diff --git a/compiler/src/dotty/tools/dotc/typer/Inferencing.scala b/compiler/src/dotty/tools/dotc/typer/Inferencing.scala
index 86649d78ed54..191f326e1b37 100644
--- a/compiler/src/dotty/tools/dotc/typer/Inferencing.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Inferencing.scala
@@ -275,7 +275,7 @@ object Inferencing {
     if (constraint.uninstVars exists qualifies) interpolate()
   }
 
-  /** Instantiate undetermined type variables to that type `tp` is
+  /** Instantiate undetermined type variables so that type `tp` is
    *  maximized and return None. If this is not possible, because a non-variant
    *  typevar is not uniquely determined, return that typevar in a Some.
    */
@@ -302,7 +302,7 @@ object Inferencing {
    *  +1 means: only covariant occurrences
    *  0 means: mixed or non-variant occurrences
    *
-   *  Note: We intentionally use a relaxed version of variance here,
+   *  Note 1: We intentionally use a relaxed version of variance here,
    *  where the variance does not change under a prefix of a named type
    *  (the strict version makes prefixes invariant). This turns out to be
    *  better for type inference. In a nutshell, if a type variable occurs
@@ -311,6 +311,10 @@ object Inferencing {
    *     (U? >: x.type) # T
    *
    *  we want to instantiate U to x.type right away. No need to wait further.
+   *
+   *  Note 2: Parameters of implicit method types are assumed to be non-variant here.
+   *  This is necessary to prevent them from getting interpolated before an implicit
+   *  parameter search.
    */
   private def variances(tp: Type, include: TypeVar => Boolean)(implicit ctx: Context): VarianceMap = Stats.track("variances") {
     val constraint = ctx.typerState.constraint
@@ -324,6 +328,11 @@ object Inferencing {
           if (v == null) vmap.updated(t, variance)
           else if (v == variance || v == 0) vmap
           else vmap.updated(t, 0)
+        case t: ImplicitMethodType =>
+          val saved = variance
+          variance = 0
+          val vmap1 = try foldOver(vmap, t.paramTypes) finally variance = saved
+          apply(vmap1, t.resultType)
         case _ =>
           foldOver(vmap, t)
       }
diff --git a/compiler/src/dotty/tools/dotc/typer/Typer.scala b/compiler/src/dotty/tools/dotc/typer/Typer.scala
index fe158dfe2005..d39a46c32b76 100644
--- a/compiler/src/dotty/tools/dotc/typer/Typer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Typer.scala
@@ -1697,8 +1697,13 @@ class Typer extends Namer with TypeAssigner with Applications with Implicits wit
 
   def adapt(tree: Tree, pt: Type, original: untpd.Tree = untpd.EmptyTree)(implicit ctx: Context): Tree = /*>|>*/ track("adapt") /*<|<*/ {
     /*>|>*/ ctx.traceIndented(i"adapting $tree of type ${tree.tpe} to $pt", typr, show = true) /*<|<*/ {
+      def shouldInterpolate(tp: Type) = tp match {
+        case tp: PolyType => false
+        case tp: MethodType => tp.isImplicit
+        case _ => true
+      }
       if (tree.isDef) interpolateUndetVars(tree, tree.symbol)
-      else if (!tree.tpe.widen.isInstanceOf[MethodOrPoly]) interpolateUndetVars(tree, NoSymbol)
+      else if (shouldInterpolate(tree.tpe.widen)) interpolateUndetVars(tree, NoSymbol)
       tree.overwriteType(tree.tpe.simplified)
       adaptInterpolated(tree, pt, original)
     }
diff --git a/tests/pos/i1857.scala b/tests/pos/i1857.scala
new file mode 100644
index 000000000000..a48e41932dfa
--- /dev/null
+++ b/tests/pos/i1857.scala
@@ -0,0 +1,34 @@
+trait CommandeerDSL[Host] {
+  trait Operation[T]
+  type Op[T] <: Operation[T]
+}
+
+object CommandeerDSL {
+  def apply[Host, DSL <: CommandeerDSL[Host]](host: Host)(implicit dsl: DSL): DSL = dsl
+}
+
+trait Foo {
+  def bar(a: String, b: Int): Double
+}
+
+object Foo {
+  implicit val fooDSL: FooDSL = new FooDSL {}
+}
+
+trait FooDSL extends CommandeerDSL[Foo] {
+  sealed trait FooOperation[T] extends Operation[T]
+  type Op[T] = FooOperation[T]
+
+  case class Bar(a: String, b: Int) extends FooOperation[Double]
+}
+
+object RunMe {
+  def main(args: Array[String]): Unit = {
+    println("Hi Mum")
+
+    val kevin = CommandeerDSL(null.asInstanceOf[Foo])
+    println(s"Found DSL for Foo: $kevin")
+    val bar = kevin.Bar("bob", 3)
+    println(s"Made a bar: $bar")
+  }
+}
diff --git a/tests/pos/i1857a.scala b/tests/pos/i1857a.scala
new file mode 100644
index 000000000000..a7b3b3089a41
--- /dev/null
+++ b/tests/pos/i1857a.scala
@@ -0,0 +1,10 @@
+object Test {
+  def foo1[T](x: T)(implicit ev: T): Nothing = ???
+
+  def test1: Unit = {
+    implicit val ii: Int = 42
+    implicit val ss: String = "foo"
+
+    foo1(10) // ambiguous implicit because T=Any
+  }
+}