diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index cfad47b65336f..fd57b9b924354 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -15587,11 +15587,14 @@ namespace ts {
                         if (inferFromMatchingType(source, (<UnionType>target).types, isTypeCloselyMatchedBy)) return;
                     }
                 }
-                else if (target.flags & TypeFlags.Intersection && some((<IntersectionType>target).types, t => !!getInferenceInfoForType(t))) {
+                else if (target.flags & TypeFlags.Intersection && some((<IntersectionType>target).types,
+                    t => !!getInferenceInfoForType(t) || (isGenericMappedType(t) && !!getInferenceInfoForType(getHomomorphicTypeVariable(t) || neverType)))) {
                     // We reduce intersection types only when they contain naked type parameters. For example, when
                     // inferring from 'string[] & { extra: any }' to 'string[] & T' we want to remove string[] and
                     // infer { extra: any } for T. But when inferring to 'string[] & Iterable<T>' we want to keep the
                     // string[] on the source side and infer string for T.
+                    // Likewise, we consider a homomorphic mapped type constrainted to the target type parameter as similar to a "naked type variable"
+                    // in such scenarios.
                     if (source.flags & TypeFlags.Intersection) {
                         // Infer between identically matching source and target constituents and remove the matching types.
                         const [sources, targets] = inferFromMatchingTypes((<IntersectionType>source).types, (<IntersectionType>target).types, isTypeIdenticalTo);
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference.js b/tests/baselines/reference/vueLikeDataAndPropsInference.js
new file mode 100644
index 0000000000000..805bda224e988
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference.js
@@ -0,0 +1,63 @@
+//// [vueLikeDataAndPropsInference.ts]
+interface Instance {
+    _instanceBrand: never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+
+type PropsDefinition<T> = {
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = ((this: Instance) => object),
+    PropsDef = {}
+    > {
+    data?: Data
+    props?: PropsDef
+    watch?: Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+
+type ThisTypedOptions<Data, Props> =
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+declare function test(fn: Options): void;
+
+test({
+    props: {
+        foo: ''
+    },
+
+    data(): { bar: boolean } {
+        return {
+            bar: true
+        }
+    },
+
+    watch: {
+        foo(newVal: string, oldVal: string): void {
+            this.bar = false
+        }
+    }
+})
+
+//// [vueLikeDataAndPropsInference.js]
+test({
+    props: {
+        foo: ''
+    },
+    data: function () {
+        return {
+            bar: true
+        };
+    },
+    watch: {
+        foo: function (newVal, oldVal) {
+            this.bar = false;
+        }
+    }
+});
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference.symbols b/tests/baselines/reference/vueLikeDataAndPropsInference.symbols
new file mode 100644
index 0000000000000..73ca11cf79253
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference.symbols
@@ -0,0 +1,130 @@
+=== tests/cases/compiler/vueLikeDataAndPropsInference.ts ===
+interface Instance {
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference.ts, 0, 0))
+
+    _instanceBrand: never
+>_instanceBrand : Symbol(Instance._instanceBrand, Decl(vueLikeDataAndPropsInference.ts, 0, 20))
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+>DataDef : Symbol(DataDef, Decl(vueLikeDataAndPropsInference.ts, 2, 1))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 4, 13))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 4, 18))
+>this : Symbol(this, Decl(vueLikeDataAndPropsInference.ts, 4, 29))
