diff --git a/crates/emmylua_code_analysis/src/compilation/test/flow.rs b/crates/emmylua_code_analysis/src/compilation/test/flow.rs
index 34bae9ae..0a87b6dd 100644
--- a/crates/emmylua_code_analysis/src/compilation/test/flow.rs
+++ b/crates/emmylua_code_analysis/src/compilation/test/flow.rs
@@ -1,6 +1,5 @@
 #[cfg(test)]
 mod test {
-
     use crate::{DiagnosticCode, LuaType, VirtualWorkspace};
 
     #[test]
@@ -1174,8 +1173,25 @@ end
             end
             "#,
         );
-        let a = ws.expr_ty("A");
-        assert_eq!(ws.humanize_type(a), "T");
+
+        // Note: we can't use `ws.ty_expr("A")` to get a true type of `A`
+        // because `infer_global_type` will not allow generic variables
+        // from `bindGC` to escape into global space.
+        let db = &ws.analysis.compilation.db;
+        let decl_id = db
+            .get_global_index()
+            .get_global_decl_ids("A")
+            .unwrap()
+            .first()
+            .unwrap()
+            .clone();
+        let typ = db
+            .get_type_index()
+            .get_type_cache(&decl_id.into())
+            .unwrap()
+            .as_type();
+
+        assert_eq!(ws.humanize_type(typ.clone()), "T");
     }
 
     #[test]
diff --git a/crates/emmylua_code_analysis/src/compilation/test/generic_test.rs b/crates/emmylua_code_analysis/src/compilation/test/generic_test.rs
index dd47e750..64f30485 100644
--- a/crates/emmylua_code_analysis/src/compilation/test/generic_test.rs
+++ b/crates/emmylua_code_analysis/src/compilation/test/generic_test.rs
@@ -120,4 +120,42 @@ mod test {
         let expected = ws.ty("string");
         assert_eq!(a_ty, expected);
     }
+
+    #[test]
+    fn test_local_generics_in_global_scope() {
+        let mut ws = VirtualWorkspace::new();
+        ws.def(
+            r#"
+                --- @generic T
+                --- @param x T
+                function foo(x)
+                    a = x
+                end
+            "#,
+        );
+        let a_ty = ws.expr_ty("a");
+        assert_eq!(a_ty, ws.ty("unknown"));
+    }
+
+    // Currently fails:
+    /*
+    #[test]
+    fn test_local_generics_in_global_scope_member() {
+        let mut ws = VirtualWorkspace::new();
+        ws.def(
+            r#"
+                t = {}
+
+                --- @generic T
+                --- @param x T
+                function foo(x)
+                    t.a = x
+                end
+                local b = t.a
+            "#,
+        );
+        let a_ty = ws.expr_ty("t.a");
+        assert_eq!(a_ty, LuaType::Unknown);
+    }
+    */
 }
diff --git a/crates/emmylua_code_analysis/src/semantic/infer/infer_name.rs b/crates/emmylua_code_analysis/src/semantic/infer/infer_name.rs
index 7eb39ea5..8bc056f7 100644
--- a/crates/emmylua_code_analysis/src/semantic/infer/infer_name.rs
+++ b/crates/emmylua_code_analysis/src/semantic/infer/infer_name.rs
@@ -344,9 +344,17 @@ pub fn infer_global_type(db: &DbIndex, name: &str) -> InferResult {
         .ok_or(InferFailReason::None)?;
     if decl_ids.len() == 1 {
         let id = decl_ids[0];
-        return match db.get_type_index().get_type_cache(&id.into()) {
-            Some(type_cache) => Ok(type_cache.as_type().clone()),
-            None => Err(InferFailReason::UnResolveDeclType(id)),
+        let typ = match db.get_type_index().get_type_cache(&id.into()) {
+            Some(type_cache) => type_cache.as_type().clone(),
+            None => return Err(InferFailReason::UnResolveDeclType(id)),
+        };
+        return if typ.contain_tpl() {
+            // This decl is located in a generic function,
+            // and is type contains references to generic variables
+            // of this function.
+            Ok(LuaType::Unknown)
+        } else {
+            Ok(typ)
         };
     }
 
@@ -365,6 +373,14 @@ pub fn infer_global_type(db: &DbIndex, name: &str) -> InferResult {
         match decl_type_cache {
             Some(type_cache) => {
                 let typ = type_cache.as_type();
+
+                if typ.contain_tpl() {
+                    // This decl is located in a generic function,
+                    // and is type contains references to generic variables
+                    // of this function.
+                    continue;
+                }
+
                 if typ.is_def() || typ.is_ref() || typ.is_function() {
                     return Ok(typ.clone());
                 }