diff --git a/src/Zcu/PerThread.zig b/src/Zcu/PerThread.zig
index 5dd273fc380e8bc7611cc3919ef30031965a284b..ed10d9b70dbf0abd45a48824fbe7731bdd8ffc44 100644
--- a/src/Zcu/PerThread.zig
+++ b/src/Zcu/PerThread.zig
@@ -1872,15 +1872,22 @@ fn analyzeNavVal(
     // that case and invalidate the dependee right now.
     if (zcu.clearOutdatedState(.wrap(.{ .nav_ty = nav_id }))) {
         assert(zir_decl.type_body == null); // otherwise we already resolved it with `Sema.ensureNavResolved`
-        zcu.resetUnit(.wrap(.{ .nav_ty = nav_id }));
-        try pt.addDependency(.wrap(.{ .nav_ty = nav_id }), .{ .nav_val = nav_id }); // inferred type depends on the value (that's us!)
+        const type_unit: AnalUnit = .wrap(.{ .nav_ty = nav_id });
+        const prev_type_failed = zcu.failed_analysis.contains(type_unit) or
+            zcu.transitive_failed_analysis.contains(type_unit);
+        zcu.resetUnit(type_unit);
+        try pt.addDependency(type_unit, .{ .nav_val = nav_id }); // inferred type depends on the value (that's us!)
         if (comp.debugIncremental()) {
-            const info = try zcu.incremental_debug_state.getUnitInfo(gpa, .wrap(.{ .nav_ty = nav_id }));
+            const info = try zcu.incremental_debug_state.getUnitInfo(gpa, type_unit);
             info.last_update_gen = zcu.generation;
             info.deps.clearRetainingCapacity();
         }
-        const type_changed: bool = if (old_nav.resolved) |r| r.type != nav_ty.toIntern() else true;
-        if (type_changed) {
+        const type_outdated: bool = type_outdated: {
+            if (prev_type_failed) break :type_outdated true;
+            const r = old_nav.resolved orelse break :type_outdated true;
+            break :type_outdated r.type != nav_ty.toIntern();
+        };
+        if (type_outdated) {
             try zcu.markDependeeOutdated(.marked_po, .{ .nav_ty = nav_id });
         } else {
             try zcu.markPoDependeeUpToDate(.{ .nav_ty = nav_id });
diff --git a/test/incremental/pointer_to_decl_with_astgen_error b/test/incremental/pointer_to_decl_with_astgen_error
new file mode 100644
index 0000000000000000000000000000000000000000..6c9359209b7fa7e83de855a3e4680f31c566fa5c
--- /dev/null
+++ b/test/incremental/pointer_to_decl_with_astgen_error
@@ -0,0 +1,23 @@
+#update=initial version
+#file=main.zig
+const foo = {};
+pub fn main() void {
+    _ = &foo;
+}
+#expect_stdout=""
+
+#update=introduce use of undeclared identifier
+#file=main.zig
+const foo = something;
+pub fn main() void {
+    _ = &foo;
+}
+#expect_error=main.zig:1:13: error: use of undeclared identifier 'something'
+
+#update=revert use of undeclared identifier
+#file=main.zig
+const foo = {};
+pub fn main() void {
+    _ = &foo;
+}
+#expect_stdout=""