diff --git a/compiler/fir/analysis-tests/testData/resolve/fromBuilder/typeParameters.kt b/compiler/fir/analysis-tests/testData/resolve/fromBuilder/typeParameters.kt
index e267b1ada73..33ba23f33c2 100644
--- a/compiler/fir/analysis-tests/testData/resolve/fromBuilder/typeParameters.kt
+++ b/compiler/fir/analysis-tests/testData/resolve/fromBuilder/typeParameters.kt
@@ -1,7 +1,7 @@
 interface List<out T : Any> {
     operator fun get(index: Int): T
 
-    infix fun concat(other: List<T>): List<T>
+    infix fun concat(other: List<<!TYPE_VARIANCE_CONFLICT!>T<!>>): List<T>
 }
 
 typealias StringList = List<out String>
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 938c9e83588..0535c3fd68b 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
@@ -25,6 +25,7 @@ import org.jetbrains.kotlin.lexer.KtModifierKeywordToken
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.resolve.ForbiddenNamedArgumentsTarget
+import org.jetbrains.kotlin.types.Variance
 import kotlin.properties.PropertyDelegateProvider
 import kotlin.properties.ReadOnlyProperty
 
@@ -436,6 +437,20 @@ object DIAGNOSTICS_LIST : DiagnosticList("FirErrors") {
             parameter<ConeKotlinType>("typeA")
             parameter<ConeKotlinType>("typeB")
         }
+
+        val TYPE_VARIANCE_CONFLICT by error<PsiElement>(PositioningStrategy.DECLARATION_SIGNATURE_OR_DEFAULT) {
+            parameter<FirTypeParameterSymbol>("typeParameter")
+            parameter<Variance>("typeParameterVariance")
+            parameter<Variance>("variance")
+            parameter<ConeKotlinType>("containingType")
+        }
+
+        val TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE by error<PsiElement>(PositioningStrategy.DECLARATION_SIGNATURE_OR_DEFAULT) {
+            parameter<FirTypeParameterSymbol>("typeParameter")
+            parameter<Variance>("typeParameterVariance")
+            parameter<Variance>("variance")
+            parameter<ConeKotlinType>("containingType")
+        }
     }
 
     val REFLECTION by object : DiagnosticGroup("Reflection") {
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 b1896ed864d..4012cb5d084 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
@@ -64,6 +64,7 @@ import org.jetbrains.kotlin.psi.KtValueArgument
 import org.jetbrains.kotlin.psi.KtWhenEntry
 import org.jetbrains.kotlin.psi.KtWhenExpression
 import org.jetbrains.kotlin.resolve.ForbiddenNamedArgumentsTarget
+import org.jetbrains.kotlin.types.Variance
 
 /*
  * This file was generated automatically
@@ -294,6 +295,8 @@ object FirErrors {
     val DYNAMIC_UPPER_BOUND by error0<KtTypeReference>()
     val INCOMPATIBLE_TYPES by error2<KtElement, ConeKotlinType, ConeKotlinType>()
     val INCOMPATIBLE_TYPES_WARNING by warning2<KtElement, ConeKotlinType, ConeKotlinType>()
+    val TYPE_VARIANCE_CONFLICT by error4<PsiElement, FirTypeParameterSymbol, Variance, Variance, ConeKotlinType>(SourceElementPositioningStrategies.DECLARATION_SIGNATURE_OR_DEFAULT)
+    val TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE by error4<PsiElement, FirTypeParameterSymbol, Variance, Variance, ConeKotlinType>(SourceElementPositioningStrategies.DECLARATION_SIGNATURE_OR_DEFAULT)
 
     // Reflection
     val EXTENSION_IN_CLASS_REFERENCE_NOT_ALLOWED by error1<KtExpression, FirCallableDeclaration<*>>(SourceElementPositioningStrategies.REFERENCE_BY_QUALIFIED)
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
index d7d032966dc..7010cc4feac 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
@@ -15,6 +15,7 @@ import org.jetbrains.kotlin.fir.analysis.checkers.syntax.FirDelegationInInterfac
 import org.jetbrains.kotlin.fir.analysis.checkers.syntax.FirFunctionTypeParametersSyntaxChecker
 import org.jetbrains.kotlin.fir.analysis.checkers.syntax.FirTypeParameterSyntaxChecker
 import org.jetbrains.kotlin.fir.analysis.checkers.expression.FirReservedUnderscoreDeclarationChecker
+import org.jetbrains.kotlin.fir.declarations.FirClass
 
 object CommonDeclarationCheckers : DeclarationCheckers() {
     override val basicDeclarationCheckers: Set<FirBasicDeclarationChecker>
@@ -65,6 +66,7 @@ object CommonDeclarationCheckers : DeclarationCheckers() {
             FirNotImplementedOverrideChecker,
             FirThrowableSubclassChecker,
             FirOpenMemberChecker,
+            FirClassVarianceChecker
         )
 
