diff --git a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
index a34bd7b79656..6add02ed41fb 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
@@ -2071,12 +2071,13 @@ public final class PyTypingTypeProvider extends PyTypeProviderWithCustomContext<
       if (!function.isGenerator()) {
         return wrapInCoroutineType(returnType, function);
       }
-      var desc = GeneratorTypeDescriptor.create(returnType);
+      var desc = GeneratorTypeDescriptor.fromGenerator(returnType);
       if (desc != null) {
-        return desc.withAsync(true).toPyType(function);
+        final PyClass classType = PyPsiFacade.getInstance(function.getProject()).createClassByQName(ASYNC_GENERATOR, function);
+        final List<PyType> generics = Arrays.asList(desc.yieldType, desc.sendType);
+        return classType != null ? new PyCollectionTypeImpl(classType, false, generics) : null;
       }
     }
-
     return returnType;
   }
 
@@ -2106,72 +2107,80 @@ public final class PyTypingTypeProvider extends PyTypeProviderWithCustomContext<
   }
 
   public record GeneratorTypeDescriptor(
-    String className,
-    PyType yieldType, // if YieldType is not specified, it is AnyType
-    PyType sendType,  // if SendType is not specified, it is PyNoneType
-    PyType returnType // if ReturnType is not specified, it is PyNoneType
+    @Nullable PyType yieldType,
+    @Nullable PyType sendType,
+    @Nullable PyType returnType,
+    boolean isAsync
   ) {
-
-    private static final List<String> SYNC_TYPES = List.of(GENERATOR, "typing.Iterable", "typing.Iterator");
-    private static final List<String> ASYNC_TYPES = List.of(ASYNC_GENERATOR, "typing.AsyncIterable", "typing.AsyncIterator");
-
-    public static @Nullable GeneratorTypeDescriptor create(@Nullable PyType type) {
-      final PyClassType classType = as(type, PyClassType.class);
-      final PyCollectionType genericType = as(type, PyCollectionType.class);
-      if (classType == null) return null;
+    /**
+     * Extracts type parameters from typing.Generator and typing.AsyncGenerator 
+     */
+    public static @Nullable GeneratorTypeDescriptor fromGenerator(@Nullable PyType type) {
+      if (!(type instanceof PyClassType classType)) return null;
 
       final String qName = classType.getClassQName();
       if (qName == null) return null;
-      if (!SYNC_TYPES.contains(qName) && !ASYNC_TYPES.contains(qName)) return null;
+      
+      boolean isAsync = ASYNC_GENERATOR.equals(qName);
+      if (!isAsync && !GENERATOR.equals(qName)) return null;
+
+      final PyType noneType = PyBuiltinCache.getInstance(classType.getPyClass()).getNoneType();
 
