diff --git a/sway-core/src/language/ty/expression/expression.rs b/sway-core/src/language/ty/expression/expression.rs
index c6d9e0c5e37..b4ac96b8d83 100644
--- a/sway-core/src/language/ty/expression/expression.rs
+++ b/sway-core/src/language/ty/expression/expression.rs
@@ -188,6 +188,7 @@ impl CollectTypesMetadata for TyExpression {
                 arguments,
                 fn_ref,
                 call_path,
+                type_binding,
                 ..
             } => {
                 for arg in arguments.iter() {
@@ -196,8 +197,30 @@ impl CollectTypesMetadata for TyExpression {
                 let function_decl = decl_engine.get_function(fn_ref);
 
                 ctx.call_site_push();
-                for type_parameter in &function_decl.type_parameters {
-                    ctx.call_site_insert(type_parameter.type_id, call_path.span())
+                for (idx, type_parameter) in function_decl.type_parameters.iter().enumerate() {
+                    ctx.call_site_insert(type_parameter.type_id, call_path.span());
+
+                    // Verify type arguments are concrete
+                    res.extend(
+                        type_parameter
+                            .type_id
+                            .collect_types_metadata(handler, ctx)?
+                            .into_iter()
+                            // try to use the caller span for better error messages
+                            .map(|x| match x {
+                                TypeMetadata::UnresolvedType(ident, original_span) => {
+                                    let span = type_binding
+                                        .as_ref()
+                                        .and_then(|type_binding| {
+                                            type_binding.type_arguments.as_slice().get(idx)
+                                        })
+                                        .map(|type_argument| Some(type_argument.span.clone()))
+                                        .unwrap_or(original_span);
+                                    TypeMetadata::UnresolvedType(ident, span)
+                                }
+                                x => x,
+                            }),
+                    );
                 }
 
                 for content in function_decl.body.contents.iter() {
diff --git a/sway-core/src/type_system/id.rs b/sway-core/src/type_system/id.rs
index bc6085919ba..d029cc2d772 100644
--- a/sway-core/src/type_system/id.rs
+++ b/sway-core/src/type_system/id.rs
@@ -61,8 +61,10 @@ impl CollectTypesMetadata for TypeId {
         ctx: &mut CollectTypesMetadataContext,
     ) -> Result<Vec<TypeMetadata>, ErrorEmitted> {
         fn filter_fn(type_info: &TypeInfo) -> bool {
-            matches!(type_info, TypeInfo::UnknownGeneric { .. })
-                || matches!(type_info, TypeInfo::Placeholder(_))
+            matches!(
+                type_info,
+                TypeInfo::UnknownGeneric { .. } | TypeInfo::Placeholder(_)
+            )
         }
         let engines = ctx.engines;
         let possible = self.extract_any_including_self(engines, &filter_fn, vec![], 0);
diff --git a/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/src/main.sw
index 6927766f189..08605fa28fa 100644
--- a/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/src/main.sw
@@ -1,10 +1,43 @@
 script;
 
+struct S {}
+
+impl S {
+    fn one_generic<T>(self) { }
+    fn two_generics<A, B>(self) { }
+}
+
+struct W<A> { }
+
 fn main() {
     let g: bool = three_generics(true, "foo", 10);
+
+    // Should fail because compiler cannot infer generic argument T
+    one_generic();
+
+    // Should fail because compiler cannot infer generic arguments A, B
+    two_generics();
+
+    // Two generics arguments expected
+    two_generics::<u64>();
+
+    // Should fail because compiler cannot infer generic argument T
+    S{}.one_generic();
+
+    // Should fail because compiler cannot infer generic arguments A, B
+    S{}.two_generics();
+
+    // Two generics arguments expected
+    S{}.two_generics::<u64>();
+
+    // Missing generic argument of W
+    one_generic::<W>();
 }
 
 fn three_generics(a: A, b: B, c: C) -> A {
     let new_a: A = a;
     new_a
 }
+
+fn one_generic<T>() { }
+fn two_generics<A, B>() { }
diff --git a/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/test.toml b/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/test.toml
index af45dbb8e7e..471410b9291 100644
--- a/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/test.toml
+++ b/test/src/e2e_vm_tests/test_programs/should_fail/missing_type_parameters/test.toml
@@ -6,3 +6,30 @@ category = "fail"
 # check: $()Unknown type name "B"
 # check: $()Could not find symbol "C" in this scope.
 # check: $()Unknown type name "C"
+
+# check: $()two_generics::<u64>();
+# nextln: $()Expected 2 type arguments for "two_generics", but instead found 1.
+
+# check: $()S{}.two_generics::<u64>();
+# nextln: $()Expected 2 type arguments for "two_generics", but instead found 1.
+
+# check: $()one_generic()
+# nextln: $()Cannot infer type for type parameter "T". Insufficient type information provided. Try annotating its type.
+
+# check: $()two_generics();
+# nextln: $()Cannot infer type for type parameter "A". Insufficient type information provided. Try annotating its type.
+
+# check: $()two_generics();
+# nextln: $()Cannot infer type for type parameter "B". Insufficient type information provided. Try annotating its type.
+
+# check: $()S{}.one_generic()
+# nextln: $()Cannot infer type for type parameter "T". Insufficient type information provided. Try annotating its type.
+
+# check: $()S{}.two_generics();
+# nextln: $()Cannot infer type for type parameter "A". Insufficient type information provided. Try annotating its type.
+
+# check: $()S{}.two_generics();
+# nextln: $()Cannot infer type for type parameter "B". Insufficient type information provided. Try annotating its type.
+
+# check: $()one_generic::<W>();
+# nextln: $()Cannot infer type for type parameter "A". Insufficient type information provided. Try annotating its type.
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/basic_storage/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/basic_storage/src/main.sw
index 261bd8cb0e8..532709bfed7 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/basic_storage/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/basic_storage/src/main.sw
@@ -303,6 +303,6 @@ fn test_storage() {
 // If these comparisons are done inline just above then it blows out the register allocator due to
 // all the ASM blocks.
 #[inline(never)]
-fn assert_streq<S1, S2>(lhs: S1, rhs: str) {
+fn assert_streq<S1>(lhs: S1, rhs: str) {
     assert(sha256_str_array(lhs) == sha256(rhs));
 }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/storage_namespace/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/storage_namespace/src/main.sw
index 934376a211b..d84c9d9ee3b 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/storage_namespace/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/test_contracts/storage_namespace/src/main.sw
@@ -291,6 +291,6 @@ fn test_storage() {
 // If these comparisons are done inline just above then it blows out the register allocator due to
 // all the ASM blocks.
 #[inline(never)]
-fn assert_streq<S1, S2>(lhs: S1, rhs: str) {
+fn assert_streq<S1>(lhs: S1, rhs: str) {
     assert(sha256_str_array(lhs) == sha256(rhs));
 }