diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
index ad6053a6a11..f9d0af0c8f7 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
@@ -15223,6 +15223,12 @@ public class DiagnosisCompilerTestFE10TestdataTestGenerated extends AbstractDiag
                     runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/contravariance.kt");
                 }
 
+                @Test
+                @TestMetadata("covariance.kt")
+                public void testCovariance() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt");
+                }
+
                 @Test
                 @TestMetadata("kt45461.kt")
                 public void testKt45461() throws Exception {
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 a0748eb5d9d..b53a309bd22 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
@@ -15223,6 +15223,12 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirDiagnosti
                     runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/contravariance.kt");
                 }
 
+                @Test
+                @TestMetadata("covariance.kt")
+                public void testCovariance() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt");
+                }
+
                 @Test
                 @TestMetadata("kt45461.kt")
                 public void testKt45461() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
index f68c3d4e6cb..e06077499b1 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
@@ -15223,6 +15223,12 @@ public class FirOldFrontendDiagnosticsWithLightTreeTestGenerated extends Abstrac
                     runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/contravariance.kt");
                 }
 
+                @Test
+                @TestMetadata("covariance.kt")
+                public void testCovariance() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt");
+                }
+
                 @Test
                 @TestMetadata("kt45461.kt")
                 public void testKt45461() throws Exception {
diff --git a/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt b/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt
new file mode 100644
index 00000000000..fdd8a50f435
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt
@@ -0,0 +1,23 @@
+// FIR_IDENTICAL
+class KotlinSharedNativeCompilation() : KotlinMetadataCompilation<KotlinCommonOptions>, AbstractKotlinCompilation<KotlinCommonOptions>()
+
+interface KotlinCommonOptions
+
+interface KotlinMetadataCompilation<T : KotlinCommonOptions> : KotlinCompilation<T>
+
+interface KotlinCompilation<out T : KotlinCommonOptions>
+
+class KotlinCommonCompilation : KotlinMetadataCompilation<KotlinMultiplatformCommonOptions>, AbstractKotlinCompilation<KotlinMultiplatformCommonOptions>()
+
+interface KotlinMultiplatformCommonOptions  : KotlinCommonOptions
+
+abstract class AbstractKotlinCompilation<T : KotlinCommonOptions> : KotlinCompilation<T>
+
+fun main() {
+    val compilation = when {
+        true -> {
+            KotlinSharedNativeCompilation()
+        }
+        else -> KotlinCommonCompilation()
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.txt b/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.txt
new file mode 100644
index 00000000000..caeab82a12c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.txt
@@ -0,0 +1,48 @@
+package
+
+public fun main(): kotlin.Unit
+
+public abstract class AbstractKotlinCompilation</*0*/ T : KotlinCommonOptions> : KotlinCompilation<T> {
+    public constructor AbstractKotlinCompilation</*0*/ T : KotlinCommonOptions>()
+    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
+}
+
+public final class KotlinCommonCompilation : KotlinMetadataCompilation<KotlinMultiplatformCommonOptions>, AbstractKotlinCompilation<KotlinMultiplatformCommonOptions> {
+    public constructor KotlinCommonCompilation()
+    public open override /*2*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*2*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*2*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface KotlinCommonOptions {
+    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
+}
+
+public interface KotlinCompilation</*0*/ out T : KotlinCommonOptions> {
+    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
+}
+
+public interface KotlinMetadataCompilation</*0*/ T : KotlinCommonOptions> : KotlinCompilation<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 open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface KotlinMultiplatformCommonOptions : KotlinCommonOptions {
+    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
+}
+
+public final class KotlinSharedNativeCompilation : KotlinMetadataCompilation<KotlinCommonOptions>, AbstractKotlinCompilation<KotlinCommonOptions> {
+    public constructor KotlinSharedNativeCompilation()
+    public open override /*2*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*2*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*2*/ /*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 d4d8238cf0f..b8b03e1dcd4 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
@@ -15229,6 +15229,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                     runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/contravariance.kt");
                 }
 
+                @Test
+                @TestMetadata("covariance.kt")
+                public void testCovariance() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/emptyIntersectionTypes/covariance.kt");
+                }
+
                 @Test
                 @TestMetadata("kt45461.kt")
                 public void testKt45461() throws Exception {
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/scopes/SubstitutingScope.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/scopes/SubstitutingScope.kt
index 5f9d0ce122b..edf910dd96e 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/scopes/SubstitutingScope.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/scopes/SubstitutingScope.kt
@@ -30,19 +30,20 @@ import org.jetbrains.kotlin.utils.sure
 import java.util.*
 
 class SubstitutingScope(private val workerScope: MemberScope, givenSubstitutor: TypeSubstitutor) : MemberScope {
-    val substitutor = givenSubstitutor.substitution.wrapWithCapturingSubstitution().buildSubstitutor()
+    val substitutor by lazy { givenSubstitutor.substitution.buildSubstitutor() }
 
+    private val capturingSubstitutor = givenSubstitutor.substitution.wrapWithCapturingSubstitution().buildSubstitutor()
     private var substitutedDescriptors: MutableMap<DeclarationDescriptor, DeclarationDescriptor>? = null
 
     private val _allDescriptors by lazy { substitute(workerScope.getContributedDescriptors()) }
 
     fun substitute(type: KotlinType): KotlinType {
-        if (substitutor.isEmpty) return type
-        return substitutor.safeSubstitute(type) as KotlinType
+        if (capturingSubstitutor.isEmpty) return type
+        return capturingSubstitutor.safeSubstitute(type) as KotlinType
     }
 
     private fun <D : DeclarationDescriptor> substitute(descriptor: D): D {
-        if (substitutor.isEmpty) return descriptor
+        if (capturingSubstitutor.isEmpty) return descriptor
 
         if (substitutedDescriptors == null) {
             substitutedDescriptors = HashMap<DeclarationDescriptor, DeclarationDescriptor>()
@@ -50,7 +51,7 @@ class SubstitutingScope(private val workerScope: MemberScope, givenSubstitutor:
 
         val substituted = substitutedDescriptors!!.getOrPut(descriptor) {
             when (descriptor) {
-                is Substitutable<*> -> descriptor.substitute(substitutor).sure {
+                is Substitutable<*> -> descriptor.substitute(capturingSubstitutor).sure {
                     "We expect that no conflict should happen while substitution is guaranteed to generate invariant projection, " +
                     "but $descriptor substitution fails"
                 }
@@ -63,7 +64,7 @@ class SubstitutingScope(private val workerScope: MemberScope, givenSubstitutor:
     }
 
     private fun <D : DeclarationDescriptor> substitute(descriptors: Collection<D>): Collection<D> {
-        if (substitutor.isEmpty) return descriptors
+        if (capturingSubstitutor.isEmpty) return descriptors
         if (descriptors.isEmpty()) return descriptors
 
         val result = newLinkedHashSetWithExpectedSize<D>(descriptors.size)
@@ -97,7 +98,7 @@ class SubstitutingScope(private val workerScope: MemberScope, givenSubstitutor:
 
         p.println("substitutor = ")
         p.pushIndent()
-        p.println(substitutor)
+        p.println(capturingSubstitutor)
         p.popIndent()
 
         p.print("workerScope = ")