+>Readonly : Symbol(Readonly, Decl(lib.es5.d.ts, --, --))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 4, 18))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference.ts, 0, 0))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 4, 13))
+
+type PropsDefinition<T> = {
+>PropsDefinition : Symbol(PropsDefinition, Decl(vueLikeDataAndPropsInference.ts, 4, 70))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 6, 21))
+
+    [K in keyof T]: T[K]
+>K : Symbol(K, Decl(vueLikeDataAndPropsInference.ts, 7, 5))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 6, 21))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 6, 21))
+>K : Symbol(K, Decl(vueLikeDataAndPropsInference.ts, 7, 5))
+}
+
+interface Options<
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference.ts, 8, 1))
+
+    Data = ((this: Instance) => object),
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 10, 18))
+>this : Symbol(this, Decl(vueLikeDataAndPropsInference.ts, 11, 13))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference.ts, 0, 0))
+
+    PropsDef = {}
+>PropsDef : Symbol(PropsDef, Decl(vueLikeDataAndPropsInference.ts, 11, 40))
+
+    > {
+    data?: Data
+>data : Symbol(Options.data, Decl(vueLikeDataAndPropsInference.ts, 13, 7))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 10, 18))
+
+    props?: PropsDef
+>props : Symbol(Options.props, Decl(vueLikeDataAndPropsInference.ts, 14, 15))
+>PropsDef : Symbol(PropsDef, Decl(vueLikeDataAndPropsInference.ts, 11, 40))
+
+    watch?: Record<string, WatchHandler<any>>
+>watch : Symbol(Options.watch, Decl(vueLikeDataAndPropsInference.ts, 15, 20))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+>WatchHandler : Symbol(WatchHandler, Decl(vueLikeDataAndPropsInference.ts, 17, 1))
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+>WatchHandler : Symbol(WatchHandler, Decl(vueLikeDataAndPropsInference.ts, 17, 1))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 19, 18))
+>val : Symbol(val, Decl(vueLikeDataAndPropsInference.ts, 19, 24))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 19, 18))
+>oldVal : Symbol(oldVal, Decl(vueLikeDataAndPropsInference.ts, 19, 31))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference.ts, 19, 18))
+
+type ThisTypedOptions<Data, Props> =
+>ThisTypedOptions : Symbol(ThisTypedOptions, Decl(vueLikeDataAndPropsInference.ts, 19, 51))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 21, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 21, 27))
+
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference.ts, 8, 1))
+>DataDef : Symbol(DataDef, Decl(vueLikeDataAndPropsInference.ts, 2, 1))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 21, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 21, 27))
+>PropsDefinition : Symbol(PropsDefinition, Decl(vueLikeDataAndPropsInference.ts, 4, 70))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 21, 27))
+
+    ThisType<Data & Readonly<Props> & Instance>
+>ThisType : Symbol(ThisType, Decl(lib.es5.d.ts, --, --))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 21, 22))
+>Readonly : Symbol(Readonly, Decl(lib.es5.d.ts, --, --))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 21, 27))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference.ts, 0, 0))
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference.ts, 23, 47), Decl(vueLikeDataAndPropsInference.ts, 25, 76))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 25, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 25, 27))
+>fn : Symbol(fn, Decl(vueLikeDataAndPropsInference.ts, 25, 35))
+>ThisTypedOptions : Symbol(ThisTypedOptions, Decl(vueLikeDataAndPropsInference.ts, 19, 51))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference.ts, 25, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference.ts, 25, 27))
+
+declare function test(fn: Options): void;
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference.ts, 23, 47), Decl(vueLikeDataAndPropsInference.ts, 25, 76))
