diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/AbstractFirOldFrontendDiagnosticsTest.kt b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/AbstractFirOldFrontendDiagnosticsTest.kt
index bdc81d348d3..b8a7352b373 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/AbstractFirOldFrontendDiagnosticsTest.kt
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/AbstractFirOldFrontendDiagnosticsTest.kt
@@ -25,6 +25,7 @@ abstract class AbstractFirOldFrontendDiagnosticsTest : AbstractFirDiagnosticsTes
     }
 
     override fun runAnalysis(testDataFile: File, testFiles: List<TestFile>, firFilesPerSession: Map<FirSession, List<FirFile>>) {
+        if (testFiles.any { it.directives.containsKey("FIR_IGNORE") }) return
         val failure: AssertionError? = try {
             for ((_, firFiles) in firFilesPerSession) {
                 doFirResolveTestBench(firFiles, FirTotalResolveTransformer().transformers, gc = false)
diff --git a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
index 65dfc9b5554..2bf92a94dd9 100644
--- a/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/resolve/tests/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
@@ -8301,6 +8301,11 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirOldFronte
             runTest("compiler/testData/diagnostics/tests/generics/argumentsForT.kt");
         }
 
+        @TestMetadata("bareTypesWithStarProjections.kt")
+        public void testBareTypesWithStarProjections() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt");
+        }
+
         @TestMetadata("commonSupertypeContravariant.kt")
         public void testCommonSupertypeContravariant() throws Exception {
             runTest("compiler/testData/diagnostics/tests/generics/commonSupertypeContravariant.kt");
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/types/TypeUnifier.java b/compiler/frontend/src/org/jetbrains/kotlin/types/TypeUnifier.java
index 97ab4957fc9..564a63b73ef 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/types/TypeUnifier.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/types/TypeUnifier.java
@@ -16,11 +16,9 @@
 
 package org.jetbrains.kotlin.types;
 
-import com.google.common.collect.Maps;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.kotlin.utils.CollectionsKt;
 
-import java.util.HashSet;
 import java.util.List;
 import java.util.Map;
 import java.util.Set;
@@ -100,9 +98,10 @@ public class TypeUnifier {
         }
 
         // Foo ~ X  =>  x |-> Foo
+        // * ~ X => x |-> *
         TypeConstructor maybeVariable = withVariables.getConstructor();
         if (isVariable.test(maybeVariable)) {
-            result.put(maybeVariable, new TypeProjectionImpl(knownProjectionKind, known));
+            result.put(maybeVariable, knownProjection);
             return;
         }
 
