diff --git a/src/System.Management.Automation/engine/parser/TypeInferenceVisitor.cs b/src/System.Management.Automation/engine/parser/TypeInferenceVisitor.cs
index 5be3e414c7..9e26e4eff3 100644
--- a/src/System.Management.Automation/engine/parser/TypeInferenceVisitor.cs
+++ b/src/System.Management.Automation/engine/parser/TypeInferenceVisitor.cs
@@ -2930,8 +2930,10 @@ namespace System.Management.Automation
 
             private void SetLastAssignment(Ast ast, bool enumerate = false, bool redirectionAssignment = false)
             {
-                if (LastAssignmentOffset < ast.Extent.StartOffset)
+                if (LastAssignmentOffset < ast.Extent.StartOffset && !VariableTarget.Extent.IsWithin(ast.Extent))
                 {
+                    // If the variable we are inferring the value of is inside this assignment then the assignment is invalid
+                    // For example: $x = Get-Random; $x = $x.Where{$_.<Tab>} here the value should be inferred based on Get-Random and not $x = $x...
                     ClearAssignmentData();
                     LastAssignment = ast;
                     EnumerateAssignment = enumerate;
diff --git a/test/powershell/engine/Api/TypeInference.Tests.ps1 b/test/powershell/engine/Api/TypeInference.Tests.ps1
index 4ba8ffd17d..5719c5c09a 100644
--- a/test/powershell/engine/Api/TypeInference.Tests.ps1
+++ b/test/powershell/engine/Api/TypeInference.Tests.ps1
@@ -1197,6 +1197,12 @@ Describe "Type inference Tests" -tags "CI" {
         $res.Name | Should -Be System.String
     }
 
+    It 'Ignores the last assignment when a variable is reused' {
+        $variableAst = { $x = New-Guid; $x = $x.Where{$_} }.Ast.FindAll({ param($a) $a -is [Language.VariableExpressionAst] }, $true) | select -Last 1
+        $res = [AstTypeInference]::InferTypeOf($variableAst)
+        $res.Name | Should -Be System.Guid
+    }
+
     $catchClauseTypes = @(
         @{ Type = 'System.ArgumentException' }
         @{ Type = 'System.ArgumentNullException' }