diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
index 26fecc4b0cb..fdab662b4f1 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosisCompilerTestFE10TestdataTestGenerated.java
@@ -14220,9 +14220,21 @@ public class DiagnosisCompilerTestFE10TestdataTestGenerated extends AbstractDiag
                 }
 
                 @Test
-                @TestMetadata("kt47986.kt")
-                public void testKt47986() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt");
+                @TestMetadata("kt47986Default.kt")
+                public void testKt47986Default() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Disabled.kt")
+                public void testKt47986Disabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Enabled.kt")
+                public void testKt47986Enabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt");
                 }
 
                 @Test
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
index 2de5921e43a..aaa45f61a06 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsTestGenerated.java
@@ -14220,9 +14220,21 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirDiagnosti
                 }
 
                 @Test
-                @TestMetadata("kt47986.kt")
-                public void testKt47986() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt");
+                @TestMetadata("kt47986Default.kt")
+                public void testKt47986Default() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Disabled.kt")
+                public void testKt47986Disabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Enabled.kt")
+                public void testKt47986Enabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt");
                 }
 
                 @Test
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
index 417263fc525..dc473f2d5ac 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirOldFrontendDiagnosticsWithLightTreeTestGenerated.java
@@ -14220,9 +14220,21 @@ public class FirOldFrontendDiagnosticsWithLightTreeTestGenerated extends Abstrac
                 }
 
                 @Test
-                @TestMetadata("kt47986.kt")
-                public void testKt47986() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt");
+                @TestMetadata("kt47986Default.kt")
+                public void testKt47986Default() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Disabled.kt")
+                public void testKt47986Disabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Enabled.kt")
+                public void testKt47986Enabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt");
                 }
 
                 @Test
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index fc000e85849..ad493c62bc3 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -890,6 +890,7 @@ public interface Errors {
 
     DiagnosticFactory1<PsiElement, InferenceErrorData> TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER = DiagnosticFactory1.create(ERROR);
     DiagnosticFactory1<PsiElement, String> NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER = DiagnosticFactory1.create(ERROR);
+    DiagnosticFactory1<PsiElement, String> INFERRED_INTO_DECLARED_UPPER_BOUNDS = DiagnosticFactory1.create(WARNING);
     DiagnosticFactory1<PsiElement, String> COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE = DiagnosticFactory1.create(ERROR);
 
     DiagnosticFactory1<PsiElement, InferenceErrorData> TYPE_INFERENCE_CONFLICTING_SUBSTITUTIONS = DiagnosticFactory1.create(ERROR);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index 20cfb2a9388..5f445f0b28b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -959,6 +959,8 @@ public class DefaultErrorMessages {
         MAP.put(TYPE_INFERENCE_CANNOT_CAPTURE_TYPES, "Type inference failed: {0}", TYPE_INFERENCE_CANNOT_CAPTURE_TYPES_RENDERER);
         MAP.put(TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER, "Type inference failed: {0}", TYPE_INFERENCE_NO_INFORMATION_FOR_PARAMETER_RENDERER);
         MAP.put(NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER, "Not enough information to infer type variable {0}", STRING);
+        MAP.put(INFERRED_INTO_DECLARED_UPPER_BOUNDS, "Type parameter for a type argument {0} can''t be inferred into declared upper bounds. " +
+                                                     "Please provide any use-site type information. It will become an error in future releases.", STRING);
         MAP.put(COULD_BE_INFERRED_ONLY_WITH_UNRESTRICTED_BUILDER_INFERENCE, "Builder inference lambda contains inapplicable calls so {0} can''t be inferred. It could be resolved only with unrestricted builder inference. Please use -Xunrestricted-builder-inference compiler flag to enable it.", STRING);
 
         MAP.put(TYPE_INFERENCE_PARAMETER_CONSTRAINT_ERROR, "Type inference failed: {0}", TYPE_INFERENCE_PARAMETER_CONSTRAINT_ERROR_RENDERER);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
index a875767ab4a..33eee647e12 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/DiagnosticReporterByTrackingStrategy.kt
@@ -541,6 +541,22 @@ class DiagnosticReporterByTrackingStrategy(
                 }
             }
 
