diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
index 680ab4c470d..387c875b7b2 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
@@ -12370,6 +12370,12 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirDiagnosti
                     runTest("compiler/testData/diagnostics/tests/inference/capturedTypes/approximateBeforeFixation.kt");
                 }
 
+                @Test
+                @TestMetadata("approximateContravariantCapturedTypes.kt")
+                public void testApproximateContravariantCapturedTypes() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.kt");
+                }
+
                 @Test
                 @TestMetadata("avoidCreatingUselessCapturedTypes.kt")
                 public void testAvoidCreatingUselessCapturedTypes() throws Exception {
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallCompleter.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallCompleter.kt
index 554759a6af7..e27ac4b3977 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallCompleter.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallCompleter.kt
@@ -8,6 +8,7 @@ package org.jetbrains.kotlin.resolve.calls
 import org.jetbrains.kotlin.builtins.getReturnTypeFromFunctionType
 import org.jetbrains.kotlin.builtins.getValueParameterTypesFromFunctionType
 import org.jetbrains.kotlin.builtins.isFunctionOrSuspendFunctionType
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.contracts.EffectSystem
 import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
@@ -248,7 +249,12 @@ class CallCompleter(
         val system = builder.build()
         setConstraintSystem(system)
 
-        setResultingSubstitutor(system.resultingSubstitutor)
+        val isNewInferenceEnabled = effectSystem.languageVersionSettings.supportsFeature(LanguageFeature.NewInference)
+        val resultingSubstitutor = if (isNewInferenceEnabled) {
+            system.resultingSubstitutor.replaceWithContravariantApproximatingSubstitution()
+        } else system.resultingSubstitutor
+
+        setResultingSubstitutor(resultingSubstitutor)
     }
 
     private fun <D : CallableDescriptor> MutableResolvedCall<D>.updateResolutionStatusFromConstraintSystem(
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/GenericCandidateResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/GenericCandidateResolver.kt
index 32198514bcb..24a35e347cd 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/GenericCandidateResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/GenericCandidateResolver.kt
@@ -347,7 +347,13 @@ class GenericCandidateResolver(
         }
         val resultingSystem = constraintSystem.build()
         resolvedCall.setConstraintSystem(resultingSystem)
-        resolvedCall.setResultingSubstitutor(resultingSystem.resultingSubstitutor)
+
+        val isNewInferenceEnabled = languageVersionSettings.supportsFeature(LanguageFeature.NewInference)
+        val resultingSubstitutor = if (isNewInferenceEnabled) {
+            resultingSystem.resultingSubstitutor.replaceWithContravariantApproximatingSubstitution()
+        } else resultingSystem.resultingSubstitutor
+
+        resolvedCall.setResultingSubstitutor(resultingSubstitutor)
     }
 
     // See KT-5385
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
index 524b09462cb..66b667ca1ae 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
@@ -151,10 +151,6 @@ internal class ConstraintSystemImpl(
         )
     }
 
