diff --git a/compiler/src/dotty/tools/dotc/typer/Applications.scala b/compiler/src/dotty/tools/dotc/typer/Applications.scala
index 01e66223d4e6..f9eaf02c0327 100644
--- a/compiler/src/dotty/tools/dotc/typer/Applications.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Applications.scala
@@ -193,6 +193,12 @@ trait Applications extends Compatibility { self: Typer with Dynamic =>
      */
     protected def liftFun(): Unit = ()
 
+    /** Whether `liftFun` is needed? It is the case if default arguments are used.
+     */
+    protected def needLiftFun: Boolean =
+      !isJavaAnnotConstr(methRef.symbol) &&
+      args.size < reqiredArgNum(funType)
+
     /** A flag signalling that the typechecking the application was so far successful */
     private[this] var _ok = true
 
@@ -205,12 +211,25 @@ trait Applications extends Compatibility { self: Typer with Dynamic =>
     /** The function's type after widening and instantiating polytypes
      *  with TypeParamRefs in constraint set
      */
-    val methType = funType.widen match {
+    lazy val methType: Type = liftedFunType.widen match {
       case funType: MethodType => funType
       case funType: PolyType => constrained(funType).resultType
       case tp => tp //was: funType
     }
 
+    def reqiredArgNum(tp: Type): Int = tp.widen match {
+      case funType: MethodType => funType.paramInfos.size
+      case funType: PolyType => reqiredArgNum(funType.resultType)
+      case tp => args.size
+    }
+
+    lazy val liftedFunType =
+      if (needLiftFun) {
+        liftFun()
+        normalizedFun.tpe
+      }
+      else funType
+
     /** The arguments re-ordered so that each named argument matches the
      *  same-named formal parameter.
      */
@@ -231,6 +250,7 @@ trait Applications extends Compatibility { self: Typer with Dynamic =>
             ()
           else
             fail(err.typeMismatchMsg(methType.resultType, resultType))
+
         // match all arguments with corresponding formal parameters
         matchArgs(orderedArgs, methType.paramInfos, 0)
       case _ =>
@@ -425,8 +445,6 @@ trait Applications extends Compatibility { self: Typer with Dynamic =>
           }
 
           def tryDefault(n: Int, args1: List[Arg]): Unit = {
-            if (!isJavaAnnotConstr(methRef.symbol))
-              liftFun()
             val getter = findDefaultGetter(n + numArgs(normalizedFun))
             if (getter.isEmpty) missingArg(n)
             else {
diff --git a/compiler/src/dotty/tools/dotc/typer/EtaExpansion.scala b/compiler/src/dotty/tools/dotc/typer/EtaExpansion.scala
index 2f39b07aa998..0ebad2f1b7d4 100644
--- a/compiler/src/dotty/tools/dotc/typer/EtaExpansion.scala
+++ b/compiler/src/dotty/tools/dotc/typer/EtaExpansion.scala
@@ -46,7 +46,8 @@ abstract class Lifter {
     if (noLift(expr)) expr
     else {
       val name = UniqueName.fresh(prefix)
-      var liftedType = fullyDefinedType(expr.tpe.widen, "lifted expression", expr.pos)
+      // don't instantiate here, as the type params could be further constrained, see tests/pos/pickleinf.scala
+      var liftedType = expr.tpe.widen
       if (liftedFlags.is(Method)) liftedType = ExprType(liftedType)
       val lifted = ctx.newSymbol(ctx.owner, name, liftedFlags, liftedType, coord = positionCoord(expr.pos))
       defs += liftedDef(lifted, expr).withPos(expr.pos.focus)
diff --git a/tests/pos/i4419.scala b/tests/pos/i4419.scala
new file mode 100644
index 000000000000..70df572680f6
--- /dev/null
+++ b/tests/pos/i4419.scala
@@ -0,0 +1,12 @@
+class Foo(config: String) {
+  case class Bar(val x: Int) {
+    def doThings: String = config //Do whatever here
+  }
+}
+
+
+object Test {
+  def test(foo: Foo)(bar: foo.Bar = foo.Bar(5)) = ???
+
+  test(new Foo("port"))()
+}