diff --git a/compiler/rustc_infer/src/infer/equate.rs b/compiler/rustc_infer/src/infer/equate.rs
index 3b1798ca73746..59728148a84c4 100644
--- a/compiler/rustc_infer/src/infer/equate.rs
+++ b/compiler/rustc_infer/src/infer/equate.rs
@@ -110,6 +110,25 @@ impl<'tcx> TypeRelation<'tcx> for Equate<'_, '_, 'tcx> {
                         .obligations,
                 );
             }
+            // Optimization of GeneratorWitness relation since we know that all
+            // free regions are replaced with bound regions during construction.
+            // This greatly speeds up equating of GeneratorWitness.
+            (&ty::GeneratorWitness(a_types), &ty::GeneratorWitness(b_types)) => {
+                let a_types = infcx.tcx.anonymize_bound_vars(a_types);
+                let b_types = infcx.tcx.anonymize_bound_vars(b_types);
+                if a_types.bound_vars() == b_types.bound_vars() {
+                    let (a_types, b_types) = infcx.replace_bound_vars_with_placeholders(
+                        a_types.map_bound(|a_types| (a_types, b_types.skip_binder())),
+                    );
+                    for (a, b) in std::iter::zip(a_types, b_types) {
+                        self.relate(a, b)?;
+                    }
+                } else {
+                    return Err(ty::error::TypeError::Sorts(ty::relate::expected_found(
+                        self, a, b,
+                    )));
+                }
+            }
 
             _ => {
                 self.fields.infcx.super_combine_tys(self, a, b)?;
diff --git a/compiler/rustc_infer/src/infer/sub.rs b/compiler/rustc_infer/src/infer/sub.rs
index b7eab5d43285b..375dd670fabf4 100644
--- a/compiler/rustc_infer/src/infer/sub.rs
+++ b/compiler/rustc_infer/src/infer/sub.rs
@@ -164,6 +164,24 @@ impl<'tcx> TypeRelation<'tcx> for Sub<'_, '_, 'tcx> {
                 );
                 Ok(ga)
             }
+            // Optimization of GeneratorWitness relation since we know that all
+            // free regions are replaced with bound regions during construction.
+            // This greatly speeds up subtyping of GeneratorWitness.
+            (&ty::GeneratorWitness(a_types), &ty::GeneratorWitness(b_types)) => {
+                let a_types = infcx.tcx.anonymize_bound_vars(a_types);
+                let b_types = infcx.tcx.anonymize_bound_vars(b_types);
+                if a_types.bound_vars() == b_types.bound_vars() {
+                    let (a_types, b_types) = infcx.replace_bound_vars_with_placeholders(
+                        a_types.map_bound(|a_types| (a_types, b_types.skip_binder())),
+                    );
+                    for (a, b) in std::iter::zip(a_types, b_types) {
+                        self.relate(a, b)?;
+                    }
+                    Ok(a)
+                } else {
+                    Err(ty::error::TypeError::Sorts(ty::relate::expected_found(self, a, b)))
+                }
+            }
 
