diff --git a/examples/1165-diagnostics-generic-return-unbound.sx b/examples/1165-diagnostics-generic-return-unbound.sx
new file mode 100644
index 0000000..0116313
--- /dev/null
+++ b/examples/1165-diagnostics-generic-return-unbound.sx
@@ -0,0 +1,24 @@
+// A `$T`-generic RETURN type with no parameter mentioning `$T` is rejected
+// at the declaration: the fn isn't a template (type params derive from
+// params), and no call site could ever bind the return. All three declare
+// surfaces diagnose: a top-level fn, a struct-body method, and a
+// (non-parameterised) impl method. Each used to PANIC the compiler at LLVM
+// emission via the `.unresolved` tripwire — even when never called.
+
+#import "modules/std.sx";
+
+make :: () -> $T { 0 }
+
+Foo :: struct {
+    x: s64;
+    weird :: (self: *Foo) -> $T { 0 }
+}
+
+Show2 :: protocol { show2 :: () -> string; }
+IntBox :: struct { v: s64; }
+impl Show2 for IntBox {
+    show2 :: (self: *IntBox) -> string { "x" }
+    leak :: (self: *IntBox) -> $T { 0 }
+}
+
+main :: () { print("ok\n"); }
diff --git a/examples/expected/1165-diagnostics-generic-return-unbound.exit b/examples/expected/1165-diagnostics-generic-return-unbound.exit
new file mode 100644
index 0000000..d00491f
--- /dev/null
+++ b/examples/expected/1165-diagnostics-generic-return-unbound.exit
@@ -0,0 +1 @@
+1
diff --git a/examples/expected/1165-diagnostics-generic-return-unbound.stderr b/examples/expected/1165-diagnostics-generic-return-unbound.stderr
new file mode 100644
index 0000000..43bc776
--- /dev/null
+++ b/examples/expected/1165-diagnostics-generic-return-unbound.stderr
@@ -0,0 +1,17 @@
+error: generic return type '$T' cannot be bound — 'make' has no parameter mentioning '$T', so no call site can infer it
+  --> examples/1165-diagnostics-generic-return-unbound.sx:10:15
+   |
+10 | make :: () -> $T { 0 }
+   |               ^^
+
+error: generic return type '$T' cannot be bound — 'Foo.weird' has no parameter mentioning '$T', so no call site can infer it
+  --> examples/1165-diagnostics-generic-return-unbound.sx:14:30
+   |
+14 |     weird :: (self: *Foo) -> $T { 0 }
+   |                              ^^
+
+error: generic return type '$T' cannot be bound — 'IntBox.leak' has no parameter mentioning '$T', so no call site can infer it
+  --> examples/1165-diagnostics-generic-return-unbound.sx:21:32
+   |
+21 |     leak :: (self: *IntBox) -> $T { 0 }
+   |                                ^^
diff --git a/examples/expected/1165-diagnostics-generic-return-unbound.stdout b/examples/expected/1165-diagnostics-generic-return-unbound.stdout
new file mode 100644
index 0000000..8b13789
--- /dev/null
+++ b/examples/expected/1165-diagnostics-generic-return-unbound.stdout
@@ -0,0 +1 @@
+
diff --git a/src/ir/lower/decl.zig b/src/ir/lower/decl.zig
index 4f36308..9018778 100644
--- a/src/ir/lower/decl.zig
+++ b/src/ir/lower/decl.zig
@@ -1966,6 +1966,41 @@ pub fn bareAuthorFuncId(self: *Lowering, fd: *const ast.FnDecl, name: []const u8
     return fid;
 }
 
+/// Walk a return-type expression for a `$T` generic leaf, returning the
+/// first generic name found. The parser builds `fd.type_params` from
+/// PARAMS only (`collectTypeParams`), so a `$`-generic that appears ONLY
+/// in the return type makes the fn look non-generic while its return can
+/// never be bound — `declareFunction` rejects that shape loudly.
+fn returnGenericLeaf(node: *const Node) ?[]const u8 {
+    return switch (node.data) {
+        .type_expr => |te| if (te.is_generic) te.name else null,
+        .pointer_type_expr => |pte| returnGenericLeaf(pte.pointee_type),
+        .many_pointer_type_expr => |mpte| returnGenericLeaf(mpte.element_type),
+        .slice_type_expr => |ste| returnGenericLeaf(ste.element_type),
+        .array_type_expr => |ate| returnGenericLeaf(ate.element_type),
+        .optional_type_expr => |ote| returnGenericLeaf(ote.inner_type),
+        .parameterized_type_expr => |pte| {
+            for (pte.args) |arg| if (returnGenericLeaf(arg)) |n| return n;
+            return null;
+        },
+        .tuple_type_expr => |tte| {
+            for (tte.field_types) |ft| if (returnGenericLeaf(ft)) |n| return n;
+            return null;
+        },
+        .closure_type_expr => |cte| {
+            for (cte.param_types) |pt| if (returnGenericLeaf(pt)) |n| return n;
+            if (cte.return_type) |rt| return returnGenericLeaf(rt);
+            return null;
+        },
+        .function_type_expr => |fte| {
+            for (fte.param_types) |pt| if (returnGenericLeaf(pt)) |n| return n;
+            if (fte.return_type) |rt| return returnGenericLeaf(rt);
+            return null;
+        },
+        else => null,
+    };
+}
+
 /// Declare a function as an extern stub (signature only, no body).
 pub fn declareFunction(self: *Lowering, fd: *const ast.FnDecl, name: []const u8) void {
     // Skip generic templates — they're monomorphized on demand, not declared as extern
@@ -1973,6 +2008,23 @@ pub fn declareFunction(self: *Lowering, fd: *const ast.FnDecl, name: []const u8)
 
     const ret_ty = self.resolveReturnType(fd);
 
+    // A `$T`-generic return with NO parameter mentioning `$T`: the fn isn't
+    // a template (the guard above runs on param-derived `type_params`) yet
+    // its return can never be bound by any call site. Declaring it would
+    // carry the `.unresolved` sentinel into LLVM emission and panic the
+    // tripwire — diagnose at the declaration instead. Named unknown types
+    // (`-> Bogus`) are covered by the semantic pass's "unknown type".
+    if (ret_ty == .unresolved) {
+        if (fd.return_type) |rtn| {
+            if (returnGenericLeaf(rtn)) |gen_name| {
+                if (self.diagnostics) |d| {
+                    d.addFmt(.err, rtn.span, "generic return type '${s}' cannot be bound — '{s}' has no parameter mentioning '${s}', so no call site can infer it", .{ gen_name, name, gen_name });
+                }
+                return;
+            }
+        }
+    }
+
     // Foreign declarations with a trailing variadic param map to the C
     // calling convention's `...` tail. Drop the variadic param from the
     // IR signature (it has no C-level slot) and set is_variadic.