       PyType yieldType = null;
-      final var noneType = PyBuiltinCache.getInstance(classType.getPyClass()).getNoneType();
       PyType sendType = noneType;
-      PyType returnType = noneType;
-
-      if (genericType != null) {
+      PyType returnType = isAsync ? null : noneType;
+      if (type instanceof PyCollectionType genericType) {
         yieldType = ContainerUtil.getOrElse(genericType.getElementTypes(), 0, yieldType);
-        if (GENERATOR.equals(qName) || ASYNC_GENERATOR.equals(qName)) {
-          sendType = ContainerUtil.getOrElse(genericType.getElementTypes(), 1, sendType);
+        sendType = ContainerUtil.getOrElse(genericType.getElementTypes(), 1, sendType);
+        returnType = ContainerUtil.getOrElse(genericType.getElementTypes(), 2, returnType);
+      }
+      return new GeneratorTypeDescriptor(yieldType, sendType, returnType, isAsync);
+    }
+
+    /**
+     * Unlike {@link #fromGenerator}, this method can also extract yield type from Protocol types like typing.Iterable
+     */
+    public static @Nullable GeneratorTypeDescriptor fromGeneratorOrProtocol(@Nullable PyType type, @NotNull TypeEvalContext context) { 
+      if (!(type instanceof PyClassType classType)) return null;
+      
+      GeneratorTypeDescriptor desc = fromGenerator(type);
+      if (desc != null) {
+        return desc;
+      }
+      
+      if (PyProtocolsKt.isProtocol(classType, context)) {
+        PyType yieldType;
+        
+        PyType syncUpcast = PyTypeUtil.convertToType(classType, "typing.Iterable", classType.getPyClass(), context);
+        if (syncUpcast instanceof PyCollectionType collectionType) {
+          yieldType = collectionType.getIteratedItemType();
+          return new GeneratorTypeDescriptor(yieldType, null, null, false);
         }
-        if (GENERATOR.equals(qName)) {
-          returnType = ContainerUtil.getOrElse(genericType.getElementTypes(), 2, returnType);
+        PyType asyncUpcast = PyTypeUtil.convertToType(classType, "typing.AsyncIterable", classType.getPyClass(), context);
+        if (asyncUpcast instanceof PyCollectionType asyncCollectionType) {
+          yieldType = asyncCollectionType.getIteratedItemType();
+          return new GeneratorTypeDescriptor(yieldType, null, null, true);
+        }
+        
+        // Here we try to understand a yield type by return type of __next__ method of protocol specified in annotation.
+        // We cannot use convertToType with typing.Iterator here, as it inherits from typing.Iterable 
+        // and requires both __iter__ and __next__, while it should be possible to decide the yield type only by __next__.
+        // TODO: unify logic with PyTargetExpressionImpl.getIterationType (PY-82453)
+        PyFunction next = classType.getPyClass().findMethodByName(PyNames.DUNDER_NEXT, true, context);
+        if (next != null) {
+          yieldType = context.getReturnType(next);
+          yieldType = PyTypeChecker.substitute(yieldType, PyTypeChecker.unifyReceiver(classType, context), context);
+          return new GeneratorTypeDescriptor(yieldType, null, null, false);
+        }
+
+        PyFunction anext = classType.getPyClass().findMethodByName(PyNames.ANEXT, true, context);
+        if (anext != null) {
+          yieldType = Ref.deref(unwrapCoroutineReturnType(context.getReturnType(anext)));
+          yieldType = PyTypeChecker.substitute(yieldType, PyTypeChecker.unifyReceiver(classType, context), context);
+          return new GeneratorTypeDescriptor(yieldType, null, null, true);
         }
       }
-      return new GeneratorTypeDescriptor(qName, yieldType, sendType, returnType);
-    }
-
-    public boolean isAsync() {
-      return ASYNC_TYPES.contains(className);
-    }
-
-    public GeneratorTypeDescriptor withAsync(boolean async) {
-      if (async) {
-        var idx = SYNC_TYPES.indexOf(className);
-        if (idx == -1) return this;
-        return new GeneratorTypeDescriptor(ASYNC_TYPES.get(idx), yieldType, sendType, returnType);
-      }
-      else {
-        var idx = ASYNC_TYPES.indexOf(className);
-        if (idx == -1) return this;
-        return new GeneratorTypeDescriptor(SYNC_TYPES.get(idx), yieldType, sendType, returnType);
-      }
-    }
-
-    public @Nullable PyType toPyType(@NotNull PsiElement anchor) {
-      final PyClass classType = PyPsiFacade.getInstance(anchor.getProject()).createClassByQName(className, anchor);
-      final List<PyType> generics;
-      if (GENERATOR.equals(className)) {
-        generics = Arrays.asList(yieldType, sendType, returnType);
-      }
-      else if (ASYNC_GENERATOR.equals(className)) {
-        generics = Arrays.asList(yieldType, sendType);
-      }
-      else {
-        generics = Collections.singletonList(yieldType);
-      }
-
-      return classType != null ? new PyCollectionTypeImpl(classType, false, generics) : null;
+      return null;
     }
   }
 
