diff --git a/compiler/src/dotty/tools/dotc/typer/Typer.scala b/compiler/src/dotty/tools/dotc/typer/Typer.scala
index 572f4fda4f4e..bb5a9d33bf3c 100644
--- a/compiler/src/dotty/tools/dotc/typer/Typer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Typer.scala
@@ -1876,6 +1876,17 @@ class Typer(@constructorOnly nestingLevel: Int = 0) extends Namer
      */
     var paramIndex = Map[Name, Int]()
 
+    def containsParamRef(tree: untpd.Tree, params: List[untpd.ValDef]): Boolean =
+      import untpd.*
+      val acc = new UntypedTreeAccumulator[Boolean]:
+        def apply(x: Boolean, t: Tree)(using Context) =
+          if x then true
+          else t match
+            case _: untpd.TypedSplice => false
+            case Ident(name) => params.exists(_.name == name)
+            case _ => foldOver(x, t)
+      acc(false, tree)
+
     /** Infer parameter type from the body of the function
      *
      *  1. If function is of the form
@@ -1910,24 +1921,25 @@ class Typer(@constructorOnly nestingLevel: Int = 0) extends Namer
           for (param <- params; idx <- paramIndices(param, args))
           yield param.name -> idx
         }.toMap
-        if (paramIndex.size == params.length)
+        if (paramIndex.size == params.length) then
           expr match
             case untpd.TypedSplice(expr1) =>
               expr1.tpe
-            case _ =>
+            case _ if !containsParamRef(expr, params) =>
               val outerCtx = ctx
               val nestedCtx = outerCtx.fresh.setNewTyperState()
-              inContext(nestedCtx) {
-                val protoArgs = args.map(_.withType(WildcardType))
+              inContext(nestedCtx):
+                // try to type expr with fresh unknown arguments.
+                val protoArgs = args.map(arg => untpd.Ident(UniqueName.fresh()).withSpan(arg.span))
                 val callProto = FunProto(protoArgs, WildcardType)(this, app.applyKind)
                 val expr1 = typedExpr(expr, callProto)
                 if nestedCtx.reporter.hasErrors then NoType
-                else inContext(outerCtx) {
+                else inContext(outerCtx):
                   nestedCtx.typerState.commit()
                   fnBody = cpy.Apply(fnBody)(untpd.TypedSplice(expr1), args)
                   expr1.tpe
-                }
-              }
+            case _ =>
+              NoType
         else NoType
       case _ =>
         NoType
diff --git a/tests/pos/i24689b.scala b/tests/pos/i24689b.scala
index a87c601a3352..d773ded8e8fa 100644
--- a/tests/pos/i24689b.scala
+++ b/tests/pos/i24689b.scala
@@ -9,11 +9,10 @@ object Test1:
     foo(transfer(_))
   def transfer(in: B): Unit = ???
 
-// TODO: need to fix callee type in typedFunctionValue
-// object Test2:
-//   def foo[T <: (B => Unit)](f: T) = ???
-//   def transfer(in: A): Unit =
-//     foo(in => transfer(in))
-//     foo(transfer)
-//     foo(transfer(_))
-//   def transfer(in: B): Unit = ???
+object Test2:
+  def foo[T <: (B => Unit)](f: T) = ???
+  def transfer(in: A): Unit =
+    foo(in => transfer(in))
+    foo(transfer)
+    foo(transfer(_))
+  def transfer(in: B): Unit = ???