diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 3e95bd4ac61..d99064b8492 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -19807,6 +19807,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
           runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping.kt");
         }
 
+        @Test
+        @TestMetadata("complexTypeUnwrapping2.kt")
+        public void testComplexTypeUnwrapping2() {
+          runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt");
+        }
+
         @Test
         @TestMetadata("kt61717.kt")
         public void testKt61717() {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index 6ef24c2686a..13b2a3cc796 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -19807,6 +19807,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
           runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping.kt");
         }
 
+        @Test
+        @TestMetadata("complexTypeUnwrapping2.kt")
+        public void testComplexTypeUnwrapping2() {
+          runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt");
+        }
+
         @Test
         @TestMetadata("kt61717.kt")
         public void testKt61717() {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 1bf816f1701..36d7a15308a 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -19801,6 +19801,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
           runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping.kt");
         }
 
+        @Test
+        @TestMetadata("complexTypeUnwrapping2.kt")
+        public void testComplexTypeUnwrapping2() {
+          runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt");
+        }
+
         @Test
         @TestMetadata("kt61717.kt")
         public void testKt61717() {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index b7f2c53f6d5..663f228adf4 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -19807,6 +19807,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
           runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping.kt");
         }
 
+        @Test
+        @TestMetadata("complexTypeUnwrapping2.kt")
+        public void testComplexTypeUnwrapping2() {
+          runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt");
+        }
+
         @Test
         @TestMetadata("kt61717.kt")
         public void testKt61717() {
diff --git a/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.fir.txt b/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.fir.txt
new file mode 100644
index 00000000000..82f03545a10
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.fir.txt
@@ -0,0 +1,23 @@
+FILE: complexTypeUnwrapping2.kt
+    public abstract class AbstractField<out Field : R|AbstractField<Field>|> : R|kotlin/Any| {
+        public constructor<out Field : R|AbstractField<Field>|>(): R|AbstractField<Field>| {
+            super<R|kotlin/Any|>()
+        }
+
+    }
+    public abstract class AbstractElement<Element : R|AbstractElement<Element, Field>|, Field : R|AbstractField<Field>|> : R|kotlin/Any| {
+        public constructor<Element : R|AbstractElement<Element, Field>|, Field : R|AbstractField<Field>|>(): R|AbstractElement<Element, Field>| {
+            super<R|kotlin/Any|>()
+        }
+
+    }
+    public abstract interface ElementOrRef<Element : R|AbstractElement<Element, Field>|, Field : R|AbstractField<Field>|> : R|kotlin/Any| {
+        public abstract val element: R|Element|
+            public get(): R|Element|
+
+    }
+    public final fun elvis(x: R|ElementOrRef<*, *>?|, y: R|ElementOrRef<*, *>?|): R|kotlin/Unit| {
+        lval xElement: R|AbstractElement<out AbstractElement<*, out AbstractField<*>>, out AbstractField<*>>?| = R|<local>/x|?.{ $subj$.R|SubstitutionOverride</ElementOrRef.element: R|CapturedType(*)|>| }
+        lval yElement: R|AbstractElement<out AbstractElement<*, out AbstractField<*>>, out AbstractField<*>>?| = R|<local>/y|?.{ $subj$.R|SubstitutionOverride</ElementOrRef.element: R|CapturedType(*)|>| }
+        lval e: R|AbstractElement<*, out AbstractField<*>>?| = R|<local>/xElement| ?: R|<local>/yElement|
+    }
diff --git a/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt b/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt
new file mode 100644
index 00000000000..f51f10d650f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt
@@ -0,0 +1,17 @@
+// FIR_IDENTICAL
+// ISSUE: KT-63487
+// FIR_DUMP
+
+abstract class AbstractField<out Field : AbstractField<Field>>
+
+abstract class AbstractElement<Element : AbstractElement<Element, Field>, Field : AbstractField<Field>>
+
+interface ElementOrRef<Element : AbstractElement<Element, Field>, Field : AbstractField<Field>> {
+    val element: Element
+}
+
+fun elvis(x: ElementOrRef<*, *>?, y: ElementOrRef<*, *>?) {
+    val xElement = x?.element
+    val yElement = y?.element
+    val e = xElement ?: yElement
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index c75139c5a22..57f51342fb1 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -19807,6 +19807,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
           runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping.kt");
         }
 
+        @Test
+        @TestMetadata("complexTypeUnwrapping2.kt")
+        public void testComplexTypeUnwrapping2() {
+          runTest("compiler/testData/diagnostics/tests/inference/recursiveTypes/complexTypeUnwrapping2.kt");
+        }
+
         @Test
         @TestMetadata("kt61717.kt")
         public void testKt61717() {