diff --git a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/RawType.kt b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/RawType.kt
index 64a75a79c81..d4096c3d105 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/RawType.kt
+++ b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/RawType.kt
@@ -28,7 +28,10 @@ public object RawTypeTag : TypeCapability
 
 public object RawTypeCapabilities : TypeCapabilities {
     private object RawSubstitutionCapability : CustomSubstitutionCapability {
-        override val substitution = RawSubstitution
+        override val substitution: TypeSubstitution?
+            get() = RawSubstitution
+        override val substitutionToComposeWith: TypeSubstitution?
+            get() = RawSubstitution
     }
 
     private object RawFlexibleRendering : CustomFlexibleRendering {
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeCapabilities.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeCapabilities.kt
index a72fbe73c50..68d893afd34 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeCapabilities.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeCapabilities.kt
@@ -99,7 +99,8 @@ public fun sameTypeConstructors(first: KotlinType, second: KotlinType): Boolean
 }
 
 interface CustomSubstitutionCapability : TypeCapability {
-    public val substitution: TypeSubstitution
+    public val substitution: TypeSubstitution?
+    public val substitutionToComposeWith: TypeSubstitution?
 }
 
 interface PossiblyInnerTypeCapability : TypeCapability {
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
index 509a2277788..f8708070911 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeSubstitution.kt
@@ -105,17 +105,11 @@ public fun KotlinType.computeNewSubstitution(
         typeConstructor: TypeConstructor,
         newArguments: List<TypeProjection>
 ): TypeSubstitution {
-    val previousSubstitution = getSubstitution()
-    if (newArguments.isEmpty()) return previousSubstitution
-
     val newSubstitution = TypeConstructorSubstitution.create(typeConstructor, newArguments)
 
     // If previous substitution was trivial just replace it with indexed one
-    if (previousSubstitution is IndexedParametersSubstitution || previousSubstitution.isEmpty()) {
-        return newSubstitution
-    }
-
-    val composedSubstitution = CompositeTypeSubstitution(newSubstitution, previousSubstitution)
+    val substitutionToComposeWith = getCapability<CustomSubstitutionCapability>()?.substitutionToComposeWith ?: return newSubstitution
+    val composedSubstitution = CompositeTypeSubstitution(newSubstitution, substitutionToComposeWith)
 
     return composedSubstitution
 }