diff --git a/compiler/testData/codegen/box/inlineClasses/kt26103.kt b/compiler/testData/codegen/box/inlineClasses/kt26103.kt
new file mode 100644
index 00000000000..20b515f5a52
--- /dev/null
+++ b/compiler/testData/codegen/box/inlineClasses/kt26103.kt
@@ -0,0 +1,45 @@
+// !LANGUAGE: +InlineClasses
+// WITH_RUNTIME
+// IGNORE_BACKEND: JVM_IR, JS_IR
+
+inline class Bar(val y: Int)
+
+inline class Foo<T>(val x: Int)
+inline class Foo2<T>(val x: Foo<T>)
+inline class Foo3<T>(val x: Bar)
+
+fun testValueParameter(z: Foo<Any>) = z.x
+fun testValueParameter2(z: Foo2<Any>) = z.x.x
+fun testValueParameter3(z: Foo3<Any>) = z.x.y
+
+fun testReturnType(x: Int) = Foo<Any>(x)
+fun testReturnType2(x: Int) = Foo2<Any>(Foo<Any>(x))
+fun testReturnType3(x: Int) = Foo3<Any>(Bar(x))
+
+fun testGenericTypeArgumentInValueParameter(zs: List<Foo<Any>>) = zs[0].x
+fun testGenericTypeArgumentInValueParameter2(zs: List<Foo2<Any>>) = zs[0].x.x
+fun testGenericTypeArgumentInValueParameter3(zs: List<Foo3<Any>>) = zs[0].x.y
+
+fun testGenericTypeArgumentInReturnType(x: Int) = listOf(Foo<Any>(x))
+fun testGenericTypeArgumentInReturnType2(x: Int) = listOf(Foo2(Foo<Any>(x)))
+fun testGenericTypeArgumentInReturnType3(x: Int) = listOf(Foo3<Any>(Bar(x)))
+
+fun box(): String {
+    if (testValueParameter(Foo(42)) != 42) throw AssertionError()
+    if (testValueParameter2(Foo2(Foo<Any>(42))) != 42) throw AssertionError()
+    if (testValueParameter3(Foo3(Bar(42))) != 42) throw AssertionError()
+
+    if (testReturnType(42).x != 42) throw AssertionError()
+    if (testReturnType2(42).x.x != 42) throw AssertionError()
+    if (testReturnType3(42).x.y != 42) throw AssertionError()
+
+    if (testGenericTypeArgumentInValueParameter(listOf(Foo<Any>(42))) != 42) throw AssertionError()
+    if (testGenericTypeArgumentInValueParameter2(listOf(Foo2(Foo<Any>(42)))) != 42) throw AssertionError()
+    if (testGenericTypeArgumentInValueParameter3(listOf(Foo3<Any>(Bar(42)))) != 42) throw AssertionError()
+
+    if (testGenericTypeArgumentInReturnType(42)[0].x != 42) throw AssertionError()
+    if (testGenericTypeArgumentInReturnType2(42)[0].x.x != 42) throw AssertionError()
+    if (testGenericTypeArgumentInReturnType3(42)[0].x.y != 42) throw AssertionError()
+
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/box/inlineClasses/kt26103_original.kt b/compiler/testData/codegen/box/inlineClasses/kt26103_original.kt
new file mode 100644
index 00000000000..22c0f5efc6d
--- /dev/null
+++ b/compiler/testData/codegen/box/inlineClasses/kt26103_original.kt
@@ -0,0 +1,13 @@
+// !LANGUAGE: +InlineClasses
+// WITH_RUNTIME
+// IGNORE_BACKEND: JVM_IR
+
+inline class Foo<T>(val x: Int)
+
+class Bar(val y: Foo<Any>)
+
+fun box(): String {
+    if (Bar(Foo<Any>(42)).y.x != 42) throw AssertionError()
+
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 8e0e7ab0dec..bd63770b1e8 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -11548,6 +11548,16 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/inlineClasses/kt25771.kt");
         }
 
+        @TestMetadata("kt26103.kt")
+        public void testKt26103() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103.kt");
+        }
+
+        @TestMetadata("kt26103_original.kt")
+        public void testKt26103_original() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103_original.kt");
+        }
+
         @TestMetadata("noAssertionsOnInlineClassBasedOnNullableType.kt")
         public void testNoAssertionsOnInlineClassBasedOnNullableType() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/noAssertionsOnInlineClassBasedOnNullableType.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 33a7be294f8..abec48634f4 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -11548,6 +11548,16 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/inlineClasses/kt25771.kt");
         }
 
