diff --git a/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.rs b/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.rs
new file mode 100644
index 0000000000000..20ecdee0a1a4b
--- /dev/null
+++ b/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.rs
@@ -0,0 +1,21 @@
+//! Regression test for <https://github.com/rust-lang/rust/issues/157774>.
+//!
+//! A self-referential inherent associated type used to ICE with
+//! `item_bounds called on` an impl item.
+
+//@ compile-flags: -Zassumptions-on-binders -Znext-solver=globally
+
+#![feature(inherent_associated_types)]
+#![expect(incomplete_features)]
+
+struct Foo<'a> {
+    x: &'a (),
+}
+
+impl<'a> Foo<'a> {
+    type Assoc = &'a Foo<'a>::Assoc;
+    //~^ ERROR overflow evaluating the requirement `Foo<'a>::Assoc == _`
+    //~| ERROR overflow evaluating whether `&'a Foo<'a>::Assoc` is well-formed
+}
+
+fn main() {}
diff --git a/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.stderr b/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.stderr
new file mode 100644
index 0000000000000..cc95902b64e54
--- /dev/null
+++ b/tests/ui/assumptions_on_binders/self-referential-inherent-assoc-type-issue-157774.stderr
@@ -0,0 +1,15 @@
+error[E0275]: overflow evaluating the requirement `Foo<'a>::Assoc == _`
+  --> $DIR/self-referential-inherent-assoc-type-issue-157774.rs:16:5
+   |
+LL |     type Assoc = &'a Foo<'a>::Assoc;
+   |     ^^^^^^^^^^
+
+error[E0275]: overflow evaluating whether `&'a Foo<'a>::Assoc` is well-formed
+  --> $DIR/self-referential-inherent-assoc-type-issue-157774.rs:16:5
+   |
+LL |     type Assoc = &'a Foo<'a>::Assoc;
+   |     ^^^^^^^^^^
+
+error: aborting due to 2 previous errors
+
+For more information about this error, try `rustc --explain E0275`.