diff --git a/compiler/semcall.nim b/compiler/semcall.nim
index 29d19875d4157..986b847fd2b69 100644
--- a/compiler/semcall.nim
+++ b/compiler/semcall.nim
@@ -160,9 +160,13 @@ proc pickBestCandidate(c: PContext, headSymbol: PNode,
           addTypeBoundSymbols(c.graph, arg.typ, name, filter, symMarker, syms)
 
       if z.state == csMatch:
-        # little hack so that iterators are preferred over everything else:
+        # Iterator preference is heuristic in iterator-admitting contexts.
+        # The dedicated iterable path uses `iteratorPreference`, other
+        # context use exact-match bump
         if sym.kind == skIterator:
-          if not (efWantIterator notin flags and efWantIterable in flags):
+          if efPreferIteratorForIterable in flags:
+            inc(z.iteratorPreference)
+          elif not (efWantIterator notin flags and efWantIterable in flags):
             inc(z.exactMatches, 200)
           else:
             dec(z.exactMatches, 200)
@@ -671,7 +675,7 @@ proc bracketNotFoundError(c: PContext; n: PNode; flags: TExprFlags) =
   # copied from semOverloadedCallAnalyzeEffects, might be overkill:
   const baseFilter = {skProc, skFunc, skMethod, skConverter, skMacro, skTemplate}
   let filter =
-    if flags*{efInTypeof, efWantIterator, efWantIterable} != {}:
+    if flags*{efInTypeof, efWantIterator, efWantIterable, efPreferIteratorForIterable} != {}:
       baseFilter + {skIterator}
     else: baseFilter
   # this will add the errors:
diff --git a/compiler/semdata.nim b/compiler/semdata.nim
index a3aae559fda24..0fc000051c442 100644
--- a/compiler/semdata.nim
+++ b/compiler/semdata.nim
@@ -54,7 +54,18 @@ type
     inst*: PInstantiation
 
   TExprFlag* = enum
-    efLValue, efWantIterator, efWantIterable, efInTypeof,
+    efLValue,
+      # The expression is used as an assignable location.
+    efWantIterator,
+      # Admit iterator candidates and prefer them during overload resolution.
+    efWantIterable,
+      # Admit iterator candidates for expressions that may feed iterable-style
+      # chaining.
+    efPreferIteratorForIterable,
+      # Prefer iterator candidates for `iterable[T]` matching and wrap a
+      # successful iterator call as `tyIterable`.
+    efInTypeof,
+      # The expression is being semchecked under `typeof`.
     efNeedStatic,
       # Use this in contexts where a static value is mandatory
     efPreferStatic,
diff --git a/compiler/semexprs.nim b/compiler/semexprs.nim
index 2763adc074711..96a841580757e 100644
--- a/compiler/semexprs.nim
+++ b/compiler/semexprs.nim
@@ -979,7 +979,7 @@ proc semStaticExpr(c: PContext, n: PNode; expectedType: PType = nil): PNode =
 
 proc semOverloadedCallAnalyseEffects(c: PContext, n: PNode, nOrig: PNode,
                                      flags: TExprFlags; expectedType: PType = nil): PNode =
-  if flags*{efInTypeof, efWantIterator, efWantIterable} != {}:
+  if flags*{efInTypeof, efWantIterator, efWantIterable, efPreferIteratorForIterable} != {}:
     # consider: 'for x in pReturningArray()' --> we don't want the restriction
     # to 'skIterator' anymore; skIterator is preferred in sigmatch already
     # for typeof support.
@@ -1006,7 +1006,8 @@ proc semOverloadedCallAnalyseEffects(c: PContext, n: PNode, nOrig: PNode,
         # See bug #2051:
         result[0] = newSymNode(errorSym(c, n))
       elif callee.kind == skIterator:
-        if efWantIterable in flags:
+        if result.typ.kind != tyIterable and
+            flags * {efWantIterable, efPreferIteratorForIterable} != {}:
           let typ = newTypeS(tyIterable, c)
           rawAddSon(typ, result.typ)
           result.typ = typ
@@ -1525,7 +1526,7 @@ proc builtinFieldAccess(c: PContext; n: PNode; flags: var TExprFlags): PNode =
     return
 
