diff --git a/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.fir.txt b/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.fir.txt
index 2c4f21a6b1b..e01b2a193b4 100644
--- a/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.fir.txt
+++ b/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.fir.txt
@@ -156,3 +156,26 @@ FILE: conflictingProjection.kt
     public final fun test18(): R|InOuter.OutIntermediate.InInner<out kotlin/Char, in kotlin/String, kotlin/Int>| {
         ^test18 R|/InOuter.InOuter|<R|kotlin/Int|>().R|SubstitutionOverride</InOuter.OutIntermediate.OutIntermediate>|<R|kotlin/String|>().R|SubstitutionOverride</InOuter.OutIntermediate.InInner.InInner>|<R|kotlin/Any?|>()
     }
+    public final class TwoParametersOuter<T, in T1> : R|kotlin/Any| {
+        public constructor<T, in T1>(): R|TwoParametersOuter<T, T1>| {
+            super<R|kotlin/Any|>()
+        }
+
+        public final inner class TwoParametersIntermediate<out K, K1, T, in T1> : R|kotlin/Any| {
+            public constructor<out K, K1>(): R|TwoParametersOuter.TwoParametersIntermediate<K, K1, T, T1>| {
+                super<R|kotlin/Any|>()
+            }
+
+            public final inner class InInner<in G, G1, out K, K1, T, in T1> : R|kotlin/Any| {
+                public constructor<in G, G1>(): R|TwoParametersOuter.TwoParametersIntermediate.InInner<G, G1, K, K1, T, T1>| {
+                    super<R|kotlin/Any|>()
+                }
+
+            }
+
+        }
+
+    }
+    public final fun test19(): R|TwoParametersOuter.TwoParametersIntermediate.InInner<kotlin/Char, kotlin/Char, in kotlin/String, kotlin/Int, kotlin/Int, out kotlin/String>?| {
+        ^test19 Null(null)
+    }
diff --git a/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.kt b/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.kt
index dc0dda94171..6a8c9c63771 100644
--- a/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/diagnostics/conflictingProjection.kt
@@ -8,10 +8,10 @@ fun a3(value: None<out Int>) {}
 
 fun a4(value: In<Int>) {}
 fun a5(value: In<in Int>) {}
-fun a6(value: <!CONFLICTING_PROJECTION!>In<out Int><!>) {}
+fun a6(value: In<<!CONFLICTING_PROJECTION!>out<!> Int>) {}
 
 fun a7(value: Out<Int>) {}
-fun a8(value: <!CONFLICTING_PROJECTION!>Out<in Int><!>) {}
+fun a8(value: Out<<!CONFLICTING_PROJECTION!>in<!> Int>) {}
 fun a9(value: Out<out Int>) {}
 
 typealias A1<K> = None<K>
@@ -28,26 +28,26 @@ typealias A9<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = None<out K>
 
 typealias A10<K> = In<K>
 typealias A11<K> = In<in K>
-typealias A12<K> = <!CONFLICTING_PROJECTION!>In<out K><!>
+typealias A12<K> = In<<!CONFLICTING_PROJECTION!>out<!> K>
 
 typealias A13<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = In<K>
 typealias A14<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = In<in K>
-typealias A15<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = <!CONFLICTING_PROJECTION!>In<out K><!>
+typealias A15<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = In<<!CONFLICTING_PROJECTION!>out<!> K>
 
 typealias A16<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = In<K>
 typealias A17<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = In<in K>
-typealias A18<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = <!CONFLICTING_PROJECTION!>In<out K><!>
+typealias A18<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = In<<!CONFLICTING_PROJECTION!>out<!> K>
 
 typealias A19<K> = Out<K>
-typealias A20<K> = <!CONFLICTING_PROJECTION!>Out<in K><!>
+typealias A20<K> = Out<<!CONFLICTING_PROJECTION!>in<!> K>
 typealias A21<K> = Out<out K>
 
 typealias A22<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = Out<K>
-typealias A23<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = <!CONFLICTING_PROJECTION!>Out<in K><!>
+typealias A23<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = Out<<!CONFLICTING_PROJECTION!>in<!> K>
 typealias A24<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>in<!> K> = Out<out K>
 
 typealias A25<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = Out<K>
-typealias A26<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = <!CONFLICTING_PROJECTION!>Out<in K><!>
+typealias A26<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = Out<<!CONFLICTING_PROJECTION!>in<!> K>
 typealias A27<<!VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED!>out<!> K> = Out<out K>
 
 class Outer<T> {
@@ -83,13 +83,22 @@ class InOuter<in T> {
 fun test10(): InOuter<Int>.OutIntermediate<String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
 
 fun test11(): InOuter<in Int>.OutIntermediate<String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
-fun test12(): <!CONFLICTING_PROJECTION!>InOuter<out Int>.OutIntermediate<String>.InInner<Char><!> = InOuter<Int>().OutIntermediate<String>().InInner()
+fun test12(): InOuter<<!CONFLICTING_PROJECTION!>out<!> Int>.OutIntermediate<String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
 
