diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 48bc0da113816..c9180623e64f0 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -23190,29 +23190,35 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                         // the `-?` modifier in a mapped type (where, no matter how the inputs are related, the outputs still might not be)
                         related = relation === identityRelation ? isRelatedTo(s, t, RecursionFlags.Both, /*reportErrors*/ false) : compareTypesIdentical(s, t);
                     }
-                    else if (variance === VarianceFlags.Covariant) {
-                        related = isRelatedTo(s, t, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
-                    }
-                    else if (variance === VarianceFlags.Contravariant) {
-                        related = isRelatedTo(t, s, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
-                    }
-                    else if (variance === VarianceFlags.Bivariant) {
-                        // In the bivariant case we first compare contravariantly without reporting
-                        // errors. Then, if that doesn't succeed, we compare covariantly with error
-                        // reporting. Thus, error elaboration will be based on the the covariant check,
-                        // which is generally easier to reason about.
-                        related = isRelatedTo(t, s, RecursionFlags.Both, /*reportErrors*/ false);
-                        if (!related) {
+                    else {
+                        // Propagate unreliable variance flag
+                        if (inVarianceComputation && varianceFlags & VarianceFlags.Unreliable) {
+                            instantiateType(s, reportUnreliableMapper);
+                        }
+                        if (variance === VarianceFlags.Covariant) {
                             related = isRelatedTo(s, t, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
                         }
-                    }
-                    else {
-                        // In the invariant case we first compare covariantly, and only when that
-                        // succeeds do we proceed to compare contravariantly. Thus, error elaboration
-                        // will typically be based on the covariant check.
-                        related = isRelatedTo(s, t, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
-                        if (related) {
-                            related &= isRelatedTo(t, s, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
+                        else if (variance === VarianceFlags.Contravariant) {
+                            related = isRelatedTo(t, s, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
+                        }
+                        else if (variance === VarianceFlags.Bivariant) {
+                            // In the bivariant case we first compare contravariantly without reporting
+                            // errors. Then, if that doesn't succeed, we compare covariantly with error
+                            // reporting. Thus, error elaboration will be based on the the covariant check,
+                            // which is generally easier to reason about.
+                            related = isRelatedTo(t, s, RecursionFlags.Both, /*reportErrors*/ false);
+                            if (!related) {
+                                related = isRelatedTo(s, t, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
+                            }
+                        }
+                        else {
+                            // In the invariant case we first compare covariantly, and only when that
+                            // succeeds do we proceed to compare contravariantly. Thus, error elaboration
+                            // will typically be based on the covariant check.
+                            related = isRelatedTo(s, t, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
+                            if (related) {
+                                related &= isRelatedTo(t, s, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
+                            }
                         }
                     }
                     if (!related) {
diff --git a/tests/baselines/reference/circularlySimplifyingConditionalTypesNoCrash.types b/tests/baselines/reference/circularlySimplifyingConditionalTypesNoCrash.types
index 765ca3234d8cb..29b958c768ad3 100644
--- a/tests/baselines/reference/circularlySimplifyingConditionalTypesNoCrash.types
+++ b/tests/baselines/reference/circularlySimplifyingConditionalTypesNoCrash.types
@@ -1,5 +1,8 @@
 //// [tests/cases/compiler/circularlySimplifyingConditionalTypesNoCrash.ts] ////
 
+=== Performance Stats ===
+Instantiation count: 1,000
+
 === circularlySimplifyingConditionalTypesNoCrash.ts ===
 type Omit<T, K extends keyof T> = Pick<T, Exclude<keyof T, K>>;
 >Omit : Omit<T, K>
