diff --git a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Method+SwiftSyntax.swift b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Method+SwiftSyntax.swift
index 79857275f..03a6feec5 100644
--- a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Method+SwiftSyntax.swift
+++ b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Method+SwiftSyntax.swift
@@ -9,7 +9,7 @@ extension SourceryMethod {
           parent: parent,
           identifier: node.name.text.trimmed,
           typeName: typeName,
-          signature: Signature(node.signature, annotationsParser: annotationsParser),
+          signature: Signature(node.signature, annotationsParser: annotationsParser, parent: parent),
           modifiers: node.modifiers,
           attributes: node.attributes,
           genericParameterClause: node.genericParameterClause,
@@ -30,7 +30,8 @@ extension SourceryMethod {
             output: nil,
             asyncKeyword: nil,
             throwsOrRethrowsKeyword: signature.effectSpecifiers?.throwsSpecifier?.description.trimmed,
-            annotationsParser: annotationsParser
+            annotationsParser: annotationsParser,
+            parent: parent
           ),
           modifiers: node.modifiers,
           attributes: node.attributes,
@@ -46,7 +47,7 @@ extension SourceryMethod {
           parent: parent,
           identifier: "deinit",
           typeName: typeName,
-          signature: Signature(parameters: nil, output: nil, asyncKeyword: nil, throwsOrRethrowsKeyword: nil, annotationsParser: annotationsParser),
+          signature: Signature(parameters: nil, output: nil, asyncKeyword: nil, throwsOrRethrowsKeyword: nil, annotationsParser: annotationsParser, parent: parent),
           modifiers: node.modifiers,
           attributes: node.attributes,
           genericParameterClause: nil,
diff --git a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/MethodParameter+SwiftSyntax.swift b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/MethodParameter+SwiftSyntax.swift
index 6980619f3..c369cc2e6 100644
--- a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/MethodParameter+SwiftSyntax.swift
+++ b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/MethodParameter+SwiftSyntax.swift
@@ -2,12 +2,24 @@ import SwiftSyntax
 import SourceryRuntime
 
 extension MethodParameter {
-    convenience init(_ node: FunctionParameterSyntax, index: Int, annotationsParser: AnnotationsParser) {
+    convenience init(_ node: FunctionParameterSyntax, index: Int, annotationsParser: AnnotationsParser, parent: Type?) {
         let firstName = node.firstName.text.trimmed.nilIfNotValidParameterName
 
-        let typeName = TypeName(node.type)
+        let isVisitingTypeSourceryProtocol = parent is SourceryProtocol
         let specifiers = TypeName.specifiers(from: node.type)
-        
+
+        // NOTE: This matches implementation in Variable+SwiftSyntax.swift
+        // TODO: Walk up the `parent` in the event that there are multiple levels of nested types
+        var typeName = TypeName(node.type)
+        if !isVisitingTypeSourceryProtocol {
+            // we are in a custom type, which may contain other types
+            // in order to assign correct type to the variable, we need to match
+            // all of the contained types against the variable type
+            if let matchingContainedType = parent?.containedTypes.first(where: { $0.localName == typeName.name }) {
+                typeName = TypeName(matchingContainedType.name)
+            }
+        }
+
         if specifiers.isInOut {
             // TODO: TBR
             typeName.name = "inout \(typeName.name)"
diff --git a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Signature.swift b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Signature.swift
index f015cbc16..e932e67ba 100644
--- a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Signature.swift
+++ b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Signature.swift
@@ -14,20 +14,42 @@ public struct Signature {
     /// The `throws` or `rethrows` keyword, if any.
     public let throwsOrRethrowsKeyword: String?
 
