diff --git a/src/dotty/tools/dotc/core/TypeOps.scala b/src/dotty/tools/dotc/core/TypeOps.scala
index 7a853ae12c95..1ef997684cb6 100644
--- a/src/dotty/tools/dotc/core/TypeOps.scala
+++ b/src/dotty/tools/dotc/core/TypeOps.scala
@@ -56,7 +56,13 @@ trait TypeOps { this: Context =>
   final def simplify(tp: Type, theMap: SimplifyMap): Type = tp match {
     case tp: NamedType =>
       if (tp.symbol.isStatic) tp
-      else tp.derivedSelect(simplify(tp.prefix, theMap))
+      else tp.derivedSelect(simplify(tp.prefix, theMap)) match {
+        case tp1: NamedType if tp1.denotationIsCurrent =>
+          val tp2 = tp1.reduceProjection
+          //if (tp2 ne tp1) println(i"simplified $tp1 -> $tp2")
+          tp2
+        case tp1 => tp1
+      }
     case tp: PolyParam =>
       typerState.constraint.typeVarOfParam(tp) orElse tp
     case  _: ThisType | _: BoundType | NoPrefix =>
diff --git a/src/dotty/tools/dotc/core/Types.scala b/src/dotty/tools/dotc/core/Types.scala
index aa8036fc5972..7282a80e69fb 100644
--- a/src/dotty/tools/dotc/core/Types.scala
+++ b/src/dotty/tools/dotc/core/Types.scala
@@ -713,7 +713,7 @@ object Types {
     /** A prefix-less termRef to a new skolem symbol that has the given type as info */
     def narrow(implicit ctx: Context): TermRef = TermRef(NoPrefix, ctx.newSkolem(this))
 
- // ----- Normalizing typerefs over refined types ----------------------------
+    // ----- Normalizing typerefs over refined types ----------------------------
 
     /** If this is a refinement type that has a refinement for `name` (which might be followed
      *  by other refinements), and the refined info is a type alias, return the alias,
@@ -724,58 +724,58 @@ object Types {
      *  to just U. Does not perform the reduction if the resulting type would contain
      *  a reference to the "this" of the current refined type.
      */
-    def lookupRefined(name: Name)(implicit ctx: Context): Type = stripTypeVar match {
-      case pre: RefinedType =>
-        def dependsOnThis(tp: Type): Boolean = tp match {
-          case tp @ TypeRef(RefinedThis(rt), _) if rt refines pre =>
-            tp.info match {
-              case TypeBounds(lo, hi) if lo eq hi => dependsOnThis(hi)
-              case _ => true
-            }
-          case RefinedThis(rt) =>
-            rt refines pre
-          case _ => false
-        }
-        if (pre.refinedName ne name)
-          pre.parent.lookupRefined(name)
-        else pre.refinedInfo match {
-          case TypeBounds(lo, hi) if lo eq hi =>
-            if (hi.existsPart(dependsOnThis)) NoType else hi
-          case _ => NoType
-        }
-      case RefinedThis(rt) =>
-        rt.lookupRefined(name)
-      case pre: WildcardType =>
-        WildcardType
-      case _ =>
-        NoType
+    def lookupRefined(name: Name)(implicit ctx: Context): Type = {
+
+      def dependsOnRefinedThis(tp: Type): Boolean = tp.stripTypeVar match {
+        case tp @ TypeRef(RefinedThis(rt), _) if rt refines this =>
+          tp.info match {
+            case TypeBounds(lo, hi) if lo eq hi => dependsOnRefinedThis(hi)
+            case _ => true
+          }
+        case RefinedThis(rt) => rt refines this
+        case tp: NamedType =>
+          !tp.symbol.isStatic && dependsOnRefinedThis(tp.prefix)
+        case tp: RefinedType => dependsOnRefinedThis(tp.refinedInfo) || dependsOnRefinedThis(tp.parent)
+        case tp: TypeBounds => dependsOnRefinedThis(tp.lo) || dependsOnRefinedThis(tp.hi)
+        case tp: AnnotatedType => dependsOnRefinedThis(tp.underlying)
+        case tp: AndOrType => dependsOnRefinedThis(tp.tp1) || dependsOnRefinedThis(tp.tp2)
+        case _ => false
+      }
+
+      def loop(pre: Type): Type = pre.stripTypeVar match {
+        case pre: RefinedType =>
+          if (pre.refinedName ne name) loop(pre.parent)
+          else this.member(name).info match {
+            case TypeBounds(lo, hi) if (lo eq hi) && !dependsOnRefinedThis(hi) => hi
+            case _ => NoType
+          }
+        case RefinedThis(rt) =>
+          rt.lookupRefined(name)
+        case pre: WildcardType =>
+          WildcardType
+        case _ =>
+          NoType
+      }
+
+      loop(this)
     }
 