     override val regularClassCheckers: Set<FirRegularClassChecker>
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
new file mode 100644
index 00000000000..de6a6717531
--- /dev/null
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirClassVarianceChecker.kt
@@ -0,0 +1,190 @@
+/*
+ * Copyright 2010-2021 JetBrains s.r.o. and Kotlin Programming Language contributors.
+ * Use of this source code is governed by the Apache 2.0 license that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.fir.analysis.checkers.declaration
+
+import org.jetbrains.kotlin.descriptors.Visibilities
+import org.jetbrains.kotlin.fir.*
+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
+import org.jetbrains.kotlin.fir.declarations.*
+import org.jetbrains.kotlin.fir.resolve.fullyExpandedType
+import org.jetbrains.kotlin.fir.resolve.toSymbol
+import org.jetbrains.kotlin.fir.types.*
+import org.jetbrains.kotlin.types.Variance
+import org.jetbrains.kotlin.types.checker.TypeCheckingProcedure
+
+object FirClassVarianceChecker : FirClassChecker() {
+    override fun check(declaration: FirClass<*>, context: CheckerContext, reporter: DiagnosticReporter) {
+        checkTypeParameters(declaration.typeParameters, Variance.OUT_VARIANCE, context, reporter)
+
+        for (superTypeRef in declaration.superTypeRefs) {
+            checkVarianceConflict(superTypeRef, Variance.OUT_VARIANCE, context, reporter)
+        }
+
+        for (member in declaration.declarations) {
+            if (member is FirMemberDeclaration) {
+                if (Visibilities.isPrivate(member.status.visibility)) {
+                    continue
+                }
+            }
+
+            if (member is FirTypeParameterRefsOwner) {
+                checkTypeParameters(member.typeParameters, Variance.IN_VARIANCE, context, reporter)
+            }
+
+            if (member is FirCallableDeclaration<*>) {
+                checkCallableDeclaration(member, context, reporter)
+            }
+        }
+    }
+
+    private fun checkCallableDeclaration(
+        member: FirCallableDeclaration<*>,
+        context: CheckerContext,
+        reporter: DiagnosticReporter
+    ) {
+        val memberSource = member.source
+        if (member is FirSimpleFunction) {
+            if (memberSource != null && memberSource.kind !is FirFakeSourceElementKind) {
+                for (param in member.valueParameters) {
+                    checkVarianceConflict(param.returnTypeRef, Variance.IN_VARIANCE, context, reporter)
+                }
+            }
+        }
+
+        val returnTypeVariance =
+            if (member is FirProperty && member.isVar) Variance.INVARIANT else Variance.OUT_VARIANCE
+
+        var returnSource = member.returnTypeRef.source
+        if (returnSource != null && memberSource != null) {
+            if (returnSource.kind is FirFakeSourceElementKind && memberSource.kind !is FirFakeSourceElementKind) {
+                returnSource = memberSource
+            }
+        }
+
+        checkVarianceConflict(member.returnTypeRef, returnTypeVariance, context, reporter, returnSource)
+
+        val receiverTypeRef = member.receiverTypeRef
+        if (receiverTypeRef != null) {
+            checkVarianceConflict(receiverTypeRef, Variance.IN_VARIANCE, context, reporter)
+        }
+    }
+
+    private fun checkTypeParameters(
+        typeParameters: List<FirTypeParameterRef>, variance: Variance,
+        context: CheckerContext, reporter: DiagnosticReporter
+    ) {
+        for (typeParameter in typeParameters) {
+            if (typeParameter is FirTypeParameter) {
+                for (bound in typeParameter.bounds) {
+                    checkVarianceConflict(bound, variance, context, reporter)
+                }
+            }
+        }
+    }
+
+    private fun checkVarianceConflict(
+        type: FirTypeRef, variance: Variance,
+        context: CheckerContext, reporter: DiagnosticReporter,
+        source: FirSourceElement? = null
+    ) {
+        checkVarianceConflict(type.coneType, variance, type, type.coneType, context, reporter, source)
+    }
+
+    private fun checkVarianceConflict(
+        type: ConeKotlinType,
+        variance: Variance,
+        typeRef: FirTypeRef?,
+        containingType: ConeKotlinType,
+        context: CheckerContext,
+        reporter: DiagnosticReporter,
+        source: FirSourceElement? = null,
+        isInAbbreviation: Boolean = false
+    ) {
+        if (type is ConeTypeParameterType) {
+            val fullyExpandedType = type.fullyExpandedType(context.session)
+            val typeParameter = type.lookupTag.typeParameterSymbol.fir
+            val resultSource = source ?: typeRef?.source
+            if (resultSource != null &&
+                !typeParameter.variance.allowsPosition(variance) &&
+                !fullyExpandedType.attributes.contains(CompilerConeAttributes.UnsafeVariance)
+            ) {
+                val factory =
+                    if (isInAbbreviation) FirErrors.TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE else FirErrors.TYPE_VARIANCE_CONFLICT
+                reporter.report(
+                    factory.on(
+                        resultSource,
+                        typeParameter.symbol,
+                        typeParameter.variance,
+                        variance,
+                        containingType
+                    ),
+                    context
+                )
+            }
+            return
+        }
+
+        if (type is ConeClassLikeType) {
+            val fullyExpandedType = type.fullyExpandedType(context.session)
+            val declFir = fullyExpandedType.lookupTag.toSymbol(context.session)?.fir
+            if (declFir is FirClass<*>) {
+                for ((index, typeArgument) in fullyExpandedType.typeArguments.withIndex()) {
+                    val paramVariance = (declFir.typeParameters.getOrNull(index) as? FirTypeParameter)?.variance ?: continue
+
+                    val argVariance = when (typeArgument.kind) {
+                        ProjectionKind.IN -> Variance.IN_VARIANCE
+                        ProjectionKind.OUT -> Variance.OUT_VARIANCE
+                        ProjectionKind.INVARIANT -> Variance.INVARIANT
+                        else -> continue
+                    }
+
+                    val typeArgumentType = typeArgument.type ?: continue
+
+                    val projectionKind = TypeCheckingProcedure.getEffectiveProjectionKind(paramVariance, argVariance)!!
+                    val newVariance = when (projectionKind) {
+                        TypeCheckingProcedure.EnrichedProjectionKind.OUT -> variance
+                        TypeCheckingProcedure.EnrichedProjectionKind.IN -> variance.opposite()
+                        TypeCheckingProcedure.EnrichedProjectionKind.INV -> Variance.INVARIANT
+                        TypeCheckingProcedure.EnrichedProjectionKind.STAR -> null // CONFLICTING_PROJECTION error was reported
+                    }
+
+                    if (newVariance != null) {
+                        val subTypeRef = extractChildFirTypeRef(typeRef, index)
+
+                        checkVarianceConflict(
+                            typeArgumentType, newVariance, subTypeRef, containingType,
+                            context, reporter,subTypeRef?.source ?: source,
+                            fullyExpandedType != type
+                        )
+                    }
+                }
+            }
+        }
+    }
+
+    private fun extractChildFirTypeRef(typeRef: FirTypeRef?, index: Int): FirTypeRef? {
+        if (typeRef is FirResolvedTypeRef) {
+            val delegatedTypeRef = typeRef.delegatedTypeRef
+            if (delegatedTypeRef is FirUserTypeRef) {
+                val typeArgument = delegatedTypeRef.qualifier[0].typeArgumentList.typeArguments.elementAtOrNull(index)
+                if (typeArgument is FirTypeProjectionWithVariance) {
+                    return typeArgument.typeRef
+                }
+            } else if (delegatedTypeRef is FirFunctionTypeRef) {
+                if (index < delegatedTypeRef.valueParameters.size) {
+                    return delegatedTypeRef.valueParameters.elementAt(index).returnTypeRef
+                }
+                if (index == delegatedTypeRef.valueParameters.size) {
+                    return delegatedTypeRef.returnTypeRef
+                }
+            }
+        }
+
+        return null
+    }
+}
\ No newline at end of file
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
index 1ec08513503..ceb67931558 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/diagnostics/FirDefaultErrorMessages.kt
@@ -5,9 +5,8 @@
 
 package org.jetbrains.kotlin.fir.analysis.diagnostics
 
-import org.jetbrains.kotlin.diagnostics.rendering.DefaultErrorMessages
-import org.jetbrains.kotlin.diagnostics.rendering.DiagnosticFactoryToRendererMap
-import org.jetbrains.kotlin.diagnostics.rendering.LanguageFeatureMessageRenderer
+import org.jetbrains.kotlin.diagnostics.rendering.*
+import org.jetbrains.kotlin.diagnostics.rendering.Renderers.RENDER_POSITION_VARIANCE
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirDiagnosticRenderers.AMBIGUOUS_CALLS
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirDiagnosticRenderers.DECLARATION_NAME
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirDiagnosticRenderers.FIR
@@ -300,6 +299,8 @@ import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_PARAMETER_IN
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_PARAMETER_IS_NOT_AN_EXPRESSION
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_PARAMETER_OF_PROPERTY_NOT_USED_IN_RECEIVER
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_PARAMETER_ON_LHS_OF_DOT
+import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_VARIANCE_CONFLICT
+import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.UNEXPECTED_SAFE_CALL
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.UNINITIALIZED_ENUM_COMPANION
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.UNINITIALIZED_ENUM_ENTRY
@@ -347,6 +348,7 @@ import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_MODIFIER_TA
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_NUMBER_OF_TYPE_ARGUMENTS
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_SETTER_PARAMETER_TYPE
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors.WRONG_SETTER_RETURN_TYPE
+import org.jetbrains.kotlin.resolve.VarianceConflictDiagnosticData
 
