diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
index 5d7f06f211a..9aacd68bbf5 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
@@ -8031,6 +8031,16 @@ public class FirDiagnosticsSmokeTestGenerated extends AbstractFirDiagnosticsSmok
             runTest("compiler/testData/diagnostics/tests/generics/doNotCaptureSupertype.kt");
         }
 
+        @TestMetadata("finalUpperBoundWithOverride.kt")
+        public void testFinalUpperBoundWithOverride() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt");
+        }
+
+        @TestMetadata("finalUpperBoundWithoutOverride.kt")
+        public void testFinalUpperBoundWithoutOverride() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt");
+        }
+
         @TestMetadata("genericsInType.kt")
         public void testGenericsInType() throws Exception {
             runTest("compiler/testData/diagnostics/tests/generics/genericsInType.kt");
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
index f046c89c5bf..2daf1596a72 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
@@ -369,7 +369,7 @@ class DeclarationsChecker(
             upperBoundCheckRequests.add(DescriptorResolver.UpperBoundCheckRequest(name, typeReference, type))
         }
 
-        DescriptorResolver.checkUpperBoundTypes(trace, upperBoundCheckRequests)
+        DescriptorResolver.checkUpperBoundTypes(trace, upperBoundCheckRequests, false)
 
         for (request in upperBoundCheckRequests) {
             DescriptorResolver.checkBounds(request.upperBound, request.upperBoundType, trace)
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
index 0bea6f7c2bb..26b756057ff 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
@@ -560,12 +560,16 @@ public class DescriptorResolver {
         }
 
         if (!(declaration instanceof KtClass)) {
-            checkUpperBoundTypes(trace, upperBoundCheckRequests);
+            checkUpperBoundTypes(trace, upperBoundCheckRequests, declaration.hasModifier(KtTokens.OVERRIDE_KEYWORD));
             checkNamesInConstraints(declaration, descriptor, scope, trace);
         }
     }
 
-    public static void checkUpperBoundTypes(@NotNull BindingTrace trace, @NotNull List<UpperBoundCheckRequest> requests) {
+    public static void checkUpperBoundTypes(
+            @NotNull BindingTrace trace,
+            @NotNull List<UpperBoundCheckRequest> requests,
+            boolean hasOverrideModifier
+    ) {
         if (requests.isEmpty()) return;
 
         Set<Name> classBoundEncountered = new HashSet<>();
@@ -593,7 +597,7 @@ public class DescriptorResolver {
                 }
             }
 
-            checkUpperBoundType(upperBoundElement, upperBound, trace);
+            checkUpperBoundType(upperBoundElement, upperBound, trace, hasOverrideModifier);
         }
     }
 
