diff --git a/jedi/inference/gradual/annotation.py b/jedi/inference/gradual/annotation.py
index 79481a45..0d5effbd 100644
--- a/jedi/inference/gradual/annotation.py
+++ b/jedi/inference/gradual/annotation.py
@@ -494,6 +494,11 @@ def _infer_type_vars(annotation_value, value_set, is_class_value=False):
             # the elements from the set first, then handle them, even if we put
             # them back in a set afterwards.
             for element in value_set:
+                if element.api_type == u'function':
+                    # Functions & methods don't have an MRO and we're not
+                    # expecting a Callable (those are handled separately above).
+                    continue
+
                 if element.is_instance():
                     py_class = element.get_annotated_class_object()
                 else:
diff --git a/test/completion/pep0484_generic_mismatches.py b/test/completion/pep0484_generic_mismatches.py
new file mode 100644
index 00000000..bd7d393a
--- /dev/null
+++ b/test/completion/pep0484_generic_mismatches.py
@@ -0,0 +1,320 @@
+# python >= 3.4
+from typing import (
+    Callable,
+    Dict,
+    Generic,
+    List,
+    Sequence,
+    Tuple,
+    Type,
+    TypeVar,
+)
+
+T = TypeVar('T')
+
+
+def foo(x: T) -> T:
+    return x
+
+
+class CustomGeneric(Generic[T]):
+    def __init__(self, val: T) -> None:
+        self.val = val
+
+
+class PlainClass(object):
+    pass
+
+
+tpl = ("1", 2)
+tpl_typed = ("2", 3)  # type: Tuple[str, int]
+
+collection = {"a": 1}
+collection_typed = {"a": 1}  # type: Dict[str, int]
+
+list_of_funcs = [foo]  # type: List[Callable[[T], T]]
+
+custom_generic = CustomGeneric(123.45)
+
+plain_instance = PlainClass()
+
+
+# Test that simple parameters are handled
+def list_t_to_list_t(the_list: List[T]) -> List[T]:
+    return the_list
+
+x0 = list_t_to_list_t("abc")[0]
+#?
+x0
+
+x1 = list_t_to_list_t(foo)[0]
+#?
+x1
+
+x2 = list_t_to_list_t(tpl)[0]
+#?
+x2
+
+x3 = list_t_to_list_t(tpl_typed)[0]
+#?
+x3
+
+x4 = list_t_to_list_t(collection)[0]
+#?
+x4
+
+x5 = list_t_to_list_t(collection_typed)[0]
+#?
+x5
+
+x6 = list_t_to_list_t(custom_generic)[0]
+#?
+x6
+
+x7 = list_t_to_list_t(plain_instance)[0]
+#?
+x7
+
+for a in list_t_to_list_t(12):
+    #?
+    a
+
+
+# Test that simple parameters are handled
+def list_type_t_to_list_t(the_list: List[Type[T]]) -> List[T]:
+    return [x() for x in the_list]
+
+x0 = list_type_t_to_list_t("abc")[0]
+#?
+x0
+
+x1 = list_type_t_to_list_t(foo)[0]
+#?
+x1
+
+x2 = list_type_t_to_list_t(tpl)[0]
+#?
+x2
+
+x3 = list_type_t_to_list_t(tpl_typed)[0]
+#?
+x3
+
+x4 = list_type_t_to_list_t(collection)[0]
+#?
+x4
+
+x5 = list_type_t_to_list_t(collection_typed)[0]
+#?
+x5
+
+x6 = list_type_t_to_list_t(custom_generic)[0]
+#?
+x6
+
+x7 = list_type_t_to_list_t(plain_instance)[0]
+#?
+x7
+
+for a in list_type_t_to_list_t(12):
+    #?
+    a
+
+
+x0 = list_type_t_to_list_t(["abc"])[0]
+#?
+x0
+
+x1 = list_type_t_to_list_t([foo])[0]
+#?
+x1
+
+x2 = list_type_t_to_list_t([tpl])[0]
+#?
+x2
+
+x3 = list_type_t_to_list_t([tpl_typed])[0]
+#?
+x3
+
+x4 = list_type_t_to_list_t([collection])[0]
+#?
+x4
+
+x5 = list_type_t_to_list_t([collection_typed])[0]
+#?
+x5
+
+x6 = list_type_t_to_list_t([custom_generic])[0]
+#?
+x6
+
+x7 = list_type_t_to_list_t([plain_instance])[0]
+#?
