diff --git a/compiler/sigmatch.nim b/compiler/sigmatch.nim
index 60b0fe612c..7124315d91 100644
--- a/compiler/sigmatch.nim
+++ b/compiler/sigmatch.nim
@@ -2131,6 +2131,8 @@ proc paramTypesMatchAux(m: var TCandidate, f, a: PType,
       result = c.semInferredLambda(c, m.bindings, arg)
     elif arg.kind != nkSym:
       return nil
+    elif arg.sym.kind in {skMacro, skTemplate}:
+      return nil
     else:
       let inferred = c.semGenerateInstance(c, arg.sym, m.bindings, arg.info)
       result = newSymNode(inferred, arg.info)
diff --git a/tests/template/t19700.nim b/tests/template/t19700.nim
new file mode 100644
index 0000000000..cc29449446
--- /dev/null
+++ b/tests/template/t19700.nim
@@ -0,0 +1,10 @@
+discard """
+  errormsg: "type mismatch: got <Obj, Obj, template (x: untyped, y: untyped): untyped>"
+"""
+
+type Obj = object
+
+proc apply[T, R](a, b: T; f: proc(x, y: T): R): R = f(a, b)
+
+let a, b = Obj()
+discard apply(a, b, `!=`)