diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
index 3719cd80c34..d743d1a9b93 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
@@ -17663,6 +17663,11 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirOldFronte
             runTest("compiler/testData/diagnostics/tests/regressions/kt32205.kt");
         }
 
+        @TestMetadata("kt32507.kt")
+        public void testKt32507() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/regressions/kt32507.kt");
+        }
+
         @TestMetadata("kt328.kt")
         public void testKt328() throws Exception {
             runTest("compiler/testData/diagnostics/tests/regressions/kt328.kt");
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
index 549dce4fc2a..c16fa091a8d 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
@@ -232,7 +232,7 @@ class DiagnosticReporterByTrackingStrategy(
                 val call = if (call.callElement is KtBinaryExpression) null else call
                 smartCastManager.checkAndRecordPossibleCast(
                     dataFlowValue, smartCastDiagnostic.smartCastType, argumentExpression, context, call,
-                    recordExpressionType = true
+                    recordExpressionType = false
                 )
             }
             is ReceiverExpressionKotlinCallArgument -> {
diff --git a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.fir.kt b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.fir.kt
index a41b87bd9e3..2e9264619c7 100644
--- a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.fir.kt
+++ b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.fir.kt
@@ -1,5 +1,4 @@
 // !DIAGNOSTICS: -DEBUG_INFO_SMARTCAST
-// !WITH_NEW_INFERENCE
 fun bar(x: Int) = x + 1
 
 fun foo() {
diff --git a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.kt b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.kt
index 5192ef84474..a2a2b5f470d 100644
--- a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.kt
+++ b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/DeepIf.kt
@@ -1,5 +1,4 @@
 // !DIAGNOSTICS: -DEBUG_INFO_SMARTCAST
-// !WITH_NEW_INFERENCE
 fun bar(x: Int) = x + 1
 
 fun foo() {
@@ -13,17 +12,17 @@ fun foo() {
             if (1 > 2) bar(x)
         }
         if (<!SENSELESS_COMPARISON!>x == null<!>) {
-            <!NI;UNREACHABLE_CODE!>bar(<!>x<!NI;UNREACHABLE_CODE!>)<!>
+            bar(x)
         }
-        if (<!SENSELESS_COMPARISON!>x == null<!>) <!NI;UNREACHABLE_CODE!>bar(<!>x<!NI;UNREACHABLE_CODE!>)<!> else bar(x)
+        if (<!SENSELESS_COMPARISON!>x == null<!>) bar(x) else bar(x)
         bar(bar(x))
     } else if (<!SENSELESS_COMPARISON!><!DEBUG_INFO_CONSTANT!>x<!> == null<!>) {
         bar(<!DEBUG_INFO_CONSTANT, TYPE_MISMATCH!>x<!>)
         if (<!SENSELESS_COMPARISON!><!DEBUG_INFO_CONSTANT!>x<!> != null<!>) {
-            <!NI;UNREACHABLE_CODE!>bar(<!>x<!NI;UNREACHABLE_CODE!>)<!>
-            <!NI;UNREACHABLE_CODE!>if (<!SENSELESS_COMPARISON!>x == null<!>) bar(x)<!>
-            <!NI;UNREACHABLE_CODE!>if (<!SENSELESS_COMPARISON!>x == null<!>) bar(x) else bar(x)<!>
-            <!NI;UNREACHABLE_CODE!>bar(bar(x) + bar(x))<!>
+            bar(x)
+            if (<!SENSELESS_COMPARISON!>x == null<!>) bar(x)
+            if (<!SENSELESS_COMPARISON!>x == null<!>) bar(x) else bar(x)
+            bar(bar(x) + bar(x))
         } else if (<!SENSELESS_COMPARISON!><!DEBUG_INFO_CONSTANT!>x<!> == null<!>) {
             bar(<!DEBUG_INFO_CONSTANT, TYPE_MISMATCH!>x<!>)
         }
diff --git a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.fir.kt b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.fir.kt
index 3a0a0916cfd..28b3d130b89 100644
--- a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.fir.kt
+++ b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.fir.kt
@@ -1,4 +1,3 @@
-// !WITH_NEW_INFERENCE
 fun bar(x: Int): Int = x + 1
 
