diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index bf7d17a951f72..1997dc946be64 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -12199,9 +12199,20 @@ namespace ts {
         function getBaseSignature(signature: Signature) {
             const typeParameters = signature.typeParameters;
             if (typeParameters) {
+                if (signature.baseSignatureCache) {
+                    return signature.baseSignatureCache;
+                }
                 const typeEraser = createTypeEraser(typeParameters);
-                const baseConstraints = map(typeParameters, tp => instantiateType(getBaseConstraintOfType(tp), typeEraser) || unknownType);
-                return instantiateSignature(signature, createTypeMapper(typeParameters, baseConstraints), /*eraseTypeParameters*/ true);
+                const baseConstraintMapper = createTypeMapper(typeParameters, map(typeParameters, tp => getConstraintOfTypeParameter(tp) || unknownType));
+                let baseConstraints: readonly Type[] = map(typeParameters, tp => instantiateType(tp, baseConstraintMapper) || unknownType);
+                // Run N type params thru the immediate constraint mapper up to N times
+                // This way any noncircular interdependent type parameters are definitely resolved to their external dependencies
+                for (let i = 0; i < typeParameters.length - 1; i++) {
+                    baseConstraints = instantiateTypes(baseConstraints, baseConstraintMapper);
+                }
+                // and then apply a type eraser to remove any remaining circularly dependent type parameters
+                baseConstraints = instantiateTypes(baseConstraints, typeEraser);
+                return signature.baseSignatureCache = instantiateSignature(signature, createTypeMapper(typeParameters, baseConstraints), /*eraseTypeParameters*/ true);
             }
             return signature;
         }
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 3585ff50a8f3b..ad8f560a0d7a8 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -5552,6 +5552,8 @@ namespace ts {
         /* @internal */
         canonicalSignatureCache?: Signature; // Canonical version of signature (deferred)
         /* @internal */
+        baseSignatureCache?: Signature;      // Base version of signature (deferred)
+        /* @internal */
         optionalCallSignatureCache?: { inner?: Signature, outer?: Signature }; // Optional chained call version of signature (deferred)
         /* @internal */
         isolatedSignatureType?: ObjectType; // A manufactured type that just contains the signature for purposes of signature comparison
diff --git a/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.js b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.js
new file mode 100644
index 0000000000000..0e8bb8e7f372e
--- /dev/null
+++ b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.js
@@ -0,0 +1,7 @@
+//// [conditionalTypeGenericInSignatureTypeParameterConstraint.ts]
+// should be x
+type H_inline1<x> = (<o extends x>() => o) extends (() => infer o) ? o : never;
+
+type Result = H_inline1<string>; // should be `string`
+
+//// [conditionalTypeGenericInSignatureTypeParameterConstraint.js]
diff --git a/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.symbols b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.symbols
new file mode 100644
index 0000000000000..9d53c7de537e5
--- /dev/null
+++ b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.symbols
@@ -0,0 +1,15 @@
+=== tests/cases/compiler/conditionalTypeGenericInSignatureTypeParameterConstraint.ts ===
+// should be x
+type H_inline1<x> = (<o extends x>() => o) extends (() => infer o) ? o : never;
+>H_inline1 : Symbol(H_inline1, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 0, 0))
+>x : Symbol(x, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 15))
+>o : Symbol(o, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 22))
+>x : Symbol(x, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 15))
+>o : Symbol(o, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 22))
+>o : Symbol(o, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 63))
+>o : Symbol(o, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 63))
+
+type Result = H_inline1<string>; // should be `string`
+>Result : Symbol(Result, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 1, 79))
+>H_inline1 : Symbol(H_inline1, Decl(conditionalTypeGenericInSignatureTypeParameterConstraint.ts, 0, 0))
+
diff --git a/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.types b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.types
new file mode 100644
index 0000000000000..6da7d02ad9afd
--- /dev/null
+++ b/tests/baselines/reference/conditionalTypeGenericInSignatureTypeParameterConstraint.types
@@ -0,0 +1,8 @@
+=== tests/cases/compiler/conditionalTypeGenericInSignatureTypeParameterConstraint.ts ===
+// should be x
+type H_inline1<x> = (<o extends x>() => o) extends (() => infer o) ? o : never;
+>H_inline1 : x
+
+type Result = H_inline1<string>; // should be `string`
+>Result : string
+
diff --git a/tests/cases/compiler/conditionalTypeGenericInSignatureTypeParameterConstraint.ts b/tests/cases/compiler/conditionalTypeGenericInSignatureTypeParameterConstraint.ts
new file mode 100644
index 0000000000000..b4f8c3507f5aa
--- /dev/null
+++ b/tests/cases/compiler/conditionalTypeGenericInSignatureTypeParameterConstraint.ts
@@ -0,0 +1,4 @@
+// should be x
+type H_inline1<x> = (<o extends x>() => o) extends (() => infer o) ? o : never;
+
+type Result = H_inline1<string>; // should be `string`
\ No newline at end of file