diff --git a/src/dotty/tools/dotc/core/TypeApplications.scala b/src/dotty/tools/dotc/core/TypeApplications.scala
index be070dace030..3f2b40ab8354 100644
--- a/src/dotty/tools/dotc/core/TypeApplications.scala
+++ b/src/dotty/tools/dotc/core/TypeApplications.scala
@@ -166,10 +166,10 @@ class TypeApplications(val self: Type) extends AnyVal {
   }
 
   /** True if it can be determined without forcing that the class symbol
-   *  of this application exists and is not a lambda trait.
+   *  of this application exists and is not a lambda trait or Nothing.
    *  Equivalent to
    *
-   *    self.classSymbol.exists && !self.classSymbol.isLambdaTrait
+   *    self.classSymbol.exists && !self.classSymbol.isLambdaTrait && !self.isRef(defn.NothingClass)
    *
    *  but without forcing anything.
    */
@@ -179,7 +179,7 @@ class TypeApplications(val self: Type) extends AnyVal {
     case self: TypeRef =>
       (self.denot.exists) && {
         val sym = self.symbol
-        if (sym.isClass) !sym.isLambdaTrait
+        if (sym.isClass) !sym.isLambdaTrait && !sym.eq(defn.NothingClass)
         else sym.isCompleted && self.info.isAlias && self.info.bounds.hi.noHK
       }
     case _ =>
diff --git a/tests/pos/hk_nothing.scala b/tests/pos/hk_nothing.scala
new file mode 100644
index 000000000000..6bcef16bd05e
--- /dev/null
+++ b/tests/pos/hk_nothing.scala
@@ -0,0 +1,5 @@
+object Test {
+  def foo[M[_]]: M[Int] = ???
+  foo[Nothing]
+  foo
+}