diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/substitution/Substitutors.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/substitution/Substitutors.kt
index ade5bba97db..c8e9ac4de75 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/substitution/Substitutors.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/substitution/Substitutors.kt
@@ -5,9 +5,11 @@
 
 package org.jetbrains.kotlin.fir.resolve.substitution
 
+import org.jetbrains.kotlin.fir.resolve.inference.inferenceComponents
 import org.jetbrains.kotlin.fir.symbols.impl.FirTypeParameterSymbol
 import org.jetbrains.kotlin.fir.types.*
 import org.jetbrains.kotlin.fir.types.impl.ConeClassLikeTypeImpl
+import org.jetbrains.kotlin.types.TypeApproximatorConfiguration
 
 abstract class AbstractConeSubstitutor : ConeSubstitutor() {
     private fun wrapProjection(old: ConeTypeProjection, newType: ConeKotlinType): ConeTypeProjection {
@@ -145,6 +147,13 @@ fun ConeSubstitutor.chain(other: ConeSubstitutor): ConeSubstitutor {
 data class ConeSubstitutorByMap(val substitution: Map<FirTypeParameterSymbol, ConeKotlinType>) : AbstractConeSubstitutor() {
     override fun substituteType(type: ConeKotlinType): ConeKotlinType? {
         if (type !is ConeTypeParameterType) return null
-        return substitution[type.lookupTag.symbol].updateNullabilityIfNeeded(type)
+        val result = substitution[type.lookupTag.symbol].updateNullabilityIfNeeded(type) ?: return null
+        val session = type.lookupTag.symbol.fir.session
+        if (type.isUnsafeVarianceType(session)) {
+            return session.inferenceComponents.approximator.approximateToSuperType(
+                result, TypeApproximatorConfiguration.SubtypeCapturedTypesApproximation
+            ) as? ConeKotlinType ?: result
+        }
+        return result
     }
 }
diff --git a/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceWithRecursiveGenerics.fir.kt b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceWithRecursiveGenerics.fir.kt
index e13533974c9..ebdcf4738bc 100644
--- a/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceWithRecursiveGenerics.fir.kt
+++ b/compiler/testData/diagnostics/tests/generics/projectionsScope/unsafeVarianceWithRecursiveGenerics.fir.kt
@@ -6,6 +6,6 @@ internal fun Any.matchesRendering(other: Any): Boolean {
     return when {
         this::class != other::class -> false
         this !is UpdatableRendering<*> -> true
-        else -> this.<!INAPPLICABLE_CANDIDATE!>canUpdateFrom<!>(other as UpdatableRendering<*>)
+        else -> this.canUpdateFrom(other as UpdatableRendering<*>)
     }
 }