 @Suppress("unused")
 class FirDefaultErrorMessages : DefaultErrorMessages.Extension {
@@ -625,6 +627,17 @@ class FirDefaultErrorMessages : DefaultErrorMessages.Extension {
             map.put(INCOMPATIBLE_TYPES, "Incompatible types: {0} and {1}", RENDER_TYPE, RENDER_TYPE)
             map.put(INCOMPATIBLE_TYPES_WARNING, "Potentially incompatible types: {0} and {1}", RENDER_TYPE, RENDER_TYPE)
 
+            map.put(
+                TYPE_VARIANCE_CONFLICT,
+                "Type parameter {0} is declared as ''{1}'' but occurs in ''{2}'' position in type {3}",
+                SYMBOL, RENDER_POSITION_VARIANCE, RENDER_POSITION_VARIANCE, RENDER_TYPE
+            )
+            map.put(
+                TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE,
+                "Type parameter {0} is declared as ''{1}'' but occurs in ''{2}'' position in abbreviated type {3}",
+                SYMBOL, RENDER_POSITION_VARIANCE, RENDER_POSITION_VARIANCE, RENDER_TYPE
+            )
+
             map.put(
                 BOUNDS_NOT_ALLOWED_IF_BOUNDED_BY_TYPE_PARAMETER,
                 "Type parameter cannot have any other bounds if it's bounded by another type parameter"
diff --git a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/TypeExpansionUtils.kt b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/TypeExpansionUtils.kt
index 59cc552d97f..d0eac13e7a7 100644
--- a/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/TypeExpansionUtils.kt
+++ b/compiler/fir/resolve/src/org/jetbrains/kotlin/fir/resolve/TypeExpansionUtils.kt
@@ -13,6 +13,7 @@ import org.jetbrains.kotlin.fir.symbols.impl.FirTypeAliasSymbol
 import org.jetbrains.kotlin.fir.typeContext
 import org.jetbrains.kotlin.fir.types.*
 import org.jetbrains.kotlin.fir.types.impl.ConeClassLikeTypeImpl
+import org.jetbrains.kotlin.fir.types.impl.ConeTypeParameterTypeImpl
 import org.jetbrains.kotlin.fir.utils.WeakPair
 import org.jetbrains.kotlin.fir.utils.component1
 import org.jetbrains.kotlin.fir.utils.component2
@@ -93,8 +94,18 @@ private fun mapTypeAliasArguments(
             val type = (projection as? ConeKotlinTypeProjection)?.type ?: return null
             val symbol = (type as? ConeTypeParameterType)?.lookupTag?.symbol ?: return super.substituteArgument(projection)
             val mappedProjection = typeAliasMap[symbol] ?: return super.substituteArgument(projection)
-            val mappedType = (mappedProjection as? ConeKotlinTypeProjection)?.type.updateNullabilityIfNeeded(type)
-                ?: return mappedProjection
+            var mappedType = (mappedProjection as? ConeKotlinTypeProjection)?.type.updateNullabilityIfNeeded(type)
+            mappedType = when (mappedType) {
+                is ConeClassErrorType,
+                is ConeClassLikeTypeImpl,
+                is ConeDefinitelyNotNullType,
+                is ConeTypeParameterTypeImpl,
+                is ConeFlexibleType -> {
+                    mappedType.withAttributes(type.attributes, useSiteSession.typeContext)
+                }
+                null -> return mappedProjection
+                else -> mappedType
+            }
 
             return when (mappedProjection.kind + projection.kind) {
                 ProjectionKind.STAR -> ConeStarProjection
diff --git a/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.fir.kt b/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.fir.kt
deleted file mode 100644
index 976d5e03690..00000000000
--- a/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.fir.kt
+++ /dev/null
@@ -1,14 +0,0 @@
-// !DIAGNOSTICS: -UNUSED_PARAMETER
-class Outer<out E, in F> {
-    inner class Inner {
-        fun unsafe1(x: E) {}
-        fun unsafe2(x: Collection<E?>) {}
-        fun unsafe3(): F? = null
-        fun unsafe4(): Collection<F>? = null
-    }
-
-    // Should be errors
-    // Refinement of variance checker is needed
-    fun foo(x: Inner) {}
-    fun bar(): Inner? = null
-}
diff --git a/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.kt b/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.kt
index 11865acd8ee..ed2593a7c15 100644
--- a/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.kt
+++ b/compiler/testData/diagnostics/tests/generics/innerClasses/innerVariance.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 class Outer<out E, in F> {
     inner class Inner {
diff --git a/compiler/testData/diagnostics/tests/kt13401.fir.kt b/compiler/testData/diagnostics/tests/kt13401.fir.kt
index 758d2abddff..ff746e0535d 100644
--- a/compiler/testData/diagnostics/tests/kt13401.fir.kt
+++ b/compiler/testData/diagnostics/tests/kt13401.fir.kt
@@ -10,9 +10,9 @@ interface Super<out U> {
 }
 // Related variance errors
 class Owner<in T> {
-    inner class Inner<U : T>(val u: U) {
+    inner class Inner<U : <!TYPE_VARIANCE_CONFLICT!>T<!>>(val u: U) {
         fun getT() = u
     }
 
-    fun foo(arg: Inner<*>) = arg.getT()
-}
\ No newline at end of file
+    <!TYPE_VARIANCE_CONFLICT!>fun foo(arg: Inner<*>)<!> = arg.getT()
+}
diff --git a/compiler/testData/diagnostics/tests/typealias/kt14498.fir.kt b/compiler/testData/diagnostics/tests/typealias/kt14498.fir.kt
index 37df74eb372..c0f9272a870 100644
--- a/compiler/testData/diagnostics/tests/typealias/kt14498.fir.kt
+++ b/compiler/testData/diagnostics/tests/typealias/kt14498.fir.kt
@@ -10,8 +10,8 @@ typealias AOut<T> = Out<T>
 typealias AInvOut<T1, T2> = InvOut<T1, T2>
 typealias AInvOutTT<T> = AInvOut<T, T>
 
