diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
index 5f1ec072168..56ed7cdea14 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
@@ -2246,6 +2246,11 @@ public class Fir2IrTextTestGenerated extends AbstractFir2IrTextTest {
             runTest("compiler/testData/ir/irText/types/starProjection_OI.kt");
         }
 
+        @TestMetadata("typeAliasWithUnsafeVariance.kt")
+        public void testTypeAliasWithUnsafeVariance() throws Exception {
+            runTest("compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt");
+        }
+
         @TestMetadata("compiler/testData/ir/irText/types/nullChecks")
         @TestDataPath("$PROJECT_ROOT")
         @RunWith(JUnit3RunnerWithInners.class)
diff --git a/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.kt.txt b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.kt.txt
new file mode 100644
index 00000000000..ad11ecd704c
--- /dev/null
+++ b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.kt.txt
@@ -0,0 +1,51 @@
+typealias Action<RenderingT : Any?> = Function1<RenderingT, Unit>
+data class Tag<out RenderingT : Any?> {
+  constructor(action: Function1<RenderingT, Unit>) /* primary */ {
+    super/*Any*/()
+    /* <init>() */
+
+  }
+
+  val action: Function1<RenderingT, Unit>
+    field = action
+    get
+
+  fun component1(): Function1<RenderingT, Unit> {
+    return <this>.#action
+  }
+
+  fun copy(action: Function1<RenderingT, Unit> = <this>.#action): Tag<RenderingT> {
+    return Tag<Any>(action = action)
+  }
+
+  override fun equals(other: Any?): Boolean {
+    when {
+      EQEQEQ(arg0 = <this>, arg1 = other) -> return true
+    }
+    when {
+      other !is Tag<RenderingT> -> return false
+    }
+    val tmp0_other_with_cast: Tag<RenderingT> = other as Tag<RenderingT>
+    when {
+      EQEQ(arg0 = <this>.#action, arg1 = tmp0_other_with_cast.#action).not() -> return false
+    }
+    return true
+  }
+
+  override fun hashCode(): Int {
+    return <this>.#action.hashCode()
+  }
+
+  override fun toString(): String {
+    return "Tag(" + "action=" + <this>.#action + ")"
+  }
+
+}
+
+fun getTag(): Tag<*> {
+  return throw Exception()
+}
+
+fun doAction() {
+  getTag().<get-action>() /*~> Unit */
+}
diff --git a/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.txt b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.txt
new file mode 100644
index 00000000000..66300117be1
--- /dev/null
+++ b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.fir.txt
@@ -0,0 +1,104 @@
+FILE fqName:<root> fileName:/typeAliasWithUnsafeVariance.kt
+  TYPEALIAS name:Action visibility:public expandedType:kotlin.Function1<RenderingT of <root>.Action, kotlin.Unit>
+    TYPE_PARAMETER name:RenderingT index:0 variance: superTypes:[kotlin.Any?]
+  CLASS CLASS name:Tag modality:FINAL visibility:public [data] superTypes:[kotlin.Any]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+    TYPE_PARAMETER name:RenderingT index:0 variance:out superTypes:[kotlin.Any?]
+    CONSTRUCTOR visibility:public <> (action:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>) returnType:<root>.Tag<RenderingT of <root>.Tag> [primary]
+      VALUE_PARAMETER name:action index:0 type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () [primary] declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Tag modality:FINAL visibility:public [data] superTypes:[kotlin.Any]'
+    PROPERTY name:action visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'action: kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> declared in <root>.Tag.<init>' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-action> visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>
+        correspondingProperty: PROPERTY name:action visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-action> (): kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> declared in <root>.Tag'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.<get-action>' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN name:component1 visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public final fun component1 (): kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> declared in <root>.Tag'
+          GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+            receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.component1' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN name:copy visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>, action:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>) returnType:<root>.Tag<RenderingT of <root>.Tag>
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      VALUE_PARAMETER name:action index:0 type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>
+        EXPRESSION_BODY
+          GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+            receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.copy' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public final fun copy (action: kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>): <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag'
+          CONSTRUCTOR_CALL 'public constructor <init> (action: kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit>) [primary] declared in <root>.Tag' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            <class: RenderingT>: kotlin.Any
+            action: GET_VAR 'action: kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> declared in <root>.Tag.copy' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:equals visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>, other:kotlin.Any?) returnType:kotlin.Boolean
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER GENERATED_DATA_CLASS_MEMBER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      VALUE_PARAMETER GENERATED_DATA_CLASS_MEMBER name:other index:0 type:kotlin.Any?