-    private class SubstitutionWithCapturedTypeApproximation(substitution: TypeSubstitution) : DelegatedTypeSubstitution(substitution) {
-        override fun approximateCapturedTypes() = true
-    }
-
     private fun satisfyInitialConstraints(): Boolean {
         val substitutor = getSubstitutor(substituteOriginal = false) { ErrorUtils.createUninferredParameterType(it.originalTypeParameter) }
         fun KotlinType.substitute(): KotlinType? = substitutor.substitute(this, Variance.INVARIANT)
diff --git a/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.fir.kt b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.fir.kt
new file mode 100644
index 00000000000..f309d330487
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.fir.kt
@@ -0,0 +1,60 @@
+class Foo<T : Number>(var x: T) {
+    fun setX1(y: T): T {
+        this.x = y
+        return y
+    }
+}
+
+fun <T : Number> Foo<T>.setX(y: T): T {
+    return y
+}
+
+class Foo2<T>(var x: T) {
+    fun setX1(y: T): T {
+        this.x = y
+        return y
+    }
+}
+
+fun <T> Foo2<T>.setX(y: T): T {
+    this.x = y
+    return y
+}
+
+fun Float.bar() {}
+
+fun test1() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("Type is unknown"), UNRESOLVED_REFERENCE!>Foo<*>::setX<!>
+    val foo = Foo<Float>(1f)
+
+    fooSetRef.<!UNRESOLVED_REFERENCE!>invoke<!>(foo, 1)
+
+    foo.x.bar()
+}
+
+fun test2() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo<*>, CapturedType(*), CapturedType(*)>")!>Foo<*>::setX1<!>
+    val foo = Foo<Float>(1f)
+
+    fooSetRef.<!INAPPLICABLE_CANDIDATE!>invoke<!>(foo, 1)
+
+    foo.x.bar()
+}
+
+fun test3() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("Type is unknown"), UNRESOLVED_REFERENCE!>Foo2<*>::setX<!>
+    val foo = Foo2<Int>(1)
+
+    fooSetRef.<!UNRESOLVED_REFERENCE!>invoke<!>(foo, "")
+
+    foo.x.<!INAPPLICABLE_CANDIDATE!>bar<!>()
+}
+
+fun test4() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo2<*>, CapturedType(*), CapturedType(*)>")!>Foo2<*>::setX1<!>
+    val foo = Foo2<Int>(1)
+
+    fooSetRef.<!INAPPLICABLE_CANDIDATE!>invoke<!>(foo, "")
+
+    foo.x.<!INAPPLICABLE_CANDIDATE!>bar<!>()
+}
diff --git a/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.kt b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.kt
new file mode 100644
index 00000000000..966203018bb
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.kt
@@ -0,0 +1,60 @@
+class Foo<T : Number>(var x: T) {
+    fun setX1(y: T): T {
+        this.x = y
+        return y
+    }
+}
+
+fun <T : Number> Foo<T>.setX(y: T): T {
+    return y
+}
+
+class Foo2<T>(var x: T) {
+    fun setX1(y: T): T {
+        this.x = y
+        return y
+    }
+}
+
+fun <T> Foo2<T>.setX(y: T): T {
+    this.x = y
+    return y
+}
+
+fun Float.bar() {}
+
+fun test1() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo<*>, kotlin.Nothing, kotlin.Number>")!>Foo<*>::<!TYPE_MISMATCH("Nothing; Foo<*>")!>setX<!><!>
+    val foo = Foo<Float>(1f)
+
+    fooSetRef.invoke(foo, <!CONSTANT_EXPECTED_TYPE_MISMATCH!>1<!>)
+
+    foo.x.bar()
+}
+
+fun test2() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo<*>, kotlin.Nothing, kotlin.Number>")!>Foo<*>::setX1<!>
+    val foo = Foo<Float>(1f)
+
+    fooSetRef.invoke(foo, <!CONSTANT_EXPECTED_TYPE_MISMATCH!>1<!>)
+
+    foo.x.bar()
+}
+
+fun test3() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo2<*>, kotlin.Nothing, kotlin.Any?>")!>Foo2<*>::<!TYPE_MISMATCH("Nothing; Foo2<*>")!>setX<!><!>
+    val foo = Foo2<Int>(1)
+
+    fooSetRef.invoke(foo, <!TYPE_MISMATCH!>""<!>)
+
+    foo.x.<!UNRESOLVED_REFERENCE_WRONG_RECEIVER!>bar<!>()
+}
+
+fun test4() {
+    val fooSetRef = <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.reflect.KFunction2<Foo2<*>, kotlin.Nothing, kotlin.Any?>")!>Foo2<*>::setX1<!>
+    val foo = Foo2<Int>(1)
+
+    fooSetRef.invoke(foo, <!TYPE_MISMATCH!>""<!>)
+
+    foo.x.<!UNRESOLVED_REFERENCE_WRONG_RECEIVER!>bar<!>()
+}
diff --git a/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.txt b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.txt
new file mode 100644
index 00000000000..b3b5d87f1ec
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.txt
@@ -0,0 +1,27 @@
+package
+
+public fun test1(): kotlin.Unit
+public fun test2(): kotlin.Unit
+public fun test3(): kotlin.Unit
+public fun test4(): kotlin.Unit
+public fun kotlin.Float.bar(): kotlin.Unit
+public fun </*0*/ T> Foo2<T>.setX(/*0*/ y: T): T
+public fun </*0*/ T : kotlin.Number> Foo<T>.setX(/*0*/ y: T): T
+
+public final class Foo</*0*/ T : kotlin.Number> {
+    public constructor Foo</*0*/ T : kotlin.Number>(/*0*/ x: T)
+    public final var 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 final fun setX1(/*0*/ y: T): T
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Foo2</*0*/ T> {
+    public constructor Foo2</*0*/ T>(/*0*/ x: T)
+    public final var 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 final fun setX1(/*0*/ y: T): T
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 5dd7cce0ee2..3a7ba5e4092 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -12376,6 +12376,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                     runTest("compiler/testData/diagnostics/tests/inference/capturedTypes/approximateBeforeFixation.kt");
                 }
 
