diff --git a/compiler/src/dotty/tools/dotc/ast/TreeTypeMap.scala b/compiler/src/dotty/tools/dotc/ast/TreeTypeMap.scala
index 50373f044719..dcfc6e1447c3 100644
--- a/compiler/src/dotty/tools/dotc/ast/TreeTypeMap.scala
+++ b/compiler/src/dotty/tools/dotc/ast/TreeTypeMap.scala
@@ -76,6 +76,9 @@ class TreeTypeMap(
       updateDecls(prevStats.tail, newStats.tail)
     }
 
+  /** If true, stop return Inlined(Empty, _, _) nodes unchanged */
+  def stopAtInlinedArgument: Boolean = false
+
   override def transform(tree: tpd.Tree)(using Context): tpd.Tree = treeMap(tree) match {
     case impl @ Template(constr, parents, self, _) =>
       val tmap = withMappedSyms(localSyms(impl :: self :: Nil))
@@ -107,9 +110,12 @@ class TreeTypeMap(
           val expr1 = tmap1.transform(expr)
           cpy.Block(blk)(stats1, expr1)
         case inlined @ Inlined(call, bindings, expanded) =>
-          val (tmap1, bindings1) = transformDefs(bindings)
-          val expanded1 = tmap1.transform(expanded)
-          cpy.Inlined(inlined)(call, bindings1, expanded1)
+          if stopAtInlinedArgument && call.isEmpty then
+            inlined
+          else
+            val (tmap1, bindings1) = transformDefs(bindings)
+            val expanded1 = tmap1.transform(expanded)
+            cpy.Inlined(inlined)(call, bindings1, expanded1)
         case cdef @ CaseDef(pat, guard, rhs) =>
           val tmap = withMappedSyms(patVars(pat))
           val pat1 = tmap.transform(pat)
diff --git a/compiler/src/dotty/tools/dotc/typer/Inliner.scala b/compiler/src/dotty/tools/dotc/typer/Inliner.scala
index 527928a6a462..08ff58e918a2 100644
--- a/compiler/src/dotty/tools/dotc/typer/Inliner.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Inliner.scala
@@ -753,7 +753,9 @@ class Inliner(call: tpd.Tree, rhsToInline: tpd.Tree)(using Context) {
       },
       oldOwners = inlinedMethod :: Nil,
       newOwners = ctx.owner :: Nil
-    )(using inlineCtx)
+    )(using inlineCtx) {
+      override def stopAtInlinedArgument: Boolean = true
+    }
 
     // Apply inliner to `rhsToInline`, split off any implicit bindings from result, and
     // make them part of `bindingsBuf`. The expansion is then the tree that remains.
diff --git a/tests/pos/i11866.scala b/tests/pos/i11866.scala
new file mode 100644
index 000000000000..8cb281f59338
--- /dev/null
+++ b/tests/pos/i11866.scala
@@ -0,0 +1,21 @@
+type Callback = CallbackTo[Unit]
+
+final class CallbackTo[+A] { self =>
+
+  def >>[B](y: CallbackTo[B]): CallbackTo[B] =
+    ???
+
+  inline def *>[B](z: CallbackTo[B]): CallbackTo[B] =
+    >>(z)
+
+  def qwe: CallbackTo[A] = {
+    def x: Callback = ???
+    val hmmm = this
+
+    x *> this // was error
+    x *> self // was error
+    x *> hmmm // ok
+
+    ???
+  }
+}