diff --git a/compiler/src/dotty/tools/dotc/transform/Erasure.scala b/compiler/src/dotty/tools/dotc/transform/Erasure.scala
index f068a48cdba4..e20a16c9e60e 100644
--- a/compiler/src/dotty/tools/dotc/transform/Erasure.scala
+++ b/compiler/src/dotty/tools/dotc/transform/Erasure.scala
@@ -869,7 +869,7 @@ object Erasure {
 
           app(fun1)
         case t =>
-          if ownArgs.isEmpty then fun1
+          if ownArgs.isEmpty || t.isError then fun1
           else throw new MatchError(i"tree $tree has unexpected type of function $fun/$fun1: $t, was $origFunType, args = $ownArgs")
     end typedApply
 
diff --git a/tests/neg/i17391/Bar.java b/tests/neg/i17391/Bar.java
new file mode 100644
index 000000000000..6d432926bde2
--- /dev/null
+++ b/tests/neg/i17391/Bar.java
@@ -0,0 +1,7 @@
+package mypkg;
+
+class Base<E> {
+    public void retainAll(String x) {}
+}
+
+public class Bar<E> extends Base<E> {}
diff --git a/tests/neg/i17391/test.scala b/tests/neg/i17391/test.scala
new file mode 100644
index 000000000000..dbcc0ec39de8
--- /dev/null
+++ b/tests/neg/i17391/test.scala
@@ -0,0 +1,11 @@
+def test(): Unit =
+{
+  val x: Foo[mypkg.Bar[String]] = ???
+  val y: mypkg.Bar[String] = ???
+
+  y.retainAll("fd") // works
+  x.f.retainAll("fd"); // error
+
+}
+
+class Foo[T](val f: T)