diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ErrorNodeDiagnosticCollectorComponent.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ErrorNodeDiagnosticCollectorComponent.kt
index 139cb41126c..e1268c4d37b 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ErrorNodeDiagnosticCollectorComponent.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/collectors/components/ErrorNodeDiagnosticCollectorComponent.kt
@@ -131,6 +131,13 @@ class ErrorNodeDiagnosticCollectorComponent(
         reportFirDiagnostic(diagnostic, thisReference.source, data)
     }
 
+    override fun visitVarargArgumentsExpression(varargArgumentsExpression: FirVarargArgumentsExpression, data: CheckerContext) {
+        val elementType = varargArgumentsExpression.coneElementTypeOrNull ?: return
+        if (elementType is ConeErrorType) {
+            reportFirDiagnostic(elementType.diagnostic, varargArgumentsExpression.source, data)
+        }
+    }
+
     private fun reportFirDiagnostic(
         diagnostic: ConeDiagnostic,
         source: KtSourceElement?,
diff --git a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrVisitor.kt b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrVisitor.kt
index c26a9158cfc..f02acc2ce51 100644
--- a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrVisitor.kt
+++ b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/Fir2IrVisitor.kt
@@ -540,7 +540,8 @@ class Fir2IrVisitor(
                 startOffset,
                 endOffset,
                 varargArgumentsExpression.resolvedType.toIrType(),
-                varargArgumentsExpression.varargElementType.toIrType(),
+                varargArgumentsExpression.coneElementTypeOrNull?.toIrType()
+                    ?: error("Vararg expression has incorrect type"),
                 varargArgumentsExpression.arguments.map { it.convertToIrVarargElement() }
             )
         }
diff --git a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/javaAnnotationsMapping.kt b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/javaAnnotationsMapping.kt
index 9de7fc901ca..2cedb765206 100644
--- a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/javaAnnotationsMapping.kt
+++ b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/javaAnnotationsMapping.kt
@@ -222,9 +222,7 @@ private fun List<JavaAnnotationArgument>.mapJavaTargetArguments(session: FirSess
             ConeAttributes.Empty
         )
         coneTypeOrNull = elementConeType
-        varargElementType = buildResolvedTypeRef {
-            type = elementConeType.createOutArrayType()
-        }
+        coneElementTypeOrNull = elementConeType.createOutArrayType()
     }
 }
 
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/BodyResolveUtils.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/BodyResolveUtils.kt
index 0c66cc9c4d7..48d6ee375aa 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/BodyResolveUtils.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/BodyResolveUtils.kt
@@ -9,6 +9,7 @@ import org.jetbrains.kotlin.KtFakeSourceElementKind
 import org.jetbrains.kotlin.KtSourceElement
 import org.jetbrains.kotlin.fakeElement
 import org.jetbrains.kotlin.fir.FirSession
+import org.jetbrains.kotlin.fir.copyWithNewSource
 import org.jetbrains.kotlin.fir.declarations.FirValueParameter
 import org.jetbrains.kotlin.fir.diagnostics.ConeSimpleDiagnostic
 import org.jetbrains.kotlin.fir.diagnostics.DiagnosticKind
@@ -38,15 +39,13 @@ internal fun remapArgumentsWithVararg(
     // Create a FirVarargArgumentExpression for the vararg arguments.
     // The order of arguments in the mapping must be preserved for FIR2IR, hence we have to find where the vararg arguments end.
     // FIR2IR uses the mapping order to determine if arguments need to be reordered.
-    val varargParameterTypeRef = varargParameter.returnTypeRef
     val varargElementType = varargArrayType.arrayElementType()?.approximateIntegerLiteralType()
     val argumentList = argumentMapping.keys.toList()
     var indexAfterVarargs = argumentList.size
     val newArgumentMapping = linkedMapOf<FirExpression, FirValueParameter>()
     val varargArgument = buildVarargArgumentsExpression {
-        // TODO: ideally we should use here a source from the use-site and not from the declaration-site, KT-59682
-        this.varargElementType = varargParameterTypeRef.withReplacedConeType(varargElementType, KtFakeSourceElementKind.VarargArgument)
-        this.coneTypeOrNull = varargArrayType
+        coneElementTypeOrNull = varargElementType
+        coneTypeOrNull = varargArrayType
         var startOffset = Int.MAX_VALUE
         var endOffset = 0
         var firstVarargElementSource: KtSourceElement? = null
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirExpressionsResolveTransformer.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirExpressionsResolveTransformer.kt
index dd10bdfae75..c6057a94df8 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirExpressionsResolveTransformer.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/transformers/body/resolve/FirExpressionsResolveTransformer.kt
@@ -1600,7 +1600,7 @@ open class FirExpressionsResolveTransformer(transformer: FirAbstractBodyResolveT
                             i += varargSize
                             source = argument.source
                             coneTypeOrNull = argument.resolvedType
-                            varargElementType = argument.varargElementType
+                            coneElementTypeOrNull = argument.coneElementTypeOrNull
                         }
                     } else {
                         indicesQualifiedAccessForGet[i++]
diff --git a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/FirVarargArgumentsExpression.kt b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/FirVarargArgumentsExpression.kt
index 7fd73868791..86a65a37d50 100644
--- a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/FirVarargArgumentsExpression.kt
+++ b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/FirVarargArgumentsExpression.kt
@@ -11,7 +11,6 @@ package org.jetbrains.kotlin.fir.expressions
 import org.jetbrains.kotlin.KtSourceElement
 import org.jetbrains.kotlin.fir.FirElement
 import org.jetbrains.kotlin.fir.types.ConeKotlinType
-import org.jetbrains.kotlin.fir.types.FirTypeRef
 import org.jetbrains.kotlin.fir.visitors.FirTransformer
 import org.jetbrains.kotlin.fir.visitors.FirVisitor
 