+>fn : Symbol(fn, Decl(vueLikeDataAndPropsInference.ts, 26, 22))
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference.ts, 8, 1))
+
+test({
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference.ts, 23, 47), Decl(vueLikeDataAndPropsInference.ts, 25, 76))
+
+    props: {
+>props : Symbol(props, Decl(vueLikeDataAndPropsInference.ts, 28, 6))
+
+        foo: ''
+>foo : Symbol(foo, Decl(vueLikeDataAndPropsInference.ts, 29, 12))
+
+    },
+
+    data(): { bar: boolean } {
+>data : Symbol(data, Decl(vueLikeDataAndPropsInference.ts, 31, 6))
+>bar : Symbol(bar, Decl(vueLikeDataAndPropsInference.ts, 33, 13))
+
+        return {
+            bar: true
+>bar : Symbol(bar, Decl(vueLikeDataAndPropsInference.ts, 34, 16))
+        }
+    },
+
+    watch: {
+>watch : Symbol(watch, Decl(vueLikeDataAndPropsInference.ts, 37, 6))
+
+        foo(newVal: string, oldVal: string): void {
+>foo : Symbol(foo, Decl(vueLikeDataAndPropsInference.ts, 39, 12))
+>newVal : Symbol(newVal, Decl(vueLikeDataAndPropsInference.ts, 40, 12))
+>oldVal : Symbol(oldVal, Decl(vueLikeDataAndPropsInference.ts, 40, 27))
+
+            this.bar = false
+        }
+    }
+})
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference.types b/tests/baselines/reference/vueLikeDataAndPropsInference.types
new file mode 100644
index 0000000000000..13f40a37a7839
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference.types
@@ -0,0 +1,97 @@
+=== tests/cases/compiler/vueLikeDataAndPropsInference.ts ===
+interface Instance {
+    _instanceBrand: never
+>_instanceBrand : never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+>DataDef : DataDef<Data, Props>
+>this : Readonly<Props> & Instance
+
+type PropsDefinition<T> = {
+>PropsDefinition : PropsDefinition<T>
+
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = ((this: Instance) => object),
+>this : Instance
+
+    PropsDef = {}
+    > {
+    data?: Data
+>data : Data
+
+    props?: PropsDef
+>props : PropsDef
+
+    watch?: Record<string, WatchHandler<any>>
+>watch : Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+>WatchHandler : WatchHandler<T>
+>val : T
+>oldVal : T
+
+type ThisTypedOptions<Data, Props> =
+>ThisTypedOptions : ThisTypedOptions<Data, Props>
+
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<(this: Instance) => object, {}>): void; }
+>fn : ThisTypedOptions<Data, Props>
+
+declare function test(fn: Options): void;
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<(this: Instance) => object, {}>): void; }
+>fn : Options<(this: Instance) => object, {}>
+
+test({
+>test({    props: {        foo: ''    },    data(): { bar: boolean } {        return {            bar: true        }    },    watch: {        foo(newVal: string, oldVal: string): void {            this.bar = false        }    }}) : void
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<(this: Instance) => object, {}>): void; }
+>{    props: {        foo: ''    },    data(): { bar: boolean } {        return {            bar: true        }    },    watch: {        foo(newVal: string, oldVal: string): void {            this.bar = false        }    }} : { props: { foo: string; }; data(this: Readonly<{ foo: string; }> & Instance): { bar: boolean; }; watch: { foo(newVal: string, oldVal: string): void; }; }
+
+    props: {
+>props : { foo: string; }
+>{        foo: ''    } : { foo: string; }
+
+        foo: ''
+>foo : string
+>'' : ""
+
+    },
+
+    data(): { bar: boolean } {
+>data : (this: Readonly<{ foo: string; }> & Instance) => { bar: boolean; }
+>bar : boolean
+
+        return {
+>{            bar: true        } : { bar: true; }
+
+            bar: true
+>bar : true
+>true : true
+        }
+    },
+
+    watch: {
+>watch : { foo(newVal: string, oldVal: string): void; }
+>{        foo(newVal: string, oldVal: string): void {            this.bar = false        }    } : { foo(newVal: string, oldVal: string): void; }
+
+        foo(newVal: string, oldVal: string): void {
+>foo : (newVal: string, oldVal: string) => void
