diff --git a/mypy/newsemanal/semanal.py b/mypy/newsemanal/semanal.py
index eb0840be9d77..db25b6c87ee3 100644
--- a/mypy/newsemanal/semanal.py
+++ b/mypy/newsemanal/semanal.py
@@ -2347,7 +2347,9 @@ def check_and_set_up_type_alias(self, s: AssignmentStmt) -> bool:
                 self.analyze_alias(rvalue, allow_placeholder=True)
             if not res:
                 return False
-            if self.found_incomplete_ref(tag) or isinstance(res, PlaceholderType):
+            # TODO: Maybe we only need to reject top-level placeholders, similar
+            #       to base classes.
+            if self.found_incomplete_ref(tag) or has_placeholder(res):
                 # Since we have got here, we know this must be a type alias (incomplete refs
                 # may appear in nested positions), therefore use becomes_typeinfo=True.
                 placeholder = PlaceholderNode(self.qualified_name(lvalue.name),
@@ -2381,9 +2383,6 @@ def check_and_set_up_type_alias(self, s: AssignmentStmt) -> bool:
                                alias_tvars=alias_tvars, no_args=no_args)
         if existing:
             # An alias gets updated.
-            if self.final_iteration:
-                self.cannot_resolve_name(lvalue.name, 'name', s)
-                return True
             updated = False
             if isinstance(existing.node, TypeAlias):
                 if existing.node.target != res:
@@ -2397,7 +2396,10 @@ def check_and_set_up_type_alias(self, s: AssignmentStmt) -> bool:
                 # Otherwise just replace existing placeholder with type alias.
                 existing.node = alias_node
                 updated = True
-            if updated:
+            if self.final_iteration:
+                self.cannot_resolve_name(lvalue.name, 'name', s)
+                return True
+            elif updated:
                 self.progress = True
                 # We need to defer so that this change can get propagated to base classes.
                 self.defer()
diff --git a/test-data/unit/check-incremental.test b/test-data/unit/check-incremental.test
index 5096bf8e885a..27efeb8d7cd1 100644
--- a/test-data/unit/check-incremental.test
+++ b/test-data/unit/check-incremental.test
@@ -2469,10 +2469,10 @@ x: int = C()[0][0]
 from typing import List, Generic, TypeVar, NamedTuple
 T = TypeVar('T')
 
-class C(A, B): #type: ignore
+class C(A, B): # type: ignore
     pass
 class G(Generic[T]): pass
-A = G[C]
+A = G[C] # type: ignore
 class B(NamedTuple):
     x: int
 
@@ -2482,7 +2482,7 @@ C(1)[0]
 [out]
 
 [case testSerializeRecursiveAliases1]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 from typing import Type, Callable, Union
 
 A = Union[A, int]  # type: ignore
@@ -2491,7 +2491,7 @@ C = Type[C] # type: ignore
 [out]
 
 [case testSerializeRecursiveAliases2]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 from typing import Type, Callable, Union
 
 A = Union[B, int]  # type: ignore
@@ -2500,7 +2500,7 @@ C = Type[A] # type: ignore
 [out]
 
 [case testSerializeRecursiveAliases3]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 from typing import Type, Callable, Union, NamedTuple
 
 A = Union[B, int]  # type: ignore
@@ -4514,15 +4514,12 @@ from lib import A
 B = List[A]
 [builtins fixtures/list.pyi]
 [out]
-tmp/other.pyi:2: error: Module 'lib' has no attribute 'A'
 tmp/other.pyi:3: error: Cannot resolve name "B" (possible cyclic definition)
 tmp/lib.pyi:2: error: Module 'other' has no attribute 'B'
 [out2]
-tmp/other.pyi:2: error: Module 'lib' has no attribute 'A'
 tmp/other.pyi:3: error: Cannot resolve name "B" (possible cyclic definition)
 tmp/lib.pyi:2: error: Module 'other' has no attribute 'B'
-tmp/a.py:2: error: Cannot resolve name "lib.A" (possible cyclic definition)
-tmp/a.py:3: note: Revealed type is 'Any'
+tmp/a.py:3: note: Revealed type is 'builtins.list[Any]'
 
 [case testRecursiveNamedTupleTypedDict]
 # flags: --no-new-semantic-analyzer
diff --git a/test-data/unit/check-newsemanal.test b/test-data/unit/check-newsemanal.test
index f8755b2ab7d4..40d6670d68c0 100644
--- a/test-data/unit/check-newsemanal.test
+++ b/test-data/unit/check-newsemanal.test
@@ -1383,9 +1383,15 @@ x: B
 B = List[C]
 class C(B): pass
 
-reveal_type(x)  # N: Revealed type is 'builtins.list[__main__.C]'
-reveal_type(x[0][0])  # N: Revealed type is '__main__.C*'
+reveal_type(x)
+reveal_type(x[0][0])
 [builtins fixtures/list.pyi]
+[out]
+main:3: error: Cannot resolve name "B" (possible cyclic definition)
+main:4: error: Cannot resolve name "B" (possible cyclic definition)
+main:4: error: Cannot resolve name "C" (possible cyclic definition)
+main:7: note: Revealed type is 'Any'
+main:8: note: Revealed type is 'Any'
 