diff --git a/python/python-psi-impl/src/com/jetbrains/python/inspections/PyReachableElementVisitor.kt b/python/python-psi-impl/src/com/jetbrains/python/inspections/PyReachableElementVisitor.kt
new file mode 100644
index 000000000000..ba20569b3d41
--- /dev/null
+++ b/python/python-psi-impl/src/com/jetbrains/python/inspections/PyReachableElementVisitor.kt
@@ -0,0 +1,17 @@
+package com.jetbrains.python.inspections
+
+import com.jetbrains.python.codeInsight.controlflow.isUnreachableForInspection
+import com.jetbrains.python.psi.PyElement
+import com.jetbrains.python.psi.PyElementVisitor
+import com.jetbrains.python.psi.types.TypeEvalContext
+
+class PyReachableElementVisitor(
+  private val delegate: PyElementVisitor, 
+  private val context: TypeEvalContext
+) : PyElementVisitor() {
+  override fun visitPyElement(node: PyElement) {
+    if (!node.isUnreachableForInspection(context)) {
+      node.accept(delegate)
+    }
+  }
+}
\ No newline at end of file
diff --git a/python/python-psi-impl/src/com/jetbrains/python/inspections/PyTypeCheckerInspection.java b/python/python-psi-impl/src/com/jetbrains/python/inspections/PyTypeCheckerInspection.java
index 82e70bd4645f..7bed62b15d42 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/inspections/PyTypeCheckerInspection.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/inspections/PyTypeCheckerInspection.java
@@ -45,7 +45,8 @@ public class PyTypeCheckerInspection extends PyInspection {
     if (LOG.isDebugEnabled()) {
       session.putUserData(TIME_KEY, System.nanoTime());
     }
-    return new Visitor(holder, PyInspectionVisitor.getContext(session));
+    TypeEvalContext context = PyInspectionVisitor.getContext(session);
+    return new PyReachableElementVisitor(new Visitor(holder, context), context);
   }
 
   public static class Visitor extends PyInspectionVisitor {
@@ -129,7 +130,7 @@ public class PyTypeCheckerInspection extends PyInspection {
             final String expectedName = PythonDocumentationProvider.getVerboseTypeName(expected, myTypeEvalContext);
             final String actualName = PythonDocumentationProvider.getTypeName(actual, myTypeEvalContext);
             getHolder()
-              .problem(returnExpr != null ? returnExpr : node,   PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
+              .problem(returnExpr != null ? returnExpr : node, PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
               .fix(new PyMakeFunctionReturnTypeQuickFix(function, myTypeEvalContext))
               .register();
           }
@@ -141,74 +142,97 @@ public class PyTypeCheckerInspection extends PyInspection {
     public void visitPyYieldExpression(@NotNull PyYieldExpression node) {
       ScopeOwner owner = ScopeUtil.getScopeOwner(node);
       if (!(owner instanceof PyFunction function)) return;
+      
+      if (node.isDelegating()) {
+        visitDelegatingYieldExpression(node, function);
+        return;
+      }
+      
+      final var annotatedGeneratorDesc = getGeneratorDescriptorFromAnnotation(function, node);
+      if (annotatedGeneratorDesc == null) return;
+      
+      checkYieldType(annotatedGeneratorDesc.yieldType(), node, function);
+    }
+    
+    private void visitDelegatingYieldExpression(@NotNull PyYieldExpression node, @NotNull PyFunction function) {
+      assert node.isDelegating();
 
       final PyExpression yieldExpr = node.getExpression();
-      if (yieldExpr != null && node.isDelegating()) {
-        checkIteratedValue(yieldExpr, false);
-      }
+      if (yieldExpr == null) return;
 
-      final PyAnnotation annotation = function.getAnnotation();
-      final String typeCommentAnnotation = function.getTypeCommentAnnotation();
-      if (annotation == null && typeCommentAnnotation == null) return;
+      final PyType delegateType = myTypeEvalContext.getType(yieldExpr);
+      if (delegateType == null) return;
 
-      final PyType fullReturnType = myTypeEvalContext.getReturnType(function);
-      if (fullReturnType == null) return; // fullReturnType is Any
-
-      final var generatorDesc = GeneratorTypeDescriptor.create(fullReturnType);
-      if (generatorDesc == null) {
-        // expected type is not Iterable, Iterator, Generator or similar
-        final PyType actual = function.getInferredReturnType(myTypeEvalContext);
-        String expectedName = PythonDocumentationProvider.getVerboseTypeName(fullReturnType, myTypeEvalContext);
-        String actualName = PythonDocumentationProvider.getTypeName(actual, myTypeEvalContext);
-        getHolder()
-          .problem(node, PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
-          .fix(new PyMakeFunctionReturnTypeQuickFix(function, myTypeEvalContext))
-          .register();
+      var delegateDesc = GeneratorTypeDescriptor.fromGeneratorOrProtocol(delegateType, myTypeEvalContext);
+      if (delegateDesc != null && delegateDesc.isAsync()) {
+        String delegateName = PythonDocumentationProvider.getTypeName(delegateType, myTypeEvalContext);
+        registerProblem(yieldExpr, PyPsiBundle.message("INSP.type.checker.yield.from.async.generator", delegateName));
         return;
       }
 