+>newVal : string
+>oldVal : string
+
+            this.bar = false
+>this.bar = false : false
+>this.bar : any
+>this : any
+>bar : any
+>false : false
+        }
+    }
+})
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference2.js b/tests/baselines/reference/vueLikeDataAndPropsInference2.js
new file mode 100644
index 0000000000000..2a203cb437cbb
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference2.js
@@ -0,0 +1,64 @@
+//// [vueLikeDataAndPropsInference2.ts]
+interface Instance {
+    _instanceBrand: never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+
+type PropsDefinition<T> = {
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = object | ((this: Instance) => object),
+    PropsDef = PropsDefinition<Record<string, any>>
+    > {
+    data?: Data
+    props?: PropsDef
+    watch?: Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+
+type ThisTypedOptions<Data, Props> =
+    object &
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+declare function test(fn: Options): void;
+
+test({
+    props: {
+        foo: ''
+    },
+
+    data(): { bar: boolean } {
+        return {
+            bar: true
+        }
+    },
+
+    watch: {
+        foo(newVal: string, oldVal: string): void {
+            this.bar = false
+        }
+    }
+})
+
+//// [vueLikeDataAndPropsInference2.js]
+test({
+    props: {
+        foo: ''
+    },
+    data: function () {
+        return {
+            bar: true
+        };
+    },
+    watch: {
+        foo: function (newVal, oldVal) {
+            this.bar = false;
+        }
+    }
+});
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference2.symbols b/tests/baselines/reference/vueLikeDataAndPropsInference2.symbols
new file mode 100644
index 0000000000000..c7d102bbcb9db
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference2.symbols
@@ -0,0 +1,133 @@
+=== tests/cases/compiler/vueLikeDataAndPropsInference2.ts ===
+interface Instance {
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference2.ts, 0, 0))
+
+    _instanceBrand: never
+>_instanceBrand : Symbol(Instance._instanceBrand, Decl(vueLikeDataAndPropsInference2.ts, 0, 20))
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+>DataDef : Symbol(DataDef, Decl(vueLikeDataAndPropsInference2.ts, 2, 1))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 4, 13))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 4, 18))
+>this : Symbol(this, Decl(vueLikeDataAndPropsInference2.ts, 4, 29))
+>Readonly : Symbol(Readonly, Decl(lib.es5.d.ts, --, --))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 4, 18))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference2.ts, 0, 0))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 4, 13))
+
+type PropsDefinition<T> = {
+>PropsDefinition : Symbol(PropsDefinition, Decl(vueLikeDataAndPropsInference2.ts, 4, 70))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 6, 21))
+
+    [K in keyof T]: T[K]
+>K : Symbol(K, Decl(vueLikeDataAndPropsInference2.ts, 7, 5))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 6, 21))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 6, 21))
+>K : Symbol(K, Decl(vueLikeDataAndPropsInference2.ts, 7, 5))
+}
+
+interface Options<
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference2.ts, 8, 1))
+
+    Data = object | ((this: Instance) => object),
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 10, 18))
+>this : Symbol(this, Decl(vueLikeDataAndPropsInference2.ts, 11, 22))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference2.ts, 0, 0))
+
+    PropsDef = PropsDefinition<Record<string, any>>
+>PropsDef : Symbol(PropsDef, Decl(vueLikeDataAndPropsInference2.ts, 11, 49))
+>PropsDefinition : Symbol(PropsDefinition, Decl(vueLikeDataAndPropsInference2.ts, 4, 70))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+
+    > {
+    data?: Data
+>data : Symbol(Options.data, Decl(vueLikeDataAndPropsInference2.ts, 13, 7))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 10, 18))