-fun test13(): <!CONFLICTING_PROJECTION!>InOuter<Int>.OutIntermediate<in String>.InInner<Char><!> = InOuter<Int>().OutIntermediate<String>().InInner()
+fun test13(): InOuter<Int>.OutIntermediate<<!CONFLICTING_PROJECTION!>in<!> String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
 fun test14(): InOuter<Int>.OutIntermediate<out String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
 
 fun test15(): InOuter<Int>.OutIntermediate<String>.InInner<in Char> = InOuter<Int>().OutIntermediate<String>().InInner()
-fun test16(): <!CONFLICTING_PROJECTION!>InOuter<Int>.OutIntermediate<String>.InInner<out Char><!> = InOuter<Int>().OutIntermediate<String>().InInner()
+fun test16(): InOuter<Int>.OutIntermediate<String>.InInner<<!CONFLICTING_PROJECTION!>out<!> Char> = InOuter<Int>().OutIntermediate<String>().InInner()
 
 fun test17(): InOuter<in Int>.OutIntermediate<out String>.InInner<Char> = InOuter<Int>().OutIntermediate<String>().InInner()
-fun test18(): <!CONFLICTING_PROJECTION!>InOuter<Int>.OutIntermediate<in String>.InInner<out Char><!> = InOuter<Int>().OutIntermediate<String>().InInner()
+fun test18(): InOuter<Int>.OutIntermediate<<!CONFLICTING_PROJECTION!>in<!> String>.InInner<<!CONFLICTING_PROJECTION!>out<!> Char> = InOuter<Int>().OutIntermediate<String>().InInner()
+
+class TwoParametersOuter<T, in T1> {
+    inner class TwoParametersIntermediate<out K, K1> {
+        inner class InInner<in G, G1> {
+        }
+    }
+}
+
+fun test19(): TwoParametersOuter<Int, <!CONFLICTING_PROJECTION!>out<!> String>.TwoParametersIntermediate<<!CONFLICTING_PROJECTION!>in<!> String, Int>.InInner<Char, Char>? = null
diff --git a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
index 2c97bb44d62..39630db6f05 100644
--- a/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
+++ b/compiler/fir/checkers/checkers-component-generator/src/org/jetbrains/kotlin/fir/checkers/generator/diagnostics/FirDiagnosticsList.kt
@@ -380,7 +380,7 @@ object DIAGNOSTICS_LIST : DiagnosticList("FirErrors") {
         val TYPE_PARAMETERS_IN_OBJECT by error<PsiElement>()
         val ILLEGAL_PROJECTION_USAGE by error<PsiElement>()
         val TYPE_PARAMETERS_IN_ENUM by error<PsiElement>()
-        val CONFLICTING_PROJECTION by error<PsiElement> {
+        val CONFLICTING_PROJECTION by error<KtTypeParameter>(PositioningStrategy.VARIANCE_MODIFIER) {
             parameter<ConeKotlinType>("type")
         }
         val VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED by error<KtTypeParameter>(PositioningStrategy.VARIANCE_MODIFIER)
diff --git a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
index 664138a9b07..92843319846 100644
--- a/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
+++ b/compiler/fir/checkers/gen/org/jetbrains/kotlin/fir/analysis/diagnostics/FirErrors.kt
@@ -274,7 +274,7 @@ object FirErrors {
     val TYPE_PARAMETERS_IN_OBJECT by error0<PsiElement>()
     val ILLEGAL_PROJECTION_USAGE by error0<PsiElement>()
     val TYPE_PARAMETERS_IN_ENUM by error0<PsiElement>()
-    val CONFLICTING_PROJECTION by error1<PsiElement, ConeKotlinType>()
+    val CONFLICTING_PROJECTION by error1<KtTypeParameter, ConeKotlinType>(SourceElementPositioningStrategies.VARIANCE_MODIFIER)
     val VARIANCE_ON_TYPE_PARAMETER_NOT_ALLOWED by error0<KtTypeParameter>(SourceElementPositioningStrategies.VARIANCE_MODIFIER)
     val CATCH_PARAMETER_WITH_DEFAULT_VALUE by error0<PsiElement>()
     val REIFIED_TYPE_IN_CATCH_CLAUSE by error0<PsiElement>()
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
index de6a6717531..6e96d86f534 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
@@ -154,7 +154,7 @@ object FirClassVarianceChecker : FirClassChecker() {
                     }
 