+            InferredIntoDeclaredUpperBounds::class.java -> {
+                error as InferredIntoDeclaredUpperBounds
+
+                val psiCall = psiKotlinCall.psiCall
+                val expression = if (psiCall is CallTransformer.CallForImplicitInvoke) {
+                    psiCall.outerCall.calleeExpression
+                } else {
+                    psiCall.calleeExpression
+                } ?: return
+                val typeVariable = error.typeVariable as? TypeVariableFromCallableDescriptor ?: return
+
+                trace.reportDiagnosticOnce(
+                    INFERRED_INTO_DECLARED_UPPER_BOUNDS.on(expression, typeVariable.originalTypeParameter.name.asString())
+                )
+            }
+
             NotEnoughInformationForTypeParameterImpl::class.java -> {
                 error as NotEnoughInformationForTypeParameterImpl
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/BuilderInferenceSession.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/BuilderInferenceSession.kt
index fc285ce22ea..c73481754b0 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/BuilderInferenceSession.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/inference/BuilderInferenceSession.kt
@@ -6,6 +6,7 @@
 package org.jetbrains.kotlin.resolve.calls.inference
 
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
 import org.jetbrains.kotlin.descriptors.impl.AnonymousFunctionDescriptor
@@ -34,7 +35,6 @@ import org.jetbrains.kotlin.types.*
 import org.jetbrains.kotlin.types.checker.NewCapturedType
 import org.jetbrains.kotlin.types.expressions.DoubleColonExpressionResolver
 import org.jetbrains.kotlin.types.expressions.ExpressionTypingServices
-import org.jetbrains.kotlin.types.model.freshTypeConstructor
 import org.jetbrains.kotlin.types.model.safeSubstitute
 import org.jetbrains.kotlin.types.typeUtil.asTypeProjection
 import org.jetbrains.kotlin.types.typeUtil.contains
@@ -589,10 +589,15 @@ class BuilderInferenceSession(
 
         if (lowerSubstituted == a && upperSubstituted == b) return this
 
-        val resultingPosition = if (upperSubstituted == b && position is DeclaredUpperBoundConstraintPosition<*>) {
+        val isInferringIntoUpperBoundsForbidden = expressionTypingServices.languageVersionSettings.supportsFeature(
+            LanguageFeature.ForbidInferringPostponedTypeVariableIntoDeclaredUpperBound
+        )
+        val isFromNotSubstitutedDeclaredUpperBound = upperSubstituted == b && position is DeclaredUpperBoundConstraintPosition<*>
+
+        val resultingPosition = if (isFromNotSubstitutedDeclaredUpperBound && isInferringIntoUpperBoundsForbidden) {
             position
         } else {
-            BuilderInferenceSubstitutionConstraintPositionImpl(lambdaArgument, this)
+            BuilderInferenceSubstitutionConstraintPositionImpl(lambdaArgument, this, isFromNotSubstitutedDeclaredUpperBound)
         }
 
         return InitialConstraint(
diff --git a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
index 7a8e61d2813..48546e47f7a 100644
--- a/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
+++ b/compiler/resolution.common/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrors.kt
@@ -24,8 +24,11 @@ abstract class InjectedAnotherStubTypeConstraintPosition<T>(private val builderI
     override fun toString(): String = "Injected from $builderInferenceLambdaOfInjectedStubType builder inference call"
 }
 
-abstract class BuilderInferenceSubstitutionConstraintPosition<L, I>(private val builderInferenceLambda: L, val initialConstraint: I) :
-    ConstraintPosition(), OnlyInputTypeConstraintPosition {
+abstract class BuilderInferenceSubstitutionConstraintPosition<L, I>(
+    private val builderInferenceLambda: L,
+    val initialConstraint: I,
+    val isFromNotSubstitutedDeclaredUpperBound: Boolean = false
+) : ConstraintPosition(), OnlyInputTypeConstraintPosition {
     override fun toString(): String = "Incorporated builder inference constraint $initialConstraint " +
             "into $builderInferenceLambda call"
 }
@@ -128,6 +131,8 @@ open class NotEnoughInformationForTypeParameter<T>(
     val couldBeResolvedWithUnrestrictedBuilderInference: Boolean
 ) : ConstraintSystemError(INAPPLICABLE)
 
+class InferredIntoDeclaredUpperBounds(val typeVariable: TypeVariableMarker) : ConstraintSystemError(RESOLVED)
+
 class ConstrainingTypeIsError(
     val typeVariable: TypeVariableMarker,
     val constraintType: KotlinTypeMarker,
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
index 82af42268a3..55a36da9635 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/components/KotlinConstraintSystemCompleter.kt
@@ -150,8 +150,11 @@ class KotlinConstraintSystemCompleter(
                 continue
 
