diff --git a/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/components/KtFe10PsiTypeProvider.kt b/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/components/KtFe10PsiTypeProvider.kt
index fa72ea7e082..73fa013271c 100644
--- a/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/components/KtFe10PsiTypeProvider.kt
+++ b/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/components/KtFe10PsiTypeProvider.kt
@@ -20,6 +20,7 @@ import org.jetbrains.kotlin.analysis.api.types.KtType
 import org.jetbrains.kotlin.analysis.api.withValidityAssertion
 import org.jetbrains.kotlin.codegen.signature.BothSignatureWriter
 import org.jetbrains.kotlin.load.kotlin.TypeMappingMode
+import org.jetbrains.kotlin.load.kotlin.getOptimalModeForValueParameter
 import org.jetbrains.kotlin.name.SpecialNames
 import org.jetbrains.kotlin.types.*
 import java.text.StringCharacterIterator
@@ -40,6 +41,11 @@ internal class KtFe10PsiTypeProvider(override val analysisSession: KtFe10Analysi
         return asPsiType(simplifyType(kotlinType), useSitePosition, mode)
     }
 
+    override fun getOptimalModeForValueParameter(type: KtType): TypeMappingMode = withValidityAssertion {
+        require(type is KtFe10Type)
+        typeMapper.typeContext.getOptimalModeForValueParameter(type.type)
+    }
+
     private fun simplifyType(type: UnwrappedType): KotlinType {
         var result = type
         do {
@@ -53,7 +59,7 @@ internal class KtFe10PsiTypeProvider(override val analysisSession: KtFe10Analysi
         return result
     }
 
-    private fun asPsiType(type: KotlinType, context: PsiElement, mode: TypeMappingMode): PsiType? {
+    private fun asPsiType(type: KotlinType, useSitePosition: PsiElement, mode: TypeMappingMode): PsiType? {
         val signatureWriter = BothSignatureWriter(BothSignatureWriter.Mode.SKIP_CHECKS)
         typeMapper.mapType(type, mode, signatureWriter)
 
@@ -69,7 +75,7 @@ internal class KtFe10PsiTypeProvider(override val analysisSession: KtFe10Analysi
         val typeInfo = TypeInfo.fromString(javaType, false)
         val typeText = TypeInfo.createTypeText(typeInfo) ?: return null
 
-        val typeElement = ClsTypeElementImpl(context, typeText, '\u0000')
+        val typeElement = ClsTypeElementImpl(useSitePosition, typeText, '\u0000')
         return typeElement.type
     }
 }
diff --git a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/components/KtFirPsiTypeProvider.kt b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/components/KtFirPsiTypeProvider.kt
index 2be53e8d10d..3424ea938b9 100644
--- a/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/components/KtFirPsiTypeProvider.kt
+++ b/analysis/analysis-api-fir/src/org/jetbrains/kotlin/analysis/api/fir/components/KtFirPsiTypeProvider.kt
@@ -13,6 +13,7 @@ import com.intellij.psi.impl.compiled.SignatureParsing
 import com.intellij.psi.impl.compiled.StubBuildingVisitor
 import org.jetbrains.kotlin.analysis.api.components.KtPsiTypeProvider
 import org.jetbrains.kotlin.analysis.api.fir.KtFirAnalysisSession
+import org.jetbrains.kotlin.analysis.api.fir.types.KtFirType
 import org.jetbrains.kotlin.analysis.api.fir.types.PublicTypeApproximator
 import org.jetbrains.kotlin.analysis.api.tokens.ValidityToken
 import org.jetbrains.kotlin.analysis.api.types.KtType
@@ -38,6 +39,7 @@ import org.jetbrains.kotlin.fir.resolve.toSymbol
 import org.jetbrains.kotlin.fir.symbols.impl.FirClassSymbol
 import org.jetbrains.kotlin.fir.types.*
 import org.jetbrains.kotlin.load.kotlin.TypeMappingMode
+import org.jetbrains.kotlin.load.kotlin.getOptimalModeForValueParameter
 import org.jetbrains.kotlin.name.SpecialNames
 import org.jetbrains.kotlin.psi
 import org.jetbrains.kotlin.psi.psiUtil.parents
@@ -56,6 +58,11 @@ internal class KtFirPsiTypeProvider(
     ): PsiType? = withValidityAssertion {
         type.coneType.asPsiType(rootModuleSession, analysisSession.firResolveState, mode, useSitePosition)
     }
+
+    override fun getOptimalModeForValueParameter(type: KtType): TypeMappingMode = withValidityAssertion {
+        require(type is KtFirType)
+        rootModuleSession.jvmTypeMapper.typeContext.getOptimalModeForValueParameter(type.coneType)
+    }
 }
 
 private fun ConeKotlinType.simplifyType(
diff --git a/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/components/KtPsiTypeProvider.kt b/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/components/KtPsiTypeProvider.kt
index 7743b3acb2d..4fa4608d21e 100644
--- a/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/components/KtPsiTypeProvider.kt
+++ b/analysis/analysis-api/src/org/jetbrains/kotlin/analysis/api/components/KtPsiTypeProvider.kt
@@ -12,6 +12,7 @@ import org.jetbrains.kotlin.load.kotlin.TypeMappingMode
 
