diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
index 933d3031a35..08810f96a64 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxCodegenTestGenerated.java
@@ -23485,6 +23485,12 @@ public class FirLightTreeBlackBoxCodegenTestGenerated extends AbstractFirLightTr
             runTest("compiler/testData/codegen/box/inlineClasses/noReturnTypeManglingJvmNameGeneric.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());
         }
 
+        @Test
+        @TestMetadata("nonImmediateInlineClassUpperBound.kt")
+        public void testNonImmediateInlineClassUpperBound() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt");
+        }
+
         @Test
         @TestMetadata("nullableEqeqNonNull.kt")
         public void testNullableEqeqNonNull() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
index 037082a4011..8ad2ddf90ed 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxCodegenTestGenerated.java
@@ -23485,6 +23485,12 @@ public class FirPsiBlackBoxCodegenTestGenerated extends AbstractFirPsiBlackBoxCo
             runTest("compiler/testData/codegen/box/inlineClasses/noReturnTypeManglingJvmNameGeneric.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());
         }
 
+        @Test
+        @TestMetadata("nonImmediateInlineClassUpperBound.kt")
+        public void testNonImmediateInlineClassUpperBound() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt");
+        }
+
         @Test
         @TestMetadata("nullableEqeqNonNull.kt")
         public void testNullableEqeqNonNull() throws Exception {
diff --git a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/PromisedValue.kt b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/PromisedValue.kt
index f99ab3bcf05..8b314aba104 100644
--- a/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/PromisedValue.kt
+++ b/compiler/ir/backend.jvm/codegen/src/org/jetbrains/kotlin/backend/jvm/codegen/PromisedValue.kt
@@ -7,7 +7,7 @@ package org.jetbrains.kotlin.backend.jvm.codegen
 
 import org.jetbrains.kotlin.backend.jvm.InlineClassAbi
 import org.jetbrains.kotlin.backend.jvm.inlineClassFieldName
-import org.jetbrains.kotlin.backend.jvm.ir.eraseTypeParameters
+import org.jetbrains.kotlin.backend.jvm.ir.eraseIfTypeParameter
 import org.jetbrains.kotlin.backend.jvm.mapping.IrTypeMapper
 import org.jetbrains.kotlin.codegen.AsmUtil
 import org.jetbrains.kotlin.codegen.StackValue
@@ -29,8 +29,8 @@ abstract class PromisedValue(val codegen: ExpressionCodegen, val type: Type, val
     // If this value is immaterial, construct an object on the top of the stack. This
     // must always be done before generating other values or emitting raw bytecode.
     open fun materializeAt(target: Type, irTarget: IrType, castForReified: Boolean) {
-        val erasedSourceType = irType.eraseTypeParameters()
-        val erasedTargetType = irTarget.eraseTypeParameters()
+        val erasedSourceType = irType.eraseIfTypeParameter()
+        val erasedTargetType = irTarget.eraseIfTypeParameter()
 
         // Coerce inline classes
         val isFromTypeUnboxed = InlineClassAbi.unboxType(erasedSourceType)?.let(typeMapper::mapType) == type
diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrTypeUtils.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrTypeUtils.kt
index a2a6b8cb03b..17b75ea5c4c 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrTypeUtils.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/ir/JvmIrTypeUtils.kt
@@ -44,16 +44,7 @@ fun IrType.eraseTypeParameters(): IrType = when (this) {
                 IrSimpleTypeImpl(classifier, nullability, emptyList(), annotations)
             }
             is IrClass -> IrSimpleTypeImpl(classifier, nullability, arguments.map { it.eraseTypeParameters() }, annotations)
-            is IrTypeParameter -> {
-                val upperBound = owner.erasedUpperBound
-                IrSimpleTypeImpl(
-                    upperBound.symbol,
-                    isNullable(),
-                    // Should not affect JVM signature, but may result in an invalid type object
-                    List(upperBound.typeParameters.size) { IrStarProjectionImpl },
-                    owner.annotations
-                )
-            }
+            is IrTypeParameter -> owner.erasedType(isNullable())
             else -> error("Unknown IrSimpleType classifier kind: $owner")
         }
     is IrErrorType ->
@@ -61,6 +52,22 @@ fun IrType.eraseTypeParameters(): IrType = when (this) {
     else -> error("Unknown IrType kind: $this")
 }
 
+fun IrType.eraseIfTypeParameter(): IrType {
+    val typeParameter = (this as? IrSimpleType)?.classifier?.owner as? IrTypeParameter ?: return this
+    return typeParameter.erasedType(isNullable())
+}
+
+private fun IrTypeParameter.erasedType(isNullable: Boolean): IrType {
+    val upperBound = erasedUpperBound
+    return IrSimpleTypeImpl(
+        upperBound.symbol,
+        isNullable,
+        // Should not affect JVM signature, but may result in an invalid type object
+        List(upperBound.typeParameters.size) { IrStarProjectionImpl },
+        annotations
+    )
+}
+
 private fun IrTypeArgument.eraseTypeParameters(): IrTypeArgument = when (this) {
     is IrStarProjection -> this
     is IrTypeProjection -> makeTypeProjection(type.eraseTypeParameters(), variance)
diff --git a/compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt b/compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt
new file mode 100644
index 00000000000..718379ac075
--- /dev/null
+++ b/compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt
@@ -0,0 +1,9 @@
+// TARGET_BACKEND: JVM_IR
+// WITH_STDLIB
+
+@JvmInline
+value class Z(val value: String)
+
+fun <T : U, U : Z> foo(t: T) = t.value
+
+fun box() = foo(Z("OK"))
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
index 292915f39e5..cbcafe19d05 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
@@ -23485,6 +23485,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/inlineClasses/noReturnTypeManglingJvmNameGeneric.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());
         }
 
+        @Test
+        @TestMetadata("nonImmediateInlineClassUpperBound.kt")
+        public void testNonImmediateInlineClassUpperBound() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt");
+        }
+
         @Test
         @TestMetadata("nullableEqeqNonNull.kt")
         public void testNullableEqeqNonNull() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
index bd3fd4d7428..4bff5ae6538 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenWithIrInlinerTestGenerated.java
@@ -23485,6 +23485,12 @@ public class IrBlackBoxCodegenWithIrInlinerTestGenerated extends AbstractIrBlack
             runTest("compiler/testData/codegen/box/inlineClasses/noReturnTypeManglingJvmNameGeneric.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());
         }
 
+        @Test
+        @TestMetadata("nonImmediateInlineClassUpperBound.kt")
+        public void testNonImmediateInlineClassUpperBound() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt");
+        }
+
         @Test
         @TestMetadata("nullableEqeqNonNull.kt")
         public void testNullableEqeqNonNull() throws Exception {
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index a8278e935db..5254844ef2f 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -19618,6 +19618,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/inlineClasses/noReturnTypeManglingJvmNameGeneric.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());
         }
 
+        @TestMetadata("nonImmediateInlineClassUpperBound.kt")
+        public void testNonImmediateInlineClassUpperBound() throws Exception {
+            runTest("compiler/testData/codegen/box/inlineClasses/nonImmediateInlineClassUpperBound.kt");
+        }
+
         @TestMetadata("nullableEqeqNonNull.kt")
         public void testNullableEqeqNonNull() throws Exception {
             runTest("compiler/testData/codegen/box/inlineClasses/nullableEqeqNonNull.kt", TransformersFunctions.getReplaceOptionalJvmInlineAnnotationWithReal());