diff --git a/compiler/src/dotty/tools/dotc/typer/Implicits.scala b/compiler/src/dotty/tools/dotc/typer/Implicits.scala
index af7d0c31d621..9304dd3f91b7 100644
--- a/compiler/src/dotty/tools/dotc/typer/Implicits.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Implicits.scala
@@ -683,8 +683,8 @@ trait Implicits { self: Typer =>
         case arg :: Nil if !arg.typeSymbol.is(Param) =>
           object bindFreeVars extends TypeMap {
             var ok = true
-            def apply(t: Type) = t match {
-              case t @ TypeRef(NoPrefix, _) =>
+            def apply(t: Type) = t.dealias match {
+              case t @ TypeRef(NoPrefix, _) if !ctx.inInlineMethod =>
                 inferImplicit(defn.QuotedTypeType.appliedTo(t), EmptyTree, span) match {
                   case SearchSuccess(tag, _, _) if tag.tpe.isStable =>
                     tag.tpe.select(defn.QuotedType_splice)
@@ -692,7 +692,7 @@ trait Implicits { self: Typer =>
                     ok = false
                     t
                 }
-              case _ => t
+              case tp => mapOver(tp)
             }
           }
           val tag = bindFreeVars(arg)
diff --git a/tests/pos/i6588.scala b/tests/pos/i6588.scala
new file mode 100644
index 000000000000..c9ad60584be2
--- /dev/null
+++ b/tests/pos/i6588.scala
@@ -0,0 +1,27 @@
+import scala.quoted._
+
+inline def foo[T:Type]: Int = 10
+
+def main = {
+  type S = Int
+  foo[S]
+  foo[Int]
+
+  type T = Int => Int
+  foo[T]
+  foo[Int => Int]
+
+  type U = List[Int]
+  foo[U]
+  foo[List[Int]]
+
+  type N = List
+  foo[N]
+  foo[List]
+
+  type V = List[S]
+  foo[V]
+
+  type B = V => T
+  foo[B]
+}
diff --git a/tests/run-with-compiler/i4350.check b/tests/run-with-compiler/i4350.check
index e670af3da233..5072214a8280 100644
--- a/tests/run-with-compiler/i4350.check
+++ b/tests/run-with-compiler/i4350.check
@@ -1,2 +1,2 @@
 (null: scala.Any).asInstanceOf[java.lang.Object]
-(null: scala.Any).asInstanceOf[scala.Predef.String]
+(null: scala.Any).asInstanceOf[java.lang.String]