diff --git a/compiler/src/dotty/tools/dotc/core/ConstraintHandling.scala b/compiler/src/dotty/tools/dotc/core/ConstraintHandling.scala
index 6207e0a3d728..dfb1c6b7b7a1 100644
--- a/compiler/src/dotty/tools/dotc/core/ConstraintHandling.scala
+++ b/compiler/src/dotty/tools/dotc/core/ConstraintHandling.scala
@@ -861,12 +861,24 @@ trait ConstraintHandling {
       addConstraintInvocations += 1
       val saved = canWidenAbstract
       canWidenAbstract = true
-      try bound match
+
+      def contains(bound: Type) = bound match
+        case tpr: TypeParamRef => constraint.contains(tpr)
+        case tv: TypeVar       => constraint.contains(tv)
+        case _                 => false
+
+      def add(bound: Type): Boolean = bound match
+        case AndType(bound1, bound2) if contains(bound1) ^ contains(bound2) =>
+          add(bound1) && add(bound2)
         case bound: TypeParamRef if constraint contains bound =>
           addParamBound(bound)
+        case bound: TypeVar if constraint.contains(bound) =>
+          addParamBound(bound.origin)
         case _ =>
           val pbound = avoidLambdaParams(bound)
           kindCompatible(param, pbound) && addBoundTransitively(param, pbound, !fromBelow)
+
+      try add(bound)
       finally
         canWidenAbstract = saved
         addConstraintInvocations -= 1
diff --git a/compiler/test/dotty/tools/dotc/core/ConstraintsTest.scala b/compiler/test/dotty/tools/dotc/core/ConstraintsTest.scala
index 9ae3fda8c6b9..ef5cdd4ce452 100644
--- a/compiler/test/dotty/tools/dotc/core/ConstraintsTest.scala
+++ b/compiler/test/dotty/tools/dotc/core/ConstraintsTest.scala
@@ -1,19 +1,16 @@
 package dotty.tools
-package dotc.core
+package dotc
+package core
 
 import vulpix.TestConfiguration
 
-import dotty.tools.dotc.core.Contexts.{*, given}
-import dotty.tools.dotc.core.Decorators.{*, given}
-import dotty.tools.dotc.core.Symbols.*
-import dotty.tools.dotc.core.Types.*
-import dotty.tools.dotc.ast.tpd.*
-import dotty.tools.dotc.typer.ProtoTypes.constrained
+import Contexts.{*, given}, Decorators.{*, given}, Symbols.*, Types.*
+import ast.tpd.*
+import typer.ProtoTypes.*
+import util.SimpleIdentitySet
 
 import org.junit.Test
 
-import dotty.tools.DottyTest
-
 class ConstraintsTest:
 
   @Test def mergeParamsTransitivity: Unit =
@@ -91,3 +88,19 @@ class ConstraintsTest:
         assert(!ctx.typerState.constraint.occursAtToplevel(tvar.origin, entry),
           i"cyclic bound for ${tvar.origin}: ${entry} in ${ctx.typerState.constraint}")
   }
+
+  @Test def splitIntersectedBounds: Unit = inCompilerContext(TestConfiguration.basicClasspath) {
+    val Foo = newTypeVar(TypeBounds.empty, "Foo".toTypeName)
+    val Bar = newTypeVar(TypeBounds.empty, "Bar".toTypeName)
+    val Int = defn.IntType
+
+    val tp1 = Foo & Int
+    val tp2 = Bar & Int
+    val log = TypeComparer.explained(_.isSameType(tp1, tp2))
+    //println(i"$log")
+    //println(i"${ctx.typerState.constraint}")
+
+    val tree = ref(newAnonFun(defn.RootClass, MethodType(Nil, defn.UnitType))).appliedToNone
+    ctx.typer.interpolateTypeVars(tree, WildcardType, SimpleIdentitySet.empty)
+    assert(Foo =:= Int && Bar =:= Int, i"Foo=$Foo Bar=$Bar")
+  }
diff --git a/tests/pos/i16524.scala b/tests/pos/i16524.scala
new file mode 100644
index 000000000000..baa916d5873a
--- /dev/null
+++ b/tests/pos/i16524.scala
@@ -0,0 +1,14 @@
+trait Axe
+trait Foo[A]
+trait Bar[B] { type Res }
+class Ref[C](value: C)
+trait Opt[+T]
+
+abstract class Test:
+  def mash[X](ref: Ref[X], foo: Foo[X], bar: Bar[X]): bar.Res
+
+  def mkFoo[Y]: Foo[Opt[Y & Axe]]
+  def mkBar[Z]: Bar[Opt[Z & Axe]] { type Res = Z }
+  val optInt: Opt[Int & Axe]
+
+  def test = mash(new Ref(optInt), mkFoo, mkBar)