diff --git a/compiler/src/dotty/tools/dotc/typer/Namer.scala b/compiler/src/dotty/tools/dotc/typer/Namer.scala
index e86414cc2183..d26aa37c89e3 100644
--- a/compiler/src/dotty/tools/dotc/typer/Namer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Namer.scala
@@ -2030,59 +2030,25 @@ class Namer { typer: Typer =>
    *  abstract type member
    */
   def needsTracked(psym: Symbol, param: ValDef, owningSym: Symbol)(using Context) =
-    lazy val abstractContextBound = isContextBoundWitnessWithAbstractMembers(psym, param, owningSym)
-    lazy val isRefInSignatures =
-      psym.maybeOwner.isPrimaryConstructor
-      && isReferencedInPublicSignatures(psym)
+    lazy val needsTrackedSimp = needsTrackedSimple(psym, param, owningSym)
     !psym.is(Tracked)
-    && psym.isTerm
-    && (
-      abstractContextBound
-      || isRefInSignatures
-    )
-
-  /** Under x.modularity, we add `tracked` to context bound witnesses and
-   *  explicit evidence parameters that have abstract type members
-   */
-  private def isContextBoundWitnessWithAbstractMembers(psym: Symbol, param: ValDef, owningSym: Symbol)(using Context): Boolean =
+      && psym.isTerm
+      && needsTrackedSimp
+
+  private def needsTrackedSimple(psym: Symbol, param: ValDef, owningSym: Symbol)(using Context): Boolean =
     val accessorSyms = maybeParamAccessors(owningSym, psym)
     (owningSym.isClass || owningSym.isAllOf(Given | Method))
-    && (param.hasAttachment(ContextBoundParam) || (psym.isOneOf(GivenOrImplicit) && !accessorSyms.forall(_.isOneOf(PrivateLocal))))
-    && psym.info.memberNames(abstractTypeNameFilter).nonEmpty
+      && !accessorSyms.exists(_.is(Mutable))
+      && (param.hasAttachment(ContextBoundParam) || accessorSyms.exists(!_.isOneOf(PrivateLocal)))
+      && psym.infoDontForceAnnotsAndInferred(param).memberNames(abstractTypeNameFilter).nonEmpty
 
   extension (sym: Symbol)
-    private def infoWithForceNonInferingCompleter(using Context): Type = sym.infoOrCompleter match
-      case tpe: LazyType if tpe.isExplicit => sym.info
-      case tpe if sym.isType => sym.info
-      case info => info
-
-  /** Under x.modularity, we add `tracked` to term parameters whose types are
-   *  referenced in public signatures of the defining class
-   */
-  private def isReferencedInPublicSignatures(sym: Symbol)(using Context): Boolean =
-    val owner = sym.maybeOwner.maybeOwner
-    val accessorSyms = maybeParamAccessors(owner, sym)
-    def checkOwnerMemberSignatures(owner: Symbol): Boolean =
-      owner.infoOrCompleter match
-        case info: ClassInfo =>
-          info.decls.filter(_.isPublic)
-            .filter(_ != sym.maybeOwner)
-            .exists { decl =>
-              tpeContainsSymbolRef(decl.infoWithForceNonInferingCompleter, accessorSyms)
-            }
-        case _ => false
-    checkOwnerMemberSignatures(owner)
-
-  /** Check if any of syms are referenced in tpe */
-  private def tpeContainsSymbolRef(tpe: Type, syms: List[Symbol])(using Context): Boolean =
-    val acc = new ExistsAccumulator(
-      { tpe => tpe.termSymbol.exists && syms.contains(tpe.termSymbol) },
-      StopAt.Static,
-      forceLazy = false
-    ) {
-      override def apply(acc: Boolean, tpe: Type): Boolean = super.apply(acc, tpe.safeDealias)
-    }
-    acc(false, tpe)
+    private def infoDontForceAnnotsAndInferred(tree: DefTree)(using Context): Type =
+      sym.infoOrCompleter match
+        case tpe if tree.mods.annotations.nonEmpty => tpe
+        case tpe: LazyType if tpe.isExplicit => sym.info
+        case tpe if sym.isType => sym.info
+        case info => info
 
   private def maybeParamAccessors(owner: Symbol, sym: Symbol)(using Context): List[Symbol] = owner.infoOrCompleter match
     case info: ClassInfo =>
@@ -2097,8 +2063,7 @@ class Namer { typer: Typer =>
   def setTrackedConstrParam(param: ValDef)(using Context): Unit =
     val sym = symbolOfTree(param)
     sym.maybeOwner.maybeOwner.infoOrCompleter match
-      case info: ClassInfo
-        if !sym.is(Tracked) && isContextBoundWitnessWithAbstractMembers(sym, param, sym.maybeOwner.maybeOwner) =>
+      case info: ClassInfo if needsTracked(sym, param, sym.maybeOwner.maybeOwner) =>
         typr.println(i"set tracked $param, $sym: ${sym.info} containing ${sym.info.memberNames(abstractTypeNameFilter).toList}")
         setParamTrackedWithAccessors(sym, info)
       case _ =>
diff --git a/tests/pos/tracked.scala b/tests/pos/tracked.scala
new file mode 100644
index 000000000000..0933593a98d8
--- /dev/null
+++ b/tests/pos/tracked.scala
@@ -0,0 +1,6 @@
+import scala.language.experimental.modularity
+
+trait T:
+  type X
+
+class C(var t: T)