diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 24bf24b60a20c..43297244e1ad5 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -14826,11 +14826,16 @@ namespace ts {
         }
 
         function getNormalizedType(type: Type, writing: boolean): Type {
-            return isFreshLiteralType(type) ? (<FreshableType>type).regularType :
-                getObjectFlags(type) & ObjectFlags.Reference && (<TypeReference>type).node ? createTypeReference((<TypeReference>type).target, getTypeArguments(<TypeReference>type)) :
-                type.flags & TypeFlags.Substitution ? writing ? (<SubstitutionType>type).typeVariable : (<SubstitutionType>type).substitute :
-                type.flags & TypeFlags.Simplifiable ? getSimplifiedType(type, writing) :
-                type;
+            do {
+                const t = isFreshLiteralType(type) ? (<FreshableType>type).regularType :
+                    getObjectFlags(type) & ObjectFlags.Reference && (<TypeReference>type).node ? createTypeReference((<TypeReference>type).target, getTypeArguments(<TypeReference>type)) :
+                    type.flags & TypeFlags.Substitution ? writing ? (<SubstitutionType>type).typeVariable : (<SubstitutionType>type).substitute :
+                    type.flags & TypeFlags.Simplifiable ? getSimplifiedType(type, writing) :
+                    type;
+                if (t === type) break;
+                type = t;
+            } while (true);
+            return type;
         }
 
         /**
diff --git a/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.js b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.js
new file mode 100644
index 0000000000000..2ff1261fd794c
--- /dev/null
+++ b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.js
@@ -0,0 +1,50 @@
+//// [indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts]
+type AnyFunction = (...args: any[]) => any;
+type Params<T> = Parameters<Extract<T, AnyFunction>>;
+
+interface Wrapper<T> {
+	call<K extends keyof T>(event: K, ...args: Params<T[K]>): void;
+}
+
+interface AWrapped {
+	foo(): void;
+}
+
+class A {
+	foo: Wrapper<AWrapped>;
+}
+
+interface BWrapped extends AWrapped {
+	bar(): void;
+}
+
+class B extends A {
+	foo: Wrapper<BWrapped>;
+}
+
+//// [indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.js]
+var __extends = (this && this.__extends) || (function () {
+    var extendStatics = function (d, b) {
+        extendStatics = Object.setPrototypeOf ||
+            ({ __proto__: [] } instanceof Array && function (d, b) { d.__proto__ = b; }) ||
+            function (d, b) { for (var p in b) if (b.hasOwnProperty(p)) d[p] = b[p]; };
+        return extendStatics(d, b);
+    };
+    return function (d, b) {
+        extendStatics(d, b);
+        function __() { this.constructor = d; }
+        d.prototype = b === null ? Object.create(b) : (__.prototype = b.prototype, new __());
+    };
+})();
+var A = /** @class */ (function () {
+    function A() {
+    }
+    return A;
+}());
+var B = /** @class */ (function (_super) {
+    __extends(B, _super);
+    function B() {
+        return _super !== null && _super.apply(this, arguments) || this;
+    }
+    return B;
+}(A));
diff --git a/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.symbols b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.symbols
new file mode 100644
index 0000000000000..41f6b4a5ebceb
--- /dev/null
+++ b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.symbols
@@ -0,0 +1,62 @@
+=== tests/cases/compiler/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts ===
+type AnyFunction = (...args: any[]) => any;
+>AnyFunction : Symbol(AnyFunction, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 0, 0))
+>args : Symbol(args, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 0, 20))
+
+type Params<T> = Parameters<Extract<T, AnyFunction>>;
+>Params : Symbol(Params, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 0, 43))
+>T : Symbol(T, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 1, 12))
+>Parameters : Symbol(Parameters, Decl(lib.es5.d.ts, --, --))
+>Extract : Symbol(Extract, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 1, 12))
+>AnyFunction : Symbol(AnyFunction, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 0, 0))
+
+interface Wrapper<T> {