-class Test1<out S> : A1<S>
-class Test2<out S> : A2<Any, S>
+class Test1<out S> : A1<<!TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE!>S<!>>
+class Test2<out S> : A2<<!TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE!>Any<!>, S>
 class Test3<out S> : AOut<S>
-class Test4<out S> : AInvOut<S, S>
-class Test5<out S> : AInvOutTT<S>
\ No newline at end of file
+class Test4<out S> : AInvOut<<!TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE!>S<!>, S>
+class Test5<out S> : AInvOutTT<<!TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE!>S<!>>
diff --git a/compiler/testData/diagnostics/tests/typealias/kt14498a.fir.kt b/compiler/testData/diagnostics/tests/typealias/kt14498a.fir.kt
index 9525f219a2f..394ba1f89b1 100644
--- a/compiler/testData/diagnostics/tests/typealias/kt14498a.fir.kt
+++ b/compiler/testData/diagnostics/tests/typealias/kt14498a.fir.kt
@@ -7,5 +7,5 @@ typealias A4<E> = Out<Inv<E>>
 
 interface Q1<out S> : Out<A1<S>>
 interface Q2<out S> : Out<A2<S>>
-interface Q3<out S> : Out<A3<S>>
-interface Q4<out S> : Out<A4<S>>
\ No newline at end of file
+interface Q3<out S> : Out<A3<<!TYPE_VARIANCE_CONFLICT!>S<!>>>
+interface Q4<out S> : Out<A4<<!TYPE_VARIANCE_CONFLICT!>S<!>>>
diff --git a/compiler/testData/diagnostics/tests/variance/Class.fir.kt b/compiler/testData/diagnostics/tests/variance/Class.fir.kt
deleted file mode 100644
index 09ebdfe5ea5..00000000000
--- a/compiler/testData/diagnostics/tests/variance/Class.fir.kt
+++ /dev/null
@@ -1,23 +0,0 @@
-interface In<in T>
-interface Out<out T>
-interface Inv<T>
-
-interface TypeBounds1<in I, out O, P, X : I>
-interface TypeBounds2<in I, out O, P, X : O>
-interface TypeBounds3<in I, out O, P, X : P>
-interface TypeBounds4<in I, out O, P, X : In<I>>
-interface TypeBounds5<in I, out O, P, X : In<O>>
-
-interface WhereTypeBounds1<in I, out O, P, X> where X : I
-interface WhereTypeBounds2<in I, out O, P, X> where X : O
-interface WhereTypeBounds3<in I, out O, P, X> where X : P
-interface WhereTypeBounds4<in I, out O, P, X> where X : In<I>
-interface WhereTypeBounds5<in I, out O, P, X> where X : In<O>
-
-class SubClass1<in I, out O, P> : Out<I>
-class SubClass2<in I, out O, P> : Out<O>
-class SubClass3<in I, out O, P> : Out<P>
-class SubClass4<in I, out O, P> : In<I>
-class SubClass5<in I, out O, P> : In<O>
-class SubClass6<in I, out O, P> : Inv<O>
-class SubClass7<in I, out O, P> : Inv<I>
diff --git a/compiler/testData/diagnostics/tests/variance/Class.kt b/compiler/testData/diagnostics/tests/variance/Class.kt
index a4148f9ac16..d650ce5586a 100644
--- a/compiler/testData/diagnostics/tests/variance/Class.kt
+++ b/compiler/testData/diagnostics/tests/variance/Class.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface In<in T>
 interface Out<out T>
 interface Inv<T>
diff --git a/compiler/testData/diagnostics/tests/variance/Function.fir.kt b/compiler/testData/diagnostics/tests/variance/Function.fir.kt
deleted file mode 100644
index a85f51153d0..00000000000
--- a/compiler/testData/diagnostics/tests/variance/Function.fir.kt
+++ /dev/null
@@ -1,34 +0,0 @@
-interface In<in T>
-interface Out<out T>
-interface Inv<T>
-fun <T> getT(): T = null!!
-
-interface Test<in I, out O, P> {
-    fun parameters1(i: I, o: O, p: P)
-    fun parameters2(i: In<I>)
-    fun parameters3(i: In<O>)
-
-    fun explicitReturnType1() : I
-    fun explicitReturnType2() : O
-    fun explicitReturnType3() : P
-    fun explicitReturnType4() : In<I>
-    fun explicitReturnType5() : In<O>
-
-    fun imlicitReturnType1() = getT<I>()
-    fun imlicitReturnType2() = getT<O>()
-    fun imlicitReturnType3() = getT<P>()
-    fun imlicitReturnType4() = getT<In<I>>()
-    fun imlicitReturnType5() = getT<In<O>>()
-
-    fun I.receiver1()
-    fun O.receiver2()
-    fun P.receiver3()
-    fun In<I>.receiver4()
-    fun In<O>.receiver5()
-
-    fun <X : I> typeParameter1()
-    fun <X : O> typeParameter2()
-    fun <X : P> typeParameter3()
-    fun <X : In<I>> typeParameter4()
-    fun <X : In<O>> typeParameter5()
-}
diff --git a/compiler/testData/diagnostics/tests/variance/Function.kt b/compiler/testData/diagnostics/tests/variance/Function.kt
index 1f2ed9ca1e6..3402dba6ac6 100644
--- a/compiler/testData/diagnostics/tests/variance/Function.kt
+++ b/compiler/testData/diagnostics/tests/variance/Function.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface In<in T>
 interface Out<out T>
 interface Inv<T>
diff --git a/compiler/testData/diagnostics/tests/variance/FunctionTypes.fir.kt b/compiler/testData/diagnostics/tests/variance/FunctionTypes.fir.kt
deleted file mode 100644
index edb90a7f81a..00000000000
--- a/compiler/testData/diagnostics/tests/variance/FunctionTypes.fir.kt
+++ /dev/null
@@ -1,12 +0,0 @@
-interface In<in T>
-fun <T> getT(): T = null!!
-
-interface Test<in I, out O, P> {
-    fun ok1(i: (O) -> I) : (I) -> O
-    fun ok2(i: (P) -> P) : (P) -> P
-    fun ok3(i: (In<I>) -> In<O>) = getT<(In<O>) -> In<I>>()
-
-    fun neOk1(i: (I) -> O): (O) -> I
-    fun neOk2(i: (In<O>) -> In<I>)
-    fun neOk3() = getT<(In<I>) -> In<O>>()
-}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/variance/FunctionTypes.kt b/compiler/testData/diagnostics/tests/variance/FunctionTypes.kt
index 87418e61ed0..4cf931882c4 100644
--- a/compiler/testData/diagnostics/tests/variance/FunctionTypes.kt
+++ b/compiler/testData/diagnostics/tests/variance/FunctionTypes.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface In<in T>
 fun <T> getT(): T = null!!
 
