diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.fir.txt b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.fir.txt
new file mode 100644
index 00000000000..eb03636dc24
--- /dev/null
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.fir.txt
@@ -0,0 +1,39 @@
+/**
+ * public final annotation class A : kotlin/Annotation {
+ *
+ *   // signature: <init>()V
+ *   public constructor()
+ *
+ *   // module name: main
+ * }
+ */
+@kotlin.Metadata()
+@kotlin.annotation.Target(allowedTargets = {kotlin.annotation.AnnotationTarget.TYPE})
+@java.lang.annotation.Target(value = {java.lang.annotation.ElementType.TYPE_USE})
+@java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
+public abstract @interface A {
+}
+
+////////////////////
+
+
+/**
+ * package {
+ *
+ *   // signature: foo(Lkotlin/jvm/functions/Function1;)V
+ *   public final fun foo(callback: @A kotlin/Function1<@kotlin/ParameterName(name = "parameter") kotlin/Function0<kotlin/Unit>, kotlin/Unit>): kotlin/Unit
+ *
+ *   // module name: main
+ * }
+ */
+@kotlin.Metadata()
+public final class Kt65453Kt {
+
+    public Kt65453Kt() {
+        super();
+    }
+
+    public static final void foo(@org.jetbrains.annotations.NotNull()
+    kotlin.jvm.functions.Function1<? super kotlin.jvm.functions.Function0<kotlin.Unit>, kotlin.Unit> callback) {
+    }
+}
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.kt b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.kt
new file mode 100644
index 00000000000..b9b0c888ce9
--- /dev/null
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.kt
@@ -0,0 +1,5 @@
+@Target(AnnotationTarget.TYPE)
+annotation class A
+
+
+fun foo(callback: @A (parameter: (() -> Unit)) -> Unit) { }
\ No newline at end of file
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.txt b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.txt
new file mode 100644
index 00000000000..8ab1dbb7bc3
--- /dev/null
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/kt65453.txt
@@ -0,0 +1,39 @@
+@kotlin.annotation.Target(allowedTargets = {kotlin.annotation.AnnotationTarget.TYPE})
+@java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
+@java.lang.annotation.Target(value = {})
+/**
+ * public final annotation class A : kotlin/Annotation {
+ *
+ *   // signature: <init>()V
+ *   public constructor()
+ *
+ *   // module name: main
+ * }
+ */
+@kotlin.Metadata()
+public abstract @interface A {
+}
+
+////////////////////
+
+
+/**
+ * package {
+ *
+ *   // signature: foo(Lkotlin/jvm/functions/Function1;)V
+ *   public final fun foo(callback: @A kotlin/Function1<@kotlin/ParameterName(name = "parameter") kotlin/Function0<kotlin/Unit>, kotlin/Unit>): kotlin/Unit
+ *
+ *   // module name: main
+ * }
+ */
+@kotlin.Metadata()
+public final class Kt65453Kt {
+
+    public Kt65453Kt() {
+        super();
+    }
+
+    public static final void foo(@org.jetbrains.annotations.NotNull()
+    kotlin.jvm.functions.Function1<? super kotlin.jvm.functions.Function0<kotlin.Unit>, kotlin.Unit> callback) {
+    }
+}
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/typeAnnotations.fir.txt b/plugins/kapt3/kapt3-compiler/testData/converter/typeAnnotations.fir.txt
index 4d94266a550..c3d69f6236f 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/typeAnnotations.fir.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/typeAnnotations.fir.txt
@@ -77,10 +77,9 @@ public final class TypeAnnotationsKt {
     }
 
     @org.jetbrains.annotations.NotNull()
-    public static final java.lang.@org.jetbrains.A() String foo(@org.jetbrains.annotations.NotNull()
-    java.util.@org.jetbrains.A() List<java.lang.@org.jetbrains.A() String> x, @org.jetbrains.annotations.NotNull()
-    org.jetbrains.Outer.@org.jetbrains.A() Inner y, @org.jetbrains.A()
-    int z) {
+    public static final java.lang.String foo(@org.jetbrains.annotations.NotNull()
+    java.util.List<java.lang.String> x, @org.jetbrains.annotations.NotNull()
+    org.jetbrains.Outer.Inner y, int z) {
         return null;
     }
 }
diff --git a/plugins/kapt3/kapt3-compiler/tests-gen/org/jetbrains/kotlin/kapt3/test/runners/IrClassFileToSourceStubConverterTestGenerated.java b/plugins/kapt3/kapt3-compiler/tests-gen/org/jetbrains/kotlin/kapt3/test/runners/IrClassFileToSourceStubConverterTestGenerated.java
index 20815bcd9c3..874e25872c3 100644
--- a/plugins/kapt3/kapt3-compiler/tests-gen/org/jetbrains/kotlin/kapt3/test/runners/IrClassFileToSourceStubConverterTestGenerated.java
+++ b/plugins/kapt3/kapt3-compiler/tests-gen/org/jetbrains/kotlin/kapt3/test/runners/IrClassFileToSourceStubConverterTestGenerated.java
@@ -511,6 +511,12 @@ public class IrClassFileToSourceStubConverterTestGenerated extends AbstractIrCla
         runTest("plugins/kapt3/kapt3-compiler/testData/converter/kt61729.kt");
     }
 
+    @Test
+    @TestMetadata("kt65453.kt")
+    public void testKt65453() throws Exception {
+        runTest("plugins/kapt3/kapt3-compiler/testData/converter/kt65453.kt");
+    }
+
     @Test
     @TestMetadata("lazyProperty.kt")
     public void testLazyProperty() throws Exception {
diff --git a/plugins/kapt4/src/org/jetbrains/kotlin/kapt4/StubGenerator.kt b/plugins/kapt4/src/org/jetbrains/kotlin/kapt4/StubGenerator.kt
index 82c99f681aa..c459886f90d 100644
--- a/plugins/kapt4/src/org/jetbrains/kotlin/kapt4/StubGenerator.kt
+++ b/plugins/kapt4/src/org/jetbrains/kotlin/kapt4/StubGenerator.kt
@@ -430,7 +430,7 @@ private class StubGenerator(
 
             private fun Printer.printType(type: PsiType) {
                 recordErrorTypes(type)
-                printTypeSignature(type, true)
+                printTypeSignature(type, false) // TODO: Set to true when KT-65608 is fixed
             }
 
             private fun Printer.printTypeSignature(type: PsiType, annotated: Boolean) {
diff --git a/plugins/kapt4/tests-gen/org/jetbrains/kotlin/kapt4/KotlinKapt4ContextTestGenerated.java b/plugins/kapt4/tests-gen/org/jetbrains/kotlin/kapt4/KotlinKapt4ContextTestGenerated.java
index 68c1896b4f0..dff5ff8f5b9 100644
--- a/plugins/kapt4/tests-gen/org/jetbrains/kotlin/kapt4/KotlinKapt4ContextTestGenerated.java
+++ b/plugins/kapt4/tests-gen/org/jetbrains/kotlin/kapt4/KotlinKapt4ContextTestGenerated.java
@@ -511,6 +511,12 @@ public class KotlinKapt4ContextTestGenerated extends AbstractKotlinKapt4ContextT
         runTest("plugins/kapt4/../kapt3/kapt3-compiler/testData/converter/kt61729.kt");
     }
 
+    @Test
+    @TestMetadata("kt65453.kt")
+    public void testKt65453() throws Exception {
+        runTest("plugins/kapt4/../kapt3/kapt3-compiler/testData/converter/kt65453.kt");
+    }
+
     @Test
     @TestMetadata("lazyProperty.kt")
     public void testLazyProperty() throws Exception {