diff --git a/sway-core/src/language/ty/expression/expression_variant.rs b/sway-core/src/language/ty/expression/expression_variant.rs
index 0f16ab2e6a2..ccb672012d0 100644
--- a/sway-core/src/language/ty/expression/expression_variant.rs
+++ b/sway-core/src/language/ty/expression/expression_variant.rs
@@ -1,4 +1,5 @@
 use std::{
+    collections::VecDeque,
     fmt::{self, Write},
     hash::{Hash, Hasher},
 };
@@ -11,6 +12,7 @@ use crate::{
     decl_engine::*,
     engine_threading::*,
     language::{ty::*, *},
+    namespace::TryInsertingTraitImplOnFailure,
     semantic_analysis::{
         TyNodeDepGraphEdge, TyNodeDepGraphEdgeInfo, TypeCheckAnalysis, TypeCheckAnalysisContext,
         TypeCheckContext, TypeCheckFinalization, TypeCheckFinalizationContext,
@@ -822,6 +824,29 @@ impl ReplaceDecls for TyExpressionVariant {
                     let decl_engine = ctx.engines().de();
                     let mut method = (*decl_engine.get(fn_ref)).clone();
 
+                    // Finds method implementation for method dummy and replaces it.
+                    // This is required because dummy methods don't have type parameters from impl traits.
+                    // Thus we use the implementated method that already contains all the required type parameters,
+                    // including those from the impl trait.
+                    if method.is_trait_method_dummy {
+                        if let Some(implementing_for_typeid) = method.implementing_for_typeid {
+                            let implementing_type_method_ref = ctx.find_method_for_type(
+                                handler,
+                                implementing_for_typeid,
+                                &[],
+                                method.name(),
+                                method.return_type.type_id,
+                                &arguments
+                                    .iter()
+                                    .map(|a| a.1.return_type)
+                                    .collect::<VecDeque<_>>(),
+                                None,
+                                TryInsertingTraitImplOnFailure::Yes,
+                            )?;
+                            method = (*decl_engine.get(&implementing_type_method_ref)).clone();
+                        }
+                    }
+
                     // Handle the trait constraints. This includes checking to see if the trait
                     // constraints are satisfied and replacing old decl ids based on the
                     let inner_decl_mapping =
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.lock b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.lock
new file mode 100644
index 00000000000..812bb032aff
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.lock
@@ -0,0 +1,8 @@
+[[package]]
+name = "core"
+source = "path+from-root-0E536E049C0227B9"
+
+[[package]]
+name = "dummy_method_issue"
+source = "member"
+dependencies = ["core"]
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.toml
new file mode 100644
index 00000000000..d724f519a36
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/Forc.toml
@@ -0,0 +1,8 @@
+[project]
+authors = ["Fuel Labs <contact@fuel.sh>"]
+license = "Apache-2.0"
+name = "dummy_method_issue"
+entry = "main.sw"
+
+[dependencies]
+core = { path = "../../../../../../../sway-lib-core" }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/src/main.sw
new file mode 100644
index 00000000000..9b5defbf0e0
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/src/main.sw
@@ -0,0 +1,42 @@
+script;
+
+trait AbiEncode2 {
+    fn abi_encode2(self, ref mut buffer: Buffer);
+}
+
+impl AbiEncode2 for u64 { fn abi_encode2(self, ref mut buffer: Buffer) { } }
+impl AbiEncode2 for u32 { fn abi_encode2(self, ref mut buffer: Buffer) { } }
+
+struct GenericBimbam<U> {
+    val: U,
+}
+
+impl<U> AbiEncode2 for GenericBimbam<U> where U: AbiEncode2
+ {
+    fn abi_encode2(self, ref mut buffer: Buffer) {
+        self.val.abi_encode2(buffer);
+    }
+}
+
+struct GenericSnack<T, V> {
+    twix: GenericBimbam<T>,
+    mars: V,
+}
+
+impl<T, V> AbiEncode2 for GenericSnack<T, V> where T: AbiEncode2, V: AbiEncode2
+ {
+    fn abi_encode2(self, ref mut buffer: Buffer) {
+        self.twix.abi_encode2(buffer);
+        self.mars.abi_encode2(buffer);
+    }
+}
+
+fn encode2<T>(item: T) -> raw_slice where T: AbiEncode2  {
+    let mut buffer = Buffer::new();
+    item.abi_encode2(buffer);
+    buffer.as_raw_slice()
+}
+
+fn main() {
+    encode2(GenericSnack { twix: GenericBimbam { val: 2u64 }, mars: 2u32 });
+}
\ No newline at end of file
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/test.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/test.toml
new file mode 100644
index 00000000000..23910a663c0
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/dummy_method_issue/test.toml
@@ -0,0 +1,4 @@
+category = "run"
+expected_result = { action = "return", value = 0 }
+validate_abi = false
+expected_warnings = 7