diff --git a/src/Psalm/Internal/Analyzer/ClassAnalyzer.php b/src/Psalm/Internal/Analyzer/ClassAnalyzer.php
index 48576a0d79b..433419b6346 100644
--- a/src/Psalm/Internal/Analyzer/ClassAnalyzer.php
+++ b/src/Psalm/Internal/Analyzer/ClassAnalyzer.php
@@ -1912,7 +1912,8 @@ public static function analyzeClassMethodReturnType(
                 $codebase,
                 null,
                 null,
-                null
+                null,
+                $original_fq_classlike_name
             );
         }
 
diff --git a/tests/Template/ClassTemplateExtendsTest.php b/tests/Template/ClassTemplateExtendsTest.php
index 0fb3aed5583..0bf93a7774d 100644
--- a/tests/Template/ClassTemplateExtendsTest.php
+++ b/tests/Template/ClassTemplateExtendsTest.php
@@ -1694,6 +1694,9 @@ public function __construct(array $elements = [])
                             $this->elements = $elements;
                         }
 
+                        /**
+                         * @psalm-suppress InvalidReturnType
+                         */
                         public function getIterator()
                         {
                             /**
@@ -4181,6 +4184,38 @@ public function foo($crudNew): void {
                         }
                     }'
             ],
+            'extendTemplateTypeInParamAsType' => [
+                '<?php
+                    /**
+                     * @template TKey as object
+                     * @template-implements Operation<TKey>
+                     */
+                    final class Apply implements Operation
+                    {
+                        /**
+                         * @return \Closure(array<TKey>): void
+                         */
+                        public function i(): Closure
+                        {
+                            return
+                                /**
+                                 * @psalm-param array<TKey> $collection
+                                 */
+                                static function (array $collection): void{};
+                        }
+                    }
+
+                    /**
+                     * @template TKey as object
+                     */
+                    interface Operation
+                    {
+                        /**
+                         * @psalm-return \Closure(array<TKey>): void
+                         */
+                        public function i(): Closure;
+                    }'
+            ],
         ];
     }