-      final PyType expectedYieldType = generatorDesc.yieldType();
-      final PyType expectedSendType = generatorDesc.sendType();
+      if (checkIteratedValue(yieldExpr, false)) return;
 
+      final var annotatedGeneratorDesc = getGeneratorDescriptorFromAnnotation(function, node);
+      if (annotatedGeneratorDesc == null) return;
+
+      if (checkYieldType(annotatedGeneratorDesc.yieldType(), node, function)) return;
+
+      // Reversed because SendType is contravariant
+      final PyType expectedSendType = annotatedGeneratorDesc.sendType();
+      if (delegateDesc != null && !PyTypeChecker.match(delegateDesc.sendType(), expectedSendType, myTypeEvalContext)) {
+        String expectedName = PythonDocumentationProvider.getVerboseTypeName(expectedSendType, myTypeEvalContext);
+        String actualName = PythonDocumentationProvider.getTypeName(delegateDesc.sendType(), myTypeEvalContext);
+        registerProblem(yieldExpr, PyPsiBundle.message("INSP.type.checker.yield.from.send.type.mismatch", expectedName, actualName));
+      }
+    }
+    
+    private @Nullable GeneratorTypeDescriptor getGeneratorDescriptorFromAnnotation(@NotNull PyFunction function, @NotNull PyYieldExpression yieldExpr) {
+      final PyAnnotation annotation = function.getAnnotation();
+      final String typeCommentAnnotation = function.getTypeCommentAnnotation();
+      if (annotation == null && typeCommentAnnotation == null) return null;
+
+      final PyType annotatedReturnType = myTypeEvalContext.getReturnType(function);
+      if (annotatedReturnType == null) return null;
+
+      final var annotatedGeneratorDesc = GeneratorTypeDescriptor.fromGeneratorOrProtocol(annotatedReturnType, myTypeEvalContext);
+      if (annotatedGeneratorDesc == null) {
+        final PyType inferredReturnType = function.getInferredReturnType(myTypeEvalContext);
+        if (!PyTypeChecker.match(annotatedReturnType, inferredReturnType, myTypeEvalContext)) {
+          String expectedName = PythonDocumentationProvider.getVerboseTypeName(annotatedReturnType, myTypeEvalContext);
+          String actualName = PythonDocumentationProvider.getTypeName(inferredReturnType, myTypeEvalContext);
+          getHolder()
+            .problem(yieldExpr, PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
+            .fix(new PyMakeFunctionReturnTypeQuickFix(function, myTypeEvalContext))
+            .register();
+        }
+        return null;
+      }
+      return annotatedGeneratorDesc;
+    }
+    
+    private boolean checkYieldType(@Nullable PyType expectedYieldType, @NotNull PyYieldExpression node, @NotNull PyFunction function) {
       final PyType thisYieldType = node.getYieldType(myTypeEvalContext);
-
       if (!PyTypeChecker.match(expectedYieldType, thisYieldType, myTypeEvalContext)) {
+        final PyExpression yieldExpr = node.getExpression();
         String expectedName = PythonDocumentationProvider.getVerboseTypeName(expectedYieldType, myTypeEvalContext);
         String actualName = PythonDocumentationProvider.getTypeName(thisYieldType, myTypeEvalContext);
         getHolder()
           .problem(yieldExpr != null ? yieldExpr : node, PyPsiBundle.message("INSP.type.checker.yield.type.mismatch", expectedName, actualName))
           .fix(new PyMakeFunctionReturnTypeQuickFix(function, myTypeEvalContext))
           .register();
+        return true;
       }
-
-      if (yieldExpr != null && node.isDelegating()) {
-        final PyType delegateType = myTypeEvalContext.getType(yieldExpr);
-        var delegateDesc = GeneratorTypeDescriptor.create(delegateType);
-        if (delegateDesc == null) return;
-
-        if (delegateDesc.isAsync()) {
-          String delegateName = PythonDocumentationProvider.getTypeName(delegateType, myTypeEvalContext);
-          registerProblem(yieldExpr, PyPsiBundle.message("INSP.type.checker.yield.from.async.generator", delegateName, delegateName));
-          return;
-        }
-
-        // Reversed because SendType is contravariant
-        if (!PyTypeChecker.match(delegateDesc.sendType(), expectedSendType, myTypeEvalContext)) {
-          String expectedName = PythonDocumentationProvider.getVerboseTypeName(expectedSendType, myTypeEvalContext);
-          String actualName = PythonDocumentationProvider.getTypeName(delegateDesc.sendType(), myTypeEvalContext);
-          registerProblem(yieldExpr, PyPsiBundle.message("INSP.type.checker.yield.from.send.type.mismatch", expectedName, actualName));
-        }
-      }
+      return false;
     }
 