diff --git a/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
index 041174eefa2..a353a4ffc6a 100644
--- a/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/InPosition.fir.kt
@@ -27,22 +27,22 @@ interface Test<in I, out O, P> {
     fun Ok22(i: Inv<out I>)
     fun Ok23(i: Inv<out P>)
 
-    fun neOk1(i: O)
-    fun neOk2(i: In<I>)
-    fun neOk3(i: In<In<O>>)
-    fun neOk4(i: Inv<I>)
-    fun neOk5(i: Inv<O>)
-    fun neOk6(i: In<In<O>>)
-    fun neOk7(i: Pair<In<I>, O>)
-    fun neOk8(i: Inv<out O>)
+    fun neOk1(i: <!TYPE_VARIANCE_CONFLICT("O; out; in; O")!>O<!>)
+    fun neOk2(i: In<<!TYPE_VARIANCE_CONFLICT("I; in; out; In<I>")!>I<!>>)
+    fun neOk3(i: In<In<<!TYPE_VARIANCE_CONFLICT("O; out; in; In<In<O>>")!>O<!>>>)
+    fun neOk4(i: Inv<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<I>")!>I<!>>)
+    fun neOk5(i: Inv<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<O>")!>O<!>>)
+    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 neOk10(i: Out<O>)
+    fun neOk10(i: Out<<!TYPE_VARIANCE_CONFLICT("O; out; in; Out<O>")!>O<!>>)
 
-    fun neOk11(i: Inv<in I>)
-    fun neOk12(i: Inv<out O>)
+    fun neOk11(i: Inv<in <!TYPE_VARIANCE_CONFLICT("I; in; out; Inv<in I>")!>I<!>>)
+    fun neOk12(i: Inv<out <!TYPE_VARIANCE_CONFLICT("O; out; in; Inv<out O>")!>O<!>>)
 
     fun neOk30(i: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Pair<O, ><!>)
-    fun neOk31(i: Pair<O, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>)
+    fun neOk31(i: Pair<<!TYPE_VARIANCE_CONFLICT("O; out; in; Pair<O, ERROR CLASS: Wrong number of type arguments>")!>O<!>, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>)
     fun neOk32(i: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>)
     fun neOk33(i: Inv<<!SYNTAX!><!>>)
     fun neOk34(i: Inv<<!UNRESOLVED_REFERENCE!>C<!>>)
diff --git a/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
index 9fb72696400..4513bda053d 100644
--- a/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/InvariantPosition.fir.kt
@@ -14,32 +14,32 @@ interface Test<in I, out O, P> {
     var ok6: Inv<in P>
     var ok7: Inv<out P>
 
-    var neOk1: O
-    var neOk2: In<I>
-    var neOk3: In<In<O>>
-    var neOk4: Inv<I>
-    var neOk5: Inv<O>
-    var neOk6: In<In<O>>
-    var neOk7: Pair<In<I>, O>
-    var neOk8: Inv<in O>
-    var neOk9: Inv<in I>
+    var neOk1: <!TYPE_VARIANCE_CONFLICT("O; out; invariant; O")!>O<!>
+    var neOk2: In<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; In<I>")!>I<!>>
+    var neOk3: In<In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; In<In<O>>")!>O<!>>>
+    var neOk4: Inv<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<I>")!>I<!>>
+    var neOk5: Inv<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<O>")!>O<!>>
+    var neOk6: In<In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; In<In<O>>")!>O<!>>>
+    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 neOk11: I
-    var neOk12: In<O>
-    var neOk13: In<In<I>>
-    var neOk14: Out<I>
-    var neOk15: Out<Out<I>>
-    var neOk16: Out<In<O>>
-    var neOk17: Pair<In<O>, I>
+    var neOk11: <!TYPE_VARIANCE_CONFLICT("I; in; invariant; I")!>I<!>
+    var neOk12: In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; In<O>")!>O<!>>
+    var neOk13: In<In<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; In<In<I>>")!>I<!>>>
+    var neOk14: Out<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Out<I>")!>I<!>>
+    var neOk15: Out<Out<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Out<Out<I>>")!>I<!>>>
+    var neOk16: Out<In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; Out<In<O>>")!>O<!>>>
+    var neOk17: Pair<In<<!TYPE_VARIANCE_CONFLICT("O; out; invariant; Pair<In<O>, I>")!>O<!>>, <!TYPE_VARIANCE_CONFLICT("I; in; invariant; Pair<In<O>, I>")!>I<!>>
 
-    var neOk20: Inv<in O>
-    var neOk21: Inv<in I>
-    var neOk22: Inv<out O>
-    var neOk23: Inv<out I>
+    var neOk20: Inv<in <!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<in O>")!>O<!>>
+    var neOk21: Inv<in <!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<in I>")!>I<!>>
+    var neOk22: Inv<out <!TYPE_VARIANCE_CONFLICT("O; out; invariant; Inv<out O>")!>O<!>>
+    var neOk23: Inv<out <!TYPE_VARIANCE_CONFLICT("I; in; invariant; Inv<out I>")!>I<!>>
 
     var neOk30: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Pair<I, ><!>
-    var neOk31: Pair<I, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>
+    var neOk31: Pair<<!TYPE_VARIANCE_CONFLICT("I; in; invariant; Pair<I, ERROR CLASS: Wrong number of type arguments>")!>I<!>, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>
     var neOk32: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>
     var neOk33: Inv<<!SYNTAX!><!>>
     var neOk34: Inv<<!UNRESOLVED_REFERENCE!>C<!>>
diff --git a/compiler/testData/diagnostics/tests/variance/NullableTypes.fir.kt b/compiler/testData/diagnostics/tests/variance/NullableTypes.fir.kt
deleted file mode 100644
index 9f3b7b7913d..00000000000
--- a/compiler/testData/diagnostics/tests/variance/NullableTypes.fir.kt
+++ /dev/null
@@ -1,16 +0,0 @@
-interface In<in I>
-interface Out<out O>
-interface Inv<P>
-fun <T> getT(): T = null!!
-
-
-interface Test<in I : Any, out O : Any, P : Any> {
-    fun ok1(i: I?) : O?
-    fun ok2(i: In<O?>?) : Out<O?>?
-    fun ok3(i: Inv<in O?>) = getT<Inv<in I?>>()
-
-    fun neOk1(i: O?) : I?
-    fun neOk(i: Out<O?>?) : In<O?>?
-    fun neOk3(i: Inv<in I?>)
-    fun neOk4() = getT<Inv<in O?>?>()
-}
diff --git a/compiler/testData/diagnostics/tests/variance/NullableTypes.kt b/compiler/testData/diagnostics/tests/variance/NullableTypes.kt
index 089729b268f..fdec08c5468 100644
--- a/compiler/testData/diagnostics/tests/variance/NullableTypes.kt
+++ b/compiler/testData/diagnostics/tests/variance/NullableTypes.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface In<in I>
 interface Out<out O>
 interface Inv<P>
diff --git a/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt b/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
index a9d19182389..abef9b833cb 100644
--- a/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/OutPosition.fir.kt
@@ -15,26 +15,26 @@ interface Test<in I, out O, P> {
     fun ok7(): Out<P>
     fun ok8(): Out<In<P>>
     fun ok9(): Pair<In<I>, O>
-    
+
     fun ok10(): Inv<in I>
     fun ok11(): Inv<out O>
     fun ok12(): Inv<in P>
     fun ok13(): Inv<out P>
 