@@ -641,9 +645,10 @@ public class DescriptorResolver {
     public static void checkUpperBoundType(
             KtTypeReference upperBound,
             @NotNull KotlinType upperBoundType,
-            BindingTrace trace
+            BindingTrace trace,
+            boolean hasOverrideModifier
     ) {
-        if (!TypeUtils.canHaveSubtypes(KotlinTypeChecker.DEFAULT, upperBoundType)) {
+        if (!hasOverrideModifier && !TypeUtils.canHaveSubtypes(KotlinTypeChecker.DEFAULT, upperBoundType)) {
             trace.report(FINAL_UPPER_BOUND.on(upperBound, upperBoundType));
         }
         if (DynamicTypesKt.isDynamic(upperBoundType)) {
diff --git a/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt b/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt
new file mode 100644
index 00000000000..26449d3c54c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt
@@ -0,0 +1,97 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+// SKIP_TXT
+// Issues: KT-25105
+
+class Message1
+class Task<T>
+object Message2
+enum class Message3
+data class Message4(val x: Int)
+
+sealed class Message5<T> {
+    open fun <A : T> execute() {}
+}
+
+interface Manager<T> {
+    fun <A : T> execute1(task: Task<A>) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Int<!>> execute2(task: T) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Message2<!>> execute3() {}
+    fun <A : T> execute4() {}
+    fun <A : T> execute5() {}
+    val <A : T> A.x get() = 10
+    var <A : T> A.y
+        get() = 10
+        set(value) {}
+}
+
+object MessageManager1 : Manager<Message1> {
+    override fun <T : Message1> execute1(task: Task<T>) {}
+    override fun <T : Int> execute2(task: T) {}
+    override fun <T : Message2> execute3() {}
+}
+
+object MessageManager2 : Manager<Message3> {
+    override fun <T : Message3> execute4() {}
+}
+
+object MessageManager3 : Manager<Message4> {
+    override fun <T : Message4> execute5() {}
+}
+
+class MessageManager4 : Manager<Message1> {
+    override fun <T : Message1> execute1(task: Task<T>) {}
+    override fun <T : Int> execute2(task: T) {}
+    override fun <T : Message2> execute3() {}
+}
+
+class MessageManager5 : Manager<Message3> {
+    override fun <T : Message3> execute4() {}
+}
+
+class MessageManager6 : Manager<Message4> {
+    override fun <T : Message4> execute5() {}
+}
+
+interface MessageManager7 : Manager<Message4> {
+    override fun <T : Message4> execute5() {}
+}
+
+interface MessageManager8 : Manager<Message1> {
+    override fun <T : Message1> execute1(task: Task<T>) {}
+    override fun <T : Int> execute2(task: T) {}
+    override fun <T : Message2> execute3() {}
+}
+
+interface MessageManager9 : Manager<Message3> {
+    override fun <T : Message3> execute4() {}
+}
+
+object MessageManager10 : Message5<Int>() {
+    override fun <T : Int> execute() {}
+}
+
+class MessageManager11<A> : Message5<Message5<A>>() {
+    override fun <T : Message5<A>> execute() {}
+}
+
+data class MessageManager12(val x: Int) : Message5<Message2>() {
+    override fun <T : Message2> execute() {}
+}
+
+sealed class MessageManager13<A> : Message5<A>() {
+    override fun <T : A> execute() {}
+}
+
+class MessageManager14 : Manager<Message2> {
+    override val <T : Message2> T.x get() = 10
+    override var <T : Message2> T.y
+        get() = 10
+        set(value) {}
+}
+
+object MessageManager15 : Manager<Int> {
+    override val <T : Int> T.x get() = 10
+    override var <T : Int> T.y
+        get() = 10
+        set(value) {}
+}
diff --git a/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt b/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt
new file mode 100644
index 00000000000..546c9eab658
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt
@@ -0,0 +1,82 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+// SKIP_TXT
+// Issues: KT-25105
+
+class Message1
+class Task<T>
+object Message2
+enum class Message3
+data class Message4(val x: Int)
+interface Manager<T> {}
+
+object MessageManager1 : Manager<Message1> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message1<!>> execute1(task: Task<T>) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Int<!>> execute2(task: T) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Message2<!>> execute3() {}
+}
+
+object MessageManager2 : Manager<Message3> {
+    fun <T : Message3> execute4() {}
+}
+
+object MessageManager3 : Manager<Message4> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message4<!>> execute5() {}
+}
+
+class MessageManager4 : Manager<Message1> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message1<!>> execute1(task: Task<T>) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Int<!>> execute2(task: T) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Message2<!>> execute3() {}
+}
+
+class MessageManager5 : Manager<Message3> {
+    fun <T : Message3> execute4() {}
+}
+
+class MessageManager6 : Manager<Message4> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message4<!>> execute5() {}
+}
+
+interface MessageManager7 : Manager<Message4> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message4<!>> execute5() {}
+}
+
+interface MessageManager8 : Manager<Message1> {
+    fun <T : <!FINAL_UPPER_BOUND!>Message1<!>> execute1(task: Task<T>) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Int<!>> execute2(task: T) {}
+    fun <T : <!FINAL_UPPER_BOUND!>Message2<!>> execute3() {}
+}
+
+interface MessageManager9 : Manager<Message3> {
+    fun <T : Message3> execute4() {}
+}
+
+object MessageManager10 : <!UNRESOLVED_REFERENCE!>Message5<!><Int>() {
+    fun <T : <!FINAL_UPPER_BOUND!>Int<!>> execute() {}
+}
+
+class MessageManager11<A> : <!UNRESOLVED_REFERENCE!>Message5<!><<!UNRESOLVED_REFERENCE!>Message5<!><A>>() {
+    fun <T : <!UNRESOLVED_REFERENCE!>Message5<!><A>> execute() {}
+}
+
+data class MessageManager12(val x: Int) : <!UNRESOLVED_REFERENCE!>Message5<!><Message2>() {
+    fun <T : <!FINAL_UPPER_BOUND!>Message2<!>> execute() {}
+}
+
+sealed class MessageManager13<A> : <!UNRESOLVED_REFERENCE!>Message5<!><A>() {
+    fun <T : A> execute() {}
+}
+
+class MessageManager14 : Manager<Message2> {
+    val <T : <!FINAL_UPPER_BOUND!>Message2<!>> T.x get() = 10
+    var <T : <!FINAL_UPPER_BOUND!>Message2<!>> T.y
+        get() = 10
+        set(value) {}
+}
+
+object MessageManager15 : Manager<Int> {
+    val <T : <!FINAL_UPPER_BOUND!>Int<!>> T.x get() = 10
+    var <T : <!FINAL_UPPER_BOUND!>Int<!>> T.y
+        get() = 10
+        set(value) {}
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 6b57dedf397..34b016ad086 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -8038,6 +8038,16 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/generics/doNotCaptureSupertype.kt");
             }
 
+            @TestMetadata("finalUpperBoundWithOverride.kt")
+            public void testFinalUpperBoundWithOverride() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt");
+            }
+
+            @TestMetadata("finalUpperBoundWithoutOverride.kt")
+            public void testFinalUpperBoundWithoutOverride() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt");
+            }
+
             @TestMetadata("genericsInType.kt")
             public void testGenericsInType() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/genericsInType.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 17d1cd80c5c..1ea274dc59d 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -8033,6 +8033,16 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/generics/doNotCaptureSupertype.kt");
             }
 
+            @TestMetadata("finalUpperBoundWithOverride.kt")
+            public void testFinalUpperBoundWithOverride() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithOverride.kt");
+            }
+
+            @TestMetadata("finalUpperBoundWithoutOverride.kt")
+            public void testFinalUpperBoundWithoutOverride() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/finalUpperBoundWithoutOverride.kt");
+            }
+
             @TestMetadata("genericsInType.kt")
             public void testGenericsInType() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/genericsInType.kt");