diff --git a/packages/pyright-internal/src/analyzer/typeEvaluator.ts b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
index 1234677e8..9014ee81a 100644
--- a/packages/pyright-internal/src/analyzer/typeEvaluator.ts
+++ b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
@@ -11640,6 +11640,11 @@ export function createTypeEvaluator(
             paramSpecTypeVarContext.forEach((paramSpecTypeVarContext) => {
                 if (paramSpecTypeVarContext) {
                     specializedReturnType = applySolvedTypeVars(specializedReturnType, paramSpecTypeVarContext);
+
+                    // It's possible that one or more of the TypeVars or ParamSpecs
+                    // in the typeVarContext refer to TypeVars that were solved in
+                    // the paramSpecTypeVarContext. Apply these solved TypeVars accordingly.
+                    applySourceContextTypeVars(typeVarContext, paramSpecTypeVarContext);
                 }
             });
         }
diff --git a/packages/pyright-internal/src/analyzer/typeUtils.ts b/packages/pyright-internal/src/analyzer/typeUtils.ts
index ec81799ca..75de2b068 100644
--- a/packages/pyright-internal/src/analyzer/typeUtils.ts
+++ b/packages/pyright-internal/src/analyzer/typeUtils.ts
@@ -3329,7 +3329,7 @@ export function convertParamSpecValueToType(type: FunctionType): Type {
     FunctionType.addHigherOrderTypeVarScopeIds(functionType, withoutParamSpec.details.typeVarScopeId);
     FunctionType.addHigherOrderTypeVarScopeIds(functionType, withoutParamSpec.details.higherOrderTypeVarScopeIds);
 
-    withoutParamSpec.details.parameters.forEach((entry) => {
+    withoutParamSpec.details.parameters.forEach((entry, index) => {
         FunctionType.addParameter(functionType, {
             category: entry.category,
             name: entry.name,
@@ -3337,7 +3337,7 @@ export function convertParamSpecValueToType(type: FunctionType): Type {
             defaultValueExpression: entry.defaultValueExpression,
             isNameSynthesized: entry.isNameSynthesized,
             hasDeclaredType: true,
-            type: entry.type,
+            type: FunctionType.getEffectiveParameterType(withoutParamSpec, index),
         });
     });
 
diff --git a/packages/pyright-internal/src/tests/samples/constructor30.py b/packages/pyright-internal/src/tests/samples/constructor30.py
new file mode 100644
index 000000000..4ede66b65
--- /dev/null
+++ b/packages/pyright-internal/src/tests/samples/constructor30.py
@@ -0,0 +1,31 @@
+# This sample tests the case where a class is parameterized by a ParamSpec
+# which is inferred by a call to the constructor, and the passed value
+# is a generic function whose types are informed by additional parameters
+# also passed to the constructor.
+
+from typing import Callable, Generic, ParamSpec, TypeVar
+
+P = ParamSpec("P")
+T = TypeVar("T")
+
+
+class ABase: ...
+
+
+class A(ABase): ...
+
+
+TA = TypeVar("TA", bound=ABase)
+
+
+class B(Generic[P, T]):
+    def __init__(
+        self, _type: Callable[P, T], *args: P.args, **kwargs: P.kwargs
+    ) -> None: ...
+
+
+def func1(t: type[TA]) -> TA: ...
+
+
+b = B(func1, A)
+reveal_type(b, expected_text="B[(t: type[A]), A]")
diff --git a/packages/pyright-internal/src/tests/typeEvaluator6.test.ts b/packages/pyright-internal/src/tests/typeEvaluator6.test.ts
index 0a9fd47d7..c8ba668e6 100644
--- a/packages/pyright-internal/src/tests/typeEvaluator6.test.ts
+++ b/packages/pyright-internal/src/tests/typeEvaluator6.test.ts
@@ -773,6 +773,12 @@ test('Constructor29', () => {
     TestUtils.validateResults(analysisResults, 0);
 });
 
+test('Constructor30', () => {
+    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['constructor30.py']);
+
+    TestUtils.validateResults(analysisResults, 0);
+});
+
 test('ConstructorCallable1', () => {
     const analysisResults = TestUtils.typeAnalyzeSampleFiles(['constructorCallable1.py']);