             // Stage 6: fix next ready type variable with proper constraints
-            if (fixNextReadyVariable(completionMode, topLevelAtoms, topLevelType, collectVariablesFromContext, postponedArguments))
-                continue
+            if (
+                fixNextReadyVariable(
+                    completionMode, topLevelAtoms, topLevelType, collectVariablesFromContext, postponedArguments, diagnosticsHolder
+                )
+            ) continue
 
             // Stage 7: try to complete call with the builder inference if there are uninferred type variables
             val areThereAppearedProperConstraintsForSomeVariable = tryToCompleteWithBuilderInference(
@@ -272,6 +275,7 @@ class KotlinConstraintSystemCompleter(
         topLevelType: UnwrappedType,
         collectVariablesFromContext: Boolean,
         postponedArguments: List<PostponedResolvedAtom>,
+        diagnosticsHolder: KotlinDiagnosticsHolder
     ): Boolean {
         val variableForFixation = variableFixationFinder.findFirstVariableForFixation(
             this,
@@ -283,7 +287,7 @@ class KotlinConstraintSystemCompleter(
 
         if (!variableForFixation.hasProperConstraint) return false
 
-        fixVariable(this, notFixedTypeVariables.getValue(variableForFixation.variable), topLevelAtoms)
+        fixVariable(this, notFixedTypeVariables.getValue(variableForFixation.variable), topLevelAtoms, diagnosticsHolder)
 
         return true
     }
@@ -405,20 +409,41 @@ class KotlinConstraintSystemCompleter(
     private fun fixVariable(
         c: ConstraintSystemCompletionContext,
         variableWithConstraints: VariableWithConstraints,
-        topLevelAtoms: List<ResolvedAtom>
+        topLevelAtoms: List<ResolvedAtom>,
+        diagnosticsHolder: KotlinDiagnosticsHolder
     ) {
-        fixVariable(c, variableWithConstraints, TypeVariableDirectionCalculator.ResolveDirection.UNKNOWN, topLevelAtoms)
+        fixVariable(c, variableWithConstraints, TypeVariableDirectionCalculator.ResolveDirection.UNKNOWN, topLevelAtoms, diagnosticsHolder)
+    }
+
+    private fun reportWarningIfFixedIntoDeclaredUpperBounds(
+        diagnosticsHolder: KotlinDiagnosticsHolder,
+        variableWithConstraints: VariableWithConstraints
+    ) {
+        val areAllConstraintFromDeclaredUpperBounds = variableWithConstraints.constraints.all {
+            val position = it.position.from
+            position is BuilderInferenceSubstitutionConstraintPosition<*, *> && position.isFromNotSubstitutedDeclaredUpperBound
+        }
+
+        if (areAllConstraintFromDeclaredUpperBounds) {
+            diagnosticsHolder.addDiagnostic(
+                KotlinConstraintSystemDiagnostic(InferredIntoDeclaredUpperBounds(variableWithConstraints.typeVariable))
+            )
+        }
     }
 
     private fun fixVariable(
         c: ConstraintSystemCompletionContext,
         variableWithConstraints: VariableWithConstraints,
         direction: TypeVariableDirectionCalculator.ResolveDirection,
-        topLevelAtoms: List<ResolvedAtom>
+        topLevelAtoms: List<ResolvedAtom>,
+        diagnosticsHolder: KotlinDiagnosticsHolder
     ) {
         val resultType = resultTypeResolver.findResultType(c, variableWithConstraints, direction)
         val variable = variableWithConstraints.typeVariable
         val resolvedAtom = findResolvedAtomBy(variable, topLevelAtoms) ?: topLevelAtoms.firstOrNull()
+
+        reportWarningIfFixedIntoDeclaredUpperBounds(diagnosticsHolder, variableWithConstraints)
+
         c.fixVariable(variable, resultType, FixVariableConstraintPositionImpl(variable, resolvedAtom))
     }
 
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
index 8cb7b3ea56c..ec4d70d3898 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/inference/model/ConstraintPositionAndErrorsImpl.kt
@@ -7,7 +7,6 @@ package org.jetbrains.kotlin.resolve.calls.inference.model
 
 import org.jetbrains.kotlin.descriptors.TypeParameterDescriptor
 import org.jetbrains.kotlin.resolve.calls.model.*
-import org.jetbrains.kotlin.resolve.scopes.receivers.DetailedReceiver
 import org.jetbrains.kotlin.types.KotlinType
 import org.jetbrains.kotlin.types.model.TypeVariableMarker
 
