diff --git a/tests/generics/tcalltype.nim b/tests/generics/tcalltype.nim
new file mode 100644
index 000000000000..33758c111dbb
--- /dev/null
+++ b/tests/generics/tcalltype.nim
@@ -0,0 +1,22 @@
+# issue #23406
+
+template helper(_: untyped): untyped =
+  int
+
+type # Each of them should always be `int`.
+  GenA[T] = helper int
+  GenB[T] = helper(int)
+  GenC[T] = helper helper(int)
+
+block:
+  template helper(_: untyped): untyped =
+    float
+
+  type
+    A = GenA[int]
+    B = GenB[int]
+    C = GenC[int]
+
+  assert A is int # OK.
+  assert B is int # Fails; it is `float`!
+  assert C is int # OK.