diff --git a/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.kt b/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.kt
index db3dca8a5b6..0aac4708d0b 100644
--- a/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.kt
+++ b/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.kt
@@ -13,4 +13,9 @@ inline class TestNullable(val x: <!INLINE_CLASS_CANNOT_BE_RECURSIVE!>TestNullabl
 
 inline class TestRecursionInTypeArguments(val x: List<TestRecursionInTypeArguments>)
 
-inline class TestRecursionInArray(val x: Array<TestRecursionInArray>)
\ No newline at end of file
+inline class TestRecursionInArray(val x: Array<TestRecursionInArray>)
+
+inline class TestRecursionInUpperBounds<T : TestRecursionInUpperBounds<T>>(val x: <!INLINE_CLASS_HAS_INAPPLICABLE_PARAMETER_TYPE!>T<!>)
+
+inline class Id<T>(val x: <!INLINE_CLASS_HAS_INAPPLICABLE_PARAMETER_TYPE!>T<!>)
+inline class TestRecursionThroughId(val x: Id<TestRecursionThroughId>)
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.txt b/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.txt
index 1640a62bb82..17be4a7b7e5 100644
--- a/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.txt
+++ b/compiler/testData/diagnostics/tests/inlineClasses/recursiveInlineClasses.txt
@@ -1,5 +1,13 @@
 package
 
+public final inline class Id</*0*/ T> {
+    public constructor Id</*0*/ T>(/*0*/ x: T)
+    public final val x: T
+    public open override /*1*/ /*synthesized*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*synthesized*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*synthesized*/ fun toString(): kotlin.String
+}
+
 public final inline class Test1 {
     public constructor Test1(/*0*/ x: Test1)
     public final val x: Test1
@@ -71,3 +79,19 @@ public final inline class TestRecursionInTypeArguments {
     public open override /*1*/ /*synthesized*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*synthesized*/ fun toString(): kotlin.String
 }
+
+public final inline class TestRecursionInUpperBounds</*0*/ T : TestRecursionInUpperBounds<T>> {
+    public constructor TestRecursionInUpperBounds</*0*/ T : TestRecursionInUpperBounds<T>>(/*0*/ x: T)
+    public final val x: T
+    public open override /*1*/ /*synthesized*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*synthesized*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*synthesized*/ fun toString(): kotlin.String
+}
+
+public final inline class TestRecursionThroughId {
+    public constructor TestRecursionThroughId(/*0*/ x: Id<TestRecursionThroughId>)
+    public final val x: Id<TestRecursionThroughId>
+    public open override /*1*/ /*synthesized*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*synthesized*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*synthesized*/ fun toString(): kotlin.String
+}
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/inlineClassesUtils.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/inlineClassesUtils.kt
index 49b0422440e..e46f41349b8 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/inlineClassesUtils.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/inlineClassesUtils.kt
@@ -5,10 +5,7 @@
 
 package org.jetbrains.kotlin.resolve
 
-import org.jetbrains.kotlin.descriptors.ClassDescriptor
-import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
-import org.jetbrains.kotlin.descriptors.PropertyDescriptor
-import org.jetbrains.kotlin.descriptors.ValueParameterDescriptor
+import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.incremental.components.NoLookupLocation
 import org.jetbrains.kotlin.types.KotlinType
 import org.jetbrains.kotlin.types.TypeUtils
@@ -37,12 +34,21 @@ fun KotlinType.substitutedUnderlyingType(): KotlinType? {
 fun KotlinType.isRecursiveInlineClassType() =
     isRecursiveInlineClassTypeInner(hashSetOf())
 
-private fun KotlinType.isRecursiveInlineClassTypeInner(visited: HashSet<ClassDescriptor>): Boolean {
-    val descriptor = constructor.declarationDescriptor as? ClassDescriptor ?: return false
-    if (visited.contains(descriptor)) return true
-    if (!descriptor.isInlineClass()) return false
-    visited.add(descriptor)
-    return unsubstitutedUnderlyingType()?.isRecursiveInlineClassTypeInner(visited) ?: false
+private fun KotlinType.isRecursiveInlineClassTypeInner(visited: HashSet<ClassifierDescriptor>): Boolean {
+    val descriptor = constructor.declarationDescriptor?.original ?: return false
+
+    if (!visited.add(descriptor)) return true
+
+    return when (descriptor) {
+        is ClassDescriptor ->
+            descriptor.isInlineClass() &&
+                    unsubstitutedUnderlyingType()?.isRecursiveInlineClassTypeInner(visited) == true
+
+        is TypeParameterDescriptor ->
+            descriptor.upperBounds.any { it.isRecursiveInlineClassTypeInner(visited) }
+
+        else -> false
+    }
 }
 
 fun KotlinType.isNullableUnderlyingType(): Boolean {