@@ -24,7 +23,7 @@ abstract class FirVarargArgumentsExpression : FirExpression() {
     abstract override val coneTypeOrNull: ConeKotlinType?
     abstract override val annotations: List<FirAnnotation>
     abstract val arguments: List<FirExpression>
-    abstract val varargElementType: FirTypeRef
+    abstract val coneElementTypeOrNull: ConeKotlinType?
 
     override fun <R, D> accept(visitor: FirVisitor<R, D>, data: D): R =
         visitor.visitVarargArgumentsExpression(this, data)
diff --git a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/builder/FirVarargArgumentsExpressionBuilder.kt b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/builder/FirVarargArgumentsExpressionBuilder.kt
index 2c7a3029613..e57d74fead7 100644
--- a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/builder/FirVarargArgumentsExpressionBuilder.kt
+++ b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/builder/FirVarargArgumentsExpressionBuilder.kt
@@ -20,7 +20,6 @@ import org.jetbrains.kotlin.fir.expressions.FirExpression
 import org.jetbrains.kotlin.fir.expressions.FirVarargArgumentsExpression
 import org.jetbrains.kotlin.fir.expressions.impl.FirVarargArgumentsExpressionImpl
 import org.jetbrains.kotlin.fir.types.ConeKotlinType
-import org.jetbrains.kotlin.fir.types.FirTypeRef
 
 @FirBuilderDsl
 class FirVarargArgumentsExpressionBuilder : FirAnnotationContainerBuilder, FirExpressionBuilder {
@@ -28,7 +27,7 @@ class FirVarargArgumentsExpressionBuilder : FirAnnotationContainerBuilder, FirEx
     override var coneTypeOrNull: ConeKotlinType? = null
     override val annotations: MutableList<FirAnnotation> = mutableListOf()
     val arguments: MutableList<FirExpression> = mutableListOf()
-    lateinit var varargElementType: FirTypeRef
+    var coneElementTypeOrNull: ConeKotlinType? = null
 
     override fun build(): FirVarargArgumentsExpression {
         return FirVarargArgumentsExpressionImpl(
@@ -36,14 +35,14 @@ class FirVarargArgumentsExpressionBuilder : FirAnnotationContainerBuilder, FirEx
             coneTypeOrNull,
             annotations.toMutableOrEmpty(),
             arguments,
-            varargElementType,
+            coneElementTypeOrNull,
         )
     }
 