             _ => {
                 self.fields.infcx.super_combine_tys(self, a, b)?;
diff --git a/compiler/rustc_trait_selection/src/traits/project.rs b/compiler/rustc_trait_selection/src/traits/project.rs
index 6f41cbeb7af2a..ed83847e88038 100644
--- a/compiler/rustc_trait_selection/src/traits/project.rs
+++ b/compiler/rustc_trait_selection/src/traits/project.rs
@@ -499,7 +499,7 @@ impl<'a, 'b, 'tcx> TypeFolder<'tcx> for AssocTypeNormalizer<'a, 'b, 'tcx> {
             // This is really important. While we *can* handle this, this has
             // severe performance implications for large opaque types with
             // late-bound regions. See `issue-88862` benchmark.
-            ty::Opaque(def_id, substs) if !substs.has_escaping_bound_vars() => {
+            ty::Opaque(def_id, substs) => {
                 // Only normalize `impl Trait` outside of type inference, usually in codegen.
                 match self.param_env.reveal() {
                     Reveal::UserFacing => ty.super_fold_with(self),
diff --git a/compiler/rustc_trait_selection/src/traits/query/normalize.rs b/compiler/rustc_trait_selection/src/traits/query/normalize.rs
index 88000d469786e..77f83b3f54240 100644
--- a/compiler/rustc_trait_selection/src/traits/query/normalize.rs
+++ b/compiler/rustc_trait_selection/src/traits/query/normalize.rs
@@ -198,7 +198,7 @@ impl<'cx, 'tcx> FallibleTypeFolder<'tcx> for QueryNormalizer<'cx, 'tcx> {
             // This is really important. While we *can* handle this, this has
             // severe performance implications for large opaque types with
             // late-bound regions. See `issue-88862` benchmark.
-            ty::Opaque(def_id, substs) if !substs.has_escaping_bound_vars() => {
+            ty::Opaque(def_id, substs) => {
                 // Only normalize `impl Trait` outside of type inference, usually in codegen.
                 match self.param_env.reveal() {
                     Reveal::UserFacing => ty.try_super_fold_with(self),
diff --git a/compiler/rustc_typeck/src/check/generator_interior.rs b/compiler/rustc_typeck/src/check/generator_interior.rs
index 7ab6d9e2bab12..254a19368bfe2 100644
--- a/compiler/rustc_typeck/src/check/generator_interior.rs
+++ b/compiler/rustc_typeck/src/check/generator_interior.rs
@@ -218,7 +218,8 @@ pub fn resolve_interior<'a, 'tcx>(
         .filter_map(|mut cause| {
             // Erase regions and canonicalize late-bound regions to deduplicate as many types as we
             // can.
-            let erased = fcx.tcx.erase_regions(cause.ty);
+            let ty = fcx.normalize_associated_types_in(cause.span, cause.ty);
+            let erased = fcx.tcx.erase_regions(ty);
             if captured_tys.insert(erased) {
                 // Replace all regions inside the generator interior with late bound regions.
                 // Note that each region slot in the types gets a new fresh late bound region,
@@ -263,7 +264,7 @@ pub fn resolve_interior<'a, 'tcx>(
     // Unify the type variable inside the generator with the new witness
     match fcx.at(&fcx.misc(body.value.span), fcx.param_env).eq(interior, witness) {
         Ok(ok) => fcx.register_infer_ok_obligations(ok),
-        _ => bug!(),
+        _ => bug!("failed to relate {interior} and {witness}"),
     }
 }
 
diff --git a/src/test/ui/higher-rank-trait-bounds/issue-95034.rs b/src/test/ui/higher-rank-trait-bounds/issue-95034.rs
index d8edbe7e56b51..af4946a187f15 100644
--- a/src/test/ui/higher-rank-trait-bounds/issue-95034.rs
+++ b/src/test/ui/higher-rank-trait-bounds/issue-95034.rs
@@ -1,23 +1,5 @@
-// known-bug: #95034
-// failure-status: 101
+// check-pass
 // compile-flags: --edition=2021 --crate-type=lib
-// rustc-env:RUST_BACKTRACE=0
-
-// normalize-stderr-test "thread 'rustc' panicked.*" -> "thread 'rustc' panicked"
-// normalize-stderr-test "note:.*RUST_BACKTRACE=1.*\n" -> ""
-// normalize-stderr-test "\nerror: internal compiler error.*\n\n" -> ""
-// normalize-stderr-test "note:.*unexpectedly panicked.*\n\n" -> ""
-// normalize-stderr-test "note: we would appreciate a bug report.*\n\n" -> ""
-// normalize-stderr-test "note: compiler flags.*\n\n" -> ""
-// normalize-stderr-test "note: rustc.*running on.*\n\n" -> ""
-// normalize-stderr-test "query stack during panic:\n" -> ""
-// normalize-stderr-test "we're just showing a limited slice of the query stack\n" -> ""
-// normalize-stderr-test "end of query stack\n" -> ""
-// normalize-stderr-test "#.*\n" -> ""
-
-// This should not ICE.
-
-// Refer to the issue for more minimized versions.
 
 use std::{
     future::Future,
diff --git a/src/test/ui/higher-rank-trait-bounds/issue-95034.stderr b/src/test/ui/higher-rank-trait-bounds/issue-95034.stderr
deleted file mode 100644
index 1d8329142fc5c..0000000000000
--- a/src/test/ui/higher-rank-trait-bounds/issue-95034.stderr
+++ /dev/null
@@ -1 +0,0 @@
-thread 'rustc' panicked