+x7
+
+for a in list_type_t_to_list_t([12]):
+    #?
+    a
+
+
+def list_func_t_to_list_t(the_list: List[Callable[[T], T]]) -> List[T]:
+    # Not actually a viable signature, but should be enough to test our handling
+    # of the generic parameters.
+    pass
+
+
+x0 = list_func_t_to_list_t("abc")[0]
+#?
+x0
+
+x1 = list_func_t_to_list_t(foo)[0]
+#?
+x1
+
+x2 = list_func_t_to_list_t(tpl)[0]
+#?
+x2
+
+x3 = list_func_t_to_list_t(tpl_typed)[0]
+#?
+x3
+
+x4 = list_func_t_to_list_t(collection)[0]
+#?
+x4
+
+x5 = list_func_t_to_list_t(collection_typed)[0]
+#?
+x5
+
+x6 = list_func_t_to_list_t(custom_generic)[0]
+#?
+x6
+
+x7 = list_func_t_to_list_t(plain_instance)[0]
+#?
+x7
+
+for a in list_func_t_to_list_t(12):
+    #?
+    a
+
+
+# The following are all actually wrong, however we're mainly testing here that
+# we don't error when processing invalid values, rather than that we get the
+# right output.
+
+x0 = list_func_t_to_list_t(["abc"])[0]
+#? str()
+x0
+
+x2 = list_func_t_to_list_t([tpl])[0]
+#? tuple()
+x2
+
+x3 = list_func_t_to_list_t([tpl_typed])[0]
+#? tuple()
+x3
+
+x4 = list_func_t_to_list_t([collection])[0]
+#? dict()
+x4
+
+x5 = list_func_t_to_list_t([collection_typed])[0]
+#? dict()
+x5
+
+x6 = list_func_t_to_list_t([custom_generic])[0]
+#? CustomGeneric()
+x6
+
+x7 = list_func_t_to_list_t([plain_instance])[0]
+#? PlainClass()
+x7
+
+for a in list_func_t_to_list_t([12]):
+    #? int()
+    a
+
+
+def tuple_t(tuple_in: Tuple[T]]) -> Sequence[T]:
+    return tuple_in
+
+
+x0 = list_t_to_list_t("abc")[0]
+#?
+x0
+
+x1 = list_t_to_list_t(foo)[0]
+#?
+x1
+
+x2 = list_t_to_list_t(tpl)[0]
+#?
+x2
+
+x3 = list_t_to_list_t(tpl_typed)[0]
+#?
+x3
+
+x4 = list_t_to_list_t(collection)[0]
+#?
+x4
+
+x5 = list_t_to_list_t(collection_typed)[0]
+#?
+x5
+
+x6 = list_t_to_list_t(custom_generic)[0]
+#?
+x6
+
+x7 = list_t_to_list_t(plain_instance)[0]
+#?
+x7
+
+for a in list_t_to_list_t(12):
+    #?
+    a
+
+
+def tuple_t_elipsis(tuple_in: Tuple[T, ...]]) -> Sequence[T]:
+    return tuple_in
+
+
+x0 = list_t_to_list_t("abc")[0]
+#?
+x0
+
+x1 = list_t_to_list_t(foo)[0]
+#?
+x1
+
+x2 = list_t_to_list_t(tpl)[0]
+#?
+x2
+
+x3 = list_t_to_list_t(tpl_typed)[0]
+#?
+x3
+
+x4 = list_t_to_list_t(collection)[0]
+#?
+x4
+
+x5 = list_t_to_list_t(collection_typed)[0]
+#?
+x5
+
+x6 = list_t_to_list_t(custom_generic)[0]
+#?
+x6
+
+x7 = list_t_to_list_t(plain_instance)[0]
+#?
+x7
+
+for a in list_t_to_list_t(12):
+    #?
+    a
diff --git a/test/test_api/test_api.py b/test/test_api/test_api.py
index a7337cfe..f8dab6e6 100644
--- a/test/test_api/test_api.py
+++ b/test/test_api/test_api.py
@@ -342,6 +342,7 @@ def test_file_fuzzy_completion(Script):
     script = Script('"{}/ep08_i'.format(path))
     expected = [
         'pep0484_basic.py"',
+        'pep0484_generic_mismatches.py"',
         'pep0484_generic_parameters.py"',
         'pep0484_generic_passthroughs.py"',
         'pep0484_typing.py"',