diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 90dbac991aa..a6f0d6dd216 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -195,6 +195,7 @@ namespace ts {
         None = 0,
         Source = 1 << 0,
         Target = 1 << 1,
+        ExcessCheck = 1 << 2,
     }
 
     const enum MappedTypeModifiers {
@@ -15368,7 +15369,7 @@ namespace ts {
                 if (source.flags & TypeFlags.Union) {
                     result = relation === comparableRelation ?
                         someTypeRelatedToType(source as UnionType, target, reportErrors && !(source.flags & TypeFlags.Primitive), intersectionState) :
-                        eachTypeRelatedToType(source as UnionType, target, reportErrors && !(source.flags & TypeFlags.Primitive));
+                        eachTypeRelatedToType(source as UnionType, target, reportErrors && !(source.flags & TypeFlags.Primitive), intersectionState & IntersectionState.ExcessCheck);
                 }
                 else {
                     if (target.flags & TypeFlags.Union) {
@@ -15376,9 +15377,9 @@ namespace ts {
                     }
                     else if (target.flags & TypeFlags.Intersection) {
                         result = typeRelatedToEachType(getRegularTypeOfObjectLiteral(source), target as IntersectionType, reportErrors, IntersectionState.Target);
-                        if (result && (isPerformingExcessPropertyChecks || isPerformingCommonPropertyChecks)) {
+                        if (result && (isPerformingExcessPropertyChecks || isPerformingCommonPropertyChecks) && !(intersectionState & IntersectionState.ExcessCheck)) {
                             // Validate against excess props using the original `source`
-                            if (!propertiesRelatedTo(source, target, reportErrors, /*excludedProperties*/ undefined, IntersectionState.None)) {
+                            if (!propertiesRelatedTo(source, target, reportErrors, /*excludedProperties*/ undefined, IntersectionState.ExcessCheck)) {
                                 return Ternary.False;
                             }
                         }
@@ -15633,11 +15634,11 @@ namespace ts {
                 return Ternary.False;
             }
 
-            function eachTypeRelatedToType(source: UnionOrIntersectionType, target: Type, reportErrors: boolean): Ternary {
+            function eachTypeRelatedToType(source: UnionOrIntersectionType, target: Type, reportErrors: boolean, intersectionState: IntersectionState): Ternary {
                 let result = Ternary.True;
                 const sourceTypes = source.types;
                 for (const sourceType of sourceTypes) {
-                    const related = isRelatedTo(sourceType, target, reportErrors);
+                    const related = isRelatedTo(sourceType, target, reportErrors, /*headMessage*/ undefined, intersectionState);
                     if (!related) {
                         return Ternary.False;
                     }
@@ -16451,7 +16452,6 @@ namespace ts {
             }
 
