diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
index 361d76d658b..3bb595cc7e2 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirDiagnosticsSmokeTestGenerated.java
@@ -10011,6 +10011,16 @@ public class FirDiagnosticsSmokeTestGenerated extends AbstractFirDiagnosticsSmok
                 runTest("compiler/testData/diagnostics/tests/inference/commonSystem/kt3372toCollection.kt");
             }
 
+            @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation.kt")
+            public void testLessSpecificTypeForArgumentCallWithExactAnnotation() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt");
+            }
+
+            @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt")
+            public void testLessSpecificTypeForArgumentCallWithExactAnnotation_ni() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt");
+            }
+
             @TestMetadata("nestedLambdas.kt")
             public void testNestedLambdas() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/inference/commonSystem/nestedLambdas.kt");
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/KotlinCallCompleter.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/KotlinCallCompleter.kt
index 12e0e5c3982..64ae07b98dc 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/KotlinCallCompleter.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/KotlinCallCompleter.kt
@@ -14,6 +14,7 @@ import org.jetbrains.kotlin.resolve.calls.inference.model.ConstraintStorage.Empt
 import org.jetbrains.kotlin.resolve.calls.inference.model.ExpectedTypeConstraintPosition
 import org.jetbrains.kotlin.resolve.calls.model.*
 import org.jetbrains.kotlin.resolve.calls.tower.forceResolution
+import org.jetbrains.kotlin.resolve.descriptorUtil.hasExactAnnotation
 import org.jetbrains.kotlin.types.ErrorUtils
 import org.jetbrains.kotlin.types.TypeUtils
 import org.jetbrains.kotlin.types.UnwrappedType
@@ -242,14 +243,16 @@ class KotlinCallCompleter(
         val constructor = typeVariable.constructor
         val variableWithConstraints = csBuilder.currentStorage().notFixedTypeVariables[constructor] ?: return false
         val constraints = variableWithConstraints.constraints
-        return constraints.isNotEmpty() && constraints.any {
+        return constraints.isNotEmpty() && constraints.anyOrAll(requireAll = typeVariable.hasExactAnnotation()) {
             !it.type.typeConstructor(context).isIntegerLiteralTypeConstructor(context) &&
                     (it.kind.isLower() || it.kind.isEqual()) &&
                     csBuilder.isProperType(it.type)
         }
-
     }
 
+    private inline fun <T> Iterable<T>.anyOrAll(requireAll: Boolean, p: (T) -> Boolean): Boolean =
+        if (requireAll) all(p) else any(p)
+
     private fun KotlinResolutionCandidate.computeReturnTypeWithSmartCastInfo(
         returnType: UnwrappedType,
         resolutionCallbacks: KotlinResolutionCallbacks
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/kt31969.kt b/compiler/testData/diagnostics/tests/inference/commonSystem/kt31969.kt
index 24beb4355a6..6477411e023 100644
--- a/compiler/testData/diagnostics/tests/inference/commonSystem/kt31969.kt
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/kt31969.kt
@@ -4,7 +4,7 @@
 open class View
 
 fun test() {
-    val target = foo<View>() ?: foo() <!NI;USELESS_ELVIS!>?: run {}<!>
+    val target = foo<View>() ?: foo() ?: run {}
 }
 