diff --git a/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.fir.kt b/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.fir.kt
new file mode 100644
index 00000000000..6c8fcf68cb7
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.fir.kt
@@ -0,0 +1,40 @@
+// SKIP_TXT
+// IGNORE_FIR
+// !CHECK_TYPE
+// !LANGUAGE: +NewInference
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+// !FIR_IGNORE
+
+interface FirMemberDeclaration : FirDeclaration
+interface TypeConstructorMarker
+
+interface FirElement
+interface FirDeclaration : FirElement
+interface FirStatement : FirElement
+interface FirSymbolOwner<E> : FirElement where E : FirSymbolOwner<E>, E : FirDeclaration
+
+interface FirCallableDeclaration<F : FirCallableDeclaration<F>> : FirDeclaration, FirSymbolOwner<F>
+
+interface FirBasedSymbol<E> where E : FirSymbolOwner<E>, E : FirDeclaration
+interface AbstractFirBasedSymbol<E> : FirBasedSymbol<E> where E : FirSymbolOwner<E>, E : FirDeclaration
+
+interface FirVariable<F : FirVariable<F>> : FirCallableDeclaration<F>, FirDeclaration, FirStatement
+
+interface FirCallableSymbol<D : FirCallableDeclaration<D>> : AbstractFirBasedSymbol<D>
+interface FirVariableSymbol<D : FirVariable<D>> : FirCallableSymbol<D>
+interface FirPropertySymbol : FirVariableSymbol<FirProperty>
+
+interface FirCallableMemberDeclaration<F : FirCallableMemberDeclaration<F>> : FirCallableDeclaration<F>, FirMemberDeclaration
+
+interface FirProperty : FirVariable<FirProperty>, FirCallableMemberDeclaration<FirProperty>
+
+fun <D> AbstractFirBasedSymbol<D>.phasedFir(): D where D : FirDeclaration, D : FirSymbolOwner<D> = TODO()
+
+fun foo(coneSymbol: AbstractFirBasedSymbol<*>) {
+    if (coneSymbol !is FirVariableSymbol) return
+    // For bare types, smart cast should be performed to FirVariableSymbol<*> not to FirVariableSymbol<out FirVariable<*>>
+    coneSymbol.phasedFir() checkType { _<FirVariable<*>>() }
+
+    if (coneSymbol !is FirPropertySymbol) return
+    coneSymbol.phasedFir() checkType { _<FirProperty>() }
+}
diff --git a/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt b/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt
new file mode 100644
index 00000000000..6c8fcf68cb7
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt
@@ -0,0 +1,40 @@
+// SKIP_TXT
+// IGNORE_FIR
+// !CHECK_TYPE
+// !LANGUAGE: +NewInference
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+// !FIR_IGNORE
+
+interface FirMemberDeclaration : FirDeclaration
+interface TypeConstructorMarker
+
+interface FirElement
+interface FirDeclaration : FirElement
+interface FirStatement : FirElement
+interface FirSymbolOwner<E> : FirElement where E : FirSymbolOwner<E>, E : FirDeclaration
+
+interface FirCallableDeclaration<F : FirCallableDeclaration<F>> : FirDeclaration, FirSymbolOwner<F>
+
+interface FirBasedSymbol<E> where E : FirSymbolOwner<E>, E : FirDeclaration
+interface AbstractFirBasedSymbol<E> : FirBasedSymbol<E> where E : FirSymbolOwner<E>, E : FirDeclaration
+
+interface FirVariable<F : FirVariable<F>> : FirCallableDeclaration<F>, FirDeclaration, FirStatement
+
+interface FirCallableSymbol<D : FirCallableDeclaration<D>> : AbstractFirBasedSymbol<D>
+interface FirVariableSymbol<D : FirVariable<D>> : FirCallableSymbol<D>
+interface FirPropertySymbol : FirVariableSymbol<FirProperty>
+
+interface FirCallableMemberDeclaration<F : FirCallableMemberDeclaration<F>> : FirCallableDeclaration<F>, FirMemberDeclaration
+
+interface FirProperty : FirVariable<FirProperty>, FirCallableMemberDeclaration<FirProperty>
+
+fun <D> AbstractFirBasedSymbol<D>.phasedFir(): D where D : FirDeclaration, D : FirSymbolOwner<D> = TODO()
+
+fun foo(coneSymbol: AbstractFirBasedSymbol<*>) {
+    if (coneSymbol !is FirVariableSymbol) return
+    // For bare types, smart cast should be performed to FirVariableSymbol<*> not to FirVariableSymbol<out FirVariable<*>>
+    coneSymbol.phasedFir() checkType { _<FirVariable<*>>() }
+
+    if (coneSymbol !is FirPropertySymbol) return
+    coneSymbol.phasedFir() checkType { _<FirProperty>() }
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 8812e7edac4..444c67c36c7 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -8308,6 +8308,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/generics/argumentsForT.kt");
             }
 
+            @TestMetadata("bareTypesWithStarProjections.kt")
+            public void testBareTypesWithStarProjections() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt");
+            }
+
             @TestMetadata("commonSupertypeContravariant.kt")
             public void testCommonSupertypeContravariant() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/commonSupertypeContravariant.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 35d0c0f418d..ca669c2af14 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -8303,6 +8303,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/generics/argumentsForT.kt");
             }
 
+            @TestMetadata("bareTypesWithStarProjections.kt")
+            public void testBareTypesWithStarProjections() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/bareTypesWithStarProjections.kt");
+            }
+
             @TestMetadata("commonSupertypeContravariant.kt")
             public void testCommonSupertypeContravariant() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/generics/commonSupertypeContravariant.kt");