+        @TestMetadata("kt26103.kt")
+        public void testKt26103() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103.kt");
+        }
+
+        @TestMetadata("kt26103_original.kt")
+        public void testKt26103_original() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103_original.kt");
+        }
+
         @TestMetadata("noAssertionsOnInlineClassBasedOnNullableType.kt")
         public void testNoAssertionsOnInlineClassBasedOnNullableType() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/noAssertionsOnInlineClassBasedOnNullableType.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index 3690d42e33d..733e8c865f8 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -11548,6 +11548,16 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/inlineClasses/kt25771.kt");
         }
 
+        @TestMetadata("kt26103.kt")
+        public void testKt26103() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103.kt");
+        }
+
+        @TestMetadata("kt26103_original.kt")
+        public void testKt26103_original() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103_original.kt");
+        }
+
         @TestMetadata("noAssertionsOnInlineClassBasedOnNullableType.kt")
         public void testNoAssertionsOnInlineClassBasedOnNullableType() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/noAssertionsOnInlineClassBasedOnNullableType.kt");
diff --git a/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/TypeMappingMode.kt b/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/TypeMappingMode.kt
index d2b80c61040..cd87a1f6a17 100644
--- a/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/TypeMappingMode.kt
+++ b/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/TypeMappingMode.kt
@@ -103,6 +103,13 @@ class TypeMappingMode private constructor(
         ): TypeMappingMode {
             if (type.arguments.isEmpty()) return DEFAULT
 
+            if (type.isInlineClassType() && shouldUseUnderlyingType(type)) {
+                val underlyingType = computeUnderlyingType(type)
+                if (underlyingType != null) {
+                    return getOptimalModeForSignaturePart(underlyingType, isForAnnotationParameter, canBeUsedInSupertypePosition)
+                }
+            }
+
             val contravariantArgumentMode =
                 if (!canBeUsedInSupertypePosition)
                     TypeMappingMode(
diff --git a/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/typeSignatureMapping.kt b/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/typeSignatureMapping.kt
index b4d40669471..800530acfde 100644
--- a/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/typeSignatureMapping.kt
+++ b/core/descriptors.jvm/src/org/jetbrains/kotlin/load/kotlin/typeSignatureMapping.kt
@@ -240,7 +240,7 @@ private fun <T : Any> mapBuiltInType(
     return null
 }
 
-private fun computeUnderlyingType(inlineClassType: KotlinType): KotlinType? {
+internal fun computeUnderlyingType(inlineClassType: KotlinType): KotlinType? {
     if (!shouldUseUnderlyingType(inlineClassType)) return null
 
     val descriptor = inlineClassType.unsubstitutedUnderlyingType()?.constructor?.declarationDescriptor ?: return null
@@ -250,7 +250,7 @@ private fun computeUnderlyingType(inlineClassType: KotlinType): KotlinType? {
         inlineClassType.substitutedUnderlyingType()
 }
 
-private fun shouldUseUnderlyingType(inlineClassType: KotlinType): Boolean {
+internal fun shouldUseUnderlyingType(inlineClassType: KotlinType): Boolean {
     val underlyingType = inlineClassType.unsubstitutedUnderlyingType() ?: return false
 
     return !inlineClassType.isMarkedNullable ||
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/IrJsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/IrJsCodegenBoxTestGenerated.java
index 32963b899e2..b8c601f20e0 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/IrJsCodegenBoxTestGenerated.java
@@ -10118,6 +10118,16 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/inlineClasses/kt25771.kt");
         }
 
+        @TestMetadata("kt26103.kt")
+        public void testKt26103() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103.kt");
+        }
+
+        @TestMetadata("kt26103_original.kt")
+        public void testKt26103_original() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103_original.kt");
+        }
+
         @TestMetadata("noAssertionsOnInlineClassBasedOnNullableType.kt")
         public void testNoAssertionsOnInlineClassBasedOnNullableType() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/noAssertionsOnInlineClassBasedOnNullableType.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index 7158642e175..0617a3bc43f 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -11173,6 +11173,16 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             runTest("compiler/testData/codegen/box/inlineClasses/kt25771.kt");
         }
 
+        @TestMetadata("kt26103.kt")
+        public void testKt26103() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103.kt");
+        }
+
+        @TestMetadata("kt26103_original.kt")
+        public void testKt26103_original() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/kt26103_original.kt");
+        }
+
         @TestMetadata("noAssertionsOnInlineClassBasedOnNullableType.kt")
         public void testNoAssertionsOnInlineClassBasedOnNullableType() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/noAssertionsOnInlineClassBasedOnNullableType.kt");