diff --git a/compiler/src/dotty/tools/dotc/transform/PCPCheckAndHeal.scala b/compiler/src/dotty/tools/dotc/transform/PCPCheckAndHeal.scala
index 5f1c769ccb6a..62956dde81c6 100644
--- a/compiler/src/dotty/tools/dotc/transform/PCPCheckAndHeal.scala
+++ b/compiler/src/dotty/tools/dotc/transform/PCPCheckAndHeal.scala
@@ -112,6 +112,10 @@ class PCPCheckAndHeal(@constructorOnly ictx: Context) extends TreeMapWithStages(
           if (tp.isTerm)
             ctx.error(i"splice outside quotes", pos)
           tp
+        case tp: TypeRef if tp.symbol == defn.QuotedTypeClass.typeParams.head =>
+          // Adapt direct references to the type of the type parameter T of a quoted.Type[T].
+          // Replace it with a properly encoded type splice. This is the normal for expected for type splices.
+          tp.prefix.select(tpnme.splice)
         case tp: NamedType =>
           checkSymLevel(tp.symbol, tp, pos) match {
             case Some(tpRef) => tpRef.tpe
diff --git a/tests/pos/i6997.scala b/tests/pos/i6997.scala
new file mode 100644
index 000000000000..2ac86b1def07
--- /dev/null
+++ b/tests/pos/i6997.scala
@@ -0,0 +1,8 @@
+
+import scala.quoted._
+class Foo {
+  def mcrImpl(body: Expr[Any]) given (t: Type[_ <: Any]) given (ctx: QuoteContext): Expr[Any] = '{
+    val tmp = ???.asInstanceOf[$t]
+    tmp
+  }
+}
diff --git a/tests/pos/i6997b.scala b/tests/pos/i6997b.scala
new file mode 100644
index 000000000000..7b49aef3b2a4
--- /dev/null
+++ b/tests/pos/i6997b.scala
@@ -0,0 +1,15 @@
+package playground
+
+import scala.quoted._, scala.quoted.matching._
+import delegate scala.quoted._
+
+inline def mcr(x: => Any): Any = ${mcrImpl('x)}
+
+def mcrImpl(body: Expr[Any]) given (ctx: QuoteContext): Expr[Any] = {
+  val '{$x: $t} = body
+  '{
+    val tmp: $t = $x.asInstanceOf[$t]
+    println(tmp)
+    tmp
+  }
+}
\ No newline at end of file