   # extra flags since LHS may become a call operand:
-  n[0] = semExprWithType(c, n[0], flags+{efDetermineType, efWantIterable, efAllowSymChoice})
+  n[0] = semExprWithType(c, n[0], flags + {efDetermineType, efWantIterable, efAllowSymChoice})
   #restoreOldStyleType(n[0])
   var i = considerQuotedIdent(c, n[1], n)
   var ty = n[0].typ
diff --git a/compiler/semstmts.nim b/compiler/semstmts.nim
index 7e07143837680..fdb7bc5cce9a8 100644
--- a/compiler/semstmts.nim
+++ b/compiler/semstmts.nim
@@ -1096,7 +1096,12 @@ proc symForVar(c: PContext, n: PNode): PSym =
 proc semForVars(c: PContext, n: PNode; flags: TExprFlags): PNode =
   result = n
   let iterBase = n[^2].typ
-  var iter = skipTypes(iterBase, {tyGenericInst, tyAlias, tySink, tyOwned})
+  let iterType =
+    if iterBase.kind == tyIterable:
+      iterBase.skipModifier
+    else:
+      skipTypes(iterBase, {tyAlias, tySink, tyOwned})
+  var iter = iterType
   var iterAfterVarLent = iter.skipTypes({tyGenericInst, tyAlias, tyLent, tyVar})
   # n.len == 3 means that there is one for loop variable
   # and thus no tuple unpacking:
@@ -1129,10 +1134,9 @@ proc semForVars(c: PContext, n: PNode; flags: TExprFlags): PNode =
       else:
         var v = symForVar(c, n[0])
         if getCurrOwner(c).kind == skModule: incl(v, sfGlobal)
-        # BUGFIX: don't use `iter` here as that would strip away
-        # the ``tyGenericInst``! See ``tests/compile/tgeneric.nim``
-        # for an example:
-        v.typ = iterBase
+        # Use `iterType` here: it removes outer `tyIterable` / alias-like wrappers
+        # from the loop source, but still preserves `tyGenericInst` for the loop var.
+        v.typ = iterType
         n[0] = newSymNode(v)
         if sfGenSym notin v.flags and not isDiscardUnderscore(v): addDecl(c, v)
         elif v.owner == nil: setOwner(v, getCurrOwner(c))
@@ -1196,14 +1200,14 @@ proc semForVars(c: PContext, n: PNode; flags: TExprFlags): PNode =
   c.p.breakInLoop = oldBreakInLoop
   dec(c.p.nestedLoopCounter)
 
-proc implicitIterator(c: PContext, it: string, arg: PNode): PNode =
+proc implicitIterator(c: PContext, it: string, arg: PNode, flags: TExprFlags): PNode =
   result = newNodeI(nkCall, arg.info)
   result.add(newIdentNode(getIdent(c.cache, it), arg.info))
   if arg.typ != nil and arg.typ.kind in {tyVar, tyLent}:
     result.add newDeref(arg)
   else:
     result.add arg
-  result = semExprNoDeref(c, result, {efWantIterator})
+  result = semExprNoDeref(c, result, flags + {efWantIterator})
 
 proc isTrivalStmtExpr(n: PNode): bool =
   for i in 0..<n.len-1:
@@ -1289,7 +1293,8 @@ proc semFor(c: PContext, n: PNode; flags: TExprFlags): PNode =
   if result != nil: return result
   openScope(c)
   result = n
-  n[^2] = semExprNoDeref(c, n[^2], {efWantIterator})
+  let iteratorFlags = flags * {efPreferIteratorForIterable}
+  n[^2] = semExprNoDeref(c, n[^2], iteratorFlags + {efWantIterator})
   var call = n[^2]
 
   if call.kind == nkStmtListExpr and (isTrivalStmtExpr(call) or (call.lastSon.kind in nkCallKinds and call.lastSon[0].sym.kind == skIterator)):
@@ -1309,14 +1314,16 @@ proc semFor(c: PContext, n: PNode; flags: TExprFlags): PNode =
   elif not isCallExpr or call[0].kind != nkSym or
       call[0].sym.kind != skIterator:
     if n.len == 3:
-      n[^2] = implicitIterator(c, "items", n[^2])
+      n[^2] = implicitIterator(c, "items", n[^2], iteratorFlags)
     elif n.len == 4:
-      n[^2] = implicitIterator(c, "pairs", n[^2])
+      n[^2] = implicitIterator(c, "pairs", n[^2], iteratorFlags)
     else:
       localError(c.config, n[^2].info, "iterator within for loop context expected")
     result = semForVars(c, n, flags)
   else:
     result = semForVars(c, n, flags)
+  if n[^2].typ != nil and n[^2].typ.kind == tyIterable:
+    n[^2].typ = n[^2].typ.skipModifier
   # propagate any enforced VoidContext:
   if n[^1].typ == c.enforceVoidContext:
     result.typ = c.enforceVoidContext
diff --git a/compiler/sigmatch.nim b/compiler/sigmatch.nim
index 2e46d508ae438..b42e69cd56709 100644
--- a/compiler/sigmatch.nim
+++ b/compiler/sigmatch.nim
@@ -46,7 +46,8 @@ type
 
