diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 0b8ba29a710..40385062b1b 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -11118,7 +11118,7 @@ namespace ts {
          * property is computed by inferring from the source property type to X for the type
          * variable T[P] (i.e. we treat the type T[P] as the type variable we're inferring for).
          */
-        function inferTypeForHomomorphicMappedType(source: Type, target: MappedType): Type {
+        function inferTypeForHomomorphicMappedType(source: Type, target: MappedType, mappedTypeStack: string[]): Type {
             const properties = getPropertiesOfType(source);
             let indexInfo = getIndexInfoOfType(source, IndexKind.String);
             if (properties.length === 0 && !indexInfo) {
@@ -11151,7 +11151,7 @@ namespace ts {
 
             function inferTargetType(sourceType: Type): Type {
                 inference.candidates = undefined;
-                inferTypes(inferences, sourceType, templateType);
+                inferTypes(inferences, sourceType, templateType, 0, mappedTypeStack);
                 return inference.candidates ? getUnionType(inference.candidates, /*subtypeReduction*/ true) : emptyObjectType;
             }
         }
@@ -11169,7 +11169,7 @@ namespace ts {
             return undefined;
         }
 
-        function inferTypes(inferences: InferenceInfo[], originalSource: Type, originalTarget: Type, priority: InferencePriority = 0) {
+        function inferTypes(inferences: InferenceInfo[], originalSource: Type, originalTarget: Type, priority: InferencePriority = 0, mappedTypeStack?: string[]) {
             let symbolStack: Symbol[];
             let visited: Map<boolean>;
             inferFromTypes(originalSource, originalTarget);
@@ -11386,7 +11386,13 @@ namespace ts {
                         // such that direct inferences to T get priority over inferences to Partial<T>, for example.
                         const inference = getInferenceInfoForType((<IndexType>constraintType).type);
                         if (inference && !inference.isFixed) {
-                            const inferredType = inferTypeForHomomorphicMappedType(source, <MappedType>target);
+                            const key = (source.symbol ? getSymbolId(source.symbol) + "," : "") + getSymbolId(target.symbol);
+                            if (contains(mappedTypeStack, key)) {
+                                return;
+                            }
+                            (mappedTypeStack || (mappedTypeStack = [])).push(key);
+                            const inferredType = inferTypeForHomomorphicMappedType(source, <MappedType>target, mappedTypeStack);
+                            mappedTypeStack.pop();
                             if (inferredType) {
                                 const savePriority = priority;
                                 priority |= InferencePriority.MappedType;
diff --git a/tests/baselines/reference/mappedTypeRecursiveInference.js b/tests/baselines/reference/mappedTypeRecursiveInference.js
new file mode 100644
index 00000000000..5b7631818bc
--- /dev/null
+++ b/tests/baselines/reference/mappedTypeRecursiveInference.js
@@ -0,0 +1,10 @@
+//// [mappedTypeRecursiveInference.ts]
+interface A { a: A }
+declare let a: A;
+type Deep<T> = { [K in keyof T]: Deep<T[K]> }
+declare function foo<T>(deep: Deep<T>): T;
+const out = foo(a);
+
+
+//// [mappedTypeRecursiveInference.js]
+var out = foo(a);
diff --git a/tests/baselines/reference/mappedTypeRecursiveInference.symbols b/tests/baselines/reference/mappedTypeRecursiveInference.symbols
new file mode 100644
index 00000000000..a3fa3722551
--- /dev/null
+++ b/tests/baselines/reference/mappedTypeRecursiveInference.symbols
@@ -0,0 +1,32 @@
+=== tests/cases/compiler/mappedTypeRecursiveInference.ts ===
+interface A { a: A }
+>A : Symbol(A, Decl(mappedTypeRecursiveInference.ts, 0, 0))
+>a : Symbol(A.a, Decl(mappedTypeRecursiveInference.ts, 0, 13))
+>A : Symbol(A, Decl(mappedTypeRecursiveInference.ts, 0, 0))
+
+declare let a: A;
+>a : Symbol(a, Decl(mappedTypeRecursiveInference.ts, 1, 11))
+>A : Symbol(A, Decl(mappedTypeRecursiveInference.ts, 0, 0))
+
+type Deep<T> = { [K in keyof T]: Deep<T[K]> }
+>Deep : Symbol(Deep, Decl(mappedTypeRecursiveInference.ts, 1, 17))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 2, 10))
+>K : Symbol(K, Decl(mappedTypeRecursiveInference.ts, 2, 18))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 2, 10))
+>Deep : Symbol(Deep, Decl(mappedTypeRecursiveInference.ts, 1, 17))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 2, 10))
+>K : Symbol(K, Decl(mappedTypeRecursiveInference.ts, 2, 18))
+
+declare function foo<T>(deep: Deep<T>): T;
+>foo : Symbol(foo, Decl(mappedTypeRecursiveInference.ts, 2, 45))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 3, 21))
+>deep : Symbol(deep, Decl(mappedTypeRecursiveInference.ts, 3, 24))
+>Deep : Symbol(Deep, Decl(mappedTypeRecursiveInference.ts, 1, 17))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 3, 21))
+>T : Symbol(T, Decl(mappedTypeRecursiveInference.ts, 3, 21))
+
+const out = foo(a);
+>out : Symbol(out, Decl(mappedTypeRecursiveInference.ts, 4, 5))
+>foo : Symbol(foo, Decl(mappedTypeRecursiveInference.ts, 2, 45))
+>a : Symbol(a, Decl(mappedTypeRecursiveInference.ts, 1, 11))
+
diff --git a/tests/baselines/reference/mappedTypeRecursiveInference.types b/tests/baselines/reference/mappedTypeRecursiveInference.types
new file mode 100644
index 00000000000..382135591d5
--- /dev/null
+++ b/tests/baselines/reference/mappedTypeRecursiveInference.types
@@ -0,0 +1,33 @@
+=== tests/cases/compiler/mappedTypeRecursiveInference.ts ===
+interface A { a: A }
+>A : A
+>a : A
+>A : A
+
+declare let a: A;
+>a : A
+>A : A
+
+type Deep<T> = { [K in keyof T]: Deep<T[K]> }
+>Deep : Deep<T>
+>T : T
+>K : K
+>T : T
+>Deep : Deep<T>
+>T : T
+>K : K
+
+declare function foo<T>(deep: Deep<T>): T;
+>foo : <T>(deep: Deep<T>) => T
+>T : T
+>deep : Deep<T>
+>Deep : Deep<T>
+>T : T
+>T : T
+
+const out = foo(a);
+>out : { a: {}; }
+>foo(a) : { a: {}; }
+>foo : <T>(deep: Deep<T>) => T
+>a : A
+
diff --git a/tests/cases/compiler/mappedTypeRecursiveInference.ts b/tests/cases/compiler/mappedTypeRecursiveInference.ts
new file mode 100644
index 00000000000..d7a9cf3a0be
--- /dev/null
+++ b/tests/cases/compiler/mappedTypeRecursiveInference.ts
@@ -0,0 +1,5 @@
+interface A { a: A }
+declare let a: A;
+type Deep<T> = { [K in keyof T]: Deep<T[K]> }
+declare function foo<T>(deep: Deep<T>): T;
+const out = foo(a);