diff --git a/build.sbt b/build.sbt
index 1336b65c..adaa4a94 100644
--- a/build.sbt
+++ b/build.sbt
@@ -37,7 +37,7 @@ inThisBuild(Def.settings(
     Developer("sjrd", "Sébastien Doeraene", "sjrdoeraene@gmail.com", url("https://github.com/sjrd/")),
     Developer("bishabosha", "Jamie Thompson", "bishbashboshjt@gmail.com", url("https://github.com/bishabosha")),
   ),
-  versionPolicyIntention := Compatibility.BinaryAndSourceCompatible,
+  versionPolicyIntention := Compatibility.BinaryCompatible,
   // Ignore dependencies to internal modules whose version is like `1.2.3+4...` (see https://github.com/scalacenter/sbt-version-policy#how-to-integrate-with-sbt-dynver)
   versionPolicyIgnoredInternalDependencyVersions := Some("^\\d+\\.\\d+\\.\\d+\\+\\d+".r)
 ))
diff --git a/tasty-query/shared/src/main/scala/tastyquery/Printers.scala b/tasty-query/shared/src/main/scala/tastyquery/Printers.scala
index b79cba61..042ba163 100644
--- a/tasty-query/shared/src/main/scala/tastyquery/Printers.scala
+++ b/tasty-query/shared/src/main/scala/tastyquery/Printers.scala
@@ -655,6 +655,13 @@ private[tastyquery] object Printers:
             case elem: TypeMember => print(elem)
             case elem: TypeTree   => print(elem)
         }
+
+      case InlinedTypeTree(caller, expansion) =>
+        for c <- caller do
+          print("<inlined: ")
+          print(c)
+          print(">")
+        print(expansion)
     end print
 
     def print(tree: WildcardTypeArgTree): Unit =
diff --git a/tasty-query/shared/src/main/scala/tastyquery/Traversers.scala b/tasty-query/shared/src/main/scala/tastyquery/Traversers.scala
index eea9f345..d242760e 100644
--- a/tasty-query/shared/src/main/scala/tastyquery/Traversers.scala
+++ b/tasty-query/shared/src/main/scala/tastyquery/Traversers.scala
@@ -179,6 +179,9 @@ object Traversers:
       case TypeBindingsTree(bindings, body) =>
         traverse(bindings)
         traverse(body)
+      case InlinedTypeTree(caller, expansion) =>
+        traverse(caller)
+        traverse(expansion)
 
       // TypeDefinitionTree's
       case InferredTypeBoundsTree(bounds) =>
diff --git a/tasty-query/shared/src/main/scala/tastyquery/Trees.scala b/tasty-query/shared/src/main/scala/tastyquery/Trees.scala
index ccee427a..068253d7 100644
--- a/tasty-query/shared/src/main/scala/tastyquery/Trees.scala
+++ b/tasty-query/shared/src/main/scala/tastyquery/Trees.scala
@@ -920,6 +920,21 @@ object Trees {
     override def withPos(pos: SourcePosition): TypeBindingsTree = TypeBindingsTree(bindings, body)(pos)
   end TypeBindingsTree
 
+  /** A tree representing an inlined type.
+    *
+    * @param caller
+    *   The toplevel class from which the type was inlined.
+    * @param expansion
+    *   The expanded type.
+    */
+  final case class InlinedTypeTree(caller: Option[TypeIdent | SelectTypeTree], expansion: TypeTree)(pos: SourcePosition)
+      extends TypeTree(pos):
+    override protected def calculateType: NonEmptyPrefix =
+      expansion.toPrefix
+
+    override final def withPos(pos: SourcePosition): InlinedTypeTree = InlinedTypeTree(caller, expansion)(pos)
+  end InlinedTypeTree
+
   // --- TypeDefinitionTrees and TypeBoundsTrees ------------------------------
 
   sealed abstract class TypeDefinitionTree(pos: SourcePosition) extends Tree(pos):
diff --git a/tasty-query/shared/src/main/scala/tastyquery/reader/tasties/TreeUnpickler.scala b/tasty-query/shared/src/main/scala/tastyquery/reader/tasties/TreeUnpickler.scala
index 494be3cd..254ddb84 100644
--- a/tasty-query/shared/src/main/scala/tastyquery/reader/tasties/TreeUnpickler.scala
+++ b/tasty-query/shared/src/main/scala/tastyquery/reader/tasties/TreeUnpickler.scala
@@ -1073,20 +1073,7 @@ private[tasties] class TreeUnpickler private (
       reader.readByte()
       val end = reader.readEnd()
       val expr = readTerm
-      val caller: Option[TypeIdent | SelectTypeTree] =
-        reader.ifBefore(end)(
-          tagFollowShared match {
-            // The caller is not specified, this is a binding (or next val or def)
-            case VALDEF | DEFDEF => None
-            case _ =>
-              readTypeTree match
-                case caller: TypeIdent      => Some(caller)
-                case caller: SelectTypeTree => Some(caller)
-                case caller =>
-                  throw TastyFormatException(s"Unexpected Inlined caller $caller $posErrorMsg")
-          },
-          None
-        )
+      val caller = readInlinedCaller(end)
       val bindings = reader.until(end)(readValOrDefDef)
       Inlined(expr, caller, bindings)(spn)
     case SHAREDterm =>
@@ -1635,6 +1622,15 @@ private[tasties] class TreeUnpickler private (
       val body = readTypeTree
       val bindings = readStats(end).map(_.asInstanceOf[TypeMember])
       TypeBindingsTree(bindings, body)(spn)
+    case INLINED =>
+      val spn = span
+      reader.readByte()
+      val end = reader.readEnd()
+      val expansion = readTypeTree
+      val caller = readInlinedCaller(end)
+      if reader.currentAddr != end then
+        throw TastyFormatException(s"Unexpected bindings in INLINED type tree $posErrorMsg")
+      InlinedTypeTree(caller, expansion)(spn)
     case SHAREDterm =>
       val spn = span
       reader.readByte()
@@ -1646,6 +1642,22 @@ private[tasties] class TreeUnpickler private (
       TypeWrapper(readNonEmptyPrefix())(span)
   }
 