                     if (newVariance != null) {
-                        val subTypeRef = extractChildFirTypeRef(typeRef, index)
+                        val subTypeRef = extractTypeArgumentTypeRef(typeRef, index)
 
                         checkVarianceConflict(
                             typeArgumentType, newVariance, subTypeRef, containingType,
@@ -167,7 +167,7 @@ object FirClassVarianceChecker : FirClassChecker() {
         }
     }
 
-    private fun extractChildFirTypeRef(typeRef: FirTypeRef?, index: Int): FirTypeRef? {
+    private fun extractTypeArgumentTypeRef(typeRef: FirTypeRef?, index: Int): FirTypeRef? {
         if (typeRef is FirResolvedTypeRef) {
             val delegatedTypeRef = typeRef.delegatedTypeRef
             if (delegatedTypeRef is FirUserTypeRef) {
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirConflictingProjectionChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirConflictingProjectionChecker.kt
index 52250e2eeba..33a3009865a 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirConflictingProjectionChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirConflictingProjectionChecker.kt
@@ -5,6 +5,7 @@
 
 package org.jetbrains.kotlin.fir.analysis.checkers.declaration
 
+import org.jetbrains.kotlin.fir.FirSourceElement
 import org.jetbrains.kotlin.fir.analysis.checkers.context.CheckerContext
 import org.jetbrains.kotlin.fir.analysis.diagnostics.DiagnosticReporter
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors
@@ -66,9 +67,37 @@ object FirConflictingProjectionChecker : FirBasicDeclarationChecker() {
                 actual is ConeKotlinTypeProjectionIn && protoVariance == Variance.OUT_VARIANCE ||
                 actual is ConeKotlinTypeProjectionOut && protoVariance == Variance.IN_VARIANCE
             ) {
-                reporter.reportOn(typeRef.source, FirErrors.CONFLICTING_PROJECTION, typeRef.coneType, context)
-                return
+                val typeArgSource = extractTypeArgumentSource(typeRef, it)
+                reporter.reportOn(typeArgSource ?: typeRef.source, FirErrors.CONFLICTING_PROJECTION, typeRef.coneType, context)
             }
         }
     }
+
+    private fun extractTypeArgumentSource(typeRef: FirTypeRef, index: Int): FirSourceElement? {
+        if (typeRef is FirResolvedTypeRef) {
+            val delegatedTypeRef = typeRef.delegatedTypeRef
+            if (delegatedTypeRef is FirUserTypeRef) {
+                var currentTypeArguments: List<FirTypeProjection>? = null
+                var currentIndex = index
+                val qualifier = delegatedTypeRef.qualifier
+
+                for (i in qualifier.size - 1 downTo 0) {
+                    val typeArguments = qualifier[i].typeArgumentList.typeArguments
+                    if (currentIndex < typeArguments.size) {
+                        currentTypeArguments = typeArguments
+                        break
+                    } else {
+                        currentIndex -= typeArguments.size
+                    }
+                }
+
+                val typeArgument = currentTypeArguments?.elementAtOrNull(currentIndex)
+                if (typeArgument is FirTypeProjectionWithVariance) {
+                    return typeArgument.source
+                }
+            }
+        }
+
+        return null
+    }
 }
diff --git a/compiler/testData/cli/jvm/conflictingProjection.out b/compiler/testData/cli/jvm/conflictingProjection.out
index 7c52b2f14c5..a4b264b8848 100644
--- a/compiler/testData/cli/jvm/conflictingProjection.out
+++ b/compiler/testData/cli/jvm/conflictingProjection.out
@@ -1,9 +1,9 @@
 warning: ATTENTION!
  This build uses in-dev FIR:
   -Xuse-fir
-compiler/testData/cli/jvm/conflictingProjection.kt:10:15: error: projection is conflicting with variance of the corresponding type parameter of Out<in kotlin/Int>. Remove the projection or replace it with '*'
+compiler/testData/cli/jvm/conflictingProjection.kt:10:19: error: projection is conflicting with variance of the corresponding type parameter of Out<in kotlin/Int>. Remove the projection or replace it with '*'
 fun a8(value: Out<in Int>) {}
-              ^
+                  ^
 compiler/testData/cli/jvm/conflictingProjection.kt:17:15: error: variance annotations are only allowed for type parameters of classes and interfaces
 typealias A13<in K> = In<K>
               ^
@@ -13,7 +13,7 @@ typealias A14<in K> = In<in K>
 compiler/testData/cli/jvm/conflictingProjection.kt:19:15: error: variance annotations are only allowed for type parameters of classes and interfaces
 typealias A15<in K> = In<out K>
               ^
-compiler/testData/cli/jvm/conflictingProjection.kt:19:23: error: projection is conflicting with variance of the corresponding type parameter of In<out K>. Remove the projection or replace it with '*'
+compiler/testData/cli/jvm/conflictingProjection.kt:19:26: error: projection is conflicting with variance of the corresponding type parameter of In<out K>. Remove the projection or replace it with '*'
 typealias A15<in K> = In<out K>
-                      ^
+                         ^
 COMPILATION_ERROR
diff --git a/compiler/testData/diagnostics/tests/declarationChecks/ConflictingAndRedundantProjections.fir.kt b/compiler/testData/diagnostics/tests/declarationChecks/ConflictingAndRedundantProjections.fir.kt
index fe6c82df921..107683a2e03 100644
--- a/compiler/testData/diagnostics/tests/declarationChecks/ConflictingAndRedundantProjections.fir.kt
+++ b/compiler/testData/diagnostics/tests/declarationChecks/ConflictingAndRedundantProjections.fir.kt
@@ -4,11 +4,11 @@ class Inv<T>
 class X
 