+      BLOCK_BODY
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: CALL 'public final fun EQEQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EQEQEQ
+              arg0: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+              arg1: GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=true
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: TYPE_OP type=kotlin.Boolean origin=NOT_INSTANCEOF typeOperand=<root>.Tag<RenderingT of <root>.Tag>
+              GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=false
+        VAR IR_TEMPORARY_VARIABLE name:tmp_0 type:<root>.Tag<RenderingT of <root>.Tag> [val]
+          TYPE_OP type=<root>.Tag<RenderingT of <root>.Tag> origin=CAST typeOperand=<root>.Tag<RenderingT of <root>.Tag>
+            GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: CALL 'public final fun not (): kotlin.Boolean [operator] declared in kotlin.Boolean' type=kotlin.Boolean origin=EXCLEQ
+              $this: CALL 'public final fun EQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EXCLEQ
+                arg0: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+                  receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+                arg1: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+                  receiver: GET_VAR 'val tmp_0: <root>.Tag<RenderingT of <root>.Tag> [val] declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=false
+        RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean declared in <root>.Tag'
+          CONST Boolean type=kotlin.Boolean value=true
+    FUN GENERATED_DATA_CLASS_MEMBER name:hashCode visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Int
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER GENERATED_DATA_CLASS_MEMBER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public open fun hashCode (): kotlin.Int declared in <root>.Tag'
+          CALL 'public open fun hashCode (): kotlin.Int [fake_override] declared in kotlin.Function1' type=kotlin.Int origin=null
+            $this: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.hashCode' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:toString visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.String
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER GENERATED_DATA_CLASS_MEMBER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public open fun toString (): kotlin.String declared in <root>.Tag'
+          STRING_CONCATENATION type=kotlin.String
+            CONST String type=kotlin.String value="Tag("
+            CONST String type=kotlin.String value="action="
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> visibility:private [final]' type=kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.toString' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            CONST String type=kotlin.String value=")"
+  FUN name:getTag visibility:public modality:FINAL <> () returnType:<root>.Tag<*>
+    BLOCK_BODY
+      RETURN type=kotlin.Nothing from='public final fun getTag (): <root>.Tag<*> declared in <root>'
+        THROW type=kotlin.Nothing
+          CONSTRUCTOR_CALL 'public constructor <init> () declared in java.lang.Exception' type=java.lang.Exception origin=null
+  FUN name:doAction visibility:public modality:FINAL <> () returnType:kotlin.Unit
+    BLOCK_BODY
+      TYPE_OP type=kotlin.Unit origin=IMPLICIT_COERCION_TO_UNIT typeOperand=kotlin.Unit
+        CALL 'public final fun <get-action> (): kotlin.Function1<RenderingT of <root>.Tag, kotlin.Unit> declared in <root>.Tag' type=kotlin.Function1<kotlin.Nothing, kotlin.Unit> origin=GET_PROPERTY
+          $this: CALL 'public final fun getTag (): <root>.Tag<*> declared in <root>' type=<root>.Tag<*> origin=null
diff --git a/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt
new file mode 100644
index 00000000000..5261aab0215
--- /dev/null
+++ b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt
@@ -0,0 +1,14 @@
+// !LANGUAGE: +NewInference
+
+// KT-42036
+
+typealias Action<RenderingT> = (@UnsafeVariance RenderingT) -> Unit
+// When a typealias is used, the compiler crashes.
+data class Tag<out RenderingT>(val action: Action<RenderingT>)
+// When no typealias is used, the compiler is fine.
+//data class Tag<out RenderingT>(val action: (@UnsafeVariance RenderingT) -> Unit)
+fun getTag(): Tag<*> = throw Exception()
+fun doAction() {
+    // This line crashes the compiler.
