diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/ConstraintSystemCompleter.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/ConstraintSystemCompleter.kt
index 1dd104f2cfe..943f3fa5ad3 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/ConstraintSystemCompleter.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/inference/ConstraintSystemCompleter.kt
@@ -241,7 +241,9 @@ class ConstraintSystemCompleter(private val components: BodyResolveComponents) {
             findResolvedAtomBy(typeVariable, topLevelAtoms) ?: topLevelAtoms.firstOrNull()
 
         if (resolvedAtom != null) {
-            c.addError(NotEnoughInformationForTypeParameter(typeVariable, resolvedAtom))
+            c.addError(
+                NotEnoughInformationForTypeParameter(typeVariable, resolvedAtom, c.couldBeResolvedWithUnrestrictedBuilderInference())
+            )
         }
 
         val resultErrorType = when (typeVariable) {
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index d3743f5eac7..f71af5f2052 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -816,6 +816,7 @@ public interface Errors {
 
     DiagnosticFactory1<PsiElement, InferenceErrorData> TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER = DiagnosticFactory1.create(ERROR);
     DiagnosticFactory1<PsiElement, String> NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER = DiagnosticFactory1.create(ERROR);
+    DiagnosticFactory1<PsiElement, String> COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE = DiagnosticFactory1.create(ERROR);
 
     DiagnosticFactory1<PsiElement, InferenceErrorData> TYPE_INFERENCE_CONFLICTING_SUBSTITUTIONS = DiagnosticFactory1.create(ERROR);
     DiagnosticFactory1<PsiElement, InferenceErrorData> TYPE_INFERENCE_CANNOT_CAPTURE_TYPES = DiagnosticFactory1.create(ERROR);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index 147fab671eb..46bbbd6af45 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -919,6 +919,7 @@ public class DefaultErrorMessages {
         MAP.put(TYPE_INFERENCE_CANNOT_CAPTURE_TYPES, "Type inference failed: {0}", TYPE_INFERENCE_CANNOT_CAPTURE_TYPES_RENDERER);
         MAP.put(TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER, "Type inference failed: {0}", TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER_RENDERER);
         MAP.put(NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, "Not enough information to infer type variable {0}", STRING);
+        MAP.put(COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE, "Builder inference lambda contains inapplicable calls so {1} can't be inferred. It could be resolved only with unrestricted builder inference. Please use -Xunrestricted-builder-inference compiler flag to enable it.", STRING);
 
         MAP.put(TYPE_INFERENCE_PARAMETER_CONSTRAINT_ERROR, "Type inference failed: {0}", TYPE_INFERENCE_PARAMETER_CONSTRAINT_ERROR_RENDERER);
         MAP.put(TYPE_INFERENCE_INCORPORATION_ERROR, "Type inference failed. Please try to specify type arguments explicitly.");
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 968ce9fd337..40670e8f0d7 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
@@ -493,7 +493,13 @@ class DiagnosticReporterByTrackingStrategy(
                         expression.statements.lastOrNull() ?: expression
                     } else expression
 
-                    trace.reportDiagnosticOnce(NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER.on(unwrappedExpression, typeVariableName))
+                    val diagnostic = if (error.couldBeResolvedWithUnrestrictedBuilderInference) {
+                        COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE
+                    } else {
+                        NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER
+                    }
+
+                    trace.reportDiagnosticOnce(diagnostic.on(unwrappedExpression, typeVariableName))
                 }
             }
 
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemBuilder.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemBuilder.kt
index 9f8aa59ac78..81b8b43d921 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemBuilder.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemBuilder.kt
@@ -15,6 +15,7 @@ interface ConstraintSystemOperation {
     val hasContradiction: Boolean
     fun registerVariable(variable: TypeVariableMarker)
     fun markPostponedVariable(variable: TypeVariableMarker)
+    fun markCouldBeResolvedWithUnrestrictedBuilderInference()
     fun unmarkPostponedVariable(variable: TypeVariableMarker)
     fun removePostponedVariables()
 
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/ConstraintSystemCompletionContext.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/ConstraintSystemCompletionContext.kt
index d9f7dbde3fd..0445128706e 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/ConstraintSystemCompletionContext.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/ConstraintSystemCompletionContext.kt
@@ -32,4 +32,6 @@ interface ConstraintSystemCompletionContext : VariableFixationFinder.Context, Re
     fun fixVariable(variable: TypeVariableMarker, resultType: KotlinTypeMarker, position: FixVariableConstraintPosition<*>)
 
     fun asConstraintSystemCompletionContext(): ConstraintSystemCompletionContext
+
+    fun couldBeResolvedWithUnrestrictedBuilderInference(): Boolean
 }
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
index 850a1990b4f..5352ac98140 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
@@ -118,7 +118,8 @@ class CapturedTypeFromSubtyping(
 
 open class NotEnoughInformationForTypeParameter<T>(
     val typeVariable: TypeVariableMarker,
-    val resolvedAtom: T
+    val resolvedAtom: T,
+    val couldBeResolvedWithUnrestrictedBuilderInference: Boolean
 ) : ConstraintSystemError(INAPPLICABLE)
 
 class ConstrainingTypeIsError(
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/NewConstraintSystemImpl.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/NewConstraintSystemImpl.kt
index 637b275589b..28bc250f0ff 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/NewConstraintSystemImpl.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/NewConstraintSystemImpl.kt
@@ -38,6 +38,8 @@ class NewConstraintSystemImpl(
     private val properTypesCache: MutableSet<KotlinTypeMarker> = SmartSet.create()
     private val notProperTypesCache: MutableSet<KotlinTypeMarker> = SmartSet.create()
 
