diff --git a/compiler/src/dotty/tools/dotc/core/Types.scala b/compiler/src/dotty/tools/dotc/core/Types.scala
index bbec037ebef1..32c5e39a7e22 100644
--- a/compiler/src/dotty/tools/dotc/core/Types.scala
+++ b/compiler/src/dotty/tools/dotc/core/Types.scala
@@ -5568,6 +5568,17 @@ object Types {
         else None
       }
       else None
+
+    object WithFunctionType:
+      def unapply(tp: Type)(using Context): Option[(MethodType, Type)] = tp match
+        case SAMType(mt) if !isParamDependentRec(mt) =>
+          Some((mt, mt.toFunctionType(isJava = tp.classSymbol.is(JavaDefined))))
+        case _ => None
+
+      private def isParamDependentRec(mt: MethodType)(using Context): Boolean =
+        mt.isParamDependent || mt.resultType.match
+          case mt: MethodType => isParamDependentRec(mt)
+          case _              => false
   }
 
   // ----- TypeMaps --------------------------------------------------------------------
diff --git a/compiler/src/dotty/tools/dotc/typer/Applications.scala b/compiler/src/dotty/tools/dotc/typer/Applications.scala
index fbed4b77d3fe..4d03e9760ff6 100644
--- a/compiler/src/dotty/tools/dotc/typer/Applications.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Applications.scala
@@ -696,7 +696,7 @@ trait Applications extends Compatibility {
 
         def SAMargOK =
           defn.isFunctionType(argtpe1) && formal.match
-            case SAMType(sam) => argtpe <:< sam.toFunctionType(isJava = formal.classSymbol.is(JavaDefined))
+            case SAMType.WithFunctionType(_, fntpe) => argtpe <:< fntpe
             case _ => false
 
         isCompatible(argtpe, formal)
diff --git a/compiler/src/dotty/tools/dotc/typer/Typer.scala b/compiler/src/dotty/tools/dotc/typer/Typer.scala
index 375289b5b400..3f3c4021edbd 100644
--- a/compiler/src/dotty/tools/dotc/typer/Typer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Typer.scala
@@ -1335,10 +1335,7 @@ class Typer(@constructorOnly nestingLevel: Int = 0) extends Namer
         case RefinedType(parent, nme.apply, mt @ MethodTpe(_, formals, restpe))
         if (defn.isNonRefinedFunction(parent) || defn.isErasedFunctionType(parent)) && formals.length == defaultArity =>
           (formals, untpd.DependentTypeTree(syms => restpe.substParams(mt, syms.map(_.termRef))))
-        case pt1 @ SAMType(mt @ MethodTpe(_, formals, methResType)) =>
-          val restpe = methResType match
-            case mt: MethodType if !mt.isParamDependent => mt.toFunctionType(isJava = pt1.classSymbol.is(JavaDefined))
-            case tp => tp
+        case SAMType.WithFunctionType(mt @ MethodTpe(_, formals, _), defn.FunctionOf(_, restpe, _)) =>
           (formals,
            if (mt.isResultDependent)
              untpd.DependentTypeTree(syms => restpe.substParams(mt, syms.map(_.termRef)))
@@ -4131,8 +4128,8 @@ class Typer(@constructorOnly nestingLevel: Int = 0) extends Namer
         case closure(Nil, id @ Ident(nme.ANON_FUN), _)
         if defn.isFunctionType(wtp) && !defn.isFunctionType(pt) =>
           pt match {
-            case SAMType(sam)
-            if wtp <:< sam.toFunctionType(isJava = pt.classSymbol.is(JavaDefined)) =>
+            case SAMType.WithFunctionType(_, fntpe)
+            if wtp <:< fntpe =>
               // was ... && isFullyDefined(pt, ForceDegree.flipBottom)
               // but this prevents case blocks from implementing polymorphic partial functions,
               // since we do not know the result parameter a priori. Have to wait until the
diff --git a/tests/neg/i17183.check b/tests/neg/i17183.check
new file mode 100644
index 000000000000..37e0c5fd75c2
--- /dev/null
+++ b/tests/neg/i17183.check
@@ -0,0 +1,14 @@
+-- [E081] Type Error: tests/neg/i17183.scala:11:24 ---------------------------------------------------------------------
+11 |def test = Context(f = (_, _) => ???) // error // error
+   |                        ^
+   |                        Missing parameter type
+   |
+   |                        I could not infer the type of the parameter _$1 of expanded function:
+   |                        (_$1, _$2) => ???.
+-- [E081] Type Error: tests/neg/i17183.scala:11:27 ---------------------------------------------------------------------
+11 |def test = Context(f = (_, _) => ???) // error // error
+   |                           ^
+   |                           Missing parameter type
+   |
+   |                           I could not infer the type of the parameter _$2 of expanded function:
+   |                           (_$1, _$2) => ???.
diff --git a/tests/neg/i17183.scala b/tests/neg/i17183.scala
new file mode 100644
index 000000000000..a7d2d51c5935
--- /dev/null
+++ b/tests/neg/i17183.scala
@@ -0,0 +1,11 @@
+trait Dependency {
+  trait More
+}
+
+trait MyFunc {
+  def apply(a: Int, b: String)(using dep: Dependency, more: dep.More): String
+}
+
+case class Context(f: MyFunc)
+
+def test = Context(f = (_, _) => ???) // error // error