diff --git a/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/symbols/descriptorBased/base/Kt1DescUtils.kt b/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/symbols/descriptorBased/base/Kt1DescUtils.kt
index ce443aa..1df129d 100644
--- a/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/symbols/descriptorBased/base/Kt1DescUtils.kt
+++ b/analysis/analysis-api-fe10/src/org/jetbrains/kotlin/analysis/api/descriptors/symbols/descriptorBased/base/Kt1DescUtils.kt
@@ -231,7 +231,12 @@
             declarationDescriptor !in allowedTypeParameterDescriptors ||
                     declarationDescriptor.upperBounds.any { it.hasReferenceOtherThan(allowedTypeParameterDescriptors) }
         }
-        else -> arguments.any { it.type.hasReferenceOtherThan(allowedTypeParameterDescriptors) }
+        else -> arguments.any { typeProjection ->
+            // A star projection type (lazily) built by type parameter will be yet another type with a star projection,
+            // resulting in stack overflow if we keep checking allowed type parameter descriptors
+            !typeProjection.isStarProjection &&
+                    typeProjection.type.hasReferenceOtherThan(allowedTypeParameterDescriptors)
+        }
     }
 }
 
diff --git a/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/components/callResolver/Fe10IdeNormalAnalysisSourceModuleResolveCallTestGenerated.java b/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/components/callResolver/Fe10IdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
index 3246ca1..cad7e1c 100644
--- a/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/components/callResolver/Fe10IdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
+++ b/analysis/analysis-api-fe10/tests-gen/org/jetbrains/kotlin/analysis/api/fe10/test/cases/generated/cases/components/callResolver/Fe10IdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
@@ -701,6 +701,12 @@
     }
 
     @Test
+    @TestMetadata("recursiveTypeParameter.kt")
+    public void testRecursiveTypeParameter() throws Exception {
+        runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt");
+    }
+
+    @Test
     @TestMetadata("resolveCallInSuperConstructorParam.kt")
     public void testResolveCallInSuperConstructorParam() throws Exception {
         runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/resolveCallInSuperConstructorParam.kt");
diff --git a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/components/callResolver/FirIdeNormalAnalysisSourceModuleResolveCallTestGenerated.java b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/components/callResolver/FirIdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
index 3c5fae1..b1013ce 100644
--- a/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/components/callResolver/FirIdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
+++ b/analysis/analysis-api-fir/tests-gen/org/jetbrains/kotlin/analysis/api/fir/test/cases/generated/cases/components/callResolver/FirIdeNormalAnalysisSourceModuleResolveCallTestGenerated.java
@@ -701,6 +701,12 @@
     }
 
     @Test
+    @TestMetadata("recursiveTypeParameter.kt")
+    public void testRecursiveTypeParameter() throws Exception {
+        runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt");
+    }
+
+    @Test
     @TestMetadata("resolveCallInSuperConstructorParam.kt")
     public void testResolveCallInSuperConstructorParam() throws Exception {
         runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/resolveCallInSuperConstructorParam.kt");
diff --git a/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/components/callResolver/FirStandaloneNormalAnalysisSourceModuleResolveCallTestGenerated.java b/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/components/callResolver/FirStandaloneNormalAnalysisSourceModuleResolveCallTestGenerated.java
index 93ceecb..9623569 100644
--- a/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/components/callResolver/FirStandaloneNormalAnalysisSourceModuleResolveCallTestGenerated.java
+++ b/analysis/analysis-api-standalone/tests-gen/org/jetbrains/kotlin/analysis/api/standalone/fir/test/cases/generated/cases/components/callResolver/FirStandaloneNormalAnalysisSourceModuleResolveCallTestGenerated.java
@@ -701,6 +701,12 @@
     }
 