diff --git a/tests/baselines/reference/variancePropagation.symbols b/tests/baselines/reference/variancePropagation.symbols
new file mode 100644
index 0000000000000..1c138b4bcffdf
--- /dev/null
+++ b/tests/baselines/reference/variancePropagation.symbols
@@ -0,0 +1,50 @@
+//// [tests/cases/compiler/variancePropagation.ts] ////
+
+=== variancePropagation.ts ===
+// https://github.com/microsoft/TypeScript/issues/62606
+
+interface DerivedTable<S extends { base: any; new: any }> {
+>DerivedTable : Symbol(DerivedTable, Decl(variancePropagation.ts, 0, 0))
+>S : Symbol(S, Decl(variancePropagation.ts, 2, 23))
+>base : Symbol(base, Decl(variancePropagation.ts, 2, 34))
+>new : Symbol(new, Decl(variancePropagation.ts, 2, 45))
+
+    // Error disappears when these property declarations are reversed
+    schema: S["base"] & S["new"]
+>schema : Symbol(DerivedTable.schema, Decl(variancePropagation.ts, 2, 59))
+>S : Symbol(S, Decl(variancePropagation.ts, 2, 23))
+>S : Symbol(S, Decl(variancePropagation.ts, 2, 23))
+
+    readonlySchema: Readonly<S["base"] & S["new"]>
+>readonlySchema : Symbol(DerivedTable.readonlySchema, Decl(variancePropagation.ts, 4, 32))
+>Readonly : Symbol(Readonly, Decl(lib.es5.d.ts, --, --))
+>S : Symbol(S, Decl(variancePropagation.ts, 2, 23))
+>S : Symbol(S, Decl(variancePropagation.ts, 2, 23))
+}
+
+interface Base { baseProp: number; }
+>Base : Symbol(Base, Decl(variancePropagation.ts, 6, 1))
+>baseProp : Symbol(Base.baseProp, Decl(variancePropagation.ts, 8, 16))
+
+interface New  { newProp: boolean; }
+>New : Symbol(New, Decl(variancePropagation.ts, 8, 36))
+>newProp : Symbol(New.newProp, Decl(variancePropagation.ts, 9, 16))
+
+declare const source: DerivedTable<{ base: Base, new: New }>
+>source : Symbol(source, Decl(variancePropagation.ts, 11, 13))
+>DerivedTable : Symbol(DerivedTable, Decl(variancePropagation.ts, 0, 0))
+>base : Symbol(base, Decl(variancePropagation.ts, 11, 36))
+>Base : Symbol(Base, Decl(variancePropagation.ts, 6, 1))
+>new : Symbol(new, Decl(variancePropagation.ts, 11, 48))
+>New : Symbol(New, Decl(variancePropagation.ts, 8, 36))
+
+const destination: DerivedTable<{ base: Base; new: New & Base }> = source; // Error
+>destination : Symbol(destination, Decl(variancePropagation.ts, 12, 5))
+>DerivedTable : Symbol(DerivedTable, Decl(variancePropagation.ts, 0, 0))
+>base : Symbol(base, Decl(variancePropagation.ts, 12, 33))
+>Base : Symbol(Base, Decl(variancePropagation.ts, 6, 1))
+>new : Symbol(new, Decl(variancePropagation.ts, 12, 45))
+>New : Symbol(New, Decl(variancePropagation.ts, 8, 36))
+>Base : Symbol(Base, Decl(variancePropagation.ts, 6, 1))
+>source : Symbol(source, Decl(variancePropagation.ts, 11, 13))
+
diff --git a/tests/baselines/reference/variancePropagation.types b/tests/baselines/reference/variancePropagation.types
new file mode 100644
index 0000000000000..c3d93d52b891d
--- /dev/null
+++ b/tests/baselines/reference/variancePropagation.types
@@ -0,0 +1,45 @@
+//// [tests/cases/compiler/variancePropagation.ts] ////
+
+=== variancePropagation.ts ===
+// https://github.com/microsoft/TypeScript/issues/62606
+
+interface DerivedTable<S extends { base: any; new: any }> {
+>base : any
+>new : any
+
+    // Error disappears when these property declarations are reversed
+    schema: S["base"] & S["new"]
+>schema : S["base"] & S["new"]
+>       : ^^^^^^^^^^^^^^^^^^^^
+
+    readonlySchema: Readonly<S["base"] & S["new"]>
+>readonlySchema : Readonly<S["base"] & S["new"]>
+>               : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+}
+
+interface Base { baseProp: number; }
+>baseProp : number
+>         : ^^^^^^
+
+interface New  { newProp: boolean; }
+>newProp : boolean
+>        : ^^^^^^^
+
+declare const source: DerivedTable<{ base: Base, new: New }>
+>source : DerivedTable<{ base: Base; new: New; }>
+>       : ^^^^^^^^^^^^^^^^^^^^^    ^^^^^^^   ^^^^
+>base : Base
+>     : ^^^^
+>new : New
+>    : ^^^
+
+const destination: DerivedTable<{ base: Base; new: New & Base }> = source; // Error
+>destination : DerivedTable<{ base: Base; new: New & Base; }>
+>            : ^^^^^^^^^^^^^^^^^^^^^    ^^^^^^^          ^^^^
+>base : Base
+>     : ^^^^
+>new : New & Base
+>    : ^^^^^^^^^^
+>source : DerivedTable<{ base: Base; new: New; }>
+>       : ^^^^^^^^^^^^^^^^^^^^^    ^^^^^^^   ^^^^
+
diff --git a/tests/cases/compiler/variancePropagation.ts b/tests/cases/compiler/variancePropagation.ts
new file mode 100644
index 0000000000000..ab62d64928003
--- /dev/null
+++ b/tests/cases/compiler/variancePropagation.ts
@@ -0,0 +1,16 @@
+// @strict: true
+// @noEmit: true
+
+// https://github.com/microsoft/TypeScript/issues/62606
+
+interface DerivedTable<S extends { base: any; new: any }> {
+    // Error disappears when these property declarations are reversed
+    schema: S["base"] & S["new"]
+    readonlySchema: Readonly<S["base"] & S["new"]>
+}
+
+interface Base { baseProp: number; }
+interface New  { newProp: boolean; }
+
+declare const source: DerivedTable<{ base: Base, new: New }>
+const destination: DerivedTable<{ base: Base; new: New & Base }> = source; // Error