   TCandidate* = object
     c*: PContext
-    exactMatches*: int       # also misused to prefer iters over procs
+    exactMatches*: int
+    iteratorPreference*: int # prefer iterators in iterator-oriented contexts
     genericMatches: int      # also misused to prefer constraints
     subtypeMatches: int
     intConvMatches: int      # conversions to int are not as expensive
@@ -110,7 +111,8 @@ proc markOwnerModuleAsUsed*(c: PContext; s: PSym)
 proc initCandidateAux(ctx: PContext,
                       callee: PType): TCandidate {.inline.} =
   result = TCandidate(c: ctx, exactMatches: 0, subtypeMatches: 0,
-                      convMatches: 0, intConvMatches: 0, genericMatches: 0,
+                      iteratorPreference: 0, convMatches: 0, intConvMatches: 0,
+                      genericMatches: 0,
                       state: csEmpty, firstMismatch: MismatchInfo(),
                       callee: callee, call: nil, baseTypeMatch: false,
                       genericConverter: false, inheritancePenalty: -1
@@ -393,6 +395,7 @@ proc complexDisambiguation(a, b: PType): int =
 proc writeMatches*(c: TCandidate) =
   echo "Candidate '", c.calleeSym.name.s, "' at ", c.c.config $ c.calleeSym.info
   echo "  exact matches: ", c.exactMatches
+  echo "  iterator preference: ", c.iteratorPreference
   echo "  generic matches: ", c.genericMatches
   echo "  subtype matches: ", c.subtypeMatches
   echo "  intconv matches: ", c.intConvMatches
@@ -411,6 +414,8 @@ proc cmpInheritancePenalty(a, b: int): int =
 proc cmpCandidates*(a, b: TCandidate, isFormal=true): int =
   result = a.exactMatches - b.exactMatches
   if result != 0: return
+  result = a.iteratorPreference - b.iteratorPreference
+  if result != 0: return
   result = a.genericMatches - b.genericMatches
   if result != 0: return
   result = a.subtypeMatches - b.subtypeMatches
@@ -2748,7 +2753,8 @@ proc prepareOperand(c: PContext; formal: PType; a: PNode, newlyTyped: var bool):
     result = a
   elif a.typ.isNil:
     if formal.kind == tyIterable:
-      let flags = {efDetermineType, efAllowStmt, efWantIterator, efWantIterable}
+      let flags = {efDetermineType, efAllowStmt, efWantIterator, efWantIterable,
+                   efPreferIteratorForIterable}
       result = c.semOperand(c, a, flags)
     else:
       # XXX This is unsound! 'formal' can differ from overloaded routine to
@@ -2765,6 +2771,20 @@ proc prepareOperand(c: PContext; formal: PType; a: PNode, newlyTyped: var bool):
     considerGenSyms(c, result)
     if result.kind != nkHiddenDeref and result.typ.kind in {tyVar, tyLent} and c.matchedConcept == nil:
       result = newDeref(result)
+    # Recovery for calls resolved too early as non-iterators.
+    # TODO: retry only skIterator overloads instead of re-semming,
+    # or preserve iterator-candidates info from the earlier semcheck.
+    if formal.kind == tyIterable and result.typ.kind != tyIterable and
+        a.kind in nkCallKinds and a[0].kind in {nkIdent, nkAccQuoted, nkSym, nkOpenSym}:
+      let recheck = copyTree(a)
+      recheck.typ = nil
+      if recheck[0].kind == nkSym and recheck[0].sym != nil:
+        recheck[0] = newIdentNode(recheck[0].sym.name, recheck[0].info)
+      let flags = {efDetermineType, efAllowStmt, efNoUndeclared,
+                   efWantIterator, efWantIterable, efPreferIteratorForIterable}
+      let fresh = c.semOperand(c, recheck, flags)
+      if fresh.typ != nil and fresh.typ.kind == tyIterable:
+        return fresh
 
 proc prepareOperand(c: PContext; a: PNode, newlyTyped: var bool): PNode =
   if a.typ.isNil:
diff --git a/doc/manual.md b/doc/manual.md
index d1db9088efae6..ab06f7aa4b319 100644
--- a/doc/manual.md
+++ b/doc/manual.md
@@ -2628,10 +2628,10 @@ Overload resolution
 In a call `p(args)` where `p` may refer to more than one
 candidate, it is said to be a symbol choice. Overload resolution will attempt to
 find the best candidate, thus transforming the symbol choice into a resolved symbol.
-The routine `p` that matches best is selected following a series of trials explained below. 
+The routine `p` that matches best is selected following a series of trials explained below.
 In order: Category matching, Hierarchical Order Comparison, and finally, Complexity Analysis.
 