 fun f1(p: In<in X>) {}
-fun f2(p: <!CONFLICTING_PROJECTION!>In<out X><!>) {}
+fun f2(p: In<<!CONFLICTING_PROJECTION!>out<!> X>) {}
 fun f3(p: In<X>) {}
 
 fun f4(p: Out<out X>) {}
-fun f5(p: <!CONFLICTING_PROJECTION!>Out<in X><!>) {}
+fun f5(p: Out<<!CONFLICTING_PROJECTION!>in<!> X>) {}
 fun f6(p: Out<X>) {}
 
 fun f6(p: Inv<X>) {}
diff --git a/compiler/testData/diagnostics/tests/inference/kt39220.fir.kt b/compiler/testData/diagnostics/tests/inference/kt39220.fir.kt
index e278af9d41b..124d0cbdfe5 100644
--- a/compiler/testData/diagnostics/tests/inference/kt39220.fir.kt
+++ b/compiler/testData/diagnostics/tests/inference/kt39220.fir.kt
@@ -51,7 +51,7 @@ val String.x1 get() = ""
 
 fun <K> bar1(f: KFunction2<K, String, String>) {}
 
-fun <K> bar2(f: <!CONFLICTING_PROJECTION!>KFunction2<out K, String, String><!>) {}
+fun <K> bar2(f: KFunction2<<!CONFLICTING_PROJECTION!>out<!> K, String, String>) {}
 
 fun <K> bar3(f: Any?) {}
 
diff --git a/compiler/testData/diagnostics/tests/resolve/overloadConflicts/genericWithProjection.fir.kt b/compiler/testData/diagnostics/tests/resolve/overloadConflicts/genericWithProjection.fir.kt
index 85ccadecf5b..d7ac11cf6c6 100644
--- a/compiler/testData/diagnostics/tests/resolve/overloadConflicts/genericWithProjection.fir.kt
+++ b/compiler/testData/diagnostics/tests/resolve/overloadConflicts/genericWithProjection.fir.kt
@@ -7,5 +7,5 @@ class In<in T>() {
 