-    fun neOk1(): I
-    fun neOk2(): In<O>
-    fun neOk3(): In<In<I>>
-    fun neOk4(): Inv<I>
-    fun neOk5(): Inv<O>
-    fun neOk6(): Pair<In<O>, I>
-    fun neOk7(): Inv<in O>
+    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 neOk10(): Inv<in O>
-    fun neOk11(): Inv<out I>
+
+    fun neOk10(): Inv<in <!TYPE_VARIANCE_CONFLICT!>O<!>>
+    fun neOk11(): Inv<out <!TYPE_VARIANCE_CONFLICT!>I<!>>
 
     fun neOk30(): <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Pair<I, ><!>
-    fun neOk31(): Pair<I, <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Inv<!>>
+    fun neOk31(): Pair<<!TYPE_VARIANCE_CONFLICT!>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/compiler/testData/diagnostics/tests/variance/OutPosition.kt b/compiler/testData/diagnostics/tests/variance/OutPosition.kt
index f1d567f2766..f8037e3e3d8 100644
--- a/compiler/testData/diagnostics/tests/variance/OutPosition.kt
+++ b/compiler/testData/diagnostics/tests/variance/OutPosition.kt
@@ -15,7 +15,7 @@ interface Test<in I, out O, P> {
     fun ok7(): Out<P>
     fun ok8(): Out<In<P>>
     fun ok9(): Pair<In<I>, O>
-    
+
     fun ok10(): Inv<in I>
     fun ok11(): Inv<out O>
     fun ok12(): Inv<in P>
@@ -29,7 +29,7 @@ interface Test<in I, out O, P> {
     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>
-    
+
     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<!>>
 
diff --git a/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.fir.kt b/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.fir.kt
deleted file mode 100644
index d0fa36fb22d..00000000000
--- a/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.fir.kt
+++ /dev/null
@@ -1,25 +0,0 @@
-interface In<in T>
-interface Out<out T>
-interface Inv<T>
-
-fun <T> getT(): T = null!!
-
-class Test<in I, out O, P>(
-        val type1: I,
-        val type2: O,
-        val type3: P,
-        val type4: In<I>,
-        val type5: In<O>,
-
-        var type6: I,
-        var type7: O,
-        var type8: P,
-        var type9: In<I>,
-        var type0: In<O>,
-
-        type11: I,
-        type12: O,
-        type13: P,
-        type14: In<I>,
-        type15: In<O>
-)
diff --git a/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.kt b/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.kt
index 0ed1277a0ee..d3373ff65a6 100644
--- a/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.kt
+++ b/compiler/testData/diagnostics/tests/variance/PrimaryConstructor.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 interface In<in T>
 interface Out<out T>
 interface Inv<T>
diff --git a/compiler/testData/diagnostics/tests/variance/ValProperty.fir.kt b/compiler/testData/diagnostics/tests/variance/ValProperty.fir.kt
deleted file mode 100644
index 277e2c628ce..00000000000
--- a/compiler/testData/diagnostics/tests/variance/ValProperty.fir.kt
+++ /dev/null
@@ -1,50 +0,0 @@
-import kotlin.reflect.KProperty
-
-interface In<in T>
-interface Out<out T>
-interface Inv<T>
-
-class Delegate<T> {
-    operator fun getValue(t: Any, p: KProperty<*>): T = null!!
-    operator fun setValue(t: Any, p: KProperty<*>, value: T) {}
-}
-
-fun <T> getT(): T = null!!
-
-abstract class Test<in I, out O, P> {
-    abstract val type1: I
-    abstract val type2: O
-    abstract val type3: P
-    abstract val type4: In<I>
-    abstract val type5: In<O>
-
-    val implicitType1 = getT<I>()
-    val implicitType2 = getT<O>()
-    val implicitType3 = getT<P>()
-    val implicitType4 = getT<In<I>>()
-    val implicitType5 = getT<In<O>>()
-
-    val delegateType1 by Delegate<I>()
-    val delegateType2 by Delegate<O>()
-    val delegateType3 by Delegate<P>()
-    val delegateType4 by Delegate<In<I>>()
-    val delegateType5 by Delegate<In<O>>()
-
-    abstract val I.receiver1: Int
-    abstract val O.receiver2: Int
-    abstract val P.receiver3: Int
-    abstract val In<I>.receiver4: Int
-    abstract val In<O>.receiver5: Int
-
-    val <X : I> X.typeParameter1: Int get() = 0
-    val <X : O> X.typeParameter2: Int get() = 0
-    val <X : P> X.typeParameter3: Int get() = 0
-    val <X : In<I>> X.typeParameter4: Int get() = 0
-    val <X : In<O>> X.typeParameter5: Int get() = 0
-
-    val <X> X.typeParameter6: Int where X : I get() = 0
-    val <X> X.typeParameter7: Int where X : O get() = 0
-    val <X> X.typeParameter8: Int where X : P get() = 0
-    val <X> X.typeParameter9: Int where X : In<I> get() = 0
-    val <X> X.typeParameter0: Int where X : In<O> get() = 0
-}
diff --git a/compiler/testData/diagnostics/tests/variance/ValProperty.kt b/compiler/testData/diagnostics/tests/variance/ValProperty.kt
index 94ab374cd21..5540fdaa268 100644
--- a/compiler/testData/diagnostics/tests/variance/ValProperty.kt
+++ b/compiler/testData/diagnostics/tests/variance/ValProperty.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 import kotlin.reflect.KProperty
 