 [case testNewAnalyzerAliasToNotReadyTwoDeferralsFunction]
 import a
@@ -1410,14 +1416,18 @@ from typing import List
 from b import D
 
 def f(x: B) -> List[B]: ...
-B = List[C]
+B = List[C] # E
 class C(B): pass
 
 [file b.py]
 from a import f
 class D: ...
-reveal_type(f)  # N: Revealed type is 'def (x: builtins.list[a.C]) -> builtins.list[builtins.list[a.C]]'
+reveal_type(f)  # N
 [builtins fixtures/list.pyi]
+[out]
+tmp/b.py:3: note: Revealed type is 'def (x: builtins.list[Any]) -> builtins.list[builtins.list[Any]]'
+tmp/a.py:5: error: Cannot resolve name "B" (possible cyclic definition)
+tmp/a.py:5: error: Cannot resolve name "C" (possible cyclic definition)
 
 [case testNewAnalyzerAliasToNotReadyMixed]
 from typing import List, Union
@@ -1947,7 +1957,7 @@ class B(List[C]):
 from typing import NewType, List
 
 x: D
-reveal_type(x[0][0])  # N: Revealed type is '__main__.C*'
+reveal_type(x[0][0])
 
 D = List[C]
 C = NewType('C', B)
@@ -1955,6 +1965,13 @@ C = NewType('C', B)
 class B(D):
     pass
 [builtins fixtures/list.pyi]
+[out]
+main:3: error: Cannot resolve name "D" (possible cyclic definition)
+main:4: note: Revealed type is 'Any'
+main:6: error: Cannot resolve name "D" (possible cyclic definition)
+main:6: error: Cannot resolve name "C" (possible cyclic definition)
+main:7: error: Argument 2 to NewType(...) must be a valid type
+main:7: error: Cannot resolve name "B" (possible cyclic definition)
 
 -- Copied from check-classes.test (tricky corner cases).
 [case testNewAnalyzerNoCrashForwardRefToBrokenDoubleNewTypeClass]
@@ -1974,10 +1991,10 @@ class C:
 from typing import List, Generic, TypeVar, NamedTuple
 T = TypeVar('T')
 
-class C(A, B):
+class C(A, B): # E: Cannot resolve name "A" (possible cyclic definition)
     pass
 class G(Generic[T]): pass
-A = G[C]
+A = G[C] # E: Cannot resolve name "A" (possible cyclic definition)
 class B(NamedTuple):
     x: int
 
diff --git a/test-data/unit/check-type-aliases.test b/test-data/unit/check-type-aliases.test
index 1b1cb66218fd..41434cd43c64 100644
--- a/test-data/unit/check-type-aliases.test
+++ b/test-data/unit/check-type-aliases.test
@@ -178,30 +178,31 @@ Alias = Tuple[int, T]
 [out]
 
 [case testRecursiveAliasesErrors1]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 # Recursive aliases are not supported yet.
 from typing import Type, Callable, Union
 
-A = Union[A, int]
-B = Callable[[B], int]
-C = Type[C]
-[out]
-main:5: error: Recursive types not fully supported yet, nested types replaced with "Any"
-main:6: error: Recursive types not fully supported yet, nested types replaced with "Any"
-main:7: error: Recursive types not fully supported yet, nested types replaced with "Any"
+A = Union[A, int] # E: Cannot resolve name "A" (possible cyclic definition)
+B = Callable[[B], int] # E: Cannot resolve name "B" (possible cyclic definition)
+C = Type[C] # E: Cannot resolve name "C" (possible cyclic definition)
 
 [case testRecursiveAliasesErrors2]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 # Recursive aliases are not supported yet.
 from typing import Type, Callable, Union
 
 A = Union[B, int]
 B = Callable[[C], int]
 C = Type[A]
+x: A
+reveal_type(x)
 [out]
-main:5: error: Recursive types not fully supported yet, nested types replaced with "Any"
-main:6: error: Recursive types not fully supported yet, nested types replaced with "Any"
-main:7: error: Recursive types not fully supported yet, nested types replaced with "Any"
+main:5: error: Cannot resolve name "A" (possible cyclic definition)
+main:5: error: Cannot resolve name "B" (possible cyclic definition)
+main:6: error: Cannot resolve name "B" (possible cyclic definition)
+main:6: error: Cannot resolve name "C" (possible cyclic definition)
+main:7: error: Cannot resolve name "C" (possible cyclic definition)
+main:9: note: Revealed type is 'Union[Any, builtins.int]'
 
 [case testDoubleForwardAlias]
 from typing import List
@@ -223,12 +224,12 @@ reveal_type(x[0].x) # N: Revealed type is 'builtins.str'
 [out]
 
 [case testJSONAliasApproximation]
-# flags: --no-new-semantic-analyzer
+# flags: --new-semantic-analyzer
 # Recursive aliases are not supported yet.
 from typing import List, Union, Dict
-x: JSON
-JSON = Union[int, str, List[JSON], Dict[str, JSON]] # type: ignore
-reveal_type(x) # N: Revealed type is 'Union[builtins.int, builtins.str, builtins.list[Any], builtins.dict[builtins.str, Any]]'
+x: JSON # E: Cannot resolve name "JSON" (possible cyclic definition)
+JSON = Union[int, str, List[JSON], Dict[str, JSON]] # E: Cannot resolve name "JSON" (possible cyclic definition)
+reveal_type(x) # N: Revealed type is 'Any'
 if isinstance(x, list):
     reveal_type(x) # N: Revealed type is 'builtins.list[Any]'
 [builtins fixtures/isinstancelist.pyi]