diff --git a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/FirJavaFacade.kt b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/FirJavaFacade.kt
index b293f98ad3c..a13caa8019d 100644
--- a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/FirJavaFacade.kt
+++ b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/FirJavaFacade.kt
@@ -175,19 +175,17 @@ abstract class FirJavaFacade(
         // TODO: some (all?) of those loops can be avoided, e.g. we don't actually need to resolve class arguments of annotations
         //   to determine whether they set default nullability - but without laziness, breaking those loops is somewhat hard,
         //   as we have a nested ordering here.
-        for (typeParameter in firJavaClass.typeParameters) {
-            if (typeParameter is FirTypeParameter) {
-                typeParameter.replaceBounds(typeParameter.bounds.map {
-                    it.resolveIfJavaType(session, javaTypeParameterStack, FirJavaTypeConversionMode.TYPE_PARAMETER_BOUND)
-                })
-            }
-        }
+
+        val enhancement = FirSignatureEnhancement(firJavaClass, session) { emptyList() }
+        enhancement.performFirstRoundOfBoundsResolution(firJavaClass.typeParameters)
+
         // 1. Resolve annotations
         // 2. Enhance type parameter bounds - may refer to each other, take default nullability from annotations
         // 3. Enhance super types - may refer to type parameter bounds, take default nullability from annotations
         firJavaClass.annotations.addFromJava(session, javaClass, javaTypeParameterStack)
-        val enhancement = FirSignatureEnhancement(firJavaClass, session) { emptyList() }
-        enhancement.enhanceTypeParameterBounds(firJavaClass.typeParameters)
+
+        enhancement.enhanceTypeParameterBoundsAfterFirstRound(firJavaClass.typeParameters)
+
         val enhancedSuperTypes = buildList {
             val purelyImplementedSupertype = firJavaClass.getPurelyImplementedSupertype()
             val purelyImplementedSupertypeClassId = purelyImplementedSupertype?.classId
diff --git a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/enhancement/SignatureEnhancement.kt b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/enhancement/SignatureEnhancement.kt
index 39c24c3c2d9..2dcbd30d541 100644
--- a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/enhancement/SignatureEnhancement.kt
+++ b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/enhancement/SignatureEnhancement.kt
@@ -68,8 +68,11 @@ class FirSignatureEnhancement(
 
     private val typeQualifierResolver = session.javaAnnotationTypeQualifierResolver
 
-    private val contextQualifiers: JavaTypeQualifiersByElementType? =
+    // This property is assumed to be initialized only after annotations for the class are initialized
+    // While in one of the cases FirSignatureEnhancement is created just one step before annotations resolution
+    private val contextQualifiers: JavaTypeQualifiersByElementType? by lazy(LazyThreadSafetyMode.NONE) {
         typeQualifierResolver.extractDefaultQualifiers(owner)
+    }
 
     private val enhancementsCache = session.enhancedSymbolStorage.cacheByOwner.getValue(owner.symbol, null)
 
@@ -187,7 +190,7 @@ class FirSignatureEnhancement(
         if (firMethod !is FirJavaMethod && firMethod !is FirJavaConstructor) {
             return original
         }
-        enhanceTypeParameterBounds(firMethod.typeParameters)
+        enhanceTypeParameterBoundsForMethod(firMethod)
         return enhanceMethod(firMethod, original.callableId, name)
     }
 
@@ -327,18 +330,22 @@ class FirSignatureEnhancement(
         return function.symbol
     }
 
-    fun enhanceTypeParameterBounds(typeParameters: List<FirTypeParameterRef>) {
+    // Perform first time initialization of bounds with FirResolvedTypeRef instances
+    fun performFirstRoundOfBoundsResolution(typeParameters: List<FirTypeParameterRef>) {
+        for (typeParameter in typeParameters) {
+            if (typeParameter is FirTypeParameter) {
+                typeParameter.replaceBounds(typeParameter.bounds.map {
+                    it.resolveIfJavaType(session, javaTypeParameterStack, FirJavaTypeConversionMode.TYPE_PARAMETER_BOUND)
+                })
+            }
+        }
+    }
+
+    fun enhanceTypeParameterBoundsAfterFirstRound(typeParameters: List<FirTypeParameterRef>) {
         // Type parameters can have interdependencies between them. Assuming that there are no top-level cycles
         // (`A : B, B : A` - invalid), the cycles can still appear when type parameters use each other in argument
         // position (`A : C<B>, B : D<A>` - valid). In this case the precise enhancement of each bound depends on
         // the others' nullability, for which we need to enhance at least its head type constructor.
-        typeParameters.replaceBounds { _, bound ->
-            // Resolve without enhancement so we don't crash the frontend if there is a restricted cycle (`A : B, B : A`)
-            // or if we visit type parameters in the wrong order (`A : B, B : C<A>` with `A` enhanced before `B`).
-            // TODO: the second case technically produces incorrect results - the loop below should visit type parameters
-            //   in topological order, then a resolved-but-not-enhanced type will never be observable with valid code.
-            bound.resolveIfJavaType(session, javaTypeParameterStack, FirJavaTypeConversionMode.TYPE_PARAMETER_BOUND)
-        }
         typeParameters.replaceBounds { typeParameter, bound ->
             enhanceTypeParameterBound(typeParameter, bound, forceOnlyHeadTypeConstructor = true)
         }
@@ -347,6 +354,11 @@ class FirSignatureEnhancement(
         }
     }
 
+    private fun enhanceTypeParameterBoundsForMethod(firMethod: FirFunction) {
+        performFirstRoundOfBoundsResolution(firMethod.typeParameters)
+        enhanceTypeParameterBoundsAfterFirstRound(firMethod.typeParameters)
+    }
+
     private inline fun List<FirTypeParameterRef>.replaceBounds(block: (FirTypeParameter, FirTypeRef) -> FirTypeRef) {
         for (typeParameter in this) {
             if (typeParameter is FirTypeParameter) {