diff --git a/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.kt b/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.kt
new file mode 100644
index 00000000000..5f0d88a4ab5
--- /dev/null
+++ b/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.kt
@@ -0,0 +1,12 @@
+// ISSUE: KT-40131
+
+import kotlin.reflect.KClass
+
+val <U> KClass<U>.javaImpl: Class<U>
+    get() = null!!
+
+val <T : KClass<*>> T.myJava1: Class<*>
+    get() = <!DEBUG_INFO_EXPRESSION_TYPE("java.lang.Class<out kotlin.Any?>")!>javaImpl<!>
+
+val <E : Any, T : KClass<E>> T.myJava2: Class<E>
+    get() = <!DEBUG_INFO_EXPRESSION_TYPE("java.lang.Class<E>")!>javaImpl<!>
diff --git a/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.txt b/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.txt
new file mode 100644
index 00000000000..416747f45b3
--- /dev/null
+++ b/compiler/fir/analysis-tests/testData/resolve/inference/kt40131.txt
@@ -0,0 +1,13 @@
+FILE: kt40131.kt
+    public final val <U> R|kotlin/reflect/KClass<U>|.javaImpl: R|java/lang/Class<U>|
+        public get(): R|java/lang/Class<U>| {
+            ^ Null(null)!!
+        }
+    public final val <T : R|kotlin/reflect/KClass<*>|> R|T|.myJava1: R|java/lang/Class<*>|
+        public get(): R|java/lang/Class<*>| {
+            ^ this@R|/myJava1|.R|/javaImpl|<R|kotlin/Any?|>
+        }
+    public final val <E : R|kotlin/Any|, T : R|kotlin/reflect/KClass<E>|> R|T|.myJava2: R|java/lang/Class<E>|
+        public get(): R|java/lang/Class<E>| {
+            ^ this@R|/myJava2|.R|/javaImpl|<R|E|>
+        }
diff --git a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsTestGenerated.java
index 00c706e3f4e..1fdbe9d31dd 100644
--- a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsTestGenerated.java
@@ -1744,6 +1744,11 @@ public class FirDiagnosticsTestGenerated extends AbstractFirDiagnosticsTest {
             runTest("compiler/fir/analysis-tests/testData/resolve/inference/intersectionTypesInConstraints.kt");
         }
 
+        @TestMetadata("kt40131.kt")
+        public void testKt40131() throws Exception {
+            runTest("compiler/fir/analysis-tests/testData/resolve/inference/kt40131.kt");
+        }
+
         @TestMetadata("kt41989.kt")
         public void testKt41989() throws Exception {
             runTest("compiler/fir/analysis-tests/testData/resolve/inference/kt41989.kt");
diff --git a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsWithLightTreeTestGenerated.java b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsWithLightTreeTestGenerated.java
index 40dfc73e8a0..c5f8b10bd49 100644
--- a/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsWithLightTreeTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests/org/jetbrains/kotlin/fir/FirDiagnosticsWithLightTreeTestGenerated.java
@@ -1744,6 +1744,11 @@ public class FirDiagnosticsWithLightTreeTestGenerated extends AbstractFirDiagnos
             runTest("compiler/fir/analysis-tests/testData/resolve/inference/intersectionTypesInConstraints.kt");
         }
 
+        @TestMetadata("kt40131.kt")
+        public void testKt40131() throws Exception {
+            runTest("compiler/fir/analysis-tests/testData/resolve/inference/kt40131.kt");
+        }
+
         @TestMetadata("kt41989.kt")
         public void testKt41989() throws Exception {
             runTest("compiler/fir/analysis-tests/testData/resolve/inference/kt41989.kt");
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
index 4782039bdf2..219609b3f83 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/Arguments.kt
@@ -15,9 +15,12 @@ import org.jetbrains.kotlin.fir.resolve.transformers.body.resolve.firUnsafe
 import org.jetbrains.kotlin.fir.resolve.transformers.body.resolve.resultType
 import org.jetbrains.kotlin.fir.resolve.transformers.ensureResolvedTypeDeclaration
 import org.jetbrains.kotlin.fir.returnExpressions
+import org.jetbrains.kotlin.fir.symbols.ConeClassLikeLookupTag
 import org.jetbrains.kotlin.fir.symbols.StandardClassIds
+import org.jetbrains.kotlin.fir.typeCheckerContext
 import org.jetbrains.kotlin.fir.typeContext
 import org.jetbrains.kotlin.fir.types.*
+import org.jetbrains.kotlin.name.ClassId
 import org.jetbrains.kotlin.resolve.calls.inference.ConstraintSystemBuilder
 import org.jetbrains.kotlin.resolve.calls.inference.addSubtypeConstraintIfCompatible
 import org.jetbrains.kotlin.resolve.calls.inference.model.SimpleConstraintSystemConstraintPosition
@@ -408,3 +411,49 @@ internal fun FirExpression.getExpectedType(
 fun ConeKotlinType.varargElementType(): ConeKotlinType {
     return this.arrayElementType() ?: this
 }
+
+/**
+ * interface Inv<T>
+ * fun <Y> bar(l: Inv<Y>): Y = ...