 }
 
 @OptIn(ExperimentalContracts::class)
-inline fun buildVarargArgumentsExpression(init: FirVarargArgumentsExpressionBuilder.() -> Unit): FirVarargArgumentsExpression {
+inline fun buildVarargArgumentsExpression(init: FirVarargArgumentsExpressionBuilder.() -> Unit = {}): FirVarargArgumentsExpression {
     contract {
         callsInPlace(init, InvocationKind.EXACTLY_ONCE)
     }
diff --git a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/impl/FirVarargArgumentsExpressionImpl.kt b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/impl/FirVarargArgumentsExpressionImpl.kt
index 94c67f55998..b504bdb0b1b 100644
--- a/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/impl/FirVarargArgumentsExpressionImpl.kt
+++ b/compiler/fir/tree/gen/org/jetbrains/kotlin/fir/expressions/impl/FirVarargArgumentsExpressionImpl.kt
@@ -18,7 +18,6 @@ import org.jetbrains.kotlin.fir.expressions.FirExpression
 import org.jetbrains.kotlin.fir.expressions.FirVarargArgumentsExpression
 import org.jetbrains.kotlin.fir.expressions.UnresolvedExpressionTypeAccess
 import org.jetbrains.kotlin.fir.types.ConeKotlinType
-import org.jetbrains.kotlin.fir.types.FirTypeRef
 import org.jetbrains.kotlin.fir.visitors.FirTransformer
 import org.jetbrains.kotlin.fir.visitors.FirVisitor
 import org.jetbrains.kotlin.fir.visitors.transformInplace
@@ -30,19 +29,17 @@ internal class FirVarargArgumentsExpressionImpl(
     override var coneTypeOrNull: ConeKotlinType?,
     override var annotations: MutableOrEmptyList<FirAnnotation>,
     override val arguments: MutableList<FirExpression>,
-    override var varargElementType: FirTypeRef,
+    override val coneElementTypeOrNull: ConeKotlinType?,
 ) : FirVarargArgumentsExpression() {
 
     override fun <R, D> acceptChildren(visitor: FirVisitor<R, D>, data: D) {
         annotations.forEach { it.accept(visitor, data) }
         arguments.forEach { it.accept(visitor, data) }
-        varargElementType.accept(visitor, data)
     }
 
     override fun <D> transformChildren(transformer: FirTransformer<D>, data: D): FirVarargArgumentsExpressionImpl {
         transformAnnotations(transformer, data)
         arguments.transformInplace(transformer, data)
-        varargElementType = varargElementType.transform(transformer, data)
         return this
     }
 
diff --git a/compiler/fir/tree/tree-generator/src/org/jetbrains/kotlin/fir/tree/generator/NodeConfigurator.kt b/compiler/fir/tree/tree-generator/src/org/jetbrains/kotlin/fir/tree/generator/NodeConfigurator.kt
index 366e148ae5f..a5789fbc7c5 100644
--- a/compiler/fir/tree/tree-generator/src/org/jetbrains/kotlin/fir/tree/generator/NodeConfigurator.kt
+++ b/compiler/fir/tree/tree-generator/src/org/jetbrains/kotlin/fir/tree/generator/NodeConfigurator.kt
@@ -616,7 +616,7 @@ object NodeConfigurator : AbstractFieldConfigurator<FirTreeBuilder>(FirTreeBuild
 
         varargArgumentsExpression.configure {
             +fieldList("arguments", expression)
-            +field("varargElementType", typeRef)
+            +field("coneElementTypeOrNull", coneKotlinTypeType, nullable = true)
         }
 
         samConversionExpression.configure {
diff --git a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.fir.kt b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.fir.kt
index a06ef229d47..34db412d752 100644
--- a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.fir.kt
@@ -1,13 +1,14 @@
 // !DIAGNOSTICS: -UNUSED_ANONYMOUS_PARAMETER -UNUSED_VARIABLE
+// COMPARE_WITH_LIGHT_TREE
 
-fun <T> select(vararg x: <!CANNOT_INFER_PARAMETER_TYPE, CANNOT_INFER_PARAMETER_TYPE!>T<!>) = x[0]
+fun <T> select(vararg x: T) = x[0]
 fun <K> id(x: K) = x
 
 fun main() {
     val x1 = select<Any?>(id { x, y -> }, { x: Int, y -> })
-    val x2 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(<!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>id<!> { x, <!CANNOT_INFER_PARAMETER_TYPE!>y<!> -> }, { x: Int, <!CANNOT_INFER_PARAMETER_TYPE!>y<!> -> })
+    val x2 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(<!CANNOT_INFER_PARAMETER_TYPE{LT}!><!CANNOT_INFER_PARAMETER_TYPE{PSI}!><!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>id<!> { x, <!CANNOT_INFER_PARAMETER_TYPE!>y<!> -> }<!>, { x: Int, <!CANNOT_INFER_PARAMETER_TYPE!>y<!> -> }<!>)
 