+
+    props?: PropsDef
+>props : Symbol(Options.props, Decl(vueLikeDataAndPropsInference2.ts, 14, 15))
+>PropsDef : Symbol(PropsDef, Decl(vueLikeDataAndPropsInference2.ts, 11, 49))
+
+    watch?: Record<string, WatchHandler<any>>
+>watch : Symbol(Options.watch, Decl(vueLikeDataAndPropsInference2.ts, 15, 20))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+>WatchHandler : Symbol(WatchHandler, Decl(vueLikeDataAndPropsInference2.ts, 17, 1))
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+>WatchHandler : Symbol(WatchHandler, Decl(vueLikeDataAndPropsInference2.ts, 17, 1))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 19, 18))
+>val : Symbol(val, Decl(vueLikeDataAndPropsInference2.ts, 19, 24))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 19, 18))
+>oldVal : Symbol(oldVal, Decl(vueLikeDataAndPropsInference2.ts, 19, 31))
+>T : Symbol(T, Decl(vueLikeDataAndPropsInference2.ts, 19, 18))
+
+type ThisTypedOptions<Data, Props> =
+>ThisTypedOptions : Symbol(ThisTypedOptions, Decl(vueLikeDataAndPropsInference2.ts, 19, 51))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 21, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 21, 27))
+
+    object &
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference2.ts, 8, 1))
+>DataDef : Symbol(DataDef, Decl(vueLikeDataAndPropsInference2.ts, 2, 1))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 21, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 21, 27))
+>PropsDefinition : Symbol(PropsDefinition, Decl(vueLikeDataAndPropsInference2.ts, 4, 70))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 21, 27))
+
+    ThisType<Data & Readonly<Props> & Instance>
+>ThisType : Symbol(ThisType, Decl(lib.es5.d.ts, --, --))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 21, 22))
+>Readonly : Symbol(Readonly, Decl(lib.es5.d.ts, --, --))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 21, 27))
+>Instance : Symbol(Instance, Decl(vueLikeDataAndPropsInference2.ts, 0, 0))
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference2.ts, 24, 47), Decl(vueLikeDataAndPropsInference2.ts, 26, 76))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 26, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 26, 27))
+>fn : Symbol(fn, Decl(vueLikeDataAndPropsInference2.ts, 26, 35))
+>ThisTypedOptions : Symbol(ThisTypedOptions, Decl(vueLikeDataAndPropsInference2.ts, 19, 51))
+>Data : Symbol(Data, Decl(vueLikeDataAndPropsInference2.ts, 26, 22))
+>Props : Symbol(Props, Decl(vueLikeDataAndPropsInference2.ts, 26, 27))
+
+declare function test(fn: Options): void;
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference2.ts, 24, 47), Decl(vueLikeDataAndPropsInference2.ts, 26, 76))
+>fn : Symbol(fn, Decl(vueLikeDataAndPropsInference2.ts, 27, 22))
+>Options : Symbol(Options, Decl(vueLikeDataAndPropsInference2.ts, 8, 1))
+
+test({
+>test : Symbol(test, Decl(vueLikeDataAndPropsInference2.ts, 24, 47), Decl(vueLikeDataAndPropsInference2.ts, 26, 76))
+
+    props: {
+>props : Symbol(props, Decl(vueLikeDataAndPropsInference2.ts, 29, 6))
+
+        foo: ''
+>foo : Symbol(foo, Decl(vueLikeDataAndPropsInference2.ts, 30, 12))
+
+    },
+
+    data(): { bar: boolean } {
+>data : Symbol(data, Decl(vueLikeDataAndPropsInference2.ts, 32, 6))
+>bar : Symbol(bar, Decl(vueLikeDataAndPropsInference2.ts, 34, 13))
+
+        return {
+            bar: true
+>bar : Symbol(bar, Decl(vueLikeDataAndPropsInference2.ts, 35, 16))
+        }
+    },
+
+    watch: {
+>watch : Symbol(watch, Decl(vueLikeDataAndPropsInference2.ts, 38, 6))
+
+        foo(newVal: string, oldVal: string): void {
+>foo : Symbol(foo, Decl(vueLikeDataAndPropsInference2.ts, 40, 12))
+>newVal : Symbol(newVal, Decl(vueLikeDataAndPropsInference2.ts, 41, 12))
+>oldVal : Symbol(oldVal, Decl(vueLikeDataAndPropsInference2.ts, 41, 27))
+
+            this.bar = false
+        }
+    }
+})
diff --git a/tests/baselines/reference/vueLikeDataAndPropsInference2.types b/tests/baselines/reference/vueLikeDataAndPropsInference2.types