-    public init(_ node: FunctionSignatureSyntax, annotationsParser: AnnotationsParser) {
+    public init(_ node: FunctionSignatureSyntax, annotationsParser: AnnotationsParser, parent: Type?) {
+        let isVisitingTypeSourceryProtocol = parent is SourceryProtocol
+
+        // NOTE: This matches implementation in Variable+SwiftSyntax.swift
+        // TODO: Walk up the `parent` in the event that there are multiple levels of nested types
+        var returnTypeName = node.returnClause.map { TypeName($0.type) }
+        if !isVisitingTypeSourceryProtocol {
+            // we are in a custom type, which may contain other types
+            // in order to assign correct type to the variable, we need to match
+            // all of the contained types against the variable type
+            if let matchingContainedType = parent?.containedTypes.first(where: { $0.localName == returnTypeName?.name }) {
+                returnTypeName = TypeName(matchingContainedType.name)
+            }
+        }
+
         self.init(parameters: node.parameterClause.parameters,
-                  output: node.returnClause.map { TypeName($0.type) },
+                  output: returnTypeName,
                   asyncKeyword: node.effectSpecifiers?.asyncSpecifier?.text,
                   throwsOrRethrowsKeyword: node.effectSpecifiers?.throwsSpecifier?.description.trimmed,
-                  annotationsParser: annotationsParser
+                  annotationsParser: annotationsParser,
+                  parent: parent
         )
     }
 
-    public init(parameters: FunctionParameterListSyntax?, output: TypeName?, asyncKeyword: String?, throwsOrRethrowsKeyword: String?, annotationsParser: AnnotationsParser) {
+    public init(
+        parameters: FunctionParameterListSyntax?,
+        output: TypeName?,
+        asyncKeyword: String?,
+        throwsOrRethrowsKeyword: String?,
+        annotationsParser: AnnotationsParser,
+        parent: Type?
+    ) {
         var methodParameters: [MethodParameter] = []
         if let parameters {
             for (idx, param) in parameters.enumerated() {
-                methodParameters.append(MethodParameter(param, index: idx, annotationsParser: annotationsParser))
+                methodParameters.append(MethodParameter(param, index: idx, annotationsParser: annotationsParser, parent: parent))
             }
         }
         input = methodParameters
diff --git a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Subscript+SwiftSyntax.swift b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Subscript+SwiftSyntax.swift
index e1e555821..f55dbbda9 100644
--- a/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Subscript+SwiftSyntax.swift
+++ b/SourceryFramework/Sources/Parsing/SwiftSyntax/AST/Subscript+SwiftSyntax.swift
@@ -85,7 +85,7 @@ extension Subscript {
 
         var parameters: [MethodParameter] = []
         for (idx, param) in node.parameterClause.parameters.enumerated() {
-            parameters.append(MethodParameter(param, index: idx, annotationsParser: annotationsParser))
+            parameters.append(MethodParameter(param, index: idx, annotationsParser: annotationsParser, parent: parent))
         }
         self.init(
           parameters: parameters,
diff --git a/SourceryTests/Parsing/FileParser_MethodsSpec.swift b/SourceryTests/Parsing/FileParser_MethodsSpec.swift
index 4ba9fa5e2..06df1329a 100644
--- a/SourceryTests/Parsing/FileParser_MethodsSpec.swift
+++ b/SourceryTests/Parsing/FileParser_MethodsSpec.swift
@@ -284,6 +284,38 @@ class FileParserMethodsSpec: QuickSpec {
                             ]))
                     }
 
+                    it("extracts correct typeName when a nested type shadows a global type") {
+                        let code = """
+                        protocol Foo {
+                        }
+
+                        class Bar {
+                            struct Foo {
+                            }
+
+                            func doSomething(with foo: Foo) -> Foo {
+                            }
+                        }
+                        """
+
+                        let fooProtocol = Protocol(name: "Foo")
+                        let fooStruct = Struct(name: "Foo")
+                        let barClass = Class(
+                            name: "Bar",
+                            methods: [
+                                Method(name: "doSomething(with foo: Bar.Foo)", selectorName: "doSomething(with:)", parameters: [
+                                    MethodParameter(argumentLabel: "with", name: "foo", index: 0, typeName: TypeName("Bar.Foo"), type: fooStruct)
+                                ], returnTypeName: TypeName("Bar.Foo"), definedInTypeName: TypeName("Bar"))
+                            ],
+                            containedTypes: [
+                                fooStruct
+                            ]
+                        )
+
+                        let result = parse(code)
+                        expect(result).to(equal([fooProtocol, barClass, fooStruct]))
+                    }
+
                     context("given parameter default value") {
                         it("extracts simple default value") {
                             expect(parse("class Foo { func foo(a: Int? = nil) {} }")).to(equal([