-
     public static @Nullable PyType getExpectedReturnStatementType(@NotNull PyFunction function, @NotNull TypeEvalContext typeEvalContext) {
       final PyType returnType = typeEvalContext.getReturnType(function);
       if (function.isGenerator()) {
-        final var generatorDesc = GeneratorTypeDescriptor.create(returnType);
+        final var generatorDesc = GeneratorTypeDescriptor.fromGeneratorOrProtocol(returnType, typeEvalContext);
         if (generatorDesc != null) {
           return generatorDesc.returnType();
         }
+        return null;
       }
       if (function.isAsync()) {
         return Ref.deref(PyTypingTypeProvider.coroutineOrGeneratorElementType(returnType));
@@ -334,11 +358,12 @@ public class PyTypeCheckerInspection extends PyInspection {
 
           if (hasImplicitReturns) {
             final String expectedName = PythonDocumentationProvider.getVerboseTypeName(expected, myTypeEvalContext);
-            final String actualName = PythonDocumentationProvider.getTypeName(node.getReturnStatementType(myTypeEvalContext), myTypeEvalContext);
+            final String actualName =
+              PythonDocumentationProvider.getTypeName(node.getReturnStatementType(myTypeEvalContext), myTypeEvalContext);
             final PsiElement annotationValue = annotation != null ? annotation.getValue() : node.getTypeComment();
             if (annotationValue != null) {
               getHolder()
-                .problem(annotationValue,   PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
+                .problem(annotationValue, PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", expectedName, actualName))
                 .fix(new PyMakeFunctionReturnTypeQuickFix(node, myTypeEvalContext))
                 .register();
             }
@@ -353,10 +378,12 @@ public class PyTypeCheckerInspection extends PyInspection {
         }
 
         if (node.isGenerator()) {
-          boolean shouldBeAsync = node.isAsync() && node.isAsyncAllowed();
-          final var generatorDesc = GeneratorTypeDescriptor.create(annotatedType);
-          if (generatorDesc != null && generatorDesc.isAsync() != shouldBeAsync) {
-            final PyType inferredType = node.getInferredReturnType(myTypeEvalContext);
+          final var generatorDesc = GeneratorTypeDescriptor.fromGeneratorOrProtocol(annotatedType, myTypeEvalContext);
+          final boolean shouldBeAsync = node.isAsync() && node.isAsyncAllowed();
+          final boolean wrongSyncAsync = generatorDesc != null && generatorDesc.isAsync() != shouldBeAsync;
+
+          final PyType inferredType = node.getInferredReturnType(myTypeEvalContext);
+          if (wrongSyncAsync || (generatorDesc == null && !PyTypeChecker.match(annotatedType, inferredType, myTypeEvalContext))) {
             String expectedName = PythonDocumentationProvider.getVerboseTypeName(inferredType, myTypeEvalContext);
             String actualName = PythonDocumentationProvider.getTypeName(annotatedType, myTypeEvalContext);
             final PsiElement annotationValue = annotation != null ? annotation.getValue() : node.getTypeComment();
@@ -394,7 +421,7 @@ public class PyTypeCheckerInspection extends PyInspection {
       }
     }
 
