diff --git a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.errors.txt b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.errors.txt
index f222f399dabfa..b03c485b178a2 100644
--- a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.errors.txt
+++ b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.errors.txt
@@ -6,9 +6,12 @@ tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts(39,9):
   Object literal may only specify known properties, and 'invalid' does not exist in type '{ l2: Schema3<boolean>; }'.
 tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts(52,9): error TS2322: Type '{ l2: { type: "boolean"; }; invalid: false; }' is not assignable to type 'Example<{ l2: boolean; }> & { l2: ({ type: "boolean"; } & Example<false>) | ({ type: "boolean"; } & Example<true>); }'.
   Object literal may only specify known properties, and 'invalid' does not exist in type 'Example<{ l2: boolean; }> & { l2: ({ type: "boolean"; } & Example<false>) | ({ type: "boolean"; } & Example<true>); }'.
+tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts(86,11): error TS2322: Type '{ name: string; children: { name: string; children: { name: string; }[]; }[]; }' is not assignable to type 'User'.
+  Object literal may only specify known properties, and 'children' does not exist in type 'User'.
+tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts(102,35): error TS2339: Property 'children' does not exist on type 'User'.
 
 
-==== tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts (4 errors) ====
+==== tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts (6 errors) ====
     // repro from #44750
     
     type Request = { l1: { l2: boolean } };
@@ -81,4 +84,56 @@ tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts(52,9):
         },
       },
     }
+    
+    // repro from #40405
+    
+    type Length<T extends any[]> = T["length"];
+    type Prepend<V, T extends any[]> = ((head: V, ...args: T) => void) extends (
+      ...args: infer R
+    ) => void
+      ? R
+      : any;
+    
+    type BuildTree<T, N extends number = -1, I extends any[] = []> = {
+      1: T;
+      0: T & { children: BuildTree<T, N, Prepend<any, I>>[] };
+    }[Length<I> extends N ? 1 : 0];
+    
+    interface User {
+      name: string;
+    }
+    
+    type GrandUser = BuildTree<User, 2>;
+    
+    const grandUser: GrandUser = {
+      name: "Grand User",
+      children: [
+        {
+          name: "Son",
+          children: [
+            {
+              name: "Grand son",
+              children: [
+              ~~~~~~~~
+!!! error TS2322: Type '{ name: string; children: { name: string; children: { name: string; }[]; }[]; }' is not assignable to type 'User'.
+!!! error TS2322:   Object literal may only specify known properties, and 'children' does not exist in type 'User'.
+                {
+                  name: "123",
+                  children: [
+                    {
+                      name: "Some other name",
+                    },
+                  ],
+                },
+              ],
+            },
+          ],
+        },
+      ],
+    };
+    
+    grandUser.children[0].children[0].children[0];
+                                      ~~~~~~~~
+!!! error TS2339: Property 'children' does not exist on type 'User'.
+    
     
\ No newline at end of file
diff --git a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.symbols b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.symbols
index 581bf89beeb68..6b377e44993c1 100644
--- a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.symbols
+++ b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.symbols
@@ -176,3 +176,115 @@ export const schemaObj4: Schema4<Request> = {
   },
 }
 