 fun test1(x: In<String>): Unit = x.f("1")
 fun test2(x: In<in String>): Unit = x.f("1")
-fun test3(x: <!CONFLICTING_PROJECTION!>In<out String><!>): Unit = x.<!UNRESOLVED_REFERENCE!>f<!>("1")
-fun test4(x: In<*>): Unit = x.<!NONE_APPLICABLE!>f<!>("1")
\ No newline at end of file
+fun test3(x: In<<!CONFLICTING_PROJECTION!>out<!> String>): Unit = x.<!UNRESOLVED_REFERENCE!>f<!>("1")
+fun test4(x: In<*>): Unit = x.<!NONE_APPLICABLE!>f<!>("1")
diff --git a/compiler/testData/diagnostics/tests/typealias/conflictingProjections.fir.kt b/compiler/testData/diagnostics/tests/typealias/conflictingProjections.fir.kt
index 03af30bf1f1..3bb8038aa36 100644
--- a/compiler/testData/diagnostics/tests/typealias/conflictingProjections.fir.kt
+++ b/compiler/testData/diagnostics/tests/typealias/conflictingProjections.fir.kt
@@ -6,8 +6,8 @@ interface Out<out T>
 typealias InAlias<T> = In<T>
 typealias OutAlias<T> = Out<T>
 
-typealias TestOutForIn<T> = <!CONFLICTING_PROJECTION!>In<out T><!>
-typealias TestInForOut<T> = <!CONFLICTING_PROJECTION!>Out<in T><!>
+typealias TestOutForIn<T> = In<<!CONFLICTING_PROJECTION!>out<!> T>
+typealias TestInForOut<T> = Out<<!CONFLICTING_PROJECTION!>in<!> T>
 
 typealias TestOutForInWithinAlias<T> = InAlias<out T>
 typealias TestInForOutWithinAlias<T> = OutAlias<in T>
diff --git a/compiler/testData/diagnostics/tests/typealias/substitutionVariance.fir.kt b/compiler/testData/diagnostics/tests/typealias/substitutionVariance.fir.kt
index 351a2a1ab03..49b7e961365 100644
--- a/compiler/testData/diagnostics/tests/typealias/substitutionVariance.fir.kt
+++ b/compiler/testData/diagnostics/tests/typealias/substitutionVariance.fir.kt
@@ -6,11 +6,11 @@ class Inv<T>
 
 typealias In1<T> = In<T>
 typealias In2<T> = In<in T>
-typealias In3<T> = <!CONFLICTING_PROJECTION!>In<out T><!>
+typealias In3<T> = In<<!CONFLICTING_PROJECTION!>out<!> T>
 typealias In4<T> = In<*>
 
 typealias Out1<T> = Out<T>
-typealias Out2<T> = <!CONFLICTING_PROJECTION!>Out<in T><!>
+typealias Out2<T> = Out<<!CONFLICTING_PROJECTION!>in<!> T>
 typealias Out3<T> = Out<out T>
 typealias Out4<T> = Out<*>
 
diff --git a/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
index a353a4ffc6a..6624f7be513 100644
--- a/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
@@ -35,7 +35,7 @@ interface Test<in I, out O, P> {
     fun neOk6(i: In<In<<!TYPE_VARIANCE_CONFLICT("O; out; in; In<In<O>>")!>O<!>>>)
     fun neOk7(i: Pair<In<<!TYPE_VARIANCE_CONFLICT("I; in; out; Pair<In<I>, O>")!>I<!>>, <!TYPE_VARIANCE_CONFLICT("O; out; in; Pair<In<I>, O>")!>O<!>>)
     fun neOk8(i: Inv<out <!TYPE_VARIANCE_CONFLICT("O; out; in; Inv<out O>")!>O<!>>)
-    fun neOk9(i: <!CONFLICTING_PROJECTION!>In<out P><!>)
+    fun neOk9(i: In<<!CONFLICTING_PROJECTION!>out<!> P>)
     fun neOk10(i: Out<<!TYPE_VARIANCE_CONFLICT("O; out; in; Out<O>")!>O<!>>)
 
     fun neOk11(i: Inv<in <!TYPE_VARIANCE_CONFLICT("I; in; out; Inv<in I>")!>I<!>>)
diff --git a/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
index 4513bda053d..8989b7dac66 100644
--- a/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
@@ -23,7 +23,7 @@ interface Test<in I, out O, P> {
     var neOk7: Pair<In<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Pair<In<I>, O>")!>I<!>>, <!TYPE_VARIANCE_CONFLICT("O; out; invariant; Pair<In<I>, O>")!>O<!>>
     var neOk8: Inv<in <!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<in O>")!>O<!>>
     var neOk9: Inv<in <!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<in I>")!>I<!>>
-    var neOk10: <!CONFLICTING_PROJECTION!>In<out I><!>
+    var neOk10: In<<!CONFLICTING_PROJECTION!>out<!> I>
 
     var neOk11: <!TYPE_VARIANCE_CONFLICT("I; in; invariant; I")!>I<!>
     var neOk12: In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; In<O>")!>O<!>>
diff --git a/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
index abef9b833cb..aab70b319be 100644
--- a/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
@@ -21,20 +21,20 @@ interface Test<in I, out O, P> {
     fun ok12(): Inv<in P>
     fun ok13(): Inv<out P>
 