 public abstract class KtPsiTypeProvider : KtAnalysisSessionComponent() {
     public abstract fun asPsiType(type: KtType, useSitePosition: PsiElement, mode: TypeMappingMode): PsiType?
+    public abstract fun getOptimalModeForValueParameter(type: KtType): TypeMappingMode
 }
 
 public interface KtPsiTypeProviderMixIn : KtAnalysisSessionMixIn {
@@ -36,4 +37,7 @@ public interface KtPsiTypeProviderMixIn : KtAnalysisSessionMixIn {
         mode: TypeMappingMode = TypeMappingMode.DEFAULT,
     ): PsiType? =
         analysisSession.psiTypeProvider.asPsiType(this, useSitePosition, mode)
+
+    public fun KtType.getOptimalModeForValueParameter(): TypeMappingMode =
+        analysisSession.psiTypeProvider.getOptimalModeForValueParameter(this)
 }
diff --git a/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterBaseForSymbol.kt b/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterBaseForSymbol.kt
index d91a6efbc72..a291fe843c2 100644
--- a/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterBaseForSymbol.kt
+++ b/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterBaseForSymbol.kt
@@ -8,6 +8,7 @@ package org.jetbrains.kotlin.light.classes.symbol
 import com.intellij.psi.*
 import org.jetbrains.kotlin.asJava.classes.lazyPub
 import org.jetbrains.kotlin.analysis.api.symbols.KtValueParameterSymbol
+import org.jetbrains.kotlin.load.kotlin.TypeMappingMode
 import org.jetbrains.kotlin.psi.KtParameter
 
 internal abstract class FirLightParameterBaseForSymbol(
@@ -39,17 +40,22 @@ internal abstract class FirLightParameterBaseForSymbol(
                         parameterSymbol.annotatedType.type
                     )
                 }
-            }
-            else NullabilityType.Unknown
+            } else NullabilityType.Unknown
         }
 
     override fun getNameIdentifier(): PsiIdentifier = _identifier
 
     private val _type by lazyPub {
         val convertedType = analyzeWithSymbolAsContext(parameterSymbol) {
-            parameterSymbol.annotatedType.type.asPsiType(this@FirLightParameterBaseForSymbol)
-                ?: this@FirLightParameterBaseForSymbol.nonExistentType()
-        }
+            val ktType = parameterSymbol.annotatedType.type
+            val typeMappingMode = when {
+                ktType.isSuspendFunctionType -> TypeMappingMode.DEFAULT
+                // TODO: extract type mapping mode from annotation?
+                // TODO: methods with declaration site wildcards?
+                else -> ktType.getOptimalModeForValueParameter()
+            }
+            ktType.asPsiType(this@FirLightParameterBaseForSymbol, typeMappingMode)
+        } ?: nonExistentType()
         if (parameterSymbol.isVararg) {
             PsiEllipsisType(convertedType, convertedType.annotationProvider)
         } else convertedType
diff --git a/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterForReceiver.kt b/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterForReceiver.kt
index 203b63c66ab..73075cbf87f 100644
--- a/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterForReceiver.kt
+++ b/analysis/symbol-light-classes/src/org/jetbrains/kotlin/light/classes/symbol/parameters/FirLightParameterForReceiver.kt
@@ -72,8 +72,7 @@ internal class FirLightParameterForReceiver private constructor(
     private val _type: PsiType by lazyPub {
         analyzeWithSymbolAsContext(context) {
             receiverTypeAndAnnotations.type.asPsiType(this@FirLightParameterForReceiver)
-                ?: this@FirLightParameterForReceiver.nonExistentType()
-        }
+        } ?: nonExistentType()
     }
 
     override fun getType(): PsiType = _type
diff --git a/compiler/testData/asJava/ultraLightClasses/jvmName.kt b/compiler/testData/asJava/ultraLightClasses/jvmName.kt
index 0408a9861bd..ae74495e597 100644
--- a/compiler/testData/asJava/ultraLightClasses/jvmName.kt
+++ b/compiler/testData/asJava/ultraLightClasses/jvmName.kt
@@ -22,3 +22,5 @@ class C {
     @JvmName("fooInt")
     fun foo(x: List<Int>) {}
 }
+
+// FIR_COMPARISON
diff --git a/compiler/testData/asJava/ultraLightFacades/jvmName.kt b/compiler/testData/asJava/ultraLightFacades/jvmName.kt
index 0f0542b67a9..ca2cde9dd42 100644
--- a/compiler/testData/asJava/ultraLightFacades/jvmName.kt
+++ b/compiler/testData/asJava/ultraLightFacades/jvmName.kt
@@ -20,3 +20,5 @@ fun setRwProp(v: Int) {}
 fun foo(x: List<String>) {}
 @JvmName("fooInt")
 fun foo(x: List<Int>) {}
+
+// FIR_COMPARISON