diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
index bb0da26b4d07..37077b976a56 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
@@ -205,36 +205,43 @@ public class PyNamedParameterImpl extends PyBaseElementImpl<PyNamedParameterStub
             }
           }
         }
-        // Guess the type from file-local calls
-        if (context.allowCallContext(this)) {
-          final List<PyType> types = new ArrayList<>();
-          final PyResolveContext resolveContext = PyResolveContext.defaultContext(context);
-          final PyCallableParameter parameter = PyCallableParameterImpl.psi(this);
+        // Guess the type under an assumed type to prevent recursion
+        final PyType assumedResult = context.assumeType(this, null, ctx -> {
+          // Guess the type from file-local calls
+          if (ctx.allowCallContext(this)) {
+            final List<PyType> types = new ArrayList<>();
+            final PyResolveContext resolveContext = PyResolveContext.defaultContext(ctx);
+            final PyCallableParameter parameter = PyCallableParameterImpl.psi(this);
 
-          processLocalCalls(
-            func, call -> {
-              StreamEx
-                .of(call.multiMapArguments(resolveContext))
-                .flatCollection(mapping -> mapping.getMappedParameters().entrySet())
-                .filter(entry -> parameter.equals(entry.getValue()))
-                .map(Map.Entry::getKey)
-                .nonNull()
-                .map(context::getType)
-                .nonNull()
-                .forEach(types::add);
-              return true;
+            processLocalCalls(
+              func, call -> {
+                StreamEx
+                  .of(call.multiMapArguments(resolveContext))
+                  .flatCollection(mapping -> mapping.getMappedParameters().entrySet())
+                  .filter(entry -> parameter.equals(entry.getValue()))
+                  .map(Map.Entry::getKey)
+                  .nonNull()
+                  .map(ctx::getType)
+                  .nonNull()
+                  .forEach(types::add);
+                return true;
+              }
+            );
+
+            if (!types.isEmpty()) {
+              return PyUnionType.createWeakType(PyUnionType.union(types));
             }
-          );
-
-          if (!types.isEmpty()) {
-            return PyUnionType.createWeakType(PyUnionType.union(types));
           }
-        }
-        if (context.maySwitchToAST(this)) {
-          final PyType typeFromUsages = getTypeFromUsages(context);
-          if (typeFromUsages != null) {
-            return typeFromUsages;
+          if (ctx.maySwitchToAST(this)) {
+            final PyType typeFromUsages = getTypeFromUsages(ctx);
+            if (typeFromUsages != null) {
+              return typeFromUsages;
+            }
           }
+          return null;
+        });
+        if (assumedResult != null) {
+          return assumedResult;
         }
       }
     }
diff --git a/python/testSrc/com/jetbrains/python/PyTypeTest.java b/python/testSrc/com/jetbrains/python/PyTypeTest.java
index 40d1c79b6866..4122c35dcda9 100644
--- a/python/testSrc/com/jetbrains/python/PyTypeTest.java
+++ b/python/testSrc/com/jetbrains/python/PyTypeTest.java
@@ -2,6 +2,8 @@
 package com.jetbrains.python;
 
 import com.google.common.collect.ImmutableList;
+import com.intellij.openapi.util.RecursionManager;
+import com.intellij.openapi.util.registry.Registry;
 import com.intellij.testFramework.LightProjectDescriptor;
 import com.jetbrains.python.documentation.docstrings.DocStringFormat;
 import com.jetbrains.python.fixtures.PyTestCase;
@@ -783,6 +785,8 @@ public class PyTypeTest extends PyTestCase {
   }
 
   public void testParameterFromUsages() {
+    RecursionManager.assertOnRecursionPrevention(myFixture.getTestRootDisposable());
+    Registry.get("python.use.better.control.flow.type.inference").setValue(true);
     final String text = """
       def foo(bar):
           expr = bar