+    getTag().action
+}
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt.txt b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt.txt
new file mode 100644
index 00000000000..d62f18582aa
--- /dev/null
+++ b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt.txt
@@ -0,0 +1,51 @@
+typealias Action<RenderingT : Any?> = Function1<@UnsafeVariance RenderingT, Unit>
+data class Tag<out RenderingT : Any?> {
+  constructor(action: Function1<@UnsafeVariance RenderingT, Unit>) /* primary */ {
+    super/*Any*/()
+    /* <init>() */
+
+  }
+
+  val action: Function1<@UnsafeVariance RenderingT, Unit>
+    field = action
+    get
+
+  operator fun component1(): Function1<@UnsafeVariance RenderingT, Unit> {
+    return <this>.#action
+  }
+
+  fun copy(action: Function1<@UnsafeVariance RenderingT, Unit> = <this>.#action): Tag<RenderingT> {
+    return Tag<RenderingT>(action = action)
+  }
+
+  override fun toString(): String {
+    return "Tag(" + "action=" + <this>.#action + ")"
+  }
+
+  override fun hashCode(): Int {
+    return <this>.#action.hashCode()
+  }
+
+  override operator fun equals(other: Any?): Boolean {
+    when {
+      EQEQEQ(arg0 = <this>, arg1 = other) -> return true
+    }
+    when {
+      other !is Tag<RenderingT> -> return false
+    }
+    val tmp0_other_with_cast: Tag<RenderingT> = other as Tag<RenderingT>
+    when {
+      EQEQ(arg0 = <this>.#action, arg1 = tmp0_other_with_cast.#action).not() -> return false
+    }
+    return true
+  }
+
+}
+
+fun getTag(): Tag<*> {
+  throw Exception()
+}
+
+fun doAction() {
+  getTag().<get-action>() /*~> Unit */
+}
diff --git a/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.txt b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.txt
new file mode 100644
index 00000000000..329ceddc9bf
--- /dev/null
+++ b/compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.txt
@@ -0,0 +1,103 @@
+FILE fqName:<root> fileName:/typeAliasWithUnsafeVariance.kt
+  TYPEALIAS name:Action visibility:public expandedType:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Action, kotlin.Unit>
+    TYPE_PARAMETER name:RenderingT index:0 variance: superTypes:[kotlin.Any?]
+  CLASS CLASS name:Tag modality:FINAL visibility:public [data] superTypes:[kotlin.Any]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+    TYPE_PARAMETER name:RenderingT index:0 variance:out superTypes:[kotlin.Any?]
+    CONSTRUCTOR visibility:public <> (action:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }) returnType:<root>.Tag<RenderingT of <root>.Tag> [primary]
+      VALUE_PARAMETER name:action index:0 type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () [primary] declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Tag modality:FINAL visibility:public [data] superTypes:[kotlin.Any]'
+    PROPERTY name:action visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'action: kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } declared in <root>.Tag.<init>' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-action> visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }
+        correspondingProperty: PROPERTY name:action visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-action> (): kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } declared in <root>.Tag'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.<get-action>' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:component1 visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } [operator]
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public final fun component1 (): kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } [operator] declared in <root>.Tag'
+          GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+            receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.component1' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:copy visibility:public modality:FINAL <> ($this:<root>.Tag<RenderingT of <root>.Tag>, action:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }) returnType:<root>.Tag<RenderingT of <root>.Tag>
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      VALUE_PARAMETER name:action index:0 type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }
+        EXPRESSION_BODY
+          GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+            receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.copy' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public final fun copy (action: kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }): <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag'
+          CONSTRUCTOR_CALL 'public constructor <init> (action: kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> }) [primary] declared in <root>.Tag' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            <class: RenderingT>: RenderingT of <root>.Tag
+            action: GET_VAR 'action: kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } declared in <root>.Tag.copy' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:toString visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.String