     @Test
+    @TestMetadata("recursiveTypeParameter.kt")
+    public void testRecursiveTypeParameter() throws Exception {
+        runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt");
+    }
+
+    @Test
     @TestMetadata("resolveCallInSuperConstructorParam.kt")
     public void testResolveCallInSuperConstructorParam() throws Exception {
         runTest("analysis/analysis-api/testData/components/callResolver/resolveCall/resolveCallInSuperConstructorParam.kt");
diff --git a/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.descriptors.txt b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.descriptors.txt
new file mode 100644
index 0000000..5391e0e
--- /dev/null
+++ b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.descriptors.txt
@@ -0,0 +1,49 @@
+KtSuccessCallInfo:
+  call = KtSimpleFunctionCall:
+    isImplicitInvoke = false
+    partiallyAppliedSymbol = KtPartiallyAppliedSymbol:
+      dispatchReceiver = KtImplicitReceiverValue:
+        symbol = KtNamedClassOrObjectSymbol:
+          annotationsList: []
+          classIdIfNonLocal: RunnerModule
+          classKind: CLASS
+          companionObject: null
+          contextReceivers: []
+          isData: false
+          isExternal: false
+          isFun: false
+          isInline: false
+          isInner: false
+          modality: FINAL
+          name: RunnerModule
+          origin: SOURCE
+          superTypes: [
+            AbstractModule
+          ]
+          symbolKind: TOP_LEVEL
+          typeParameters: []
+          visibility: Public
+        type = RunnerModule
+      extensionReceiver = null
+      signature = KtFunctionLikeSignature:
+        receiverType = null
+        returnType = kotlin.Unit
+        symbol = /AbstractModule.install(<dispatch receiver>: AbstractModule, builder: AbstractModule.Builder<*>!): kotlin.Unit
+        valueParameters = [
+          KtVariableLikeSignature:
+            name = builder
+            receiverType = null
+            returnType = AbstractModule.Builder<*>!
+            symbol = builder: AbstractModule.Builder<*>!
+            callableIdIfNonLocal = null
+        ]
+        callableIdIfNonLocal = /AbstractModule.install
+    typeArgumentsMapping = {}
+    argumentMapping = {
+      CoroutineModule.builder() -> (KtVariableLikeSignature:
+        name = builder
+        receiverType = null
+        returnType = AbstractModule.Builder<*>!
+        symbol = builder: AbstractModule.Builder<*>!
+        callableIdIfNonLocal = null)
+    }
diff --git a/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt
new file mode 100644
index 0000000..525cf8e
--- /dev/null
+++ b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.kt
@@ -0,0 +1,39 @@
+// FILE: RunnerModule.kt
+
+class RunnerModule : AbstractModule() {
+    fun configure() {
+        <expr>install(CoroutineModule.builder())</expr>
+    }
+}
+
+// FILE: Module.java
+
+public interface Module {
+    public interface Builder {
+        Module build();
+    }
+}
+
+// FILE: AbstractModule.java
+
+public abstract class AbstractModule {
+    public abstract static class Builder<B extends Builder<B>> implements Module.Builder {
+        protected abstract B self();
+        public abstract Module build();
+    }
+
+    protected void install(Builder<?> builder) {}
+}
+
+// FILE: CoroutineModule.kt
+
+class CoroutineModule : AbstractModule() {
+    class Builder : AbstractModule.Builder<Builder>() {
+        protected override fun self(): Builder = this
+        override fun build(): Module = CoroutineModule()
+    }
+
+    companion object {
+        fun builder(): Builder = Builder()
+    }
+}
diff --git a/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.txt b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.txt
new file mode 100644
index 0000000..8eae8b0
--- /dev/null
+++ b/analysis/analysis-api/testData/components/callResolver/resolveCall/recursiveTypeParameter.txt
@@ -0,0 +1,49 @@
+KtSuccessCallInfo:
+  call = KtSimpleFunctionCall:
+    isImplicitInvoke = false
+    partiallyAppliedSymbol = KtPartiallyAppliedSymbol:
+      dispatchReceiver = KtImplicitReceiverValue:
+        symbol = KtNamedClassOrObjectSymbol:
+          annotationsList: []
+          classIdIfNonLocal: RunnerModule
+          classKind: CLASS
+          companionObject: null
+          contextReceivers: []
+          isData: false
+          isExternal: false
+          isFun: false
+          isInline: false
+          isInner: false
+          modality: FINAL
+          name: RunnerModule
+          origin: SOURCE
+          superTypes: [
+            AbstractModule
+          ]
+          symbolKind: TOP_LEVEL
+          typeParameters: []
+          visibility: Public
+        type = RunnerModule
+      extensionReceiver = null
+      signature = KtFunctionLikeSignature:
+        receiverType = null
+        returnType = kotlin.Unit
+        symbol = /AbstractModule.install(<dispatch receiver>: AbstractModule, builder: ft<AbstractModule.Builder<*>, AbstractModule.Builder<*>?>): kotlin.Unit
+        valueParameters = [
+          KtVariableLikeSignature:
+            name = builder
+            receiverType = null
+            returnType = ft<AbstractModule.Builder<*>, AbstractModule.Builder<*>?>
+            symbol = builder: ft<AbstractModule.Builder<*>, AbstractModule.Builder<*>?>
+            callableIdIfNonLocal = null
+        ]
+        callableIdIfNonLocal = /AbstractModule.install
+    typeArgumentsMapping = {}
+    argumentMapping = {
+      CoroutineModule.builder() -> (KtVariableLikeSignature:
+        name = builder
+        receiverType = null
+        returnType = ft<AbstractModule.Builder<*>, AbstractModule.Builder<*>?>
+        symbol = builder: ft<AbstractModule.Builder<*>, AbstractModule.Builder<*>?>
+        callableIdIfNonLocal = null)
+    }