 interface In<in T>
diff --git a/compiler/testData/diagnostics/tests/variance/VarProperty.fir.kt b/compiler/testData/diagnostics/tests/variance/VarProperty.fir.kt
deleted file mode 100644
index a8cb2614b8b..00000000000
--- a/compiler/testData/diagnostics/tests/variance/VarProperty.fir.kt
+++ /dev/null
@@ -1,50 +0,0 @@
-import kotlin.reflect.KProperty
-
-interface In<in T>
-interface Out<out T>
-interface Inv<T>
-
-class Delegate<T> {
-    operator fun getValue(t: Any, p: KProperty<*>): T = null!!
-    operator fun setValue(t: Any, p: KProperty<*>, varue: T) {}
-}
-
-fun <T> getT(): T = null!!
-
-abstract class Test<in I, out O, P> {
-    abstract var type1: I
-    abstract var type2: O
-    abstract var type3: P
-    abstract var type4: In<I>
-    abstract var type5: In<O>
-
-    var implicitType1 = getT<I>()
-    var implicitType2 = getT<O>()
-    var implicitType3 = getT<P>()
-    var implicitType4 = getT<In<I>>()
-    var implicitType5 = getT<In<O>>()
-
-    var delegateType1 by Delegate<I>()
-    var delegateType2 by Delegate<O>()
-    var delegateType3 by Delegate<P>()
-    var delegateType4 by Delegate<In<I>>()
-    var delegateType5 by Delegate<In<O>>()
-
-    abstract var I.receiver1: Int
-    abstract var O.receiver2: Int
-    abstract var P.receiver3: Int
-    abstract var In<I>.receiver4: Int
-    abstract var In<O>.receiver5: Int
-
-    var <X : I> X.typeParameter1: Int get() = 0; set(i) {}
-    var <X : O> X.typeParameter2: Int get() = 0; set(i) {}
-    var <X : P> X.typeParameter3: Int get() = 0; set(i) {}
-    var <X : In<I>> X.typeParameter4: Int get() = 0; set(i) {}
-    var <X : In<O>> X.typeParameter5: Int get() = 0; set(i) {}
-
-    var <X> X.typeParameter6: Int where X : I get() = 0; set(i) {}
-    var <X> X.typeParameter7: Int where X : O get() = 0; set(i) {}
-    var <X> X.typeParameter8: Int where X : P get() = 0; set(i) {}
-    var <X> X.typeParameter9: Int where X : In<I> get() = 0; set(i) {}
-    var <X> X.typeParameter0: Int where X : In<O> get() = 0; set(i) {}
-}
diff --git a/compiler/testData/diagnostics/tests/variance/VarProperty.kt b/compiler/testData/diagnostics/tests/variance/VarProperty.kt
index 3c5378b3803..ba0ace2d0df 100644
--- a/compiler/testData/diagnostics/tests/variance/VarProperty.kt
+++ b/compiler/testData/diagnostics/tests/variance/VarProperty.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 import kotlin.reflect.KProperty
 
 interface In<in T>
diff --git a/compiler/testData/diagnostics/tests/variance/Visibility.fir.kt b/compiler/testData/diagnostics/tests/variance/Visibility.fir.kt
index 34ee0dbd565..9079ddad14d 100644
--- a/compiler/testData/diagnostics/tests/variance/Visibility.fir.kt
+++ b/compiler/testData/diagnostics/tests/variance/Visibility.fir.kt
@@ -1,20 +1,20 @@
 interface Test<in I, out O> {
-    val internal_val: I
-    public val public_val: I
-    protected val protected_val: I
+    val internal_val: <!TYPE_VARIANCE_CONFLICT!>I<!>
+    public val public_val: <!TYPE_VARIANCE_CONFLICT!>I<!>
+    protected val protected_val: <!TYPE_VARIANCE_CONFLICT!>I<!>
     <!PRIVATE_PROPERTY_IN_INTERFACE!>private<!> val private_val: I
 
-    var interlan_private_set: O
+    var interlan_private_set: <!TYPE_VARIANCE_CONFLICT!>O<!>
         <!PRIVATE_SETTER_FOR_ABSTRACT_PROPERTY!>private<!> set
-    public var public_private_set: O
+    public var public_private_set: <!TYPE_VARIANCE_CONFLICT!>O<!>
         <!PRIVATE_SETTER_FOR_ABSTRACT_PROPERTY!>private<!> set
-    protected var protected_private_set: O
+    protected var protected_private_set: <!TYPE_VARIANCE_CONFLICT!>O<!>
         <!PRIVATE_SETTER_FOR_ABSTRACT_PROPERTY!>private<!> set
     <!PRIVATE_PROPERTY_IN_INTERFACE!>private<!> var private_private_set: O
         private set
 
-    fun internal_fun(i: O) : I
-    public fun public_fun(i: O) : I
-    protected fun protected_fun(i: O) : I
+    fun internal_fun(i: <!TYPE_VARIANCE_CONFLICT!>O<!>) : <!TYPE_VARIANCE_CONFLICT!>I<!>
+    public fun public_fun(i: <!TYPE_VARIANCE_CONFLICT!>O<!>) : <!TYPE_VARIANCE_CONFLICT!>I<!>
+    protected fun protected_fun(i: <!TYPE_VARIANCE_CONFLICT!>O<!>) : <!TYPE_VARIANCE_CONFLICT!>I<!>
     <!PRIVATE_FUNCTION_WITH_NO_BODY!>private<!> fun private_fun(i: O) : I
 }
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/checker/TypeCheckingProcedure.java b/core/descriptors/src/org/jetbrains/kotlin/types/checker/TypeCheckingProcedure.java
index 3cfd78b84cc..c7851c09328 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/checker/TypeCheckingProcedure.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/checker/TypeCheckingProcedure.java
@@ -143,6 +143,13 @@ public class TypeCheckingProcedure {
         }
     }
 
+    public static EnrichedProjectionKind getEffectiveProjectionKind(
+            @NotNull TypeParameterDescriptor typeParameter,
+            @NotNull TypeProjection typeArgument
+    ) {
+        return getEffectiveProjectionKind(typeParameter.getVariance(), typeArgument.getProjectionKind());
+    }
+
     // If class C<out T> then C<T> and C<out T> mean the same
     // out * out = out
     // out * in  = *
@@ -156,11 +163,11 @@ public class TypeCheckingProcedure {
     // inv * in  = out
     // inv * inv = inv
     public static EnrichedProjectionKind getEffectiveProjectionKind(
-            @NotNull TypeParameterDescriptor typeParameter,
-            @NotNull TypeProjection typeArgument
+            @NotNull Variance typeParameterVariance,
+            @NotNull Variance typeArgumentVariance
     ) {
-        Variance a = typeParameter.getVariance();
-        Variance b = typeArgument.getProjectionKind();
+        Variance a = typeParameterVariance;
+        Variance b = typeArgumentVariance;
 