+// repro from #40405
+
+type Length<T extends any[]> = T["length"];
+>Length : Symbol(Length, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 55, 1))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 59, 12))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 59, 12))
+
+type Prepend<V, T extends any[]> = ((head: V, ...args: T) => void) extends (
+>Prepend : Symbol(Prepend, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 59, 43))
+>V : Symbol(V, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 13))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 15))
+>head : Symbol(head, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 37))
+>V : Symbol(V, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 13))
+>args : Symbol(args, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 45))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 15))
+
+  ...args: infer R
+>args : Symbol(args, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 60, 76))
+>R : Symbol(R, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 61, 16))
+
+) => void
+  ? R
+>R : Symbol(R, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 61, 16))
+
+  : any;
+
+type BuildTree<T, N extends number = -1, I extends any[] = []> = {
+>BuildTree : Symbol(BuildTree, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 64, 8))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 15))
+>N : Symbol(N, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 17))
+>I : Symbol(I, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 40))
+
+  1: T;
+>1 : Symbol(1, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 66))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 15))
+
+  0: T & { children: BuildTree<T, N, Prepend<any, I>>[] };
+>0 : Symbol(0, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 67, 7))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 15))
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 68, 10))
+>BuildTree : Symbol(BuildTree, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 64, 8))
+>T : Symbol(T, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 15))
+>N : Symbol(N, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 17))
+>Prepend : Symbol(Prepend, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 59, 43))
+>I : Symbol(I, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 40))
+
+}[Length<I> extends N ? 1 : 0];
+>Length : Symbol(Length, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 55, 1))
+>I : Symbol(I, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 40))
+>N : Symbol(N, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 66, 17))
+
+interface User {
+>User : Symbol(User, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 69, 31))
+
+  name: string;
+>name : Symbol(User.name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 71, 16))
+}
+
+type GrandUser = BuildTree<User, 2>;
+>GrandUser : Symbol(GrandUser, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 73, 1))
+>BuildTree : Symbol(BuildTree, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 64, 8))
+>User : Symbol(User, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 69, 31))
+
+const grandUser: GrandUser = {
+>grandUser : Symbol(grandUser, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 77, 5))
+>GrandUser : Symbol(GrandUser, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 73, 1))
+
+  name: "Grand User",
+>name : Symbol(name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 77, 30))
+
+  children: [
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 78, 21))
+    {
+      name: "Son",
+>name : Symbol(name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 80, 5))
+
+      children: [
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 81, 18))
+        {
+          name: "Grand son",
+>name : Symbol(name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 83, 9))
+
+          children: [
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 84, 28))
+            {
+              name: "123",
+>name : Symbol(name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 86, 13))
+
+              children: [
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 87, 26))
+                {
+                  name: "Some other name",
+>name : Symbol(name, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 89, 17))
+
+                },
+              ],
+            },
+          ],
+        },
+      ],
+    },
+  ],
+};
+
+grandUser.children[0].children[0].children[0];
+>grandUser.children[0].children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 68, 10))
+>grandUser.children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 68, 10))
+>grandUser : Symbol(grandUser, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 77, 5))
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 68, 10))
+>children : Symbol(children, Decl(excessPropertyCheckIntersectionWithRecursiveType.ts, 68, 10))
+
+
diff --git a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.types b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.types
index 0f8126fe44bd8..e3ef29eda26d9 100644
--- a/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.types
+++ b/tests/baselines/reference/excessPropertyCheckIntersectionWithRecursiveType.types
@@ -154,3 +154,116 @@ export const schemaObj4: Schema4<Request> = {
   },
 }
 