-If multiple candidates match equally well after all trials have been tested, the ambiguity 
+If multiple candidates match equally well after all trials have been tested, the ambiguity
 is reported during semantic analysis.
 
 First Trial: Category matching
@@ -2664,7 +2664,7 @@ resolved symbol.
 For example, if a candidate with one exact match is compared to a candidate with multiple
 generic matches and zero exact matches, the candidate with an exact match will win.
 
-Below is a pseudocode interpretation of category matching, `count(p, m)` counts the number 
+Below is a pseudocode interpretation of category matching, `count(p, m)` counts the number
 of matches of the matching category `m` for the routine `p`.
 
 A routine `p` matches better than a routine `q` if the following
@@ -2692,11 +2692,11 @@ type A[T] = object
 ```
 
 Matching formals for this type include `T`, `object`, `A`, `A[...]` and `A[C]` where `C` is a concrete type, `A[...]`
-is a generic typeclass composition and `T` is an unconstrained generic type variable. This list is in order of 
+is a generic typeclass composition and `T` is an unconstrained generic type variable. This list is in order of
 specificity with respect to `A` as each subsequent category narrows the set of types that are members of their match set.
 
 In this trial, the formal parameters of candidates are compared in order (1st parameter, 2nd parameter, etc.) to search for
-a candidate that has an unrivaled specificity. If such a formal parameter is found, the candidate it belongs to is chosen 
+a candidate that has an unrivaled specificity. If such a formal parameter is found, the candidate it belongs to is chosen
 as the resolved symbol.
 
 Third Trial: Complexity Analysis
@@ -2951,13 +2951,13 @@ proc sort*[I: Index; T: Comparable](x: var Indexable[I, T])
 
 In the above example, `Comparable` and `Indexable` are types that will match any type that
 can can bind each definition declared in the concept body. The special `Self` type defined
-in the concept body refers to the type being matched, also called the "implementation" of 
-the concept. Implementations that match the concept are generic matches, and the concept 
+in the concept body refers to the type being matched, also called the "implementation" of
+the concept. Implementations that match the concept are generic matches, and the concept
 typeclasses themselves work in a similar way to generic type variables in that they are never
 concrete types themselves (even if they have concrete type parameters such as `Indexable[int, int]`)
-and expressions like `typeof(x)` in the body of `proc sort` from the above example will return the 
+and expressions like `typeof(x)` in the body of `proc sort` from the above example will return the
 type of the implementation, not the concept typeclass. Concepts are useful for providing information
-to the compiler in generic contexts, most notably for generic type checking, and as a tool for 
+to the compiler in generic contexts, most notably for generic type checking, and as a tool for
 [Overload resolution]. Generic type checking is forthcoming, so this will only explain overload
 resolution for now.
 
@@ -2984,7 +2984,7 @@ Concept overload resolution
 
 When an operand's type is being matched to a concept, the operand's type  is set as the "potential
 implementation". For each definition in the concept body, overload resolution is performed by substituting `Self`
-for the potential implementation to try and find a match for each definition. If this succeeds, the concept 
+for the potential implementation to try and find a match for each definition. If this succeeds, the concept
 matches. Implementations do not need to exactly match the definitions in the concept. For example:
 
 ```nim
@@ -3008,7 +3008,7 @@ This leads to confusing and impractical behavior in most situations, so the rule
 1. if a concept is being compared with `T` or any type that accepts all other types (`auto`) the concept
 is more specific
 2. if the concept is being compared with another concept the result is deferred to [Concept subset matching]
-3. in any other case the concept is less specific then it's competitor 
+3. in any other case the concept is less specific then it's competitor
 