 fun <T : View> foo(): T? {
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt
new file mode 100644
index 00000000000..2ef39a49a17
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt
@@ -0,0 +1,17 @@
+// !LANGUAGE: -NewInference
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+interface A
+interface B : A
+interface C : A
+
+@Suppress("INVISIBLE_REFERENCE")
+fun <K> select(x: K, y: K): @kotlin.internal.Exact K = x
+
+fun foo(a: Any) {}
+
+fun test(b: B, c: C) {
+    foo(
+        <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Any")!>select(b, c)<!>
+    )
+}
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.txt b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.txt
new file mode 100644
index 00000000000..02d30ed8689
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.txt
@@ -0,0 +1,23 @@
+package
+
+public fun foo(/*0*/ a: kotlin.Any): kotlin.Unit
+@kotlin.Suppress(names = {"INVISIBLE_REFERENCE"}) public fun </*0*/ K> select(/*0*/ x: K, /*1*/ y: K): K
+public fun test(/*0*/ b: B, /*1*/ c: C): kotlin.Unit
+
+public interface A {
+    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 B : A {
+    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 C : A {
+    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
+}
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt
new file mode 100644
index 00000000000..01900f71d39
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt
@@ -0,0 +1,17 @@
+// !LANGUAGE: +NewInference
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+interface A
+interface B : A
+interface C : A
+
+@Suppress("INVISIBLE_REFERENCE")
+fun <K> select(x: K, y: K): @kotlin.internal.Exact K = x
+
+fun foo(a: Any) {}
+
+fun test(b: B, c: C) {
+    foo(
+        <!DEBUG_INFO_EXPRESSION_TYPE("A")!>select(b, c)<!>
+    )
+}
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.txt b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.txt
new file mode 100644
index 00000000000..02d30ed8689
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.txt
@@ -0,0 +1,23 @@
+package
+
+public fun foo(/*0*/ a: kotlin.Any): kotlin.Unit
+@kotlin.Suppress(names = {"INVISIBLE_REFERENCE"}) public fun </*0*/ K> select(/*0*/ x: K, /*1*/ y: K): K
+public fun test(/*0*/ b: B, /*1*/ c: C): kotlin.Unit
+
+public interface A {
+    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 B : A {
+    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 C : A {
+    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
+}
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation.kt b/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation.kt
index 66f4cee761e..2d1baf24d3e 100644
--- a/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation.kt
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation.kt
@@ -1,4 +1,5 @@
 // !DIAGNOSTICS: -UNUSED_PARAMETER
+// !LANGUAGE: -NewInference
 
 interface ISample
 
diff --git a/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation_ni.kt b/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation_ni.kt
index 19fc23b88aa..756fa69c457 100644
--- a/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation_ni.kt
+++ b/compiler/testData/diagnostics/tests/inference/commonSystem/postponedCompletionWithExactAnnotation_ni.kt
@@ -22,7 +22,7 @@ fun test(nullableSample: ISample, any: Any) {
     )
 
     elvisSimple(
-        <!DEBUG_INFO_EXPRESSION_TYPE("ISample")!>elvisExact(nullableSample, materialize())<!>,
+        <!DEBUG_INFO_EXPRESSION_TYPE("kotlin.Any?")!>elvisExact(nullableSample, materialize())<!>,
         any
     )
 }
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 4ff23e87928..5053c106238 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -10018,6 +10018,16 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                     runTest("compiler/testData/diagnostics/tests/inference/commonSystem/kt3372toCollection.kt");
                 }
 
+                @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation.kt")
+                public void testLessSpecificTypeForArgumentCallWithExactAnnotation() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt");
+                }
+
+                @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt")
+                public void testLessSpecificTypeForArgumentCallWithExactAnnotation_ni() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt");
+                }
+
                 @TestMetadata("nestedLambdas.kt")
                 public void testNestedLambdas() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/inference/commonSystem/nestedLambdas.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 1e9c707b053..31766c56fa8 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -10013,6 +10013,16 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                     runTest("compiler/testData/diagnostics/tests/inference/commonSystem/kt3372toCollection.kt");
                 }
 
+                @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation.kt")
+                public void testLessSpecificTypeForArgumentCallWithExactAnnotation() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation.kt");
+                }
+
+                @TestMetadata("lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt")
+                public void testLessSpecificTypeForArgumentCallWithExactAnnotation_ni() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/commonSystem/lessSpecificTypeForArgumentCallWithExactAnnotation_ni.kt");
+                }
+
                 @TestMetadata("nestedLambdas.kt")
                 public void testNestedLambdas() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/inference/commonSystem/nestedLambdas.kt");