             function propertiesRelatedTo(source: Type, target: Type, reportErrors: boolean, excludedProperties: UnderscoreEscapedMap<true> | undefined, intersectionState: IntersectionState): Ternary {
-
                 if (relation === identityRelation) {
                     return propertiesIdenticalTo(source, target, excludedProperties);
                 }
diff --git a/tests/baselines/reference/recursiveExcessPropertyChecks.js b/tests/baselines/reference/recursiveExcessPropertyChecks.js
new file mode 100644
index 00000000000..1235b3e93bb
--- /dev/null
+++ b/tests/baselines/reference/recursiveExcessPropertyChecks.js
@@ -0,0 +1,23 @@
+//// [recursiveExcessPropertyChecks.ts]
+// Repro from #35804
+
+interface ITreeItem {    
+  Parent?: this;
+}
+
+type NodeWithId = ITreeItem & { Id?: number };
+
+function getMaxId(items: NodeWithId[]) {
+}
+
+const nodes = [] as ITreeItem[];
+getMaxId(nodes);
+
+
+//// [recursiveExcessPropertyChecks.js]
+"use strict";
+// Repro from #35804
+function getMaxId(items) {
+}
+var nodes = [];
+getMaxId(nodes);
diff --git a/tests/baselines/reference/recursiveExcessPropertyChecks.symbols b/tests/baselines/reference/recursiveExcessPropertyChecks.symbols
new file mode 100644
index 00000000000..0f335f07073
--- /dev/null
+++ b/tests/baselines/reference/recursiveExcessPropertyChecks.symbols
@@ -0,0 +1,29 @@
+=== tests/cases/compiler/recursiveExcessPropertyChecks.ts ===
+// Repro from #35804
+
+interface ITreeItem {    
+>ITreeItem : Symbol(ITreeItem, Decl(recursiveExcessPropertyChecks.ts, 0, 0))
+
+  Parent?: this;
+>Parent : Symbol(ITreeItem.Parent, Decl(recursiveExcessPropertyChecks.ts, 2, 21))
+}
+
+type NodeWithId = ITreeItem & { Id?: number };
+>NodeWithId : Symbol(NodeWithId, Decl(recursiveExcessPropertyChecks.ts, 4, 1))
+>ITreeItem : Symbol(ITreeItem, Decl(recursiveExcessPropertyChecks.ts, 0, 0))
+>Id : Symbol(Id, Decl(recursiveExcessPropertyChecks.ts, 6, 31))
+
+function getMaxId(items: NodeWithId[]) {
+>getMaxId : Symbol(getMaxId, Decl(recursiveExcessPropertyChecks.ts, 6, 46))
+>items : Symbol(items, Decl(recursiveExcessPropertyChecks.ts, 8, 18))
+>NodeWithId : Symbol(NodeWithId, Decl(recursiveExcessPropertyChecks.ts, 4, 1))
+}
+
+const nodes = [] as ITreeItem[];
+>nodes : Symbol(nodes, Decl(recursiveExcessPropertyChecks.ts, 11, 5))
+>ITreeItem : Symbol(ITreeItem, Decl(recursiveExcessPropertyChecks.ts, 0, 0))
+
+getMaxId(nodes);
+>getMaxId : Symbol(getMaxId, Decl(recursiveExcessPropertyChecks.ts, 6, 46))
+>nodes : Symbol(nodes, Decl(recursiveExcessPropertyChecks.ts, 11, 5))
+
diff --git a/tests/baselines/reference/recursiveExcessPropertyChecks.types b/tests/baselines/reference/recursiveExcessPropertyChecks.types
new file mode 100644
index 00000000000..04b78367460
--- /dev/null
+++ b/tests/baselines/reference/recursiveExcessPropertyChecks.types
@@ -0,0 +1,27 @@
+=== tests/cases/compiler/recursiveExcessPropertyChecks.ts ===
+// Repro from #35804
+
+interface ITreeItem {    
+  Parent?: this;
+>Parent : this | undefined
+}
+
+type NodeWithId = ITreeItem & { Id?: number };
+>NodeWithId : NodeWithId
+>Id : number | undefined
+
+function getMaxId(items: NodeWithId[]) {
+>getMaxId : (items: NodeWithId[]) => void
+>items : NodeWithId[]
+}
+
+const nodes = [] as ITreeItem[];
+>nodes : ITreeItem[]
+>[] as ITreeItem[] : ITreeItem[]
+>[] : never[]
+
+getMaxId(nodes);
+>getMaxId(nodes) : void
+>getMaxId : (items: NodeWithId[]) => void
+>nodes : ITreeItem[]
+
diff --git a/tests/cases/compiler/recursiveExcessPropertyChecks.ts b/tests/cases/compiler/recursiveExcessPropertyChecks.ts
new file mode 100644
index 00000000000..210f6fa6a9f
--- /dev/null
+++ b/tests/cases/compiler/recursiveExcessPropertyChecks.ts
@@ -0,0 +1,15 @@
+// @strict: true
+
+// Repro from #35804
+
+interface ITreeItem {    
+  Parent?: this;
+}
+
+type NodeWithId = ITreeItem & { Id?: number };
+
+function getMaxId(items: NodeWithId[]) {
+}
+
+const nodes = [] as ITreeItem[];
+getMaxId(nodes);