 fun foo() {
diff --git a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.kt b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.kt
index c90ae2af731..0589735a2ef 100644
--- a/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.kt
+++ b/compiler/testData/diagnostics/tests/dataFlowInfoTraversal/For.kt
@@ -1,4 +1,3 @@
-// !WITH_NEW_INFERENCE
 fun bar(x: Int): Int = x + 1
 
 fun foo() {
@@ -11,7 +10,7 @@ fun foo() {
         bar(<!DEBUG_INFO_SMARTCAST!>x<!>)
         for (q in a) {
             bar(<!DEBUG_INFO_SMARTCAST!>x<!>)
-            if (<!SENSELESS_COMPARISON!>x == null<!>) <!NI;UNREACHABLE_CODE!>bar(<!><!DEBUG_INFO_SMARTCAST!>x<!><!NI;UNREACHABLE_CODE!>)<!>
+            if (<!SENSELESS_COMPARISON!>x == null<!>) bar(<!DEBUG_INFO_SMARTCAST!>x<!>)
         }
     }
 
diff --git a/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.fir.kt b/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.fir.kt
index f010cf53a13..c533df109b8 100644
--- a/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.fir.kt
+++ b/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.fir.kt
@@ -1,5 +1,3 @@
-// !WITH_NEW_INFERENCE
-
 fun foo(d: Any?) {
     if (d is String?) {
         d!!
diff --git a/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.kt b/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.kt
index 2e8b39b2dd5..97d793a3369 100644
--- a/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.kt
+++ b/compiler/testData/diagnostics/tests/nullabilityAndSmartCasts/dataFlowInfoAfterExclExcl.kt
@@ -1,9 +1,7 @@
-// !WITH_NEW_INFERENCE
-
 fun foo(d: Any?) {
     if (d is String?) {
         <!DEBUG_INFO_SMARTCAST!>d<!>!!
-        doString(<!NI;TYPE_MISMATCH, OI;DEBUG_INFO_SMARTCAST!>d<!>)
+        doString(<!DEBUG_INFO_SMARTCAST!>d<!>)
     }
 }
 
diff --git a/compiler/testData/diagnostics/tests/regressions/kt32507.fir.kt b/compiler/testData/diagnostics/tests/regressions/kt32507.fir.kt
new file mode 100644
index 00000000000..d215d2b6135
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt32507.fir.kt
@@ -0,0 +1,7 @@
+// !LANGUAGE: +NewInference
+
+fun foo(bar: Any?): Int {
+    bar as String?
+    bar ?: throw IllegalStateException()
+    return bar.length
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/regressions/kt32507.kt b/compiler/testData/diagnostics/tests/regressions/kt32507.kt
new file mode 100644
index 00000000000..14e13ed6181
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt32507.kt
@@ -0,0 +1,7 @@
+// !LANGUAGE: +NewInference
+
+fun foo(bar: Any?): Int {
+    bar as String?
+    <!DEBUG_INFO_SMARTCAST!>bar<!> ?: throw IllegalStateException()
+    return <!DEBUG_INFO_SMARTCAST!>bar<!>.length
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/regressions/kt32507.txt b/compiler/testData/diagnostics/tests/regressions/kt32507.txt
new file mode 100644
index 00000000000..9233982b03a
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/regressions/kt32507.txt
@@ -0,0 +1,3 @@
+package
+
+public fun foo(/*0*/ bar: kotlin.Any?): kotlin.Int
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index c34dcdf0e64..f8fc3639a16 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -17675,6 +17675,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/regressions/kt32205.kt");
             }
 
+            @TestMetadata("kt32507.kt")
+            public void testKt32507() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/regressions/kt32507.kt");
+            }
+
             @TestMetadata("kt328.kt")
             public void testKt328() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/regressions/kt328.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index f4b571afb54..1393ac3e654 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -17665,6 +17665,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/regressions/kt32205.kt");
             }
 
+            @TestMetadata("kt32507.kt")
+            public void testKt32507() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/regressions/kt32507.kt");
+            }
+
             @TestMetadata("kt328.kt")
             public void testKt328() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/regressions/kt328.kt");