diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/FirStatusResolver.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/FirStatusResolver.kt
index f7afd8aa98d..876b42370c4 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/FirStatusResolver.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/FirStatusResolver.kt
@@ -9,6 +9,7 @@ import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.fir.*
 import org.jetbrains.kotlin.fir.declarations.*
 import org.jetbrains.kotlin.fir.declarations.impl.FirDeclarationStatusImpl
+import org.jetbrains.kotlin.fir.declarations.impl.FirOuterClassTypeParameterRef
 import org.jetbrains.kotlin.fir.declarations.impl.FirResolvedDeclarationStatusImpl
 import org.jetbrains.kotlin.fir.declarations.utils.effectiveVisibility
 import org.jetbrains.kotlin.fir.declarations.utils.isExpect
@@ -17,6 +18,7 @@ import org.jetbrains.kotlin.fir.declarations.utils.visibility
 import org.jetbrains.kotlin.fir.extensions.*
 import org.jetbrains.kotlin.fir.render
 import org.jetbrains.kotlin.fir.resolve.ScopeSession
+import org.jetbrains.kotlin.fir.resolve.toSymbol
 import org.jetbrains.kotlin.fir.scopes.ProcessorAction
 import org.jetbrains.kotlin.fir.scopes.unsubstitutedScope
 import org.jetbrains.kotlin.fir.symbols.ensureResolved
@@ -321,7 +323,9 @@ class FirStatusResolver(
             return !type.lookupTag.typeParameterSymbol.fir.variance.allowsPosition(requiredVariance)
         }
         if (type is ConeClassLikeType) {
-            for (argument in type.typeArguments) {
+            val classLike = type.lookupTag.toSymbol(session)?.fir
+            for ((index, argument) in type.typeArguments.withIndex()) {
+                if (classLike?.typeParameters?.getOrNull(index) is FirOuterClassTypeParameterRef) continue
                 val (argType, requiredVarianceForArgument) = when (argument) {
                     is ConeKotlinTypeProjectionOut -> argument.type to requiredVariance
                     is ConeKotlinTypeProjectionIn -> argument.type to requiredVariance.opposite()
diff --git a/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.kt b/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.kt
index ba1de56c81e..d16ce063fc1 100644
--- a/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.kt
+++ b/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.kt
@@ -3,6 +3,8 @@
 class A<in T>(t: T) {
     private val t: T = t  // PRIVATE_TO_THIS
 
+    private val i: B = B()
+
     fun test() {
         val x: T = t      // Ok
         val y: T = this.t // Ok
@@ -11,4 +13,14 @@ class A<in T>(t: T) {
     fun foo(a: A<String>) {
         val x: String = a.<!INVISIBLE_REFERENCE!>t<!> // Invisible!
     }
-}
\ No newline at end of file
+
+    fun bar(a: A<*>) {
+        a.<!INVISIBLE_REFERENCE!>t<!> // Invisible!
+    }
+
+    inner class B {
+        fun baz(a: A<*>) {
+            a.i
+        }
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.txt b/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.txt
index 58de82c9300..d28337cd2dd 100644
--- a/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.txt
+++ b/compiler/testData/diagnostics/tests/visibility/privateToThis.fir.txt
@@ -7,6 +7,9 @@ FILE: privateToThis.fir.kt
         private/*private to this*/ final val t: R|T| = R|<local>/t|
             private/*private to this*/ get(): R|T|
 
+        private final val i: R|A.B<T>| = this@R|/A|.R|SubstitutionOverride</A.B.B>|()
+            private get(): R|A.B<T>|
+
         public final fun test(): R|kotlin/Unit| {
             lval x: R|T| = this@R|/A|.R|/A.t|
             lval y: R|T| = this@R|/A|.R|/A.t|
@@ -16,4 +19,19 @@ FILE: privateToThis.fir.kt
             lval x: R|kotlin/String| = R|<local>/a|.<HIDDEN: /A.t is invisible>#
         }
 
+        public final fun bar(a: R|A<*>|): R|kotlin/Unit| {
+            R|<local>/a|.<HIDDEN: /A.t is invisible>#
+        }
+
+        public final inner class B<in T> : R|kotlin/Any| {
+            public A<T>.constructor(): R|A.B<T>| {
+                super<R|kotlin/Any|>()
+            }
+
+            public final fun baz(a: R|A<*>|): R|kotlin/Unit| {
+                R|<local>/a|.R|SubstitutionOverride</A.i: R|A.B<CapturedType(*)>|>|
+            }
+
+        }
+
     }
diff --git a/compiler/testData/diagnostics/tests/visibility/privateToThis.kt b/compiler/testData/diagnostics/tests/visibility/privateToThis.kt
index 46e7452bd48..4228d8cf616 100644
--- a/compiler/testData/diagnostics/tests/visibility/privateToThis.kt
+++ b/compiler/testData/diagnostics/tests/visibility/privateToThis.kt
@@ -3,6 +3,8 @@
 class A<in T>(t: T) {
     private val t: T = t  // PRIVATE_TO_THIS
 
+    private val i: B = B()
+
     fun test() {
         val x: T = t      // Ok
         val y: T = this.t // Ok
@@ -11,4 +13,14 @@ class A<in T>(t: T) {
     fun foo(a: A<String>) {
         val x: String = a.<!INVISIBLE_MEMBER!>t<!> // Invisible!
     }
+
+    fun bar(a: A<*>) {
+        a.<!INVISIBLE_MEMBER!>t<!> // Invisible!
+    }
+
+    inner class B {
+        fun baz(a: A<*>) {
+            a.i
+        }
+    }
 }
diff --git a/compiler/testData/diagnostics/tests/visibility/privateToThis.txt b/compiler/testData/diagnostics/tests/visibility/privateToThis.txt
index 13be1569a4c..b9933e64f68 100644
--- a/compiler/testData/diagnostics/tests/visibility/privateToThis.txt
+++ b/compiler/testData/diagnostics/tests/visibility/privateToThis.txt
@@ -2,10 +2,20 @@ package
 
 public final class A</*0*/ in T> {
     public constructor A</*0*/ in T>(/*0*/ t: T)
+    private final val i: A<T>.B
     private/*private to this*/ final val t: T
+    public final fun bar(/*0*/ a: A<*>): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public final fun foo(/*0*/ a: A<kotlin.String>): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public final fun test(): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final inner class B /*captured type parameters: /*0*/ in T*/ {
+        public constructor B()
+        public final fun baz(/*0*/ a: A<*>): kotlin.Unit
+        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
+    }
 }