+                @Test
+                @TestMetadata("approximateContravariantCapturedTypes.kt")
+                public void testApproximateContravariantCapturedTypes() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/capturedTypes/approximateContravariantCapturedTypes.kt");
+                }
+
                 @Test
                 @TestMetadata("avoidCreatingUselessCapturedTypes.kt")
                 public void testAvoidCreatingUselessCapturedTypes() throws Exception {
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
index cf9b1cc6ffd..835936ae961 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
@@ -85,6 +85,15 @@ abstract class TypeConstructorSubstitution : TypeSubstitution() {
     }
 }
 
+class SubstitutionWithCapturedTypeApproximation(substitution: TypeSubstitution) : DelegatedTypeSubstitution(substitution) {
+    override fun approximateCapturedTypes() = true
+}
+
+class SubstitutionWithContravariantCapturedTypeApproximation(substitution: TypeSubstitution) : DelegatedTypeSubstitution(substitution) {
+    override fun approximateCapturedTypes() = true
+    override fun approximateContravariantCapturedTypes() = true
+}
+
 class IndexedParametersSubstitution(
     val parameters: Array<TypeParameterDescriptor>,
     val arguments: Array<TypeProjection>,
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitutor.java b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitutor.java
index da175c6f513..78737803f4f 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitutor.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitutor.java
@@ -67,6 +67,29 @@ public class TypeSubstitutor implements TypeSubstitutorMarker {
         );
     }
 
+    @NotNull
+    public TypeSubstitutor replaceWithContravariantApproximatingSubstitution() {
+        if (substitution instanceof SubstitutionWithCapturedTypeApproximation) {
+            return new TypeSubstitutor(
+                    new SubstitutionWithContravariantCapturedTypeApproximation(
+                            ((SubstitutionWithCapturedTypeApproximation) substitution).getSubstitution()
+                    )
+            );
+        }
+
+        if (substitution instanceof IndexedParametersSubstitution && !substitution.approximateContravariantCapturedTypes()) {
+            return new TypeSubstitutor(
+                    new IndexedParametersSubstitution(
+                            ((IndexedParametersSubstitution) substitution).getParameters(),
+                            ((IndexedParametersSubstitution) substitution).getArguments(),
+                            true
+                    )
+            );
+        }
+
+        return this;
+    }
+
     @NotNull
     public static TypeSubstitutor createChainedSubstitutor(@NotNull TypeSubstitution first, @NotNull TypeSubstitution second) {
         return create(DisjointKeysUnionTypeSubstitution.create(first, second));