diff --git a/compiler/src/dotty/tools/dotc/typer/Inliner.scala b/compiler/src/dotty/tools/dotc/typer/Inliner.scala
index 45e33741172f..284fe5f9cf2a 100644
--- a/compiler/src/dotty/tools/dotc/typer/Inliner.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Inliner.scala
@@ -817,7 +817,7 @@ class Inliner(call: tpd.Tree, rhsToInline: tpd.Tree)(implicit ctx: Context) {
               newOwners = ctx.owner :: Nil,
               substFrom = ddef.vparamss.head.map(_.symbol),
               substTo = argSyms)
-            Inlined(ddef, bindingsBuf.toList, expander.transform(ddef.rhs))
+            Block(bindingsBuf.toList, expander.transform(ddef.rhs))
           case _ => tree
         }
       case _ => tree
diff --git a/tests/pos-macros/i7342/Macro_1.scala b/tests/pos-macros/i7342/Macro_1.scala
new file mode 100644
index 000000000000..dcbeb4759678
--- /dev/null
+++ b/tests/pos-macros/i7342/Macro_1.scala
@@ -0,0 +1,5 @@
+import scala.quoted.{ QuoteContext, Expr }
+
+trait Foo
+
+inline def g(em: Expr[Foo])(using QuoteContext) = '{$em}
diff --git a/tests/pos-macros/i7342/Macro_2.scala b/tests/pos-macros/i7342/Macro_2.scala
new file mode 100644
index 000000000000..e51a08189301
--- /dev/null
+++ b/tests/pos-macros/i7342/Macro_2.scala
@@ -0,0 +1,3 @@
+import scala.quoted.{ QuoteContext, Expr }
+
+def h(m: Expr[Foo])(using QuoteContext): Expr[Any] = g(m)
diff --git a/tests/pos/i7342/First_1.scala b/tests/pos/i7342/First_1.scala
new file mode 100644
index 000000000000..94e7c0cf281c
--- /dev/null
+++ b/tests/pos/i7342/First_1.scala
@@ -0,0 +1 @@
+inline def g(em: Int) = ((c: Int) => em).apply({println("AAAAAAA"); 1})
diff --git a/tests/pos/i7342/Second_2.scala b/tests/pos/i7342/Second_2.scala
new file mode 100644
index 000000000000..e207ccd59ff0
--- /dev/null
+++ b/tests/pos/i7342/Second_2.scala
@@ -0,0 +1 @@
+def h(m: Int) = g(m)