diff --git a/tests/baselines/reference/circularConstructorWithReturn.errors.txt b/tests/baselines/reference/circularConstructorWithReturn.errors.txt
new file mode 100644
index 00000000000..ebc91184b55
--- /dev/null
+++ b/tests/baselines/reference/circularConstructorWithReturn.errors.txt
@@ -0,0 +1,31 @@
+circularConstructorWithReturn.ts(3,13): error TS2456: Type alias 'Client' circularly references itself.
+circularConstructorWithReturn.ts(7,5): error TS2502: 'self' is referenced directly or indirectly in its own type annotation.
+circularConstructorWithReturn.ts(16,48): error TS2502: 'client' is referenced directly or indirectly in its own type annotation.
+
+
+==== circularConstructorWithReturn.ts (3 errors) ====
+    // This should not be a circularity error. See
+    // https://github.com/microsoft/TypeScript/pull/57465#issuecomment-1960271216
+    export type Client = ReturnType<typeof getPrismaClient> extends new () => infer T ? T : never
+                ~~~~~~
+!!! error TS2456: Type alias 'Client' circularly references itself.
+    
+    export function getPrismaClient(options?: any) {
+      class PrismaClient {
+        self: Client;
+        ~~~~
+!!! error TS2502: 'self' is referenced directly or indirectly in its own type annotation.
+        constructor(options?: any) {
+          return (this.self = applyModelsAndClientExtensions(this));
+        }
+      }
+    
+      return PrismaClient
+    }
+    
+    export function applyModelsAndClientExtensions(client: Client) {
+                                                   ~~~~~~~~~~~~~~
+!!! error TS2502: 'client' is referenced directly or indirectly in its own type annotation.
+      return client;
+    }
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/circularConstructorWithReturn.js b/tests/baselines/reference/circularConstructorWithReturn.js
new file mode 100644
index 00000000000..b045d23c7e3
--- /dev/null
+++ b/tests/baselines/reference/circularConstructorWithReturn.js
@@ -0,0 +1,41 @@
+//// [tests/cases/compiler/circularConstructorWithReturn.ts] ////
+
+//// [circularConstructorWithReturn.ts]
+// This should not be a circularity error. See
+// https://github.com/microsoft/TypeScript/pull/57465#issuecomment-1960271216
+export type Client = ReturnType<typeof getPrismaClient> extends new () => infer T ? T : never
+
+export function getPrismaClient(options?: any) {
+  class PrismaClient {
+    self: Client;
+    constructor(options?: any) {
+      return (this.self = applyModelsAndClientExtensions(this));
+    }
+  }
+
+  return PrismaClient
+}
+
+export function applyModelsAndClientExtensions(client: Client) {
+  return client;
+}
+
+
+//// [circularConstructorWithReturn.js]
+"use strict";
+Object.defineProperty(exports, "__esModule", { value: true });
+exports.applyModelsAndClientExtensions = exports.getPrismaClient = void 0;
+function getPrismaClient(options) {
+    var PrismaClient = /** @class */ (function () {
+        function PrismaClient(options) {
+            return (this.self = applyModelsAndClientExtensions(this));
+        }
+        return PrismaClient;
+    }());
+    return PrismaClient;
+}
+exports.getPrismaClient = getPrismaClient;
+function applyModelsAndClientExtensions(client) {
+    return client;
+}
+exports.applyModelsAndClientExtensions = applyModelsAndClientExtensions;
diff --git a/tests/baselines/reference/circularConstructorWithReturn.symbols b/tests/baselines/reference/circularConstructorWithReturn.symbols
new file mode 100644
index 00000000000..52cb36b6457
--- /dev/null
+++ b/tests/baselines/reference/circularConstructorWithReturn.symbols
@@ -0,0 +1,48 @@
+//// [tests/cases/compiler/circularConstructorWithReturn.ts] ////
+
+=== circularConstructorWithReturn.ts ===
+// This should not be a circularity error. See
+// https://github.com/microsoft/TypeScript/pull/57465#issuecomment-1960271216
+export type Client = ReturnType<typeof getPrismaClient> extends new () => infer T ? T : never
+>Client : Symbol(Client, Decl(circularConstructorWithReturn.ts, 0, 0))
+>ReturnType : Symbol(ReturnType, Decl(lib.es5.d.ts, --, --))
+>getPrismaClient : Symbol(getPrismaClient, Decl(circularConstructorWithReturn.ts, 2, 93))