+>Wrapper : Symbol(Wrapper, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 1, 53))
+>T : Symbol(T, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 3, 18))
+
+	call<K extends keyof T>(event: K, ...args: Params<T[K]>): void;
+>call : Symbol(Wrapper.call, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 3, 22))
+>K : Symbol(K, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 4, 6))
+>T : Symbol(T, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 3, 18))
+>event : Symbol(event, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 4, 25))
+>K : Symbol(K, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 4, 6))
+>args : Symbol(args, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 4, 34))
+>Params : Symbol(Params, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 0, 43))
+>T : Symbol(T, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 3, 18))
+>K : Symbol(K, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 4, 6))
+}
+
+interface AWrapped {
+>AWrapped : Symbol(AWrapped, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 5, 1))
+
+	foo(): void;
+>foo : Symbol(AWrapped.foo, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 7, 20))
+}
+
+class A {
+>A : Symbol(A, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 9, 1))
+
+	foo: Wrapper<AWrapped>;
+>foo : Symbol(A.foo, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 11, 9))
+>Wrapper : Symbol(Wrapper, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 1, 53))
+>AWrapped : Symbol(AWrapped, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 5, 1))
+}
+
+interface BWrapped extends AWrapped {
+>BWrapped : Symbol(BWrapped, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 13, 1))
+>AWrapped : Symbol(AWrapped, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 5, 1))
+
+	bar(): void;
+>bar : Symbol(BWrapped.bar, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 15, 37))
+}
+
+class B extends A {
+>B : Symbol(B, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 17, 1))
+>A : Symbol(A, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 9, 1))
+
+	foo: Wrapper<BWrapped>;
+>foo : Symbol(B.foo, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 19, 19))
+>Wrapper : Symbol(Wrapper, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 1, 53))
+>BWrapped : Symbol(BWrapped, Decl(indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts, 13, 1))
+}
diff --git a/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.types b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.types
new file mode 100644
index 0000000000000..2c57c390ddc53
--- /dev/null
+++ b/tests/baselines/reference/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.types
@@ -0,0 +1,39 @@
+=== tests/cases/compiler/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts ===
+type AnyFunction = (...args: any[]) => any;
+>AnyFunction : AnyFunction
+>args : any[]
+
+type Params<T> = Parameters<Extract<T, AnyFunction>>;
+>Params : Parameters<Extract<T, AnyFunction>>
+
+interface Wrapper<T> {
+	call<K extends keyof T>(event: K, ...args: Params<T[K]>): void;
+>call : <K extends keyof T>(event: K, ...args: Parameters<Extract<T[K], AnyFunction>>) => void
+>event : K
+>args : Parameters<Extract<T[K], AnyFunction>>
+}
+
+interface AWrapped {
+	foo(): void;
+>foo : () => void
+}
+
+class A {
+>A : A
+
+	foo: Wrapper<AWrapped>;
+>foo : Wrapper<AWrapped>
+}
+
+interface BWrapped extends AWrapped {
+	bar(): void;
+>bar : () => void
+}
+
+class B extends A {
+>B : B
+>A : A
+
+	foo: Wrapper<BWrapped>;
+>foo : Wrapper<BWrapped>
+}
diff --git a/tests/cases/compiler/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts b/tests/cases/compiler/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts
new file mode 100644
index 0000000000000..a68ea9beee6d2
--- /dev/null
+++ b/tests/cases/compiler/indexedAccessKeyofNestedSimplifiedSubstituteUnwrapped.ts
@@ -0,0 +1,22 @@
+type AnyFunction = (...args: any[]) => any;
+type Params<T> = Parameters<Extract<T, AnyFunction>>;
+
+interface Wrapper<T> {
+	call<K extends keyof T>(event: K, ...args: Params<T[K]>): void;
+}
+
+interface AWrapped {
+	foo(): void;
+}
+
+class A {
+	foo: Wrapper<AWrapped>;
+}
+
+interface BWrapped extends AWrapped {
+	bar(): void;
+}
+
+class B extends A {
+	foo: Wrapper<BWrapped>;
+}
\ No newline at end of file