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public open fun toString (): kotlin.String declared in <root>.Tag'
+          STRING_CONCATENATION type=kotlin.String
+            CONST String type=kotlin.String value="Tag("
+            CONST String type=kotlin.String value="action="
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.toString' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            CONST String type=kotlin.String value=")"
+    FUN GENERATED_DATA_CLASS_MEMBER name:hashCode visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>) returnType:kotlin.Int
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      BLOCK_BODY
+        RETURN type=kotlin.Nothing from='public open fun hashCode (): kotlin.Int declared in <root>.Tag'
+          CALL 'public open fun hashCode (): kotlin.Int [fake_override] declared in kotlin.Function1' type=kotlin.Int origin=null
+            $this: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+              receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.hashCode' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+    FUN GENERATED_DATA_CLASS_MEMBER name:equals visibility:public modality:OPEN <> ($this:<root>.Tag<RenderingT of <root>.Tag>, other:kotlin.Any?) returnType:kotlin.Boolean [operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:<root>.Tag<RenderingT of <root>.Tag>
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+      BLOCK_BODY
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: CALL 'public final fun EQEQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EQEQEQ
+              arg0: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+              arg1: GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=true
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: TYPE_OP type=kotlin.Boolean origin=NOT_INSTANCEOF typeOperand=<root>.Tag<RenderingT of <root>.Tag>
+              GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=false
+        VAR IR_TEMPORARY_VARIABLE name:tmp_0 type:<root>.Tag<RenderingT of <root>.Tag> [val]
+          TYPE_OP type=<root>.Tag<RenderingT of <root>.Tag> origin=CAST typeOperand=<root>.Tag<RenderingT of <root>.Tag>
+            GET_VAR 'other: kotlin.Any? declared in <root>.Tag.equals' type=kotlin.Any? origin=null
+        WHEN type=kotlin.Unit origin=null
+          BRANCH
+            if: CALL 'public final fun not (): kotlin.Boolean [operator] declared in kotlin.Boolean' type=kotlin.Boolean origin=EXCLEQ
+              $this: CALL 'public final fun EQEQ (arg0: kotlin.Any?, arg1: kotlin.Any?): kotlin.Boolean declared in kotlin.internal.ir' type=kotlin.Boolean origin=EXCLEQ
+                arg0: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+                  receiver: GET_VAR '<this>: <root>.Tag<RenderingT of <root>.Tag> declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+                arg1: GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:action type:kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } visibility:private [final]' type=kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } origin=null
+                  receiver: GET_VAR 'val tmp_0: <root>.Tag<RenderingT of <root>.Tag> [val] declared in <root>.Tag.equals' type=<root>.Tag<RenderingT of <root>.Tag> origin=null
+            then: RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in <root>.Tag'
+              CONST Boolean type=kotlin.Boolean value=false
+        RETURN type=kotlin.Nothing from='public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in <root>.Tag'
+          CONST Boolean type=kotlin.Boolean value=true
+  FUN name:getTag visibility:public modality:FINAL <> () returnType:<root>.Tag<*>
+    BLOCK_BODY
+      THROW type=kotlin.Nothing
+        CONSTRUCTOR_CALL 'public constructor <init> () declared in java.lang.Exception' type=java.lang.Exception origin=null
+  FUN name:doAction visibility:public modality:FINAL <> () returnType:kotlin.Unit
+    BLOCK_BODY
+      TYPE_OP type=kotlin.Unit origin=IMPLICIT_COERCION_TO_UNIT typeOperand=kotlin.Unit
+        CALL 'public final fun <get-action> (): kotlin.Function1<@[UnsafeVariance] RenderingT of <root>.Tag, kotlin.Unit>{ <root>.Action<RenderingT of <root>.Tag> } declared in <root>.Tag' type=kotlin.Function1<kotlin.Any?, kotlin.Unit>{ <root>.Action<kotlin.Any?> } origin=GET_PROPERTY
+          $this: CALL 'public final fun getTag (): <root>.Tag<*> declared in <root>' type=<root>.Tag<*> origin=null
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
index 5223278165b..a5a06590a09 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
@@ -2245,6 +2245,11 @@ public class IrTextTestCaseGenerated extends AbstractIrTextTestCase {
             runTest("compiler/testData/ir/irText/types/starProjection_OI.kt");
         }
 
+        @TestMetadata("typeAliasWithUnsafeVariance.kt")
+        public void testTypeAliasWithUnsafeVariance() throws Exception {
+            runTest("compiler/testData/ir/irText/types/typeAliasWithUnsafeVariance.kt");
+        }
+
         @TestMetadata("compiler/testData/ir/irText/types/nullChecks")
         @TestDataPath("$PROJECT_ROOT")
         @RunWith(JUnit3RunnerWithInners.class)