-    val x3 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(<!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>id<!>(fun (x, <!CANNOT_INFER_PARAMETER_TYPE!>y<!>) {}), fun (x: Int, <!CANNOT_INFER_PARAMETER_TYPE!>y<!>) {})
+    val x3 = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(<!CANNOT_INFER_PARAMETER_TYPE{LT}!><!CANNOT_INFER_PARAMETER_TYPE{PSI}!><!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>id<!>(fun (x, <!CANNOT_INFER_PARAMETER_TYPE!>y<!>) {})<!>, fun (x: Int, <!CANNOT_INFER_PARAMETER_TYPE!>y<!>) {}<!>)
 
     val x4 = select<Any?>((fun (x, y) {}), fun (x: Int, y) {})
     val x5 = select<Any?>(id(fun (<!CANNOT_INFER_PARAMETER_TYPE!>x<!>, <!CANNOT_INFER_PARAMETER_TYPE!>y<!>) {}), fun (x: Int, y) {})
diff --git a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.kt b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.kt
index 0ba974cd9af..ee4c859b98f 100644
--- a/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.kt
+++ b/compiler/testData/diagnostics/tests/inference/completion/postponedArgumentsAnalysis/notInferableParameterOfAnonymousFunction.kt
@@ -1,4 +1,5 @@
 // !DIAGNOSTICS: -UNUSED_ANONYMOUS_PARAMETER -UNUSED_VARIABLE
+// COMPARE_WITH_LIGHT_TREE
 
 fun <T> select(vararg x: T) = x[0]
 fun <K> id(x: K) = x
diff --git a/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.fir.kt b/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.fir.kt
index 43b5c4161b2..9930a8c49d1 100644
--- a/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.fir.kt
@@ -1,10 +1,11 @@
 // !DIAGNOSTICS: -UNUSED_VARIABLE -UNUSED_PARAMETER
 // !CHECK_TYPE
+// COMPARE_WITH_LIGHT_TREE
 
 class Inv<I>
 fun <T> materialize(): Inv<T> = TODO()
 fun <K> id(arg: K) = arg
-fun <S> select(vararg args: <!CANNOT_INFER_PARAMETER_TYPE, CANNOT_INFER_PARAMETER_TYPE!>S<!>): S = TODO()
+fun <S> select(vararg args: S): S = TODO()
 
 fun test1(b: Boolean?) {
     val v = when(b) {
@@ -17,7 +18,7 @@ fun test1(b: Boolean?) {
 
 fun test2() {
     <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(
-        <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>materialize<!>()
+        <!CANNOT_INFER_PARAMETER_TYPE!><!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>materialize<!>()<!>
     )
     select(materialize(), materialize<String>())
     select(materialize(), null, Inv<String>())
@@ -26,8 +27,8 @@ fun test2() {
         null
     )<!>
     <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>select<!>(
-        <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>materialize<!>(),
-        materialize()
+        <!CANNOT_INFER_PARAMETER_TYPE{LT}!><!CANNOT_INFER_PARAMETER_TYPE{PSI}!><!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>materialize<!>()<!>,
+        materialize()<!>
     )
     select(
         <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>materialize<!>(),
diff --git a/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.kt b/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.kt
index 33033ff3325..1bb40754161 100644
--- a/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.kt
+++ b/compiler/testData/diagnostics/tests/inference/nothingType/notEnoughInformationAndNothing.kt
@@ -1,5 +1,6 @@
 // !DIAGNOSTICS: -UNUSED_VARIABLE -UNUSED_PARAMETER
 // !CHECK_TYPE
+// COMPARE_WITH_LIGHT_TREE
 
 class Inv<I>
 fun <T> materialize(): Inv<T> = TODO()
diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt2200.fir.kt b/compiler/testData/diagnostics/tests/inference/regressions/kt2200.fir.kt
index f7389bc17e1..d65dcef2264 100644
--- a/compiler/testData/diagnostics/tests/inference/regressions/kt2200.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt2200.fir.kt
@@ -5,7 +5,7 @@ package n
 import checkSubtype
 
 fun main() {
-    val a = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>array<!>(array())
+    val a = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>array<!>(<!CANNOT_INFER_PARAMETER_TYPE!>array()<!>)
     val a0 : Array<Array<Int>> = array(array())
     val a1 = array(array<Int>())
     checkSubtype<Array<Array<Int>>>(a1)
@@ -15,4 +15,4 @@ fun main() {
 
 //from library
 @Suppress("UNCHECKED_CAST")
-fun <T> array(vararg t : <!CANNOT_INFER_PARAMETER_TYPE!>T<!>) : Array<T> = t as Array<T>
+fun <T> array(vararg t : T) : Array<T> = t as Array<T>