diff --git a/src/harness/unittests/extractMethods.ts b/src/harness/unittests/extractMethods.ts
index 971d918cb33..36f739113ab 100644
--- a/src/harness/unittests/extractMethods.ts
+++ b/src/harness/unittests/extractMethods.ts
@@ -544,6 +544,27 @@ namespace A {
             return a1.x + 10;|]
         }
     }
+}`);
+        // The "b" type parameters aren't used and shouldn't be passed to the extracted function.
+        // Type parameters should be in syntactic order (i.e. in order or character offset from BOF).
+        // In all cases, we could use type inference, rather than passing explicit type arguments.
+        // Note the inclusion of arrow functions to ensure that some type parameters are not from
+        //   targetable scopes.
+        testExtractMethod("extractMethod13",
+            `<U1a, U1b>(u1a: U1a, u1b: U1b) => {
+    function F1<T1a, T1b>(t1a: T1a, t1b: T1b) {
+        <U2a, U2b>(u2a: U2a, u2b: U2b) => {
+            function F2<T2a, T2b>(t2a: T2a, t2b: T2b) {
+                <U3a, U3b>(u3a: U3a, u3b: U3b) => {
+                        [#|t1a.toString();
+                        t2a.toString();
+                        u1a.toString();
+                        u2a.toString();
+                        u3a.toString();|]
+                }
+            }
+        }
+    }
 }`);
     });
 
diff --git a/tests/baselines/reference/extractMethod/extractMethod13.ts b/tests/baselines/reference/extractMethod/extractMethod13.ts
new file mode 100644
index 00000000000..8f76dea88aa
--- /dev/null
+++ b/tests/baselines/reference/extractMethod/extractMethod13.ts
@@ -0,0 +1,75 @@
+// ==ORIGINAL==
+<U1a, U1b>(u1a: U1a, u1b: U1b) => {
+    function F1<T1a, T1b>(t1a: T1a, t1b: T1b) {
+        <U2a, U2b>(u2a: U2a, u2b: U2b) => {
+            function F2<T2a, T2b>(t2a: T2a, t2b: T2b) {
+                <U3a, U3b>(u3a: U3a, u3b: U3b) => {
+                        t1a.toString();
+                        t2a.toString();
+                        u1a.toString();
+                        u2a.toString();
+                        u3a.toString();
+                }
+            }
+        }
+    }
+}
+// ==SCOPE::function 'F2'==
+<U1a, U1b>(u1a: U1a, u1b: U1b) => {
+    function F1<T1a, T1b>(t1a: T1a, t1b: T1b) {
+        <U2a, U2b>(u2a: U2a, u2b: U2b) => {
+            function F2<T2a, T2b>(t2a: T2a, t2b: T2b) {
+                <U3a, U3b>(u3a: U3a, u3b: U3b) => {
+                    newFunction<U3a>(u3a);
+                }
+
+                function newFunction<U3a>(u3a: U3a) {
+                    t1a.toString();
+                    t2a.toString();
+                    u1a.toString();
+                    u2a.toString();
+                    u3a.toString();
+                }
+            }
+        }
+    }
+}
+// ==SCOPE::function 'F1'==
+<U1a, U1b>(u1a: U1a, u1b: U1b) => {
+    function F1<T1a, T1b>(t1a: T1a, t1b: T1b) {
+        <U2a, U2b>(u2a: U2a, u2b: U2b) => {
+            function F2<T2a, T2b>(t2a: T2a, t2b: T2b) {
+                <U3a, U3b>(u3a: U3a, u3b: U3b) => {
+                    newFunction<U2a, T2a, U3a>(t2a, u2a, u3a);
+                }
+            }
+        }
+
+        function newFunction<U2a, T2a, U3a>(t2a: T2a, u2a: U2a, u3a: U3a) {
+            t1a.toString();
+            t2a.toString();
+            u1a.toString();
+            u2a.toString();
+            u3a.toString();
+        }
+    }
+}
+// ==SCOPE::global scope==
+<U1a, U1b>(u1a: U1a, u1b: U1b) => {
+    function F1<T1a, T1b>(t1a: T1a, t1b: T1b) {
+        <U2a, U2b>(u2a: U2a, u2b: U2b) => {
+            function F2<T2a, T2b>(t2a: T2a, t2b: T2b) {
+                <U3a, U3b>(u3a: U3a, u3b: U3b) => {
+                    newFunction<U1a, T1a, U2a, T2a, U3a>(t1a, t2a, u1a, u2a, u3a);
+                }
+            }
+        }
+    }
+}
+function newFunction<U1a, T1a, U2a, T2a, U3a>(t1a: T1a, t2a: T2a, u1a: U1a, u2a: U2a, u3a: U3a) {
+    t1a.toString();
+    t2a.toString();
+    u1a.toString();
+    u2a.toString();
+    u3a.toString();
+}