diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index c5787c3b29d..3273b7cb185 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -15408,6 +15408,13 @@ namespace ts {
             };
         }
 
+        function cloneInferredPartOfContext(context: InferenceContext): InferenceContext | undefined {
+            const inferences = filter(context.inferences, hasInferenceCandidates);
+            return inferences.length ?
+                createInferenceContextWorker(map(inferences, cloneInferenceInfo), context.signature, context.flags, context.compareTypes) :
+                undefined;
+        }
+
         function getMapperFromContext<T extends InferenceContext | undefined>(context: T): TypeMapper | T & undefined {
             return context && context.mapper;
         }
@@ -21465,7 +21472,7 @@ namespace ts {
                     const returnContext = createInferenceContext(signature.typeParameters!, signature, context.flags);
                     const returnSourceType = instantiateType(contextualType, outerContext && outerContext.returnMapper);
                     inferTypes(returnContext.inferences, returnSourceType, inferenceTargetType);
-                    context.returnMapper = some(returnContext.inferences, hasInferenceCandidates) ? getMapperFromContext(returnContext) : undefined;
+                    context.returnMapper = some(returnContext.inferences, hasInferenceCandidates) ? getMapperFromContext(cloneInferredPartOfContext(returnContext)) : undefined;
                 }
             }
 
diff --git a/tests/baselines/reference/twiceNestedKeyofIndexInference.js b/tests/baselines/reference/twiceNestedKeyofIndexInference.js
new file mode 100644
index 00000000000..ed4f0c6bfb5
--- /dev/null
+++ b/tests/baselines/reference/twiceNestedKeyofIndexInference.js
@@ -0,0 +1,43 @@
+//// [twiceNestedKeyofIndexInference.ts]
+type Set1<T, K1 extends keyof T> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+    [SK1 in K1]-?: Required<Pick<T, SK1>>;
+}[K1];
+
+type Set2<T, K1 extends keyof T, K2 extends keyof T[K1]> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+    [SK1 in K1]-?: Required<{
+        [key in K1]: Set1<T[K1], K2>;
+    }>;
+}[K1];
+
+declare function set<T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>;
+
+declare function set<T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>;
+
+
+interface State {
+    a: {
+        b: string;
+        c: number;
+    };
+    d: boolean;
+}
+
+const state: State = {
+    a: {
+        b: "",
+        c: 0,
+    },
+    d: false,
+};
+
+const newState: State = set(state, ["a", 'b'], 'why'); // shouldn't be an error
+
+//// [twiceNestedKeyofIndexInference.js]
+var state = {
+    a: {
+        b: "",
+        c: 0
+    },
+    d: false
+};
+var newState = set(state, ["a", 'b'], 'why'); // shouldn't be an error
diff --git a/tests/baselines/reference/twiceNestedKeyofIndexInference.symbols b/tests/baselines/reference/twiceNestedKeyofIndexInference.symbols
new file mode 100644
index 00000000000..57fa8e738b2
--- /dev/null
+++ b/tests/baselines/reference/twiceNestedKeyofIndexInference.symbols
@@ -0,0 +1,139 @@
+=== tests/cases/compiler/twiceNestedKeyofIndexInference.ts ===
+type Set1<T, K1 extends keyof T> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+>Set1 : Symbol(Set1, Decl(twiceNestedKeyofIndexInference.ts, 0, 0))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 0, 12))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>Pick : Symbol(Pick, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>Exclude : Symbol(Exclude, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 0, 12))
+
+    [SK1 in K1]-?: Required<Pick<T, SK1>>;
+>SK1 : Symbol(SK1, Decl(twiceNestedKeyofIndexInference.ts, 1, 5))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 0, 12))
+>Required : Symbol(Required, Decl(lib.es5.d.ts, --, --))
+>Pick : Symbol(Pick, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 0, 10))
+>SK1 : Symbol(SK1, Decl(twiceNestedKeyofIndexInference.ts, 1, 5))
+
+}[K1];
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 0, 12))
