {
+                            val g = <!DEBUG_INFO_SMARTCAST!>f<!>.x
+                            if (g != null) {
+                                takeInt(<!DEBUG_INFO_SMARTCAST!>g<!>)
+                            }
+                        }
+                    }
+                }
+            }
+        }
+    }
+}
+
+fun takeInt(i: Int) {}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.txt b/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.txt
new file mode 100644
index 00000000000..662437d13bb
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.txt
@@ -0,0 +1,13 @@
+package
+
+public fun case_1(/*0*/ a: Inv<out Inv<Inv<Inv<Inv<Inv<kotlin.Int?>?>?>?>?>?>?): kotlin.Unit
+public fun case_2(/*0*/ a: Inv<out Inv<Inv<Inv<Inv<Inv<kotlin.Int?>?>?>?>?>?>?): kotlin.Unit
+public fun takeInt(/*0*/ i: kotlin.Int): kotlin.Unit
+
+public final class Inv</*0*/ T> {
+    public constructor Inv</*0*/ T>(/*0*/ x: T)
+    public final val x: 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/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 366c506443a..6ee71c5e2f7 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -7943,6 +7943,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/generics/argumentsForT.kt");
             }
 
+            @TestMetadata("capturingOfDeepNestedType.kt")
+            public void testCapturingOfDeepNestedType() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.kt");
+            }
+
             @TestMetadata("commonSupertypeContravariant.kt")
             public void testCommonSupertypeContravariant() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/commonSupertypeContravariant.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 1ca10062d00..0a95764675d 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -7943,6 +7943,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/generics/argumentsForT.kt");
             }
 
+            @TestMetadata("capturingOfDeepNestedType.kt")
+            public void testCapturingOfDeepNestedType() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/capturingOfDeepNestedType.kt");
+            }
+
             @TestMetadata("commonSupertypeContravariant.kt")
             public void testCommonSupertypeContravariant() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/commonSupertypeContravariant.kt");