diff --git a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
index 5ecb0ee01ec0..309aa41e46bb 100644
--- a/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
+++ b/compiler/src/dotty/tools/dotc/core/TypeComparer.scala
@@ -1208,8 +1208,15 @@ class TypeComparer(@constructorOnly initctx: Context) extends ConstraintHandling
       def directionalRecur(tp1: Type, tp2: Type): Boolean =
         if fromBelow then recur(tp2, tp1) else recur(tp1, tp2)
 
-      val otherTycon = other.tycon
-      val otherArgs = other.args
+      // If the arity of the type constructors does not match, dealias to avoid creating type lambdas.
+      val otherDealiased =
+        if other.args.hasSameLengthAs(args) then other
+        else other.dealias match
+          case dealiasedType: AppliedType if dealiasedType.args.hasSameLengthAs(args) =>
+            dealiasedType
+          case _ => other
+      val otherTycon = otherDealiased.tycon
+      val otherArgs = otherDealiased.args
 
       val d = otherArgs.length - args.length
       d >= 0 && {
@@ -1234,7 +1241,7 @@ class TypeComparer(@constructorOnly initctx: Context) extends ConstraintHandling
               otherTycon
           rollbackConstraintsUnless:
             (assumedTrue(tycon) || directionalIsSubType(tycon, adaptedTycon))
-              && directionalRecur(adaptedTycon.appliedTo(args), other)
+              && directionalRecur(adaptedTycon.appliedTo(args), otherDealiased)
         }
       }
     end compareAppliedTypeParamRef
diff --git a/tests/pos/dealias-hk-typeparam.scala b/tests/pos/dealias-hk-typeparam.scala
new file mode 100644
index 000000000000..e39d9ffd1d12
--- /dev/null
+++ b/tests/pos/dealias-hk-typeparam.scala
@@ -0,0 +1,8 @@
+type Result[F[_], Err, Res] = F[Either[Err, Res]]
+
+trait TypeClass[F[_]]
+
+def id[F[_]: TypeClass, A](x: F[A]) = x
+
+def test[F[_]: TypeClass](x: Result[F, String, Int]) =
+  id(x)
\ No newline at end of file