+
+type Set2<T, K1 extends keyof T, K2 extends keyof T[K1]> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+>Set2 : Symbol(Set2, Decl(twiceNestedKeyofIndexInference.ts, 2, 6))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 4, 32))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>Pick : Symbol(Pick, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>Exclude : Symbol(Exclude, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+
+    [SK1 in K1]-?: Required<{
+>SK1 : Symbol(SK1, Decl(twiceNestedKeyofIndexInference.ts, 5, 5))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+>Required : Symbol(Required, Decl(lib.es5.d.ts, --, --))
+
+        [key in K1]: Set1<T[K1], K2>;
+>key : Symbol(key, Decl(twiceNestedKeyofIndexInference.ts, 6, 9))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+>Set1 : Symbol(Set1, Decl(twiceNestedKeyofIndexInference.ts, 0, 0))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 4, 10))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 4, 32))
+
+    }>;
+}[K1];
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 4, 12))
+
+declare function set<T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>;
+>set : Symbol(set, Decl(twiceNestedKeyofIndexInference.ts, 8, 6), Decl(twiceNestedKeyofIndexInference.ts, 10, 94))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 10, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 10, 23))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 10, 21))
+>source : Symbol(source, Decl(twiceNestedKeyofIndexInference.ts, 10, 44))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 10, 21))
+>path : Symbol(path, Decl(twiceNestedKeyofIndexInference.ts, 10, 54))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 10, 23))
+>value : Symbol(value, Decl(twiceNestedKeyofIndexInference.ts, 10, 66))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 10, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 10, 23))
+>Set1 : Symbol(Set1, Decl(twiceNestedKeyofIndexInference.ts, 0, 0))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 10, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 10, 23))
+
+declare function set<T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>;
+>set : Symbol(set, Decl(twiceNestedKeyofIndexInference.ts, 8, 6), Decl(twiceNestedKeyofIndexInference.ts, 10, 94))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 12, 23))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 12, 43))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 12, 23))
+>source : Symbol(source, Decl(twiceNestedKeyofIndexInference.ts, 12, 68))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>path : Symbol(path, Decl(twiceNestedKeyofIndexInference.ts, 12, 78))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 12, 23))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 12, 43))
+>value : Symbol(value, Decl(twiceNestedKeyofIndexInference.ts, 12, 94))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 12, 23))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 12, 43))
+>Set2 : Symbol(Set2, Decl(twiceNestedKeyofIndexInference.ts, 2, 6))
+>T : Symbol(T, Decl(twiceNestedKeyofIndexInference.ts, 12, 21))
+>K1 : Symbol(K1, Decl(twiceNestedKeyofIndexInference.ts, 12, 23))
+>K2 : Symbol(K2, Decl(twiceNestedKeyofIndexInference.ts, 12, 43))
+
+
+interface State {
+>State : Symbol(State, Decl(twiceNestedKeyofIndexInference.ts, 12, 130))
+
+    a: {
+>a : Symbol(State.a, Decl(twiceNestedKeyofIndexInference.ts, 15, 17))
+
+        b: string;
+>b : Symbol(b, Decl(twiceNestedKeyofIndexInference.ts, 16, 8))
+
+        c: number;
+>c : Symbol(c, Decl(twiceNestedKeyofIndexInference.ts, 17, 18))
+
+    };
+    d: boolean;
+>d : Symbol(State.d, Decl(twiceNestedKeyofIndexInference.ts, 19, 6))
+}
+
+const state: State = {
+>state : Symbol(state, Decl(twiceNestedKeyofIndexInference.ts, 23, 5))
+>State : Symbol(State, Decl(twiceNestedKeyofIndexInference.ts, 12, 130))
+
+    a: {
+>a : Symbol(a, Decl(twiceNestedKeyofIndexInference.ts, 23, 22))
+
+        b: "",
+>b : Symbol(b, Decl(twiceNestedKeyofIndexInference.ts, 24, 8))