new file mode 100644
index 0000000000000..6900535285add
--- /dev/null
+++ b/tests/baselines/reference/vueLikeDataAndPropsInference2.types
@@ -0,0 +1,98 @@
+=== tests/cases/compiler/vueLikeDataAndPropsInference2.ts ===
+interface Instance {
+    _instanceBrand: never
+>_instanceBrand : never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+>DataDef : DataDef<Data, Props>
+>this : Readonly<Props> & Instance
+
+type PropsDefinition<T> = {
+>PropsDefinition : PropsDefinition<T>
+
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = object | ((this: Instance) => object),
+>this : Instance
+
+    PropsDef = PropsDefinition<Record<string, any>>
+    > {
+    data?: Data
+>data : Data
+
+    props?: PropsDef
+>props : PropsDef
+
+    watch?: Record<string, WatchHandler<any>>
+>watch : Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+>WatchHandler : WatchHandler<T>
+>val : T
+>oldVal : T
+
+type ThisTypedOptions<Data, Props> =
+>ThisTypedOptions : ThisTypedOptions<Data, Props>
+
+    object &
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<object | ((this: Instance) => object), PropsDefinition<Record<string, any>>>): void; }
+>fn : ThisTypedOptions<Data, Props>
+
+declare function test(fn: Options): void;
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<object | ((this: Instance) => object), PropsDefinition<Record<string, any>>>): void; }
+>fn : Options<object | ((this: Instance) => object), PropsDefinition<Record<string, any>>>
+
+test({
+>test({    props: {        foo: ''    },    data(): { bar: boolean } {        return {            bar: true        }    },    watch: {        foo(newVal: string, oldVal: string): void {            this.bar = false        }    }}) : void
+>test : { <Data, Props>(fn: ThisTypedOptions<Data, Props>): void; (fn: Options<object | ((this: Instance) => object), PropsDefinition<Record<string, any>>>): void; }
+>{    props: {        foo: ''    },    data(): { bar: boolean } {        return {            bar: true        }    },    watch: {        foo(newVal: string, oldVal: string): void {            this.bar = false        }    }} : { props: { foo: string; }; data(this: Readonly<{ foo: string; }> & Instance): { bar: boolean; }; watch: { foo(newVal: string, oldVal: string): void; }; }
+
+    props: {
+>props : { foo: string; }
+>{        foo: ''    } : { foo: string; }
+
+        foo: ''
+>foo : string
+>'' : ""
+
+    },
+
+    data(): { bar: boolean } {
+>data : (this: Readonly<{ foo: string; }> & Instance) => { bar: boolean; }
+>bar : boolean
+
+        return {
+>{            bar: true        } : { bar: true; }
+
+            bar: true
+>bar : true
+>true : true
+        }
+    },
+
+    watch: {
+>watch : { foo(newVal: string, oldVal: string): void; }
+>{        foo(newVal: string, oldVal: string): void {            this.bar = false        }    } : { foo(newVal: string, oldVal: string): void; }
+
+        foo(newVal: string, oldVal: string): void {
+>foo : (newVal: string, oldVal: string) => void
+>newVal : string
+>oldVal : string
+
+            this.bar = false
+>this.bar = false : false
+>this.bar : any
+>this : any
+>bar : any
+>false : false
+        }
+    }
+})
diff --git a/tests/cases/compiler/vueLikeDataAndPropsInference.ts b/tests/cases/compiler/vueLikeDataAndPropsInference.ts
new file mode 100644
index 0000000000000..1a227744109b2
--- /dev/null
+++ b/tests/cases/compiler/vueLikeDataAndPropsInference.ts
@@ -0,0 +1,45 @@
+interface Instance {
+    _instanceBrand: never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+
+type PropsDefinition<T> = {
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = ((this: Instance) => object),
+    PropsDef = {}
+    > {
+    data?: Data
+    props?: PropsDef
+    watch?: Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+
+type ThisTypedOptions<Data, Props> =
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+declare function test(fn: Options): void;