         // If they are not both invariant, let's make b not invariant for sure
         if (b == INVARIANT) {
diff --git a/idea/idea-frontend-fir/idea-frontend-fir-generator/src/org/jetbrains/kotlin/idea/frontend/api/fir/generator/HLDiagnosticConverter.kt b/idea/idea-frontend-fir/idea-frontend-fir-generator/src/org/jetbrains/kotlin/idea/frontend/api/fir/generator/HLDiagnosticConverter.kt
index 20d3df80d83..d31e4670d75 100644
--- a/idea/idea-frontend-fir/idea-frontend-fir-generator/src/org/jetbrains/kotlin/idea/frontend/api/fir/generator/HLDiagnosticConverter.kt
+++ b/idea/idea-frontend-fir/idea-frontend-fir-generator/src/org/jetbrains/kotlin/idea/frontend/api/fir/generator/HLDiagnosticConverter.kt
@@ -28,6 +28,7 @@ import org.jetbrains.kotlin.lexer.KtModifierKeywordToken
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.psi.KtExpression
 import org.jetbrains.kotlin.resolve.ForbiddenNamedArgumentsTarget
+import org.jetbrains.kotlin.types.Variance
 import kotlin.reflect.KClass
 import kotlin.reflect.KType
 import kotlin.reflect.full.createType
@@ -188,6 +189,11 @@ private object FirToKtConversionCreator {
             KtTypeParameterSymbol::class.createType(),
             importsToAdd = listOf("org.jetbrains.kotlin.fir.declarations.FirTypeParameter")
         ),
+        FirTypeParameter::class to HLFunctionCallConversion(
+            "firSymbolBuilder.classifierBuilder.buildTypeParameterSymbol({0}.fir)",
+            KtTypeParameterSymbol::class.createType(),
+            importsToAdd = listOf("org.jetbrains.kotlin.fir.declarations.FirTypeParameter")
+        ),
         ConeKotlinType::class to HLFunctionCallConversion(
             "firSymbolBuilder.typeBuilder.buildKtType({0})",
             KtType::class.createType()
@@ -215,7 +221,7 @@ private object FirToKtConversionCreator {
             "firSymbolBuilder.functionLikeBuilder.buildFunctionSymbol({0}.fir)",
             KtFunctionLikeSymbol::class.createType(),
             importsToAdd = listOf("org.jetbrains.kotlin.fir.declarations.FirSimpleFunction")
-        ),
+        )
     )
 
     private val allowedTypesWithoutTypeParams = setOf(
@@ -231,6 +237,7 @@ private object FirToKtConversionCreator {
         ForbiddenNamedArgumentsTarget::class,
         LanguageFeature::class,
         LanguageVersionSettings::class,
+        Variance::class
     )
 
     private val KType.kClass: KClass<*>
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
index 942921e1955..b4067642e3b 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/diagnostics/KtFirDataClassConverters.kt
@@ -1333,6 +1333,26 @@ internal val KT_DIAGNOSTIC_CONVERTER = KtDiagnosticConverterBuilder.buildConvert
             token,
         )
     }
+    add(FirErrors.TYPE_VARIANCE_CONFLICT) { firDiagnostic ->
+        TypeVarianceConflictImpl(
+            firSymbolBuilder.classifierBuilder.buildTypeParameterSymbol(firDiagnostic.a.fir),
+            firDiagnostic.b,
+            firDiagnostic.c,
+            firSymbolBuilder.typeBuilder.buildKtType(firDiagnostic.d),
+            firDiagnostic as FirPsiDiagnostic<*>,
+            token,
+        )
+    }
+    add(FirErrors.TYPE_VARIANCE_CONFLICT_IN_EXPANDED_TYPE) { firDiagnostic ->
+        TypeVarianceConflictInExpandedTypeImpl(
+            firSymbolBuilder.classifierBuilder.buildTypeParameterSymbol(firDiagnostic.a.fir),
+            firDiagnostic.b,
+            firDiagnostic.c,
+            firSymbolBuilder.typeBuilder.buildKtType(firDiagnostic.d),
+            firDiagnostic as FirPsiDiagnostic<*>,
+            token,
+        )
+    }
     add(FirErrors.EXTENSION_IN_CLASS_REFERENCE_NOT_ALLOWED) { firDiagnostic ->
         ExtensionInClassReferenceNotAllowedImpl(
             firSymbolBuilder.callableBuilder.buildCallableSymbol(firDiagnostic.a as FirCallableDeclaration),
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 c0acc1b858a..859bb687927 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
@@ -57,6 +57,7 @@ import org.jetbrains.kotlin.psi.KtValueArgument
 import org.jetbrains.kotlin.psi.KtWhenEntry
 import org.jetbrains.kotlin.psi.KtWhenExpression
 import org.jetbrains.kotlin.resolve.ForbiddenNamedArgumentsTarget
+import org.jetbrains.kotlin.types.Variance
 
 /*
  * This file was generated automatically
@@ -939,6 +940,22 @@ sealed class KtFirDiagnostic<PSI: PsiElement> : KtDiagnosticWithPsi<PSI> {
         abstract val typeB: KtType
     }
 
+    abstract class TypeVarianceConflict : KtFirDiagnostic<PsiElement>() {
+        override val diagnosticClass get() = TypeVarianceConflict::class
+        abstract val typeParameter: KtTypeParameterSymbol
+        abstract val typeParameterVariance: Variance
+        abstract val variance: Variance
+        abstract val containingType: KtType
+    }
+
+    abstract class TypeVarianceConflictInExpandedType : KtFirDiagnostic<PsiElement>() {
+        override val diagnosticClass get() = TypeVarianceConflictInExpandedType::class
+        abstract val typeParameter: KtTypeParameterSymbol
+        abstract val typeParameterVariance: Variance
+        abstract val variance: Variance
+        abstract val containingType: KtType
+    }
+
     abstract class ExtensionInClassReferenceNotAllowed : KtFirDiagnostic<KtExpression>() {
         override val diagnosticClass get() = ExtensionInClassReferenceNotAllowed::class
         abstract val referencedDeclaration: KtCallableSymbol
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 91d911e6fca..dcf4b37ea1f 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
@@ -59,6 +59,7 @@ import org.jetbrains.kotlin.psi.KtValueArgument
 import org.jetbrains.kotlin.psi.KtWhenEntry
 import org.jetbrains.kotlin.psi.KtWhenExpression
 import org.jetbrains.kotlin.resolve.ForbiddenNamedArgumentsTarget
+import org.jetbrains.kotlin.types.Variance
 
 /*
  * This file was generated automatically
@@ -1522,6 +1523,28 @@ internal class IncompatibleTypesWarningImpl(
     override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
 }
 
+internal class TypeVarianceConflictImpl(
+    override val typeParameter: KtTypeParameterSymbol,
+    override val typeParameterVariance: Variance,
+    override val variance: Variance,
+    override val containingType: KtType,
+    firDiagnostic: FirPsiDiagnostic<*>,
+    override val token: ValidityToken,
+) : KtFirDiagnostic.TypeVarianceConflict(), KtAbstractFirDiagnostic<PsiElement> {
+    override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
+}
+
+internal class TypeVarianceConflictInExpandedTypeImpl(
+    override val typeParameter: KtTypeParameterSymbol,
+    override val typeParameterVariance: Variance,
+    override val variance: Variance,
+    override val containingType: KtType,
+    firDiagnostic: FirPsiDiagnostic<*>,
+    override val token: ValidityToken,
+) : KtFirDiagnostic.TypeVarianceConflictInExpandedType(), KtAbstractFirDiagnostic<PsiElement> {
+    override val firDiagnostic: FirPsiDiagnostic<*> by weakRef(firDiagnostic)
+}
+
 internal class ExtensionInClassReferenceNotAllowedImpl(
     override val referencedDeclaration: KtCallableSymbol,
     firDiagnostic: FirPsiDiagnostic<*>,