@@ -19,9 +18,11 @@ class InjectedAnotherStubTypeConstraintPositionImpl(builderInferenceLambdaOfInje
     InjectedAnotherStubTypeConstraintPosition<LambdaKotlinCallArgument>(builderInferenceLambdaOfInjectedStubType)
 
 class BuilderInferenceSubstitutionConstraintPositionImpl(
-    builderInferenceLambda: LambdaKotlinCallArgument, initialConstraint: InitialConstraint
+    builderInferenceLambda: LambdaKotlinCallArgument,
+    initialConstraint: InitialConstraint,
+    isFromNotSubstitutedDeclaredUpperBound: Boolean = false
 ) : BuilderInferenceSubstitutionConstraintPosition<LambdaKotlinCallArgument, InitialConstraint>(
-    builderInferenceLambda, initialConstraint
+    builderInferenceLambda, initialConstraint, isFromNotSubstitutedDeclaredUpperBound
 )
 
 class ExpectedTypeConstraintPositionImpl(topLevelCall: KotlinCall) : ExpectedTypeConstraintPosition<KotlinCall>(topLevelCall)
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.diag.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.diag.txt
new file mode 100644
index 00000000000..b8ba78cd71b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.diag.txt
@@ -0,0 +1,12 @@
+/kt47986Default.kt:4:18: warning: parameter 'builderAction' is never used
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+                 ^
+/kt47986Default.kt:6:20: warning: parameter 'x' is never used
+fun <K> Foo<K>.bar(x: Int = 1) {}
+                   ^
+/kt47986Default.kt:9:9: warning: variable 'x' is never used
+    val x = buildFoo {
+        ^
+/kt47986Default.kt:9:13: warning: type parameter for a type argument K can't be inferred into declared upper bounds. Please provide any use-site type information. It will become an error in future releases.
+    val x = buildFoo {
+            ^
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.fir.kt
similarity index 86%
rename from compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt
rename to compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.fir.kt
index 5544b6bfa77..8c003d5c18c 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.fir.kt
@@ -1,4 +1,4 @@
-// FIR_IDENTICAL
+// !RENDER_DIAGNOSTICS_FULL_TEXT
 class Foo<K>
 
 fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
@@ -9,4 +9,4 @@ fun main() {
     val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> {
         bar()
     }
-}
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt
new file mode 100644
index 00000000000..267a0a94885
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt
@@ -0,0 +1,12 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <K> Foo<K>.bar(x: Int = 1) {}
+
+fun main() {
+    val x = <!INFERRED_INTO_DECLARED_UPPER_BOUNDS!>buildFoo<!> {
+        bar()
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.txt
similarity index 100%
rename from compiler/testData/diagnostics/tests/inference/builderInference/kt47986.txt
rename to compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.txt
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.diag.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.diag.txt
new file mode 100644
index 00000000000..026f85a9c3d
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.diag.txt
@@ -0,0 +1,12 @@
+/kt47986Disabled.kt:5:18: warning: parameter 'builderAction' is never used
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+                 ^
+/kt47986Disabled.kt:7:20: warning: parameter 'x' is never used
+fun <K> Foo<K>.bar(x: Int = 1) {}
+                   ^
+/kt47986Disabled.kt:10:9: warning: variable 'x' is never used
+    val x = buildFoo {
+        ^
+/kt47986Disabled.kt:10:13: warning: type parameter for a type argument K can't be inferred into declared upper bounds. Please provide any use-site type information. It will become an error in future releases.
+    val x = buildFoo {
+            ^
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.fir.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.fir.kt
new file mode 100644
index 00000000000..d895b2cd999
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.fir.kt
@@ -0,0 +1,13 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
+// !LANGUAGE: -ForbidInferringPostponedTypeVariableIntoDeclaredUpperBound
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <K> Foo<K>.bar(x: Int = 1) {}
+
+fun main() {
+    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> {
+        bar()
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt
new file mode 100644
index 00000000000..82f812ee532
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt
@@ -0,0 +1,13 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
+// !LANGUAGE: -ForbidInferringPostponedTypeVariableIntoDeclaredUpperBound
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <K> Foo<K>.bar(x: Int = 1) {}
+
+fun main() {
+    val x = <!INFERRED_INTO_DECLARED_UPPER_BOUNDS!>buildFoo<!> {
+        bar()
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.txt
new file mode 100644
index 00000000000..e524080b34f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.txt
@@ -0,0 +1,12 @@
+package
+
+public fun </*0*/ K> buildFoo(/*0*/ builderAction: Foo<K>.() -> kotlin.Unit): Foo<K>
+public fun main(): kotlin.Unit
+public fun </*0*/ K> Foo<K>.bar(/*0*/ x: kotlin.Int = ...): kotlin.Unit
+
+public final class Foo</*0*/ K> {
+    public constructor Foo</*0*/ K>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt
new file mode 100644
index 00000000000..f83115cf0f8
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt
@@ -0,0 +1,13 @@
+// FIR_IDENTICAL
+// !LANGUAGE: +ForbidInferringPostponedTypeVariableIntoDeclaredUpperBound
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <K> Foo<K>.bar(x: Int = 1) {}
+
+fun main() {
+    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> {
+        bar()
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.txt
new file mode 100644
index 00000000000..e524080b34f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.txt
@@ -0,0 +1,12 @@
+package
+
+public fun </*0*/ K> buildFoo(/*0*/ builderAction: Foo<K>.() -> kotlin.Unit): Foo<K>
+public fun main(): kotlin.Unit
+public fun </*0*/ K> Foo<K>.bar(/*0*/ x: kotlin.Int = ...): kotlin.Unit
+
+public final class Foo</*0*/ K> {
+    public constructor Foo</*0*/ K>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.diag.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.diag.txt
new file mode 100644
index 00000000000..d2339039b6b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.diag.txt
@@ -0,0 +1,12 @@
+/kt47986_2.kt:4:18: warning: parameter 'builderAction' is never used
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+                 ^
+/kt47986_2.kt:11:9: warning: variable 'x' is never used
+    val x = buildFoo { // can't infer
+        ^
+/kt47986_2.kt:11:13: warning: type parameter for a type argument K can't be inferred into declared upper bounds. Please provide any use-site type information. It will become an error in future releases.
+    val x = buildFoo { // can't infer
+            ^
+/kt47986_2.kt:12:13: warning: variable 'y' is never used
+        val y = id(::bar)
+            ^
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.fir.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.fir.kt
new file mode 100644
index 00000000000..c0ab24adb83
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.fir.kt
@@ -0,0 +1,14 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <L> Foo<L>.bar() {}
+
+fun <K> id(x: K) = x
+
+fun main() {
+    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> { // can't infer
+        val y = id(::bar)
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.kt
index a8a7f7f46d1..882956d5593 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_2.kt
@@ -1,4 +1,4 @@
-// FIR_IDENTICAL
+// !RENDER_DIAGNOSTICS_FULL_TEXT
 class Foo<K>
 
 fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
@@ -8,7 +8,7 @@ fun <L> Foo<L>.bar() {}
 fun <K> id(x: K) = x
 
 fun main() {
-    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> { // can't infer
+    val x = <!INFERRED_INTO_DECLARED_UPPER_BOUNDS!>buildFoo<!> { // can't infer
         val y = id(::bar)
     }
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.diag.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.diag.txt
new file mode 100644
index 00000000000..5eefeaec1f0
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.diag.txt
@@ -0,0 +1,12 @@
+/kt47986_3.kt:4:18: warning: parameter 'builderAction' is never used
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+                 ^
+/kt47986_3.kt:6:26: warning: parameter 'x' is never used
+fun <K: N, N> Foo<K>.bar(x: Int = 1) {}
+                         ^
+/kt47986_3.kt:9:9: warning: variable 'x' is never used
+    val x = buildFoo {
+        ^
+/kt47986_3.kt:9:13: warning: type parameter for a type argument K can't be inferred into declared upper bounds. Please provide any use-site type information. It will become an error in future releases.
+    val x = buildFoo {
+            ^
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.fir.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.fir.kt
new file mode 100644
index 00000000000..2250acf7373
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.fir.kt
@@ -0,0 +1,12 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
+class Foo<K>
+
+fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
+
+fun <K: N, N> Foo<K>.bar(x: Int = 1) {}
+
+fun main() {
+    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> {
+        bar()
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.kt
index e096bb11f3e..7a422bd3566 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt47986_3.kt
@@ -1,4 +1,4 @@
-// FIR_IDENTICAL
+// !RENDER_DIAGNOSTICS_FULL_TEXT
 class Foo<K>
 
 fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
@@ -6,7 +6,7 @@ fun <K> buildFoo(builderAction: Foo<K>.() -> Unit): Foo<K> = Foo()
 fun <K: N, N> Foo<K>.bar(x: Int = 1) {}
 
 fun main() {
-    val x = <!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>buildFoo<!> {
+    val x = <!INFERRED_INTO_DECLARED_UPPER_BOUNDS!>buildFoo<!> {
         bar()
     }
 }
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.diag.txt b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.diag.txt
new file mode 100644
index 00000000000..73d249e66cd
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.diag.txt
@@ -0,0 +1,12 @@
+/kt51464.kt:2:16: warning: parameter 'value' is never used
+fun <T> flowOf(value: T): Flow<T> = TODO()
+               ^
+/kt51464.kt:8:30: warning: parameter 'transform' is never used
+fun <T, R> Flow<T>.transform(transform: FlowCollector<R>.(T) -> Unit): Flow<R> = TODO()
+                             ^
+/kt51464.kt:11:20: warning: parameter 'collector' is never used
+    fun <T> doEmit(collector: FlowCollector<T>) {}
+                   ^
+/kt51464.kt:12:15: warning: type parameter for a type argument R can't be inferred into declared upper bounds. Please provide any use-site type information. It will become an error in future releases.
+    flowOf(1).transform { doEmit(this) }
+              ^
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.fir.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.fir.kt
index 47d5840a1e8..82f0c40f1ea 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.fir.kt
@@ -1,5 +1,4 @@
-import kotlinx.coroutines.flow.transform
-
+// !RENDER_DIAGNOSTICS_FULL_TEXT
 fun <T> flowOf(value: T): Flow<T> = TODO()
 
 interface FlowCollector<in T> {}
diff --git a/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.kt b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.kt
index 50ede69999f..924100af61b 100644
--- a/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.kt
+++ b/compiler/testData/diagnostics/tests/inference/builderInference/kt51464.kt
@@ -1,3 +1,4 @@
+// !RENDER_DIAGNOSTICS_FULL_TEXT
 fun <T> flowOf(value: T): Flow<T> = TODO()
 
 interface FlowCollector<in T> {}
@@ -8,5 +9,5 @@ fun <T, R> Flow<T>.transform(transform: FlowCollector<R>.(T) -> Unit): Flow<R> =
 
 fun f() {
     fun <T> doEmit(collector: FlowCollector<T>) {}
-    flowOf(1).<!NEW_INFERENCE_NO_INFORMATION_FOR_PARAMETER!>transform<!> { doEmit(this) }
+    flowOf(1).<!INFERRED_INTO_DECLARED_UPPER_BOUNDS!>transform<!> { doEmit(this) }
 }
\ No newline at end of file
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 9338cdc879e..4752f899a6e 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
@@ -14226,9 +14226,21 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 }
 
                 @Test
-                @TestMetadata("kt47986.kt")
-                public void testKt47986() throws Exception {
-                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986.kt");
+                @TestMetadata("kt47986Default.kt")
+                public void testKt47986Default() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Default.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Disabled.kt")
+                public void testKt47986Disabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Disabled.kt");
+                }
+
+                @Test
+                @TestMetadata("kt47986Enabled.kt")
+                public void testKt47986Enabled() throws Exception {
+                    runTest("compiler/testData/diagnostics/tests/inference/builderInference/kt47986Enabled.kt");
                 }
 
                 @Test
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 2578df1f24c..d5aa6be386c 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -278,6 +278,7 @@ enum class LanguageFeature(
     ReportErrorsOnRecursiveTypeInsidePlusAssignment(KOTLIN_1_9, kind = BUG_FIX), // KT-48546
     ForbidInferringTypeVariablesIntoEmptyIntersection(KOTLIN_1_9, kind = BUG_FIX), // KT-51221
     ForbidExtensionCallsOnInlineFunctionalParameters(KOTLIN_1_9, kind = BUG_FIX), // KT-52502
+    ForbidInferringPostponedTypeVariableIntoDeclaredUpperBound(KOTLIN_1_9, kind = BUG_FIX), // KT-47986
 
     // Disabled for indefinite time. See KT-48535 and related discussion
     ApproximateIntegerLiteralTypesInReceiverPosition(sinceVersion = null),