+
+        c: 0,
+>c : Symbol(c, Decl(twiceNestedKeyofIndexInference.ts, 25, 14))
+
+    },
+    d: false,
+>d : Symbol(d, Decl(twiceNestedKeyofIndexInference.ts, 27, 6))
+
+};
+
+const newState: State = set(state, ["a", 'b'], 'why'); // shouldn't be an error
+>newState : Symbol(newState, Decl(twiceNestedKeyofIndexInference.ts, 31, 5))
+>State : Symbol(State, Decl(twiceNestedKeyofIndexInference.ts, 12, 130))
+>set : Symbol(set, Decl(twiceNestedKeyofIndexInference.ts, 8, 6), Decl(twiceNestedKeyofIndexInference.ts, 10, 94))
+>state : Symbol(state, Decl(twiceNestedKeyofIndexInference.ts, 23, 5))
+
diff --git a/tests/baselines/reference/twiceNestedKeyofIndexInference.types b/tests/baselines/reference/twiceNestedKeyofIndexInference.types
new file mode 100644
index 00000000000..68622038e72
--- /dev/null
+++ b/tests/baselines/reference/twiceNestedKeyofIndexInference.types
@@ -0,0 +1,76 @@
+=== tests/cases/compiler/twiceNestedKeyofIndexInference.ts ===
+type Set1<T, K1 extends keyof T> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+>Set1 : Set1<T, K1>
+
+    [SK1 in K1]-?: Required<Pick<T, SK1>>;
+}[K1];
+
+type Set2<T, K1 extends keyof T, K2 extends keyof T[K1]> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+>Set2 : Set2<T, K1, K2>
+
+    [SK1 in K1]-?: Required<{
+        [key in K1]: Set1<T[K1], K2>;
+    }>;
+}[K1];
+
+declare function set<T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>;
+>set : { <T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>; <T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>; }
+>source : T
+>path : [K1]
+>value : T[K1]
+
+declare function set<T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>;
+>set : { <T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>; <T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>; }
+>source : T
+>path : [K1, K2]
+>value : T[K1][K2]
+
+
+interface State {
+    a: {
+>a : { b: string; c: number; }
+
+        b: string;
+>b : string
+
+        c: number;
+>c : number
+
+    };
+    d: boolean;
+>d : boolean
+}
+
+const state: State = {
+>state : State
+>{    a: {        b: "",        c: 0,    },    d: false,} : { a: { b: string; c: number; }; d: false; }
+
+    a: {
+>a : { b: string; c: number; }
+>{        b: "",        c: 0,    } : { b: string; c: number; }
+
+        b: "",
+>b : string
+>"" : ""
+
+        c: 0,
+>c : number
+>0 : 0
+
+    },
+    d: false,
+>d : false
+>false : false
+
+};
+
+const newState: State = set(state, ["a", 'b'], 'why'); // shouldn't be an error
+>newState : State
+>set(state, ["a", 'b'], 'why') : Pick<State, "d"> & Required<{ a: Pick<{ b: string; c: number; }, "c"> & Required<Pick<{ b: string; c: number; }, "b">>; }>
+>set : { <T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>; <T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>; }
+>state : State
+>["a", 'b'] : ["a", "b"]
+>"a" : "a"
+>'b' : "b"
+>'why' : "why"
+
diff --git a/tests/cases/compiler/twiceNestedKeyofIndexInference.ts b/tests/cases/compiler/twiceNestedKeyofIndexInference.ts
new file mode 100644
index 00000000000..35fb39b009e
--- /dev/null
+++ b/tests/cases/compiler/twiceNestedKeyofIndexInference.ts
@@ -0,0 +1,32 @@
+type Set1<T, K1 extends keyof T> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+    [SK1 in K1]-?: Required<Pick<T, SK1>>;
+}[K1];
+
+type Set2<T, K1 extends keyof T, K2 extends keyof T[K1]> = T extends any[] ? T : Pick<T, Exclude<keyof T, K1>> & {
+    [SK1 in K1]-?: Required<{
+        [key in K1]: Set1<T[K1], K2>;
+    }>;
+}[K1];
+
+declare function set<T, K1 extends keyof T>(source: T, path: [K1], value: T[K1]): Set1<T, K1>;
+
+declare function set<T, K1 extends keyof T, K2 extends keyof T[K1]>(source: T, path: [K1, K2], value: T[K1][K2]): Set2<T, K1, K2>;
+
+
+interface State {
+    a: {
+        b: string;
+        c: number;
+    };
+    d: boolean;
+}
+
+const state: State = {
+    a: {
+        b: "",
+        c: 0,
+    },
+    d: false,
+};
+
+const newState: State = set(state, ["a", 'b'], 'why'); // shouldn't be an error
\ No newline at end of file