-    private void checkIteratedValue(@Nullable PyExpression iteratedValue, boolean isAsync) {
+    private boolean checkIteratedValue(@Nullable PyExpression iteratedValue, boolean isAsync) {
       if (iteratedValue != null) {
         final PyType type = myTypeEvalContext.getType(iteratedValue);
         final String iterableClassName = isAsync ? PyNames.ASYNC_ITERABLE : PyNames.ITERABLE;
@@ -406,8 +433,10 @@ public class PyTypeCheckerInspection extends PyInspection {
 
           String qualifiedName = "collections." + iterableClassName;
           registerProblem(iteratedValue, PyPsiBundle.message("INSP.type.checker.expected.type.got.type.instead", qualifiedName, typeName));
+          return true;
         }
       }
+      return false;
     }
 
     private void checkContextManagerValue(@Nullable PyExpression iteratedValue, boolean isAsync) {
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
index ec9f5d403b9e..6320ecc65860 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
@@ -340,6 +340,11 @@ public class PyFunctionImpl extends PyBaseElementImpl<PyFunctionStub> implements
     public void visitPyLambdaExpression(@NotNull PyLambdaExpression node) {
       // Ignore nested lambdas
     }
+
+    @Override
+    public void visitPyClass(@NotNull PyClass node) {
+      // Ignore nested classes
+    }
   }
 
   /**
@@ -646,6 +651,16 @@ public class PyFunctionImpl extends PyBaseElementImpl<PyFunctionStub> implements
           // Ignore nested functions
         }
 
+        @Override
+        public void visitPyLambdaExpression(@NotNull PyLambdaExpression node) {
+          // Ignore lambdas
+        }
+
+        @Override
+        public void visitPyClass(@NotNull PyClass node) {
+          // Ignore nested classes
+        }
+
         @Override
         public void visitElement(@NotNull PsiElement element) {
           if (!containsYield.get()) {
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyYieldExpressionImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyYieldExpressionImpl.java
index da230cdb82ef..59918bc2226c 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyYieldExpressionImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyYieldExpressionImpl.java
@@ -8,7 +8,8 @@ import com.jetbrains.python.psi.PyElementVisitor;
 import com.jetbrains.python.psi.PyExpression;
 import com.jetbrains.python.psi.PyFunction;
 import com.jetbrains.python.psi.PyYieldExpression;
-import com.jetbrains.python.psi.types.*;
+import com.jetbrains.python.psi.types.PyType;
+import com.jetbrains.python.psi.types.TypeEvalContext;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -28,7 +29,7 @@ public class PyYieldExpressionImpl extends PyElementImpl implements PyYieldExpre
     if (isDelegating()) {
       final PyExpression e = getExpression();
       final PyType type = e != null ? context.getType(e) : null;
-      var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.create(type);
+      var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.fromGeneratorOrProtocol(type, context);
       if (generatorDesc != null) {
         return generatorDesc.returnType();
       }
@@ -55,7 +56,7 @@ public class PyYieldExpressionImpl extends PyElementImpl implements PyYieldExpre
     if (ScopeUtil.getScopeOwner(this) instanceof PyFunction function) {
       if (function.getAnnotation() != null || function.getTypeCommentAnnotation() != null) {
         var returnType = context.getReturnType(function);
-        var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.create(returnType);
+        var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.fromGeneratorOrProtocol(returnType, context);
         if (generatorDesc != null) {
           return generatorDesc.sendType();
         }
@@ -65,7 +66,7 @@ public class PyYieldExpressionImpl extends PyElementImpl implements PyYieldExpre
     if (isDelegating()) {
       final PyExpression e = getExpression();
       final PyType type = e != null ? context.getType(e) : null;
-      var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.create(type);
+      var generatorDesc = PyTypingTypeProvider.GeneratorTypeDescriptor.fromGeneratorOrProtocol(type, context);
       if (generatorDesc != null) {
         return generatorDesc.sendType();
       }
diff --git a/python/testData/inspections/PyTypeCheckerInspection/FunctionReturnTypePy3.py b/python/testData/inspections/PyTypeCheckerInspection/FunctionReturnTypePy3.py
index ab6ff4ffeea3..4ab6af1ef59a 100644
--- a/python/testData/inspections/PyTypeCheckerInspection/FunctionReturnTypePy3.py
+++ b/python/testData/inspections/PyTypeCheckerInspection/FunctionReturnTypePy3.py
@@ -1,4 +1,4 @@
-from typing import List, Optional, Union
+from typing import List, Optional, Union, Generator, Iterable
 