 Currently, the concept evaluation mechanism evaluates to a successful match on the first acceptable candidate
 for each defined binding. This has a couple of notable effects:
@@ -4610,10 +4610,10 @@ for any type (with some exceptions) by defining a routine with the name `[]`.
   ```nim
   type Foo = object
     data: seq[int]
-  
+
   proc `[]`(foo: Foo, i: int): int =
     result = foo.data[i]
-  
+
   let foo = Foo(data: @[1, 2, 3])
   echo foo[1] # 2
   ```
@@ -4624,12 +4624,12 @@ which has precedence over assigning to the result of `[]`.
   ```nim
   type Foo = object
     data: seq[int]
-  
+
   proc `[]`(foo: Foo, i: int): int =
     result = foo.data[i]
   proc `[]=`(foo: var Foo, i: int, val: int) =
     foo.data[i] = val
-  
+
   var foo = Foo(data: @[1, 2, 3])
   echo foo[1] # 2
   foo[1] = 5
@@ -4861,7 +4861,14 @@ default to being inline, but this may change in future versions of the
 implementation.
 
 The `iterator` type is always of the calling convention `closure`
-implicitly; the following example shows how to use iterators to implement
+implicitly.
+
+Unlike named iterators, anonymous iterator expressions evaluate
+to the `iterator` type. In practice, this means a named iterator declaration
+without `{.closure.}` defaults to inline, but an expression like `let it =
+iterator(): int = yield 1` produces a callable closure iterator value.
+
+The following example shows how to use iterators to implement
 a `collaborative tasking`:idx: system:
 
   ```nim
@@ -6401,7 +6408,7 @@ The default for symbols of entity `type`, `var`, `let` and `const`
 is `gensym`. For `proc`, `iterator`, `converter`, `template`,
 `macro`, the default is `inject`, but if a `gensym` symbol with the same name
 is defined in the same syntax-level scope, it will be `gensym` by default.
-This can be overridden by marking the routine as `inject`. 
+This can be overridden by marking the routine as `inject`.
 
 If the name of the entity is passed as a template parameter, it is an `inject`'ed symbol:
 
@@ -7242,7 +7249,7 @@ identifier is considered ambiguous, which can be resolved in the following ways:
 
   write(stdout, x) # error: x is ambiguous
   write(stdout, A.x) # no error: qualifier used
-  
+
   proc bar(a: int): int = a + 1
   assert bar(x) == x + 1 # no error: only A.x of type int matches
 
@@ -9324,4 +9331,3 @@ It is not valid to pass an lvalue of a supertype to an `out T` parameter:
 
 However, in the future this could be allowed and provide a better way to write object
 constructors that take inheritance into account.
-
diff --git a/tests/iter/tinlineitervalue.nim b/tests/iter/tinlineitervalue.nim
new file mode 100644
index 0000000000000..d0e28d95ce71f
--- /dev/null
+++ b/tests/iter/tinlineitervalue.nim
@@ -0,0 +1,6 @@
+discard """
+  action: reject
+  errormsg: "attempting to call routine: 'items'"
+"""
+
+let chars = "abc".items()
diff --git a/tests/iter/titerablereso.nim b/tests/iter/titerablereso.nim
new file mode 100644
index 0000000000000..3a3166071bbeb
--- /dev/null
+++ b/tests/iter/titerablereso.nim
@@ -0,0 +1,50 @@
+discard """
+  action: "run"
+"""
+
+import std/[assertions, options, strutils]
+from std/sequtils import toSeq
+
+# block: # TODO: make iterable accept closure iterators?
+#   template mymap[T, U](s: iterable[T], f: proc(x: T): U): untyped =
+#     let res = iterator (): U =
+#       for val in s:
+#         yield f(val)
+#     res
+
+#   proc foo(x: string): string = x & "0"
+
+#   let a = "1\n2\n3\n4".splitLines().mymap(foo).toSeq()
+#   echo a
+#   echo typeof(a)
+
+block splitIterable: # #22098
+  template collect[T](it: iterable[T]): seq[T] =
+    var res: seq[T] = @[]
+    for x in it:
+      res.add x
+    res
+
+  const text = "a b c d"
+  let words = text.split.collect()
+  doAssert words == @["a", "b", "c", "d"]
+
+block optionElements:
+  iterator its(_: int; default: Option[string] = none(string)): Option[string] =
+    yield some("x")
+
+  var fromCall = none(string)
+  for x in its(0):
+    fromCall = x
+  doAssert fromCall == some("x")
+
+  var fromDot = none(string)
+  for x in 0.its:
+    fromDot = x
+  doAssert fromDot == some("x")
+
+block closureIteratorCallsStayCallable:
+  let next = iterator (): string =
+    yield "x"
+
+  doAssert next() == "x"