diff --git a/compiler/src/dotty/tools/dotc/ast/tpd.scala b/compiler/src/dotty/tools/dotc/ast/tpd.scala
index 53609219ba01..916cb2df69ee 100644
--- a/compiler/src/dotty/tools/dotc/ast/tpd.scala
+++ b/compiler/src/dotty/tools/dotc/ast/tpd.scala
@@ -372,7 +372,7 @@ object tpd extends Trees.Instance[Type] with TypedTreeInfo {
       ref(defn.DottyArraysModule).select(defn.newArrayMethod).withPos(pos)
 
     if (!ctx.erasedTypes) {
-      assert(!TypeErasure.isUnboundedGeneric(elemTpe)) //needs to be done during typer. See Applications.convertNewGenericArray
+      assert(!TypeErasure.isGeneric(elemTpe)) //needs to be done during typer. See Applications.convertNewGenericArray
       newArr.appliedToTypeTrees(TypeTree(returnTpe) :: Nil).appliedToArgs(clsOf(elemTpe) :: clsOf(returnTpe) :: dims :: Nil).withPos(pos)
     } else  // after erasure
       newArr.appliedToArgs(clsOf(elemTpe) :: clsOf(returnTpe) :: dims :: Nil).withPos(pos)
diff --git a/compiler/src/dotty/tools/dotc/core/TypeErasure.scala b/compiler/src/dotty/tools/dotc/core/TypeErasure.scala
index 78568769305a..d3dceb4451cf 100644
--- a/compiler/src/dotty/tools/dotc/core/TypeErasure.scala
+++ b/compiler/src/dotty/tools/dotc/core/TypeErasure.scala
@@ -216,6 +216,16 @@ object TypeErasure {
     case _ => false
   }
 
+  /** Is `tp` an abstract type or polymorphic type parameter, or another unbounded generic type? */
+  def isGeneric(tp: Type)(implicit ctx: Context): Boolean = tp.dealias match {
+    case tp: TypeRef => !tp.symbol.isClass
+    case tp: TypeParamRef => true
+    case tp: TypeProxy => isGeneric(tp.underlying)
+    case tp: AndType => isGeneric(tp.tp1) || isGeneric(tp.tp2)
+    case tp: OrType => isGeneric(tp.tp1) || isGeneric(tp.tp2)
+    case _ => false
+  }
+
   /** The erased least upper bound is computed as follows
    *  - if both argument are arrays of objects, an array of the erased lub of the element types
    *  - if both arguments are arrays of same primitives, an array of this primitive
diff --git a/compiler/src/dotty/tools/dotc/transform/ArrayConstructors.scala b/compiler/src/dotty/tools/dotc/transform/ArrayConstructors.scala
index c7d02d53175b..888696846ae7 100644
--- a/compiler/src/dotty/tools/dotc/transform/ArrayConstructors.scala
+++ b/compiler/src/dotty/tools/dotc/transform/ArrayConstructors.scala
@@ -46,10 +46,10 @@ class ArrayConstructors extends MiniPhase {
       val cs = tp.tpe.widen.classSymbol
       tree.fun match {
         case Apply(TypeApply(t: Ident, targ), dims)
-          if !TypeErasure.isUnboundedGeneric(targ.head.tpe) && !ValueClasses.isDerivedValueClass(cs) =>
+          if !TypeErasure.isGeneric(targ.head.tpe) && !ValueClasses.isDerivedValueClass(cs) =>
           rewrite(targ.head.tpe, dims)
         case Apply(TypeApply(t: Select, targ), dims)
-          if !TypeErasure.isUnboundedGeneric(targ.head.tpe) && !ValueClasses.isDerivedValueClass(cs) =>
+          if !TypeErasure.isGeneric(targ.head.tpe) && !ValueClasses.isDerivedValueClass(cs) =>
           Block(t.qualifier :: Nil, rewrite(targ.head.tpe, dims))
         case _ => tree
       }
diff --git a/compiler/src/dotty/tools/dotc/typer/Applications.scala b/compiler/src/dotty/tools/dotc/typer/Applications.scala
index 313c91e1d953..9831c26c0596 100644
--- a/compiler/src/dotty/tools/dotc/typer/Applications.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Applications.scala
@@ -831,7 +831,7 @@ trait Applications extends Compatibility { self: Typer with Dynamic =>
           .select(defn.newGenericArrayMethod).withPos(tree.pos)
           .appliedToTypeTrees(targs).appliedToArgs(args)
 
-      if (TypeErasure.isUnboundedGeneric(targ.tpe))
+      if (TypeErasure.isGeneric(targ.tpe))
         newGenericArrayCall
       else tree
     case _ =>
diff --git a/tests/run/i4037.scala b/tests/run/i4037.scala
new file mode 100644
index 000000000000..5679fb782445
--- /dev/null
+++ b/tests/run/i4037.scala
@@ -0,0 +1,8 @@
+import scala.reflect.ClassTag
+
+object Test {
+  def foo[T <: AnyRef : ClassTag] = new Array[T](42)
+  def main(args: Array[String]): Unit = {
+    val x: Array[String] = foo[String]
+  }
+}
\ No newline at end of file