+ *
+ * fun <X : Inv<out Int>> foo(x: X) {
+ *      val xr = bar(x)
+ * }
+ * Here we try to capture from upper bound from type parameter.
+ * We replace type of `x` to `Inv<out Int>`(we chose supertype which contains supertype with expectedTypeConstructor) and capture from this type.
+ * It is correct, because it is like this code:
+ * fun <X : Inv<out Int>> foo(x: X) {
+ *      val inv: Inv<out Int> = x
+ *      val xr = bar(inv)
+ * }
+ *
+ */
+internal fun captureFromTypeParameterUpperBoundIfNeeded(
+    argumentType: ConeKotlinType,
+    expectedType: ConeKotlinType,
+    session: FirSession
+): ConeKotlinType {
+    val expectedTypeClassId = expectedType.upperBoundIfFlexible().classId ?: return argumentType
+    val simplifiedArgumentType = argumentType.lowerBoundIfFlexible() as? ConeTypeParameterType ?: return argumentType
+    val typeParameter = simplifiedArgumentType.lookupTag.typeParameterSymbol.fir
+
+    val context = session.typeCheckerContext
+
+    val chosenSupertype = typeParameter.bounds.map { it.coneType }
+        .singleOrNull { it.hasSupertypeWithGivenClassId(expectedTypeClassId, context) } ?: return argumentType
+
+    val capturedType = context.captureFromExpression(chosenSupertype) as ConeKotlinType? ?: return argumentType
+    return if (argumentType is ConeDefinitelyNotNullType) {
+        ConeDefinitelyNotNullType.create(capturedType) ?: capturedType
+    } else {
+        capturedType
+    }
+}
+
+private fun ConeKotlinType.hasSupertypeWithGivenClassId(classId: ClassId, context: ConeTypeCheckerContext): Boolean {
+    return with(context) {
+        anySuperTypeConstructor {
+            it is ConeClassLikeLookupTag && it.classId == classId
+        }
+    }
+}
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/ResolutionStages.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/ResolutionStages.kt
index 3a719cf1528..12c8b316a58 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/ResolutionStages.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/calls/ResolutionStages.kt
@@ -130,10 +130,16 @@ internal sealed class CheckReceivers : ResolutionStage() {
             } else {
                 val argumentExtensionReceiverValue = candidate.implicitExtensionReceiverValue
                 if (argumentExtensionReceiverValue != null && explicitReceiverKind.shouldBeCheckedAgainstImplicit()) {
+                    val expectedType = candidate.substitutor.substituteOrSelf(expectedReceiverType.type)
+                    val argumentType = captureFromTypeParameterUpperBoundIfNeeded(
+                        argumentType = argumentExtensionReceiverValue.type,
+                        expectedType = expectedType,
+                        session = context.session
+                    )
                     candidate.resolvePlainArgumentType(
                         candidate.csBuilder,
-                        argumentType = argumentExtensionReceiverValue.type,
-                        expectedType = candidate.substitutor.substituteOrSelf(expectedReceiverType.type),
+                        argumentType = argumentType,
+                        expectedType = expectedType,
                         sink = sink,
                         context = context,
                         isReceiver = true,
diff --git a/compiler/testData/codegen/box/classLiteral/java/kt11943.kt b/compiler/testData/codegen/box/classLiteral/java/kt11943.kt
index e2a8e305ca6..33a76473834 100644
--- a/compiler/testData/codegen/box/classLiteral/java/kt11943.kt
+++ b/compiler/testData/codegen/box/classLiteral/java/kt11943.kt
@@ -1,4 +1,3 @@
-// IGNORE_BACKEND_FIR: JVM_IR
 // IGNORE_BACKEND: JS_IR
 // IGNORE_BACKEND: JS_IR_ES6
 // TODO: muted automatically, investigate should it be ran for JS or not