diff --git a/src/Psalm/Internal/Analyzer/TypeAnalyzer.php b/src/Psalm/Internal/Analyzer/TypeAnalyzer.php
index bfc829865..386b751f4 100644
--- a/src/Psalm/Internal/Analyzer/TypeAnalyzer.php
+++ b/src/Psalm/Internal/Analyzer/TypeAnalyzer.php
@@ -1962,6 +1962,7 @@ class TypeAnalyzer
                         $all_types_contain = false;
                     }
                 } elseif (!$input_type_part instanceof TIterable
+                    && !$container_type_part instanceof TIterable
                     && !$container_param->hasTemplate()
                     && !$input_param->hasTemplate()
                 ) {
diff --git a/tests/Template/ClassTemplateExtendsTest.php b/tests/Template/ClassTemplateExtendsTest.php
index d4c3b859b..004187cbf 100644
--- a/tests/Template/ClassTemplateExtendsTest.php
+++ b/tests/Template/ClassTemplateExtendsTest.php
@@ -2411,6 +2411,15 @@ class ClassTemplateExtendsTest extends TestCase
                         $anInt = $maybe->extract();
                     }'
             ],
+           'extendIterable' => [
+                '<?php
+                    class MyTestCase {
+                        /** @return iterable<int,array<int,int>> */
+                        public function provide() {
+                            yield [1];
+                        }
+                    }'
+            ],
         ];
     }