diff --git a/test/functional/FunctionalCodeAction.hs b/test/functional/FunctionalCodeAction.hs
index ed99206f17..ca38bbb83a 100644
--- a/test/functional/FunctionalCodeAction.hs
+++ b/test/functional/FunctionalCodeAction.hs
@@ -127,10 +127,14 @@ hlintTests = testGroup "hlint suggestions" [
         doc <- openDoc "ApplyRefact2.hs" "haskell"
         testHlintDiagnostics doc
 
-    , testCase "apply-refact works with LambdaCase via ghc -XLambdaCase argument (#590)" $ runHlintSession "lambdacase" $ do
+    , testCase "apply-refact works with -XLambdaCase argument (#590)" $ runHlintSession "lambdacase" $ do
         testRefactor "ApplyRefact1.hs" "Redundant bracket"
             expectedLambdaCase
 
+    , testCase "apply-refact works with -XTypeApplications argument (#1242)" $ runHlintSession "typeapps" $ do
+        testRefactor "ApplyRefact1.hs" "Redundant bracket"
+            expectedTypeApp
+
     , testCase "apply hints works with LambdaCase via language pragma" $ runHlintSession "" $ do
         testRefactor "ApplyRefact1.hs" "Redundant bracket"
             ("{-# LANGUAGE LambdaCase #-}" : expectedLambdaCase)
@@ -206,7 +210,9 @@ hlintTests = testGroup "hlint suggestions" [
                              , "f = {- inline comment -}{- inline comment inside refactored code -} 1 -- ending comment", ""
                              , "-- final comment"
                              ]
-
+        expectedTypeApp =    [ "module ApplyRefact1 where", ""
+                             , "a = id @Int 1"
+                             ]
 renameTests :: TestTree
 renameTests = testGroup "rename suggestions" [
     testCase "works" $ runSession hlsCommand noLiteralCaps "test/testdata" $ do
diff --git a/test/testdata/hlint/typeapps/ApplyRefact1.hs b/test/testdata/hlint/typeapps/ApplyRefact1.hs
new file mode 100644
index 0000000000..78fa09aec4
--- /dev/null
+++ b/test/testdata/hlint/typeapps/ApplyRefact1.hs
@@ -0,0 +1,3 @@
+module ApplyRefact1 where
+
+a = (id @Int 1)
diff --git a/test/testdata/hlint/typeapps/hie.yaml b/test/testdata/hlint/typeapps/hie.yaml
new file mode 100644
index 0000000000..058382f9f0
--- /dev/null
+++ b/test/testdata/hlint/typeapps/hie.yaml
@@ -0,0 +1,5 @@
+cradle:
+  direct:
+    arguments:
+      - "-XTypeApplications"
+      - "ApplyRefact1"