diff --git a/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java b/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
index 65d50b18a07b..337370cfb2d5 100644
--- a/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
+++ b/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
@@ -7,6 +7,7 @@ import com.intellij.psi.PsiFile;
 import com.intellij.util.ArrayUtil;
 import com.intellij.util.containers.ContainerUtil;
 import com.jetbrains.python.PyNames;
+import com.jetbrains.python.codeInsight.dataflow.scope.ScopeUtil;
 import com.jetbrains.python.codeInsight.stdlib.PyNamedTupleType;
 import com.jetbrains.python.psi.*;
 import com.jetbrains.python.psi.impl.PyBuiltinCache;
@@ -531,9 +532,30 @@ public class PyTypeChecker {
                                                             @NotNull TypeEvalContext context) {
     final Map<PyGenericType, PyType> substitutions = unifyReceiver(receiver, context);
     for (Map.Entry<PyExpression, PyCallableParameter> entry : getRegularMappedParameters(arguments).entrySet()) {
-      final PyType argumentType = context.getType(entry.getKey());
-      final PyCallableParameter parameter = entry.getValue();
-      if (!match(parameter.getArgumentType(context), argumentType, context, substitutions)) {
+      final PyCallableParameter paramWrapper = entry.getValue();
+      PyType actualType = context.getType(entry.getKey());
+      if (paramWrapper.isSelf()) {
+        // TODO find out a better way to pass the corresponding function inside
+        final PyParameter param = paramWrapper.getParameter();
+        final PyFunction function = as(ScopeUtil.getScopeOwner(param), PyFunction.class);
+        if (function != null && function.getModifier() == PyFunction.Modifier.CLASSMETHOD) {
+          final StreamEx<PyType> types;
+          if (actualType instanceof PyUnionType) {
+            types = StreamEx.of(((PyUnionType)actualType).getMembers());
+          }
+          else {
+            types = StreamEx.of(actualType);
+          }
+          actualType = types
+            .select(PyClassLikeType.class)
+            .map(PyClassLikeType::toClass)
+            .select(PyType.class)
+            .foldLeft(PyUnionType::union)
+            .orElse(actualType);
+        }
+      }
+      final PyType expectedType = paramWrapper.getArgumentType(context);
+      if (!match(expectedType, actualType, context, substitutions)) {
         return null;
       }
     }
diff --git a/python/testSrc/com/jetbrains/python/PyTypingTest.java b/python/testSrc/com/jetbrains/python/PyTypingTest.java
index fccdba981070..34e0726be345 100644
--- a/python/testSrc/com/jetbrains/python/PyTypingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyTypingTest.java
@@ -25,7 +25,6 @@ import com.jetbrains.python.fixtures.PyTestCase;
 import com.jetbrains.python.psi.LanguageLevel;
 import com.jetbrains.python.psi.PyExpression;
 import com.jetbrains.python.psi.types.TypeEvalContext;
-import org.intellij.lang.annotations.Language;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -1148,6 +1147,24 @@ public class PyTypingTest extends PyTestCase {
            "expr = D.factory()");
   }
 
+  // PY-24990
+  public void testClsAnnotationClassMethodCalledOnInstance() {
+    doTest("D",
+           "from typing import TypeVar, Type\n" +
+           "\n" +
+           "T = TypeVar('T')\n" +
+           "\n" +
+           "class C:\n" +
+           "    @classmethod\n" +
+           "    def factory(cls: Type[T]) -> T:\n" +
+           "        pass\n" +
+           "\n" +
+           "class D(C): \n" +
+           "    pass\n" +
+           "\n" +
+           "expr = D().factory()");
+  }
+
   // PY-24990
   public void testSelfAnnotationInTypeCommentSameClassInstance() {
     doTest("C",