 def a(x: List[int]) -> List[str]:
     return <warning descr="Expected type 'list[str]', got 'list[list[int]]' instead">[x]</warning>
@@ -54,8 +54,12 @@ def m(x) -> None:
 
 def n() -> Generator[int, Any, str]:
     yield 13
-    return 42
+    return <warning descr="Expected type 'str', got 'int' instead">42</warning>
 
 def o(val) -> int:
     assert val is int
-    return val
\ No newline at end of file
+    return val
+
+def t() -> Iterable[int]:
+    yield 13
+    return "str" # no warning here
\ No newline at end of file
diff --git a/python/testData/inspections/PyTypeCheckerInspection/FunctionYieldTypePy3.py b/python/testData/inspections/PyTypeCheckerInspection/FunctionYieldTypePy3.py
index 625ba1b43ee1..5361dc629897 100644
--- a/python/testData/inspections/PyTypeCheckerInspection/FunctionYieldTypePy3.py
+++ b/python/testData/inspections/PyTypeCheckerInspection/FunctionYieldTypePy3.py
@@ -1,4 +1,4 @@
-from typing import Generator, Iterable, Iterator, AsyncIterable, AsyncIterator, AsyncGenerator
+from typing import Generator, Iterable, Iterator, AsyncIterable, AsyncIterator, AsyncGenerator, Protocol
 
 # Fix incorrect YieldType
 def a() -> Iterable[str]:
@@ -16,20 +16,20 @@ def c() -> Generator[int, Any, str]:
     return <warning descr="Expected type 'str', got 'int' instead">42</warning>
 
 # Suggest AsyncGenerator
-async def d() -> <warning descr="Expected type 'AsyncGenerator[int, None]', got 'Iterable[int]' instead">Iterable[int]</warning>:
+async def d() -> <warning descr="Expected type 'AsyncGenerator[int, Any]', got 'Iterable[int]' instead">Iterable[int]</warning>:
     yield 42
 
-async def e() -> <warning descr="Expected type 'AsyncGenerator[int, None]', got 'Iterator[int]' instead">Iterator[int]</warning>:
+async def e() -> <warning descr="Expected type 'AsyncGenerator[int, Any]', got 'Iterator[int]' instead">Iterator[int]</warning>:
     yield 42
 
 async def f() -> <warning descr="Expected type 'AsyncGenerator[int, str]', got 'Generator[int, str, None]' instead">Generator[int, str, None]</warning>:
     yield 13
 
 # Suggest sync Generator
-def g() -> <warning descr="Expected type 'Generator[int, None, None]', got 'AsyncIterable[int]' instead">AsyncIterable[int]</warning>:
+def g() -> <warning descr="Expected type 'Generator[int, Any, None]', got 'AsyncIterable[int]' instead">AsyncIterable[int]</warning>:
     yield 42
 
-def h() -> <warning descr="Expected type 'Generator[int, None, None]', got 'AsyncIterator[int]' instead">AsyncIterator[int]</warning>:
+def h() -> <warning descr="Expected type 'Generator[int, Any, None]', got 'AsyncIterator[int]' instead">AsyncIterator[int]</warning>:
     yield 42
 
 def i() -> <warning descr="Expected type 'Generator[int, str, None]', got 'AsyncGenerator[int, str]' instead">AsyncGenerator[int, str]</warning>:
@@ -66,4 +66,25 @@ async def r() -> AsyncGenerator[int]:
     yield 42
     