-    fun neOk1(): <!TYPE_VARIANCE_CONFLICT!>I<!>
-    fun neOk2(): In<<!TYPE_VARIANCE_CONFLICT!>O<!>>
-    fun neOk3(): In<In<<!TYPE_VARIANCE_CONFLICT!>I<!>>>
-    fun neOk4(): Inv<<!TYPE_VARIANCE_CONFLICT!>I<!>>
-    fun neOk5(): Inv<<!TYPE_VARIANCE_CONFLICT!>O<!>>
-    fun neOk6(): Pair<In<<!TYPE_VARIANCE_CONFLICT!>O<!>>, <!TYPE_VARIANCE_CONFLICT!>I<!>>
-    fun neOk7(): Inv<in <!TYPE_VARIANCE_CONFLICT!>O<!>>
-    fun neOk8(): <!CONFLICTING_PROJECTION!>Out<in I><!>
+    fun neOk1(): <!TYPE_VARIANCE_CONFLICT("I; in; out; I")!>I<!>
+    fun neOk2(): In<<!TYPE_VARIANCE_CONFLICT("O; out; in; In<O>")!>O<!>>
+    fun neOk3(): In<In<<!TYPE_VARIANCE_CONFLICT("I; in; out; In<In<I>>")!>I<!>>>
+    fun neOk4(): Inv<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<I>")!>I<!>>
+    fun neOk5(): Inv<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<O>")!>O<!>>
+    fun neOk6(): Pair<In<<!TYPE_VARIANCE_CONFLICT("O; out; in; Pair<In<O>, I>")!>O<!>>, <!TYPE_VARIANCE_CONFLICT("I; in; out; Pair<In<O>, I>")!>I<!>>
+    fun neOk7(): Inv<in <!TYPE_VARIANCE_CONFLICT("O; out; in; Inv<in O>")!>O<!>>
+    fun neOk8(): Out<<!CONFLICTING_PROJECTION("Out<in I>")!>in<!> I>
 
-    fun neOk10(): Inv<in <!TYPE_VARIANCE_CONFLICT!>O<!>>
-    fun neOk11(): Inv<out <!TYPE_VARIANCE_CONFLICT!>I<!>>
+    fun neOk10(): Inv<in <!TYPE_VARIANCE_CONFLICT("O; out; in; Inv<in O>")!>O<!>>
+    fun neOk11(): Inv<out <!TYPE_VARIANCE_CONFLICT("I; in; out; Inv<out I>")!>I<!>>
 
     fun neOk30(): <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Pair<I, ><!>
-    fun neOk31(): Pair<<!TYPE_VARIANCE_CONFLICT!>I<!>, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>
+    fun neOk31(): Pair<<!TYPE_VARIANCE_CONFLICT("I; in; out; Pair<I, ERROR CLASS: Wrong number of type arguments>")!>I<!>, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>
     fun neOk32(): <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>
     fun neOk33(): Inv<<!SYNTAX!><!>>
     fun neOk34(): Inv<<!UNRESOLVED_REFERENCE!>C<!>>
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
index 99d600c0497..93c6dd847a8 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnostics.kt
@@ -840,7 +840,7 @@ sealed class KtFirDiagnostic<PSI: PsiElement> : KtDiagnosticWithPsi<PSI> {
         override val diagnosticClass get() = TypeParametersInEnum::class
     }
 
-    abstract class ConflictingProjection : KtFirDiagnostic<PsiElement>() {
+    abstract class ConflictingProjection : KtFirDiagnostic<KtTypeParameter>() {
         override val diagnosticClass get() = ConflictingProjection::class
         abstract val type: KtType
     }
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
index 151597931e3..e4ee4dbb717 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDiagnosticsImpl.kt
@@ -1358,7 +1358,7 @@ internal class ConflictingProjectionImpl(
     override val type: KtType,
     firDiagnostic: FirPsiDiagnostic<*>,
     override val token: ValidityToken,
-) : KtFirDiagnostic.ConflictingProjection(), KtAbstractFirDiagnostic<PsiElement> {
+) : KtFirDiagnostic.ConflictingProjection(), KtAbstractFirDiagnostic<KtTypeParameter> {
     override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
 }