diff --git a/compiler/rustc_hir_analysis/src/outlives/implicit_infer.rs b/compiler/rustc_hir_analysis/src/outlives/implicit_infer.rs
index e6c582667ba57..871f9cc6b8165 100644
--- a/compiler/rustc_hir_analysis/src/outlives/implicit_infer.rs
+++ b/compiler/rustc_hir_analysis/src/outlives/implicit_infer.rs
@@ -48,6 +48,7 @@ pub(super) fn infer_predicates(
                         // requirements for adt_def.
                         let field_ty = tcx.type_of(field_def.did).instantiate_identity();
                         let field_span = tcx.def_span(field_def.did);
+                        let is_self_referential = is_self_referential(field_ty, adt_def);
                         insert_required_predicates_to_be_wf(
                             tcx,
                             field_ty,
@@ -55,6 +56,7 @@ pub(super) fn infer_predicates(
                             &global_inferred_outlives,
                             &mut item_required_predicates,
                             &mut explicit_map,
+                            is_self_referential,
                         );
                     }
                 }
@@ -67,6 +69,7 @@ pub(super) fn infer_predicates(
                         &global_inferred_outlives,
                         &mut item_required_predicates,
                         &mut explicit_map,
+                        IsSelfReferential::No,
                     );
                 }
 
@@ -104,6 +107,7 @@ fn insert_required_predicates_to_be_wf<'tcx>(
     global_inferred_outlives: &FxIndexMap<DefId, ty::EarlyBinder<RequiredPredicates<'tcx>>>,
     required_predicates: &mut RequiredPredicates<'tcx>,
     explicit_map: &mut ExplicitPredicatesMap<'tcx>,
+    is_self_referential: IsSelfReferential,
 ) {
     for arg in ty.walk() {
         let leaf_ty = match arg.unpack() {
@@ -133,6 +137,7 @@ fn insert_required_predicates_to_be_wf<'tcx>(
                     args,
                     global_inferred_outlives,
                     required_predicates,
+                    is_self_referential,
                 );
                 check_explicit_predicates(
                     tcx,
@@ -154,6 +159,7 @@ fn insert_required_predicates_to_be_wf<'tcx>(
                     alias.args,
                     global_inferred_outlives,
                     required_predicates,
+                    is_self_referential,
                 );
                 check_explicit_predicates(
                     tcx,
@@ -324,6 +330,7 @@ fn check_inferred_predicates<'tcx>(
     args: ty::GenericArgsRef<'tcx>,
     global_inferred_outlives: &FxIndexMap<DefId, ty::EarlyBinder<RequiredPredicates<'tcx>>>,
     required_predicates: &mut RequiredPredicates<'tcx>,
+    is_self_referential: IsSelfReferential,
 ) {
     // Load the current set of inferred and explicit predicates from `global_inferred_outlives`
     // and filter the ones that are `TypeOutlives`.
@@ -335,8 +342,13 @@ fn check_inferred_predicates<'tcx>(
     for (&predicate, &span) in predicates.as_ref().skip_binder() {
         // `predicate` is `U: 'b` in the example above.
         // So apply the instantiation to get `T: 'a`.
-        let ty::OutlivesPredicate(arg, region) =
-            predicates.rebind(predicate).instantiate(tcx, args);
+        let ty::OutlivesPredicate(arg, region) = if is_self_referential.into() {
+            // However, for self referential ADTs, we don't instantiate
+            // to avoid issues like #118163
+            predicate
+        } else {
+            predicates.rebind(predicate).instantiate(tcx, args)
+        };
         insert_outlives_predicate(tcx, arg, region, span, required_predicates);
     }
 }
diff --git a/compiler/rustc_hir_analysis/src/outlives/utils.rs b/compiler/rustc_hir_analysis/src/outlives/utils.rs
index d3bb22d715d7b..ce04af7e712c6 100644
--- a/compiler/rustc_hir_analysis/src/outlives/utils.rs
+++ b/compiler/rustc_hir_analysis/src/outlives/utils.rs
@@ -1,6 +1,6 @@
 use rustc_data_structures::fx::FxIndexMap;
 use rustc_infer::infer::outlives::components::{push_outlives_components, Component};
-use rustc_middle::ty::{self, Region, Ty, TyCtxt};
+use rustc_middle::ty::{self, Adt, AdtDef, Ref, Region, Ty, TyCtxt};
 use rustc_middle::ty::{GenericArg, GenericArgKind};
 use rustc_span::Span;
 use smallvec::smallvec;
@@ -182,3 +182,41 @@ fn is_free_region(region: Region<'_>) -> bool {
         }
     }
 }
+
+#[derive(Copy, Clone)]
+pub(crate) enum IsSelfReferential {
+    Yes,
+    No,
+}
+
+impl From<bool> for IsSelfReferential {
+    fn from(value: bool) -> Self {
+        match value {
+            true => IsSelfReferential::Yes,
+            false => IsSelfReferential::No,
+        }
+    }
+}
+
+impl From<IsSelfReferential> for bool {
+    fn from(value: IsSelfReferential) -> Self {
+        match value {
+            IsSelfReferential::Yes => true,
+            IsSelfReferential::No => false,
+        }
+    }
+}
+
+// Check if an ADT's field is a reference to the ADT itself.
+// Example: `struct Recurse<'a, T>(T, &'a Recurse<'a, T>)`
+// will return true
+pub(crate) fn is_self_referential(field_ty: Ty<'_>, adt_def: AdtDef<'_>) -> IsSelfReferential {
+    if let Ref(_, ref_ty, _) = field_ty.kind()
+        && let Adt(field_ty_adt, _) = ref_ty.kind()
+    {
+        field_ty_adt.did() == adt_def.did()
+    } else {
+        false
+    }
+    .into()
+}
diff --git a/tests/ui/regions/regions-outlives-for-recursive-types.rs b/tests/ui/regions/regions-outlives-for-recursive-types.rs
new file mode 100644
index 0000000000000..9011c40af91e0
--- /dev/null
+++ b/tests/ui/regions/regions-outlives-for-recursive-types.rs
@@ -0,0 +1,14 @@
+//@ check-pass
+
+#![allow(dead_code)]
+
+trait Bound {
+    type Assoc: Bound;
+}
+
+struct Recurse<'a, T: Bound> {
+    first: &'a T,
+    value: &'a Recurse<'a, T::Assoc>,
+}
+
+fn main() {}