+// repro from #40405
+
+type Length<T extends any[]> = T["length"];
+>Length : Length<T>
+
+type Prepend<V, T extends any[]> = ((head: V, ...args: T) => void) extends (
+>Prepend : [head: V, ...args: T]
+>head : V
+>args : T
+
+  ...args: infer R
+>args : R
+
+) => void
+  ? R
+  : any;
+
+type BuildTree<T, N extends number = -1, I extends any[] = []> = {
+>BuildTree : BuildTree<T, N, I>
+>-1 : -1
+>1 : 1
+
+  1: T;
+>1 : T
+
+  0: T & { children: BuildTree<T, N, Prepend<any, I>>[] };
+>0 : T & { children: BuildTree<T, N, Prepend<any, I>>[]; }
+>children : BuildTree<T, N, [head: any, ...args: I]>[]
+
+}[Length<I> extends N ? 1 : 0];
+
+interface User {
+  name: string;
+>name : string
+}
+
+type GrandUser = BuildTree<User, 2>;
+>GrandUser : User & { children: (User & { children: User[]; })[]; }
+
+const grandUser: GrandUser = {
+>grandUser : User & { children: (User & { children: User[]; })[]; }
+>{  name: "Grand User",  children: [    {      name: "Son",      children: [        {          name: "Grand son",          children: [            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ],        },      ],    },  ],} : { name: string; children: { name: string; children: { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]; }[]; }
+
+  name: "Grand User",
+>name : string
+>"Grand User" : "Grand User"
+
+  children: [
+>children : { name: string; children: { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]; }[]
+>[    {      name: "Son",      children: [        {          name: "Grand son",          children: [            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ],        },      ],    },  ] : { name: string; children: { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]; }[]
+    {
+>{      name: "Son",      children: [        {          name: "Grand son",          children: [            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ],        },      ],    } : { name: string; children: { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]; }
+
+      name: "Son",
+>name : string
+>"Son" : "Son"
+
+      children: [
+>children : { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]
+>[        {          name: "Grand son",          children: [            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ],        },      ] : { name: string; children: { name: string; children: { name: string; }[]; }[]; }[]
+        {
+>{          name: "Grand son",          children: [            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ],        } : { name: string; children: { name: string; children: { name: string; }[]; }[]; }
+
+          name: "Grand son",
+>name : string
+>"Grand son" : "Grand son"
+
+          children: [
+>children : { name: string; children: { name: string; }[]; }[]
+>[            {              name: "123",              children: [                {                  name: "Some other name",                },              ],            },          ] : { name: string; children: { name: string; }[]; }[]
+            {
+>{              name: "123",              children: [                {                  name: "Some other name",                },              ],            } : { name: string; children: { name: string; }[]; }
+
+              name: "123",
+>name : string
+>"123" : "123"
+
+              children: [
+>children : { name: string; }[]
+>[                {                  name: "Some other name",                },              ] : { name: string; }[]
+                {
+>{                  name: "Some other name",                } : { name: string; }
+
+                  name: "Some other name",
+>name : string
+>"Some other name" : "Some other name"
+
+                },
+              ],
+            },
+          ],
+        },
+      ],
+    },
+  ],
+};
+
+grandUser.children[0].children[0].children[0];
+>grandUser.children[0].children[0].children[0] : any
+>grandUser.children[0].children[0].children : any
+>grandUser.children[0].children[0] : User
+>grandUser.children[0].children : User[]
+>grandUser.children[0] : User & { children: User[]; }
+>grandUser.children : (User & { children: User[]; })[]
+>grandUser : User & { children: (User & { children: User[]; })[]; }
+>children : (User & { children: User[]; })[]
+>0 : 0
+>children : User[]
+>0 : 0
+>children : any
+>0 : 0
+
+
diff --git a/tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts b/tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts
index 187ed70e80721..85b569ac13791 100644
--- a/tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts
+++ b/tests/cases/compiler/excessPropertyCheckIntersectionWithRecursiveType.ts
@@ -57,3 +57,50 @@ export const schemaObj4: Schema4<Request> = {
     },
   },
 }
+
+// repro from #40405
+
+type Length<T extends any[]> = T["length"];
+type Prepend<V, T extends any[]> = ((head: V, ...args: T) => void) extends (
+  ...args: infer R
+) => void
+  ? R
+  : any;
+
+type BuildTree<T, N extends number = -1, I extends any[] = []> = {
+  1: T;
+  0: T & { children: BuildTree<T, N, Prepend<any, I>>[] };
+}[Length<I> extends N ? 1 : 0];
+
+interface User {
+  name: string;
+}
+
+type GrandUser = BuildTree<User, 2>;
+
+const grandUser: GrandUser = {
+  name: "Grand User",
+  children: [
+    {
+      name: "Son",
+      children: [
+        {
+          name: "Grand son",
+          children: [
+            {
+              name: "123",
+              children: [
+                {
+                  name: "Some other name",
+                },
+              ],
+            },
+          ],
+        },
+      ],
+    },
+  ],
+};
+
+grandUser.children[0].children[0].children[0];
+