+    private var couldBeResolvedWithUnrestrictedBuilderInference: Boolean = false
+
     private enum class State {
         BUILDING,
         TRANSACTION,
@@ -118,6 +120,13 @@ class NewConstraintSystemImpl(
         storage.postponedTypeVariables += variable
     }
 
+    override fun markCouldBeResolvedWithUnrestrictedBuilderInference() {
+        couldBeResolvedWithUnrestrictedBuilderInference = true
+    }
+
+    override fun couldBeResolvedWithUnrestrictedBuilderInference() =
+        couldBeResolvedWithUnrestrictedBuilderInference
+
     override fun unmarkPostponedVariable(variable: TypeVariableMarker) {
         storage.postponedTypeVariables -= variable
     }
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
index 590b90d2c0b..3fbec460fbe 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
@@ -148,6 +148,7 @@ class PostponedArgumentsAnalyzer(
 
         if (hasInapplicableCallForBuilderInference) {
             inferenceSession?.initializeLambda(lambda)
+            c.getBuilder().markCouldBeResolvedWithUnrestrictedBuilderInference()
             c.getBuilder().removePostponedVariables()
             return
         }
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
index cfe45b8097f..38f7370adc3 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
@@ -316,7 +316,9 @@ class KotlinConstraintSystemCompleter(
         val resolvedAtom = findResolvedAtomBy(typeVariable, topLevelAtoms) ?: topLevelAtoms.firstOrNull()
 
         if (resolvedAtom != null) {
-            c.addError(NotEnoughInformationForTypeParameterImpl(typeVariable, resolvedAtom))
+            c.addError(
+                NotEnoughInformationForTypeParameterImpl(typeVariable, resolvedAtom, c.couldBeResolvedWithUnrestrictedBuilderInference())
+            )
         }
 
         val resultErrorType = when {
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
index 721314f16d6..f35a016c6c4 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
@@ -54,5 +54,6 @@ class DelegatedPropertyConstraintPositionImpl(topLevelCall: KotlinCall) : Delega
 
 class NotEnoughInformationForTypeParameterImpl(
     typeVariable: TypeVariableMarker,
-    resolvedAtom: ResolvedAtom
-) : NotEnoughInformationForTypeParameter<ResolvedAtom>(typeVariable, resolvedAtom)
+    resolvedAtom: ResolvedAtom,
+    couldBeResolvedWithUnrestrictedBuilderInference: Boolean
+) : NotEnoughInformationForTypeParameter<ResolvedAtom>(typeVariable, resolvedAtom, couldBeResolvedWithUnrestrictedBuilderInference)
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47744.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47744.kt
index 210223998e3..8027f7966d8 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt47744.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47744.kt
@@ -26,7 +26,7 @@ inline fun <R> select(crossinline builder: SelectBuilder<R>.() -> Unit) = Unit a
 
 fun test() {
     val x: Flow<String> = flow {
-        <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>produce<!> {
+        <!COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE!>produce<!> {
             select<Unit> {
                 <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>onSend<!>("") {
 
diff --git a/compiler/testData/diagnostics/testsWithStdLib/builderInference/incorrectCallsWithRestrictions.kt b/compiler/testData/diagnostics/testsWithStdLib/builderInference/incorrectCallsWithRestrictions.kt
index 634ec01b919..ad418bef64b 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/builderInference/incorrectCallsWithRestrictions.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/builderInference/incorrectCallsWithRestrictions.kt
@@ -24,12 +24,12 @@ val test2 = generate {
     notYield(3)
 }
 
-val test3 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>generate<!> {
+val test3 = <!COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE!>generate<!> {
     yield(3)
     yieldBarReturnType(3)
 }
 
-val test4 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>generate<!> {
+val test4 = <!COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE!>generate<!> {
     yield(3)
     barReturnType()
 }
diff --git a/compiler/testData/diagnostics/testsWithStdLib/builderInference/resolveUsualCallWithBuilderInferenceWithRestrictions.kt b/compiler/testData/diagnostics/testsWithStdLib/builderInference/resolveUsualCallWithBuilderInferenceWithRestrictions.kt
index 8405228535c..a193991da3a 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/builderInference/resolveUsualCallWithBuilderInferenceWithRestrictions.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/builderInference/resolveUsualCallWithBuilderInferenceWithRestrictions.kt
@@ -28,7 +28,7 @@ val memberWithoutAnn = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER{NI}, TYPE_IN
     add(42)
 }
 
-val extension = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER{OI}!>build<!> {
+val extension = <!COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER{OI}, TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER{OI}!>build<!> {
     extensionAdd("foo")
 }
 
diff --git a/compiler/testData/diagnostics/testsWithStdLib/builderInference/useInferenceInformationFromExtensionWithRestrictions.kt b/compiler/testData/diagnostics/testsWithStdLib/builderInference/useInferenceInformationFromExtensionWithRestrictions.kt
index 86d13bf0ff0..e0eb81b8a56 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/builderInference/useInferenceInformationFromExtensionWithRestrictions.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/builderInference/useInferenceInformationFromExtensionWithRestrictions.kt
@@ -23,7 +23,7 @@ val normal = generate {
     yield(42)
 }
 
-val extension = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>generate<!> {
+val extension = <!COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE!>generate<!> {
     extensionYield("foo")
 }