diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
index 9403a5fcd47..8d24d2b06d8 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/DiagnosticCompilerTestFE10TestdataTestGenerated.java
@@ -13750,6 +13750,12 @@ public class DiagnosticCompilerTestFE10TestdataTestGenerated extends AbstractDia
                 runTest("compiler/testData/diagnostics/tests/generics/anonymousObjectSupertypeWithTypeParameterFromFunction.kt");
             }
 
+            @Test
+            @TestMetadata("approximationOfBoundedProjection.kt")
+            public void testApproximationOfBoundedProjection() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt");
+            }
+
             @Test
             @TestMetadata("approximationOfInProjection.kt")
             public void testApproximationOfInProjection() throws Exception {
diff --git a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
index 6e136cdc595..fb17d5e3708 100644
--- a/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
+++ b/analysis/low-level-api-fir/tests/org/jetbrains/kotlin/analysis/low/level/api/fir/diagnostic/compiler/based/LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated.java
@@ -13750,6 +13750,12 @@ public class LLFirPreresolvedReversedDiagnosticCompilerFE10TestDataTestGenerated
                 runTest("compiler/testData/diagnostics/tests/generics/anonymousObjectSupertypeWithTypeParameterFromFunction.kt");
             }
 
+            @Test
+            @TestMetadata("approximationOfBoundedProjection.kt")
+            public void testApproximationOfBoundedProjection() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt");
+            }
+
             @Test
             @TestMetadata("approximationOfInProjection.kt")
             public void testApproximationOfInProjection() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
index 318d2292de9..72f0c5ff1da 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirLightTreeOldFrontendDiagnosticsTestGenerated.java
@@ -13744,6 +13744,12 @@ public class FirLightTreeOldFrontendDiagnosticsTestGenerated extends AbstractFir
                 runTest("compiler/testData/diagnostics/tests/generics/anonymousObjectSupertypeWithTypeParameterFromFunction.kt");
             }
 
+            @Test
+            @TestMetadata("approximationOfBoundedProjection.kt")
+            public void testApproximationOfBoundedProjection() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt");
+            }
+
             @Test
             @TestMetadata("approximationOfInProjection.kt")
             public void testApproximationOfInProjection() throws Exception {
diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
index 28307ecbfa2..ffb173cca57 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/test/runners/FirPsiOldFrontendDiagnosticsTestGenerated.java
@@ -13750,6 +13750,12 @@ public class FirPsiOldFrontendDiagnosticsTestGenerated extends AbstractFirPsiDia
                 runTest("compiler/testData/diagnostics/tests/generics/anonymousObjectSupertypeWithTypeParameterFromFunction.kt");
             }
 
+            @Test
+            @TestMetadata("approximationOfBoundedProjection.kt")
+            public void testApproximationOfBoundedProjection() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt");
+            }
+
             @Test
             @TestMetadata("approximationOfInProjection.kt")
             public void testApproximationOfInProjection() throws Exception {
diff --git a/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.fir.kt b/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.fir.kt
new file mode 100644
index 00000000000..bac68c0eb43
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.fir.kt
@@ -0,0 +1,15 @@
+// ISSUE: KT-21463
+
+interface BoxWrapper<T, B : Box<T>> {
+    val box: B
+}
+
+interface Box<T> {
+    val item: T
+}
+
+fun <T> getBoxWrapper(): BoxWrapper<T, *> = null!!
+
+class Element
+
+val box: Box<Element> = getBoxWrapper<Element>().box
diff --git a/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt b/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt
new file mode 100644
index 00000000000..8484f1f5eba
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt
@@ -0,0 +1,15 @@
+// ISSUE: KT-21463
+
+interface BoxWrapper<T, B : Box<T>> {
+    val box: B
+}
+
+interface Box<T> {
+    val item: T
+}
+
+fun <T> getBoxWrapper(): BoxWrapper<T, *> = null!!
+
+class Element
+
+val box: Box<Element> = <!TYPE_MISMATCH!>getBoxWrapper<Element>().box<!>
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
index 1dd3069fbbe..47839b947be 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/DiagnosticTestGenerated.java
@@ -13750,6 +13750,12 @@ public class DiagnosticTestGenerated extends AbstractDiagnosticTest {
                 runTest("compiler/testData/diagnostics/tests/generics/anonymousObjectSupertypeWithTypeParameterFromFunction.kt");
             }
 
+            @Test
+            @TestMetadata("approximationOfBoundedProjection.kt")
+            public void testApproximationOfBoundedProjection() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/generics/approximationOfBoundedProjection.kt");
+            }
+
             @Test
             @TestMetadata("approximationOfInProjection.kt")
             public void testApproximationOfInProjection() throws Exception {