diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index b063de5cc1a03..2c22f3a33d073 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -14794,7 +14794,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         return type.resolvedApparentType || (type.resolvedApparentType = getResolvedApparentTypeOfMappedType(type));
     }
 
-    function getResolvedApparentTypeOfMappedType(type: MappedType) {
+    function getResolvedApparentTypeOfMappedType(type: MappedType): Type {
         const target = (type.target ?? type) as MappedType;
         const typeVariable = getHomomorphicTypeVariable(target);
         if (typeVariable && !target.declaration.nameType) {
@@ -14802,7 +14802,8 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
             if (constraint.flags & TypeFlags.Index) {
                 const baseConstraint = getBaseConstraintOfType((constraint as IndexType).type);
                 if (baseConstraint && everyType(baseConstraint, t => isArrayOrTupleType(t) || isArrayOrTupleOrIntersection(t))) {
-                    return instantiateType(target, prependTypeMapping(typeVariable, baseConstraint, type.mapper));
+                    const modifiersType = getModifiersTypeFromMappedType(type);
+                    return instantiateType(target, prependTypeMapping(typeVariable, isGenericMappedType(modifiersType) ? getResolvedApparentTypeOfMappedType(modifiersType) : baseConstraint, type.mapper));
                 }
             }
         }
diff --git a/tests/baselines/reference/homomorphicMappedTypeNested1.symbols b/tests/baselines/reference/homomorphicMappedTypeNested1.symbols
new file mode 100644
index 0000000000000..a94ccc4c34dbd
--- /dev/null
+++ b/tests/baselines/reference/homomorphicMappedTypeNested1.symbols
@@ -0,0 +1,61 @@
+//// [tests/cases/compiler/homomorphicMappedTypeNested1.ts] ////
+
+=== homomorphicMappedTypeNested1.ts ===
+// https://github.com/microsoft/TypeScript/issues/58060
+
+type ValueType = string;
+>ValueType : Symbol(ValueType, Decl(homomorphicMappedTypeNested1.ts, 0, 0))
+
+type Box<T extends ValueType> = { v: T };
+>Box : Symbol(Box, Decl(homomorphicMappedTypeNested1.ts, 2, 24))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 4, 9))
+>ValueType : Symbol(ValueType, Decl(homomorphicMappedTypeNested1.ts, 0, 0))
+>v : Symbol(v, Decl(homomorphicMappedTypeNested1.ts, 4, 33))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 4, 9))
+
+type Test<T extends ValueType[]> = T;
+>Test : Symbol(Test, Decl(homomorphicMappedTypeNested1.ts, 4, 41))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 6, 10))
+>ValueType : Symbol(ValueType, Decl(homomorphicMappedTypeNested1.ts, 0, 0))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 6, 10))
+
+type UnboxArray<T> = {
+>UnboxArray : Symbol(UnboxArray, Decl(homomorphicMappedTypeNested1.ts, 6, 37))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 8, 16))
+
+  [K in keyof T]: T[K] extends Box<infer R> ? R : never;
+>K : Symbol(K, Decl(homomorphicMappedTypeNested1.ts, 9, 3))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 8, 16))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 8, 16))
+>K : Symbol(K, Decl(homomorphicMappedTypeNested1.ts, 9, 3))
+>Box : Symbol(Box, Decl(homomorphicMappedTypeNested1.ts, 2, 24))
+>R : Symbol(R, Decl(homomorphicMappedTypeNested1.ts, 9, 40))
+>R : Symbol(R, Decl(homomorphicMappedTypeNested1.ts, 9, 40))
+
+};
+
+type Identity<T> = { [K in keyof T]: T[K] };
+>Identity : Symbol(Identity, Decl(homomorphicMappedTypeNested1.ts, 10, 2))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 12, 14))
+>K : Symbol(K, Decl(homomorphicMappedTypeNested1.ts, 12, 22))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 12, 14))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 12, 14))
+>K : Symbol(K, Decl(homomorphicMappedTypeNested1.ts, 12, 22))
+
+declare function fn<T extends Array<Box<ValueType>>>(
+>fn : Symbol(fn, Decl(homomorphicMappedTypeNested1.ts, 12, 44))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 14, 20))
+>Array : Symbol(Array, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
+>Box : Symbol(Box, Decl(homomorphicMappedTypeNested1.ts, 2, 24))
+>ValueType : Symbol(ValueType, Decl(homomorphicMappedTypeNested1.ts, 0, 0))
+
+  ...args: T
+>args : Symbol(args, Decl(homomorphicMappedTypeNested1.ts, 14, 53))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 14, 20))
+
+): Test<Identity<UnboxArray<T>>>;
+>Test : Symbol(Test, Decl(homomorphicMappedTypeNested1.ts, 4, 41))
+>Identity : Symbol(Identity, Decl(homomorphicMappedTypeNested1.ts, 10, 2))
+>UnboxArray : Symbol(UnboxArray, Decl(homomorphicMappedTypeNested1.ts, 6, 37))
+>T : Symbol(T, Decl(homomorphicMappedTypeNested1.ts, 14, 20))
+
diff --git a/tests/baselines/reference/homomorphicMappedTypeNested1.types b/tests/baselines/reference/homomorphicMappedTypeNested1.types
new file mode 100644
index 0000000000000..16f670ee37607
--- /dev/null
+++ b/tests/baselines/reference/homomorphicMappedTypeNested1.types
@@ -0,0 +1,40 @@
+//// [tests/cases/compiler/homomorphicMappedTypeNested1.ts] ////
+
+=== homomorphicMappedTypeNested1.ts ===
+// https://github.com/microsoft/TypeScript/issues/58060
+
+type ValueType = string;
+>ValueType : string
+>          : ^^^^^^
+
+type Box<T extends ValueType> = { v: T };
+>Box : Box<T>
+>    : ^^^^^^
+>v : T
+>  : ^
+
+type Test<T extends ValueType[]> = T;
+>Test : T
+>     : ^
+
+type UnboxArray<T> = {
+>UnboxArray : UnboxArray<T>
+>           : ^^^^^^^^^^^^^
+
+  [K in keyof T]: T[K] extends Box<infer R> ? R : never;
+};
+
+type Identity<T> = { [K in keyof T]: T[K] };
+>Identity : Identity<T>
+>         : ^^^^^^^^^^^
+
+declare function fn<T extends Array<Box<ValueType>>>(
+>fn : <T extends Box<string>[]>(...args: T) => Test<Identity<UnboxArray<T>>>
+>   : ^ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^                             
+
+  ...args: T
+>args : T
+>     : ^
+
+): Test<Identity<UnboxArray<T>>>;
+
diff --git a/tests/cases/compiler/homomorphicMappedTypeNested1.ts b/tests/cases/compiler/homomorphicMappedTypeNested1.ts
new file mode 100644
index 0000000000000..89b63a1ca1b27
--- /dev/null
+++ b/tests/cases/compiler/homomorphicMappedTypeNested1.ts
@@ -0,0 +1,20 @@
+// @strict: true
+// @noEmit: true
+
+// https://github.com/microsoft/TypeScript/issues/58060
+
+type ValueType = string;
+
+type Box<T extends ValueType> = { v: T };
+
+type Test<T extends ValueType[]> = T;
+
+type UnboxArray<T> = {
+  [K in keyof T]: T[K] extends Box<infer R> ? R : never;
+};
+
+type Identity<T> = { [K in keyof T]: T[K] };
+
+declare function fn<T extends Array<Box<ValueType>>>(
+  ...args: T
+): Test<Identity<UnboxArray<T>>>;