     /** The type <this . name> , reduced if possible */
     def select(name: Name)(implicit ctx: Context): Type = name match {
-      case name: TermName =>
-        TermRef.all(this, name)
-      case name: TypeName =>
-        val res = lookupRefined(name)
-        if (res.exists) res else TypeRef(this, name)
+      case name: TermName => TermRef.all(this, name)
+      case name: TypeName => TypeRef(this, name).reduceProjection
     }
 
     /** The type <this . name> , reduced if possible, with given denotation if unreduced */
     def select(name: Name, denot: Denotation)(implicit ctx: Context): Type = name match {
-      case name: TermName =>
-        TermRef(this, name, denot)
-      case name: TypeName =>
-        val res = lookupRefined(name)
-        if (res.exists) res else TypeRef(this, name, denot)
+      case name: TermName => TermRef(this, name, denot)
+      case name: TypeName => TypeRef(this, name, denot).reduceProjection
     }
 
     /** The type <this . name> with given symbol, reduced if possible */
     def select(sym: Symbol)(implicit ctx: Context): Type =
       if (sym.isTerm) TermRef(this, sym.asTerm)
-      else {
-        val res = lookupRefined(sym.name)
-        if (res.exists) res else TypeRef(this, sym.asType)
-      }
+      else TypeRef(this, sym.asType).reduceProjection
 
 // ----- Access to parts --------------------------------------------
 
@@ -1300,6 +1300,18 @@ object Types {
       if (name.isInheritedName) prefix.nonPrivateMember(name.revertInherited)
       else prefix.member(name)
 
+    /** (1) Reduce a type-ref `W # X` or `W { ... } # U`, where `W` is a wildcard type
+     *  to an (unbounded) wildcard type.
+     *
+     *  (2) Reduce a type-ref `T { X = U; ... } # X`  to   `U`
+     *  provided `U` does not refer with a RefinedThis to the
+     *  refinement type `T { X = U; ... }`
+     */
+    def reduceProjection(implicit ctx: Context): Type = {
+      val reduced = prefix.lookupRefined(name)
+      if (reduced.exists) reduced else this
+    }
+
     def symbol(implicit ctx: Context): Symbol = {
       val now = ctx.period
       if (checkedPeriod == now ||
diff --git a/test/dotc/tests.scala b/test/dotc/tests.scala
index 32f6a0b12ada..11023e9226d8 100644
--- a/test/dotc/tests.scala
+++ b/test/dotc/tests.scala
@@ -112,7 +112,7 @@ class tests extends CompilerTest {
   @Test def dotc_config = compileDir(dotcDir + "tools/dotc/config", twice)
   @Test def dotc_core = compileDir(dotcDir + "tools/dotc/core", twice)(allowDeepSubtypes)
   @Test def dotc_core_pickling = compileDir(dotcDir + "tools/dotc/core/pickling", twice)(allowDeepSubtypes)
-  @Test def dotc_transform = compileDir(dotcDir + "tools/dotc/transform", twice)
+  @Test def dotc_transform = compileDir(dotcDir + "tools/dotc/transform", twice)(allowDeepSubtypes)
   @Test def dotc_parsing = compileDir(dotcDir + "tools/dotc/parsing", twice)
   @Test def dotc_printing = compileDir(dotcDir + "tools/dotc/printing", twice)
   @Test def dotc_reporting = compileDir(dotcDir + "tools/dotc/reporting", twice)
diff --git a/tests/pos/reduce-projections.scala b/tests/pos/reduce-projections.scala
new file mode 100644
index 000000000000..263c0d5aba60
--- /dev/null
+++ b/tests/pos/reduce-projections.scala
@@ -0,0 +1,18 @@
+// This test case is intended to verify that reduce projection
+// works across multiple refinements. When running with -Xprint:front
+// The inferred type of y and yy should be String.
+// It would be good to improve our testing framework so
+// that we can verify this. With partest, it would be easy.
+class ABC { type A; type B; type C }
+
+object Test {
+
+  val x: (ABC { type C = String; type B = C; type A = B }) # A = ???
+
+  val y = x  // should expand to: val y: String = x
+
+  val xx: (ABC { type C = String } { type B = C } { type A = B }) # A = ???
+
+  val yy = x  // should expand to: val y: String = x
+
+}