diff --git a/compiler/semgnrc.nim b/compiler/semgnrc.nim
index 10bb33bcdc..cd0761c6b6 100644
--- a/compiler/semgnrc.nim
+++ b/compiler/semgnrc.nim
@@ -129,7 +129,14 @@ proc semGenericStmtSymbol(c: PContext, n: PNode, s: PSym,
           result.typ = nil
     onUse(n.info, s)
   of skParam:
-    result = n
+    if s.owner == c.p.owner or true:
+      # Parameters of the routine currently being semchecked stay as local
+      # identifiers
+      result = n
+    else:
+      # Preserve captured outer parameters so nested generic procs can still
+      # see them after the generic pre-pass.
+      result = newSymNode(s, n.info)
     onUse(n.info, s)
   of skType:
     if (s.typ != nil) and
diff --git a/tests/generics/t20811.nim b/tests/generics/t20811.nim
new file mode 100644
index 0000000000..f165782719
--- /dev/null
+++ b/tests/generics/t20811.nim
@@ -0,0 +1,16 @@
+discard """
+  output: '''42
+42'''
+"""
+
+proc outer(j: int) =
+  proc genericInner[T](): int =
+    j
+
+  proc plainInner(): int =
+    j
+
+  echo genericInner[int]()
+  echo plainInner()
+
+outer(42)
\ No newline at end of file
diff --git a/tests/template/topensym.nim b/tests/template/topensym.nim
index 2f930407b9..25127021d9 100644
--- a/tests/template/topensym.nim
+++ b/tests/template/topensym.nim
@@ -135,6 +135,19 @@ block: # issue #22605 for templates, original complex example
 
   doAssert g2(int) == "error"
 
+block: # issue #20811
+  template injectError(body: untyped): untyped =
+    template error: untyped {.used, inject.} = "injected"
+    body
+
+  proc outerOpen(error: string): string =
+    injectError:
+      proc genericInner[T](): string =
+        error
+      genericInner[int]()
+
+  doAssert outerOpen("captured") == "injected"
+
 block: # issue #23865 for templates
   type Xxx = enum
     error