diff --git a/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java b/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
index 1b569176e27e..9827cdce647d 100644
--- a/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
+++ b/python/src/com/jetbrains/python/psi/types/PyTypeChecker.java
@@ -470,7 +470,7 @@ public class PyTypeChecker {
             }
           }
         }
-        if (substitution instanceof PyGenericType && substitution != type) {
+        if (substitution instanceof PyGenericType && !typeVar.equals(substitution)) {
           final PyType recursive = substitute(substitution, substitutions, context);
           if (recursive != null) {
             return recursive;
diff --git a/python/testSrc/com/jetbrains/python/PyTypingTest.java b/python/testSrc/com/jetbrains/python/PyTypingTest.java
index 88e96144e56a..369f12d99800 100644
--- a/python/testSrc/com/jetbrains/python/PyTypingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyTypingTest.java
@@ -16,13 +16,9 @@
 package com.jetbrains.python;
 
 import com.intellij.lang.injection.InjectedLanguageManager;
-import com.intellij.openapi.editor.Document;
-import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.util.Pair;
 import com.intellij.openapi.util.TextRange;
-import com.intellij.psi.PsiDocumentManager;
 import com.intellij.psi.PsiElement;
-import com.intellij.psi.PsiFile;
 import com.intellij.psi.PsiLanguageInjectionHost;
 import com.intellij.testFramework.LightProjectDescriptor;
 import com.jetbrains.python.documentation.PythonDocumentationProvider;
@@ -957,6 +953,21 @@ public class PyTypingTest extends PyTestCase {
            "expr = f(True, 1, 'foo')\n");
   }
 
+  // PY-24260
+  public void testGenericClassParameterTakenFromGenericClassObject() {
+    doTest("MyClass[TypeVar('T')]",
+           "from typing import TypeVar, Generic, Type\n" +
+           "\n" +
+           "T = TypeVar(\"T\")\n" +
+           "\n" +
+           "class MyClass(Generic[T]):\n" +
+           "    def __init__(self, type: Type[T]):\n" +
+           "        pass\n" +
+           "\n" +
+           "def f(x: Type[T]):\n" +
+           "    expr = MyClass(x)\n");
+  }
+
   private void doTestNoInjectedText(@NotNull String text) {
     myFixture.configureByText(PythonFileType.INSTANCE, text);
     final InjectedLanguageManager languageManager = InjectedLanguageManager.getInstance(myFixture.getProject());