+  private def readInlinedCaller(end: Addr)(using SourceFile): Option[TypeIdent | SelectTypeTree] =
+    reader.ifBefore(end)(
+      tagFollowShared match {
+        // The caller is not specified, this is a binding (or next val or def)
+        case VALDEF | DEFDEF => None
+        case _ =>
+          readTypeTree match
+            case caller: TypeIdent      => Some(caller)
+            case caller: SelectTypeTree => Some(caller)
+            case caller =>
+              throw TastyFormatException(s"Unexpected Inlined caller $caller $posErrorMsg")
+      },
+      None
+    )
+  end readInlinedCaller
+
   private def protectReadDefiningTypeTree[A <: TypeTree](body: => A): A =
     /* It is possible to find SHAREDterm's referencing REFINEDtpt, `LAMBDAtpt`, etc.
      * This is bad because a these TypeTree's define symbols. If we read them
diff --git a/tasty-query/shared/src/test/scala/tastyquery/ReadTreeSuite.scala b/tasty-query/shared/src/test/scala/tastyquery/ReadTreeSuite.scala
index b18fec38..43802be4 100644
--- a/tasty-query/shared/src/test/scala/tastyquery/ReadTreeSuite.scala
+++ b/tasty-query/shared/src/test/scala/tastyquery/ReadTreeSuite.scala
@@ -1452,6 +1452,22 @@ class ReadTreeSuite extends RestrictedUnpicklingSuite {
     assert(containsSubtree(inlined)(clue(tree)))
   }
 
+  testUnpickle("inlined-path", "simple_trees.InlinedPath") { tree =>
+    val inlinedPath: StructureCheck = {
+      case SelectTypeTree(
+            InlinedTypeTree(
+              Some(TypeIdent(ObjectClassTypeName(SimpleTypeName("InlinedPath")))),
+              InlinedTypeTree(None, TypeWrapper(TermRefInternal(NoPrefix, xSym: Symbol)))
+            ),
+            SimpleTypeName("Inner")
+          ) if xSym.name == termName("x") =>
+    }
+    val testDef = findTree(tree) { case testDef @ DefDef(SimpleName("test"), _, _, _, _) =>
+      testDef
+    }
+    assert(containsSubtree(inlinedPath)(clue(testDef)))
+  }
+
   testUnpickle("select-tpt", "simple_trees.SelectType") { tree =>
     val selectTpt: StructureCheck = {
       case ValDef(
diff --git a/tasty-query/shared/src/test/scala/tastyquery/TypeSuite.scala b/tasty-query/shared/src/test/scala/tastyquery/TypeSuite.scala
index 2bbe49fb..6a4c47f3 100644
--- a/tasty-query/shared/src/test/scala/tastyquery/TypeSuite.scala
+++ b/tasty-query/shared/src/test/scala/tastyquery/TypeSuite.scala
@@ -3677,4 +3677,25 @@ class TypeSuite extends UnrestrictedUnpicklingSuite {
       case arg =>
         fail("unexpected argument to @macroImpl", clues(arg))
   }
+
+  testWithContext("inlined-path-issue-424") {
+    val InlinedPathClass = ctx.findTopLevelClass("simple_trees.InlinedPath")
+    val FooClass = ctx.findStaticClass("simple_trees.InlinedPath.Foo")
+    val InnerTypeMember = FooClass.findDecl(typeName("Inner"))
+
+    val test = InlinedPathClass.findNonOverloadedDecl(termName("test"))
+    val List(Left(List(x)), Left(List(inner))) = test.paramSymss: @unchecked
+
+    assert(clue(x.name) == termName("x"))
+    assert(clue(x).isGivenOrUsing)
+    assert(clue(x.declaredType).isRef(FooClass))
+
+    assert(clue(inner.name) == termName("inner"))
+    inner.declaredType match
+      case typeRef: TypeRef =>
+        assert(clue(typeRef.prefix).isRef(x)) // through inlining the path
+        assert(typeRef.isRef(InnerTypeMember))
+      case tpe =>
+        fail("unexpected type for inner", clues(tpe))
+  }
 }
diff --git a/test-sources/src/main/scala/simple_trees/InlinedPath.scala b/test-sources/src/main/scala/simple_trees/InlinedPath.scala
new file mode 100644
index 00000000..1be25bbc
--- /dev/null
+++ b/test-sources/src/main/scala/simple_trees/InlinedPath.scala
@@ -0,0 +1,14 @@
+package simple_trees
+
+object InlinedPath:
+  trait Foo:
+    type Inner
+
+  transparent inline def foo(using x: Foo): x.type = x
+end InlinedPath
+
+class InlinedPath:
+  import InlinedPath.*
+
+  def test(using x: Foo)(inner: foo.Inner): foo.Inner = inner
+end InlinedPath