diff --git a/src/Analysis/Ast/Impl/Types/ArgumentSet.cs b/src/Analysis/Ast/Impl/Types/ArgumentSet.cs
index 180bbaf63..edefe2b83 100644
--- a/src/Analysis/Ast/Impl/Types/ArgumentSet.cs
+++ b/src/Analysis/Ast/Impl/Types/ArgumentSet.cs
@@ -17,7 +17,6 @@
 using System.Collections.Generic;
 using System.IO;
 using System.Linq;
-using System.Runtime.CompilerServices;
 using Microsoft.Python.Analysis.Analyzer;
 using Microsoft.Python.Analysis.Diagnostics;
 using Microsoft.Python.Analysis.Extensions;
diff --git a/src/Analysis/Ast/Impl/Types/PythonClassType.cs b/src/Analysis/Ast/Impl/Types/PythonClassType.cs
index 4e10f0826..ce664c623 100644
--- a/src/Analysis/Ast/Impl/Types/PythonClassType.cs
+++ b/src/Analysis/Ast/Impl/Types/PythonClassType.cs
@@ -32,6 +32,8 @@ namespace Microsoft.Python.Analysis.Types {
     [DebuggerDisplay("Class {Name}")]
     internal class PythonClassType : PythonType, IPythonClassType, IPythonTemplateType, IEquatable<IPythonClassType> {
         private static readonly string[] _classMethods = { "mro", "__dict__", @"__weakref__" };
+
+        private Dictionary<string, PythonClassType> _specificTypeCache;
         private IPythonClassType _processing;
         private List<IPythonType> _bases;
         private IReadOnlyList<IPythonType> _mro;
@@ -350,19 +352,20 @@ public IPythonType CreateSpecificType(IArgumentSet args) {
             }
 
             // For still undefined parameters try matching passed types in order
-            for (var i = 0; i < args.Arguments.Count; i++) {
+            for (int i = 0, gtIndex = 0; i < args.Arguments.Count; i++) {
                 var arg = args.Arguments[i];
                 if (Equals(arg.Type)) {
-                    continue;
+                    continue; // Typically 'self'.
                 }
 
                 if (arg.Value is IMember member) {
                     var type = member.GetPythonType();
                     if (!type.IsUnknown()) {
-                        var gtd = i < genericTypeDefinitions.Count ? genericTypeDefinitions[i] : null;
+                        var gtd = gtIndex < genericTypeDefinitions.Count ? genericTypeDefinitions[gtIndex] : null;
                         if (gtd != null && !specificClassTypeParameters.ContainsKey(gtd.Name)) {
                             specificClassTypeParameters[gtd.Name] = type;
                         }
+                        gtIndex++;
                     }
                 }
             }
@@ -374,7 +377,11 @@ public IPythonType CreateSpecificType(IArgumentSet args) {
                 .ToArray();
 
             var specificName = CodeFormatter.FormatSequence(Name, '[', specificTypes);
-            var classType = new PythonClassType(specificName, new Location(DeclaringModule));
+            _specificTypeCache = _specificTypeCache ?? new Dictionary<string, PythonClassType>();
+            if (_specificTypeCache.TryGetValue(specificName, out var classType)) {
+                return classType;
+            }
+            _specificTypeCache[specificName] = classType = new PythonClassType(specificName, new Location(DeclaringModule));
 
             // Methods returning generic types need to know how to match generic
             // parameter name to the actual supplied type.
@@ -487,7 +494,7 @@ private void SetClassMembers(PythonClassType classType, IArgumentSet args) {
             // Functions handle generics internally upon the call to Call.
             foreach (var m in members) {
                 switch (m.Value) {
-                    case IPythonTemplateType tt: {
+                    case IPythonTemplateType tt when tt.IsGeneric(): {
                             var specificType = tt.CreateSpecificType(args);
                             classType.AddMember(m.Key, specificType, true);
                             break;
diff --git a/src/Analysis/Ast/Test/ClassesTests.cs b/src/Analysis/Ast/Test/ClassesTests.cs
index 19e6639d2..1d817f3cb 100644
--- a/src/Analysis/Ast/Test/ClassesTests.cs
+++ b/src/Analysis/Ast/Test/ClassesTests.cs
@@ -13,6 +13,7 @@
 // See the Apache Version 2.0 License for specific language governing
 // permissions and limitations under the License.
 
+using System.Diagnostics;
 using System.IO;
 using System.Linq;
 using System.Threading.Tasks;
@@ -595,5 +596,43 @@ def __init__(self):
                 .And.HaveVariable("e").OfType(BuiltinTypeId.Unknown)
                 .And.HaveVariable("f").OfType(BuiltinTypeId.Unknown);
         }
+
+        [TestMethod, Priority(0)]
+        public async Task ProxyBase() {
+            const string code = @"
+from weakref import proxy
+
+class C0(): pass
+class C1(C0): pass
+class C2(C1): pass
+class C3(C2): pass
+class C4(C3): pass
+class C5(C4): pass
+class C6(C5): pass
+class C7(C6): pass
+class C8(C7): pass
+
+class Test():
+    def __init__(self):
+        p = proxy(self)
+
+    F1 = C1
+    F2 = C2
+    F3 = C3
+    F4 = C4
+    F5 = C5
+    F6 = C6
+    F7 = C7
+    F8 = C8
+";
+            // Verifies that analysis of the fragment completes in reasonable time.
+            // see https://github.com/microsoft/python-language-server/issues/1291.
+            var sw = Stopwatch.StartNew();
+            await GetAnalysisAsync(code);
+            sw.Stop();
+            // Desktop: product time is typically less few seconds second.
+            // Test run time: typically ~ 20 sec.
+            sw.ElapsedMilliseconds.Should().BeLessThan(60000); 
+        }
     }
 }