+
+test({
+    props: {
+        foo: ''
+    },
+
+    data(): { bar: boolean } {
+        return {
+            bar: true
+        }
+    },
+
+    watch: {
+        foo(newVal: string, oldVal: string): void {
+            this.bar = false
+        }
+    }
+})
\ No newline at end of file
diff --git a/tests/cases/compiler/vueLikeDataAndPropsInference2.ts b/tests/cases/compiler/vueLikeDataAndPropsInference2.ts
new file mode 100644
index 0000000000000..99903e6e37d18
--- /dev/null
+++ b/tests/cases/compiler/vueLikeDataAndPropsInference2.ts
@@ -0,0 +1,46 @@
+interface Instance {
+    _instanceBrand: never
+}
+
+type DataDef<Data, Props> = (this: Readonly<Props> & Instance) => Data
+
+type PropsDefinition<T> = {
+    [K in keyof T]: T[K]
+}
+
+interface Options<
+    Data = object | ((this: Instance) => object),
+    PropsDef = PropsDefinition<Record<string, any>>
+    > {
+    data?: Data
+    props?: PropsDef
+    watch?: Record<string, WatchHandler<any>>
+}
+
+type WatchHandler<T> = (val: T, oldVal: T) => void;
+
+type ThisTypedOptions<Data, Props> =
+    object &
+    Options<DataDef<Data, Props>, PropsDefinition<Props>> &
+    ThisType<Data & Readonly<Props> & Instance>
+
+declare function test<Data, Props>(fn: ThisTypedOptions<Data, Props>): void;
+declare function test(fn: Options): void;
+
+test({
+    props: {
+        foo: ''
+    },
+
+    data(): { bar: boolean } {
+        return {
+            bar: true
+        }
+    },
+
+    watch: {
+        foo(newVal: string, oldVal: string): void {
+            this.bar = false
+        }
+    }
+})
\ No newline at end of file
diff --git a/tests/cases/user/TypeScript-Node-Starter/TypeScript-Node-Starter b/tests/cases/user/TypeScript-Node-Starter/TypeScript-Node-Starter
index 722ebf8053d2b..1bf5836cae524 160000
--- a/tests/cases/user/TypeScript-Node-Starter/TypeScript-Node-Starter
+++ b/tests/cases/user/TypeScript-Node-Starter/TypeScript-Node-Starter
@@ -1 +1 @@
-Subproject commit 722ebf8053d2bf82bb66134b21c7e291ccae35c4
+Subproject commit 1bf5836cae5246b89bbf7063c3e84e110222fcdf
diff --git a/tests/cases/user/TypeScript-React-Starter/TypeScript-React-Starter b/tests/cases/user/TypeScript-React-Starter/TypeScript-React-Starter
index 19c71f2c6a2b8..bfc20b2f17c02 160000
--- a/tests/cases/user/TypeScript-React-Starter/TypeScript-React-Starter
+++ b/tests/cases/user/TypeScript-React-Starter/TypeScript-React-Starter
@@ -1 +1 @@
-Subproject commit 19c71f2c6a2b874b1b2bb28a8526b19185b8eece
+Subproject commit bfc20b2f17c0206105e2cdd42cd35d79dd03a884
diff --git a/tests/cases/user/create-react-app/create-react-app b/tests/cases/user/create-react-app/create-react-app
index 6560858398ddc..437b83f0337a5 160000
--- a/tests/cases/user/create-react-app/create-react-app
+++ b/tests/cases/user/create-react-app/create-react-app
@@ -1 +1 @@
-Subproject commit 6560858398ddc8d1c5b8d7f51929fcb3d9c3055c
+Subproject commit 437b83f0337a5d57ce7dd976d2c3b44cb2037e45
diff --git a/tests/cases/user/prettier/prettier b/tests/cases/user/prettier/prettier
index 2523a017aad47..2314640485001 160000
--- a/tests/cases/user/prettier/prettier
+++ b/tests/cases/user/prettier/prettier
@@ -1 +1 @@
-Subproject commit 2523a017aad479b006593e9b380e4e27a7caea3d
+Subproject commit 23146404850011972f695fb6bc2b8113c3cffbfc
diff --git a/tests/cases/user/puppeteer/puppeteer b/tests/cases/user/puppeteer/puppeteer
index cba0f98a2ac7e..b6b29502eb6a7 160000
--- a/tests/cases/user/puppeteer/puppeteer
+++ b/tests/cases/user/puppeteer/puppeteer
@@ -1 +1 @@
-Subproject commit cba0f98a2ac7edd3c2bffd0ac53185877403da6b
+Subproject commit b6b29502eb6a75fe3869806f0e7b27195fe51b0d
diff --git a/tests/cases/user/webpack/webpack b/tests/cases/user/webpack/webpack
index 6d923f638abab..743ae6da9a6fc 160000
--- a/tests/cases/user/webpack/webpack
+++ b/tests/cases/user/webpack/webpack
@@ -1 +1 @@
-Subproject commit 6d923f638abab6ca5d0263be000a48ef85002fd4
+Subproject commit 743ae6da9a6fc3b459a7ab3bb250fb07d14f9c5d