diff --git a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
index dde88a06cbf..f8d08311aed 100644
--- a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
@@ -11965,6 +11965,11 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirOldFronte
                 runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41386.kt");
             }
 
+            @TestMetadata("kt41394.kt")
+            public void testKt41394() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt");
+            }
+
             @TestMetadata("kt4420.kt")
             public void testKt4420() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/inference/regressions/kt4420.kt");
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/VariableFixationFinder.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/VariableFixationFinder.kt
index f0d2f8ff214..b5165624d5a 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/VariableFixationFinder.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/components/VariableFixationFinder.kt
@@ -42,7 +42,8 @@ class VariableFixationFinder(
         WITH_TRIVIAL_OR_NON_PROPER_CONSTRAINTS, // proper trivial constraint from arguments, Nothing <: T
         RELATED_TO_ANY_OUTPUT_TYPE,
         FROM_INCORPORATION_OF_DECLARED_UPPER_BOUND,
-        READY_FOR_FIXATION,
+        READY_FOR_FIXATION_UPPER,
+        READY_FOR_FIXATION_LOWER,
         READY_FOR_FIXATION_REIFIED,
     }
 
@@ -59,7 +60,8 @@ class VariableFixationFinder(
         variableHasOnlyIncorporatedConstraintsFromDeclaredUpperBound(variable) ->
             TypeVariableFixationReadiness.FROM_INCORPORATION_OF_DECLARED_UPPER_BOUND
         isReified(variable) -> TypeVariableFixationReadiness.READY_FOR_FIXATION_REIFIED
-        else -> TypeVariableFixationReadiness.READY_FOR_FIXATION
+        !variableHasLowerProperConstraint(variable) -> TypeVariableFixationReadiness.READY_FOR_FIXATION_UPPER
+        else -> TypeVariableFixationReadiness.READY_FOR_FIXATION_LOWER
     }
 
     fun isTypeVariableHasProperConstraint(context: Context, typeVariable: TypeConstructorMarker): Boolean {
@@ -135,6 +137,13 @@ class VariableFixationFinder(
 
     private fun Context.isReified(variable: TypeConstructorMarker): Boolean =
         notFixedTypeVariables[variable]?.typeVariable?.let { isReified(it) } ?: false
+
+    private fun Context.variableHasLowerProperConstraint(variable: TypeConstructorMarker): Boolean =
+        notFixedTypeVariables[variable]?.constraints?.let { constraints ->
+            constraints.any {
+                it.kind.isLower() && isProperArgumentConstraint(it)
+            }
+        } ?: false
 }
 
 inline fun TypeSystemInferenceExtensionContext.isProperTypeForFixation(
diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt b/compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt
new file mode 100644
index 00000000000..9ec5b6d6359
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt
@@ -0,0 +1,12 @@
+// FIR_IDENTICAL
+// !DIAGNOSTICS: -UNUSED_PARAMETER -UNUSED_ANONYMOUS_PARAMETER
+// !LANGUAGE: +NewInference
+
+fun <T, VR : T> foo(x: T, fn: (VR?/*T?*/, T) -> Unit) {}
+
+fun takeInt(x: Int) {}
+
+fun main(x: Int) {
+    foo(x) { prev: Int?, new -> takeInt(new) } // `new` is `Int` in OI, `Int?` in NI
+    // It seems, `VR` has been fixed to `Int?` instead of `Int`
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt41394.txt b/compiler/testData/diagnostics/tests/inference/regressions/kt41394.txt
new file mode 100644
index 00000000000..6e5c42d8b2c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt41394.txt
@@ -0,0 +1,5 @@
+package
+
+public fun </*0*/ T, /*1*/ VR : T> foo(/*0*/ x: T, /*1*/ fn: (VR?, T) -> kotlin.Unit): kotlin.Unit
+public fun main(/*0*/ x: kotlin.Int): kotlin.Unit
+public fun takeInt(/*0*/ x: kotlin.Int): kotlin.Unit
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index c92cea38c31..a3873696367 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -11972,6 +11972,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTestWithFirVali
                     runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41386.kt");
                 }
 
+                @TestMetadata("kt41394.kt")
+                public void testKt41394() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt");
+                }
+
                 @TestMetadata("kt4420.kt")
                 public void testKt4420() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/inference/regressions/kt4420.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 66b886766bd..0ebbd7f2aa8 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -11967,6 +11967,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                     runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41386.kt");
                 }
 
+                @TestMetadata("kt41394.kt")
+                public void testKt41394() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/regressions/kt41394.kt");
+                }
+
                 @TestMetadata("kt4420.kt")
                 public void testKt4420() throws Exception {
                     runTest("compiler/testData/diagnostics/tests/inference/regressions/kt4420.kt");