diff --git a/compiler/src/dotty/tools/dotc/transform/PickleQuotes.scala b/compiler/src/dotty/tools/dotc/transform/PickleQuotes.scala
index 728ee9552c81..d21342e54907 100644
--- a/compiler/src/dotty/tools/dotc/transform/PickleQuotes.scala
+++ b/compiler/src/dotty/tools/dotc/transform/PickleQuotes.scala
@@ -157,13 +157,20 @@ class PickleQuotes extends MacroTransform {
         override def apply(tp: Type): Type = tp match
           case tp: TypeRef if tp.typeSymbol.isTypeSplice =>
             apply(tp.dealias)
-          case tp @ TypeRef(pre, _) if pre == NoPrefix || pre.termSymbol.isLocal =>
+          case tp @ TypeRef(pre, _) if isLocalPath(pre) =>
             val hiBound = tp.typeSymbol.info match
               case info: ClassInfo => info.parents.reduce(_ & _)
               case info => info.hiBound
             apply(hiBound)
+          case tp @ TermRef(pre, _) if isLocalPath(pre) =>
+            apply(tp.widenTermRefExpr)
           case tp =>
             mapOver(tp)
+
+        private def isLocalPath(tp: Type): Boolean = tp match
+          case NoPrefix => true
+          case tp: TermRef if !tp.symbol.is(Package) => isLocalPath(tp.prefix)
+          case tp => false
       }
 
       /** Remove references to local types that will not be defined in this quote */
diff --git a/compiler/src/dotty/tools/dotc/transform/Splicing.scala b/compiler/src/dotty/tools/dotc/transform/Splicing.scala
index 7ecde9400445..becee50f25cb 100644
--- a/compiler/src/dotty/tools/dotc/transform/Splicing.scala
+++ b/compiler/src/dotty/tools/dotc/transform/Splicing.scala
@@ -224,7 +224,7 @@ class Splicing extends MacroTransform:
                 // Dealias references to captured types
                 TypeTree(tree.tpe.dealias)
             else super.transform(tree)
-        case tree: TypeTree =>
+        case _: TypeTree | _: SingletonTypeTree =>
           if containsCapturedType(tree.tpe) && level >= 1 then getTagRefFor(tree)
           else tree
         case tree @ Assign(lhs: RefTree, rhs) =>
@@ -353,9 +353,8 @@ class Splicing extends MacroTransform:
       )
 
     private def capturedType(tree: Tree)(using Context): Symbol =
-      val tpe = tree.tpe.widenTermRefExpr
       val bindingSym = refBindingMap
-        .getOrElseUpdate(tree.symbol, (TypeTree(tree.tpe), newQuotedTypeClassBinding(tpe)))._2
+        .getOrElseUpdate(tree.symbol, (TypeTree(tree.tpe), newQuotedTypeClassBinding(tree.tpe)))._2
       bindingSym
 
     private def capturedPartTypes(tpt: Tree)(using Context): Tree =
diff --git a/compiler/src/dotty/tools/dotc/transform/TreeChecker.scala b/compiler/src/dotty/tools/dotc/transform/TreeChecker.scala
index 05d3ce5679a3..25eb2af29faf 100644
--- a/compiler/src/dotty/tools/dotc/transform/TreeChecker.scala
+++ b/compiler/src/dotty/tools/dotc/transform/TreeChecker.scala
@@ -658,7 +658,7 @@ object TreeChecker {
       // Check that we only add the captured type `T` instead of a more complex type like `List[T]`.
       // If we have `F[T]` with captured `F` and `T`, we should list `F` and `T` separately in the args.
       for arg <- args do
-        assert(arg.isTerm || arg.tpe.isInstanceOf[TypeRef], "Expected TypeRef in Hole type args but got: " + arg.tpe)
+        assert(arg.isTerm || arg.tpe.isInstanceOf[TypeRef] || arg.tpe.isInstanceOf[TermRef], "Expected TypeRef or TermRef in Hole type args but got: " + arg.tpe)
 
       // Check result type of the hole
       if isTermHole then assert(tpt.typeOpt <:< pt)
diff --git a/tests/pos-macros/i17103c/Macro_1.scala b/tests/pos-macros/i17103c/Macro_1.scala
new file mode 100644
index 000000000000..cb8cf43d44a8
--- /dev/null
+++ b/tests/pos-macros/i17103c/Macro_1.scala
@@ -0,0 +1,16 @@
+import scala.quoted.*
+
+inline def test = ${ testExpr }
+
+def testExpr(using Quotes): Expr[Unit] =
+  '{
+    trait C
+    val c: C = ???
+    ${
+      val expr = '{
+        val cRef: c.type = ???
+        ()
+      }
+      expr
+    }
+  }
diff --git a/tests/pos-macros/i17103c/Test_2.scala b/tests/pos-macros/i17103c/Test_2.scala
new file mode 100644
index 000000000000..ce2b73e5adf2
--- /dev/null
+++ b/tests/pos-macros/i17103c/Test_2.scala
@@ -0,0 +1 @@
+def Test = test