+>T : Symbol(T, Decl(circularConstructorWithReturn.ts, 2, 79))
+>T : Symbol(T, Decl(circularConstructorWithReturn.ts, 2, 79))
+
+export function getPrismaClient(options?: any) {
+>getPrismaClient : Symbol(getPrismaClient, Decl(circularConstructorWithReturn.ts, 2, 93))
+>options : Symbol(options, Decl(circularConstructorWithReturn.ts, 4, 32))
+
+  class PrismaClient {
+>PrismaClient : Symbol(PrismaClient, Decl(circularConstructorWithReturn.ts, 4, 48))
+
+    self: Client;
+>self : Symbol(PrismaClient.self, Decl(circularConstructorWithReturn.ts, 5, 22))
+>Client : Symbol(Client, Decl(circularConstructorWithReturn.ts, 0, 0))
+
+    constructor(options?: any) {
+>options : Symbol(options, Decl(circularConstructorWithReturn.ts, 7, 16))
+
+      return (this.self = applyModelsAndClientExtensions(this));
+>this.self : Symbol(PrismaClient.self, Decl(circularConstructorWithReturn.ts, 5, 22))
+>this : Symbol(PrismaClient, Decl(circularConstructorWithReturn.ts, 4, 48))
+>self : Symbol(PrismaClient.self, Decl(circularConstructorWithReturn.ts, 5, 22))
+>applyModelsAndClientExtensions : Symbol(applyModelsAndClientExtensions, Decl(circularConstructorWithReturn.ts, 13, 1))
+>this : Symbol(PrismaClient, Decl(circularConstructorWithReturn.ts, 4, 48))
+    }
+  }
+
+  return PrismaClient
+>PrismaClient : Symbol(PrismaClient, Decl(circularConstructorWithReturn.ts, 4, 48))
+}
+
+export function applyModelsAndClientExtensions(client: Client) {
+>applyModelsAndClientExtensions : Symbol(applyModelsAndClientExtensions, Decl(circularConstructorWithReturn.ts, 13, 1))
+>client : Symbol(client, Decl(circularConstructorWithReturn.ts, 15, 47))
+>Client : Symbol(Client, Decl(circularConstructorWithReturn.ts, 0, 0))
+
+  return client;
+>client : Symbol(client, Decl(circularConstructorWithReturn.ts, 15, 47))
+}
+
diff --git a/tests/baselines/reference/circularConstructorWithReturn.types b/tests/baselines/reference/circularConstructorWithReturn.types
new file mode 100644
index 00000000000..72fb4aaa732
--- /dev/null
+++ b/tests/baselines/reference/circularConstructorWithReturn.types
@@ -0,0 +1,46 @@
+//// [tests/cases/compiler/circularConstructorWithReturn.ts] ////
+
+=== circularConstructorWithReturn.ts ===
+// This should not be a circularity error. See
+// https://github.com/microsoft/TypeScript/pull/57465#issuecomment-1960271216
+export type Client = ReturnType<typeof getPrismaClient> extends new () => infer T ? T : never
+>Client : any
+>getPrismaClient : (options?: any) => typeof PrismaClient
+
+export function getPrismaClient(options?: any) {
+>getPrismaClient : (options?: any) => typeof PrismaClient
+>options : any
+
+  class PrismaClient {
+>PrismaClient : PrismaClient
+
+    self: Client;
+>self : any
+
+    constructor(options?: any) {
+>options : any
+
+      return (this.self = applyModelsAndClientExtensions(this));
+>(this.self = applyModelsAndClientExtensions(this)) : any
+>this.self = applyModelsAndClientExtensions(this) : any
+>this.self : any
+>this : this
+>self : any
+>applyModelsAndClientExtensions(this) : any
+>applyModelsAndClientExtensions : (client: any) => any
+>this : this
+    }
+  }
+
+  return PrismaClient
+>PrismaClient : typeof PrismaClient
+}
+
+export function applyModelsAndClientExtensions(client: Client) {
+>applyModelsAndClientExtensions : (client: any) => any
+>client : any
+
+  return client;
+>client : any
+}
+
diff --git a/tests/cases/compiler/circularConstructorWithReturn.ts b/tests/cases/compiler/circularConstructorWithReturn.ts
new file mode 100644
index 00000000000..ca659081038
--- /dev/null
+++ b/tests/cases/compiler/circularConstructorWithReturn.ts
@@ -0,0 +1,18 @@
+// This should not be a circularity error. See
+// https://github.com/microsoft/TypeScript/pull/57465#issuecomment-1960271216
+export type Client = ReturnType<typeof getPrismaClient> extends new () => infer T ? T : never
+
+export function getPrismaClient(options?: any) {
+  class PrismaClient {
+    self: Client;
+    constructor(options?: any) {
+      return (this.self = applyModelsAndClientExtensions(this));
+    }
+  }
+
+  return PrismaClient
+}
+
+export function applyModelsAndClientExtensions(client: Client) {
+  return client;
+}