diff --git a/packages/pyright-internal/src/analyzer/typeEvaluator.ts b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
index df9133d7a..5d142b98b 100644
--- a/packages/pyright-internal/src/analyzer/typeEvaluator.ts
+++ b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
@@ -11801,12 +11801,23 @@ export function createTypeEvaluator(importLookup: ImportLookup, evaluatorOptions
         }
 
         const fileInfo = AnalyzerNodeInfo.getFileInfo(name);
+        const typeAliasScopeId = getScopeIdForNode(name);
+
+        const boundTypeVars = typeParameters.filter(typeVar => typeVar.scopeId !== typeAliasScopeId);
+        if (boundTypeVars.length > 0) {
+            addError(
+                Localizer.Diagnostic.genericTypeAliasBoundTypeVar().format({
+                    names: boundTypeVars.map(t => `${t.details.name}`).join(', ')
+                }),
+                errorNode
+            );
+        }
 
         return TypeBase.cloneForTypeAlias(
             type,
             name.value,
             `${fileInfo.moduleName}.${name.value}`,
-            getScopeIdForNode(name),
+            typeAliasScopeId,
             typeParameters.length > 0 ? typeParameters : undefined
         );
     }
diff --git a/packages/pyright-internal/src/localization/localize.ts b/packages/pyright-internal/src/localization/localize.ts
index 815d21cb3..930a55e71 100644
--- a/packages/pyright-internal/src/localization/localize.ts
+++ b/packages/pyright-internal/src/localization/localize.ts
@@ -392,6 +392,8 @@ export namespace Localizer {
         export const genericClassAssigned = () => getRawString('Diagnostic.genericClassAssigned');
         export const genericClassDeleted = () => getRawString('Diagnostic.genericClassDeleted');
         export const genericNotAllowed = () => getRawString('Diagnostic.genericNotAllowed');
+        export const genericTypeAliasBoundTypeVar = () =>
+            new ParameterizedString<{ names: string }>(getRawString('Diagnostic.genericTypeAliasBoundTypeVar'));
         export const genericTypeArgMissing = () => getRawString('Diagnostic.genericTypeArgMissing');
         export const genericTypeArgTypeVar = () => getRawString('Diagnostic.genericTypeArgTypeVar');
         export const genericTypeArgUnique = () => getRawString('Diagnostic.genericTypeArgUnique');
diff --git a/packages/pyright-internal/src/localization/package.nls.en-us.json b/packages/pyright-internal/src/localization/package.nls.en-us.json
index 4631f51dd..cf20337d5 100644
--- a/packages/pyright-internal/src/localization/package.nls.en-us.json
+++ b/packages/pyright-internal/src/localization/package.nls.en-us.json
@@ -157,6 +157,7 @@
         "genericClassAssigned": "Generic class type cannot be assigned",
         "genericClassDeleted": "Generic class type cannot be deleted",
         "genericNotAllowed": "\"Generic\" is not valid in this context",
+        "genericTypeAliasBoundTypeVar": "Generic type alias within class cannot use bound type variables {names}",
         "genericTypeArgMissing": "\"Generic\" requires at least one type argument",
         "genericTypeArgTypeVar": "Type argument for \"Generic\" must be a type variable",
         "genericTypeArgUnique": "Type arguments for \"Generic\" must be unique",
diff --git a/packages/pyright-internal/src/tests/samples/typeAlias5.py b/packages/pyright-internal/src/tests/samples/typeAlias5.py
index 592bc2964..3ac15ebf2 100644
--- a/packages/pyright-internal/src/tests/samples/typeAlias5.py
+++ b/packages/pyright-internal/src/tests/samples/typeAlias5.py
@@ -2,7 +2,7 @@
 # TypeVars.
 
 from datetime import datetime
-from typing import IO, List, Type, TypeVar, Union
+from typing import IO, Dict, Generic, List, Type, TypeVar, Union
 
 _T1 = TypeVar("_T1")
 _T2 = TypeVar("_T2")
@@ -39,3 +39,12 @@ v2: FooIsh[Bar] = Bar()
 
 # This should generate an error.
 v3: FooIsh[Type[Bar]] = 42
+
+
+MyTypeAlias = Dict[_T1, _T2]
+
+
+class MyClass1(Generic[_T1, _T2]):
+    # This should generate an error because S and T are bound
+    # type variables.
+    MyTypeAlias = Dict[_T1, _T2]
diff --git a/packages/pyright-internal/src/tests/typeEvaluator3.test.ts b/packages/pyright-internal/src/tests/typeEvaluator3.test.ts
index 047f1a8ee..2d736b9a1 100644
--- a/packages/pyright-internal/src/tests/typeEvaluator3.test.ts
+++ b/packages/pyright-internal/src/tests/typeEvaluator3.test.ts
@@ -309,7 +309,7 @@ test('TypeAlias4', () => {
 test('TypeAlias5', () => {
     const analysisResults = TestUtils.typeAnalyzeSampleFiles(['typeAlias5.py']);
 
-    TestUtils.validateResults(analysisResults, 2);
+    TestUtils.validateResults(analysisResults, 3);
 });
 
 test('TypeAlias6', () => {