 def s() -> Generator[int]:
-    yield from <warning descr="Cannot yield from 'AsyncGenerator[int, None]', use async for instead"><warning descr="Expected type 'collections.Iterable', got 'AsyncGenerator[int, None]' instead">r()</warning></warning>
\ No newline at end of file
+    yield from <warning descr="Cannot yield from 'AsyncGenerator[int, None]', use async for instead">r()</warning>
+    
+def t() -> object: # no error here
+    yield None # no error here
+
+class IntIterator(Protocol):
+  def __next__(self, /) -> int:
+    ...
+
+def x(b: bool) -> IntIterator:
+  if b:
+      yield 0
+  yield <warning descr="Expected yield type 'int', got 'str' instead">"str"</warning>
+
+class TIterator[T](Protocol):
+    def __next__(self, /) -> T:
+        ...
+
+def y(b: bool) -> TIterator[int]:
+    if b:
+        yield 0
+    yield <warning descr="Expected yield type 'int', got 'str' instead">"str"</warning>
diff --git a/python/testData/inspections/PyTypeCheckerInspection/GeneratorTypeHint.py b/python/testData/inspections/PyTypeCheckerInspection/GeneratorTypeHint.py
index b40ec61513ab..eb3f98e8b122 100644
--- a/python/testData/inspections/PyTypeCheckerInspection/GeneratorTypeHint.py
+++ b/python/testData/inspections/PyTypeCheckerInspection/GeneratorTypeHint.py
@@ -1,2 +1,4 @@
+from typing import Generator
+
 def fixture_generator() -> Generator[str, None, None]:
     yield "Hello World"
\ No newline at end of file
diff --git a/python/testData/quickFixes/PyMakeFunctionReturnTypeQuickFixTest/makeGenerator.py b/python/testData/quickFixes/PyMakeFunctionReturnTypeQuickFixTest/makeGenerator.py
index 2368acb78148..52ad1ed9987c 100644
--- a/python/testData/quickFixes/PyMakeFunctionReturnTypeQuickFixTest/makeGenerator.py
+++ b/python/testData/quickFixes/PyMakeFunctionReturnTypeQuickFixTest/makeGenerator.py
@@ -1,4 +1,4 @@
-async def gen() -> str:
+async def gen() -> <warning descr="Expected type 'AsyncGenerator[str | float, Any]', got 'str' instead">str</warning>:
     b: bool = <warning descr="Expected type 'str', got 'AsyncGenerator[str | float, Any]' instead"><caret>yield "str"</warning>
     if b:
         b = <warning descr="Expected type 'str', got 'AsyncGenerator[str | float, Any]' instead">yield 3.14</warning>
\ No newline at end of file
diff --git a/python/testData/typing/ignored.txt b/python/testData/typing/ignored.txt
index a192d13ede79..b35115b0906e 100644
--- a/python/testData/typing/ignored.txt
+++ b/python/testData/typing/ignored.txt
@@ -2,7 +2,6 @@ aliases_implicit.py
 aliases_recursive.py
 aliases_typealiastype.py
 aliases_variance.py
-annotations_generators.py
 annotations_typeexpr.py
 callables_annotation.py
 callables_kwargs.py
diff --git a/python/testSrc/com/jetbrains/python/Py3TypeTest.java b/python/testSrc/com/jetbrains/python/Py3TypeTest.java
index 0e3f5bec02ac..31c997b1ae60 100644
--- a/python/testSrc/com/jetbrains/python/Py3TypeTest.java
+++ b/python/testSrc/com/jetbrains/python/Py3TypeTest.java
@@ -17,6 +17,16 @@ import java.util.Map;
 public class Py3TypeTest extends PyTestCase {
   public static final String TEST_DIRECTORY = "/types/";
 
+  public void testYieldInsideLambda() {
+    // Checks that foo is not a generator
+    doTest("int", """
+             def foo():
+                 y = lambda x: (yield x)
+                 return 42
+             expr = foo()
+             """);
+  }
+  
   // PY-21069
   public void testDunderGetattr() {
     doTest("MyClass", """
diff --git a/python/testSrc/com/jetbrains/python/inspections/Py3TypeCheckerInspectionTest.java b/python/testSrc/com/jetbrains/python/inspections/Py3TypeCheckerInspectionTest.java
index 73eca4d028d2..f007d249dec6 100644
--- a/python/testSrc/com/jetbrains/python/inspections/Py3TypeCheckerInspectionTest.java
+++ b/python/testSrc/com/jetbrains/python/inspections/Py3TypeCheckerInspectionTest.java
@@ -3063,4 +3063,12 @@ def foo(param: str | int) -> TypeGuard[str]:
                    call = <warning descr="Expected type '(Concatenate(int, ...)) -> str', got '() -> str' instead">empty</warning>
                    """);
   }
+  
+  public void testNoWarningIfUnreachable() {
+    doTestByText("""
+                   def foo() -> int:
+                       assert False
+                       return "42" # no warning here, because it is unreachable
+                   """);
+  }
 }