diff --git a/src/Lean/Elab/PreDefinition/Main.lean b/src/Lean/Elab/PreDefinition/Main.lean
index 471ad586ea70..562c42508f52 100644
--- a/src/Lean/Elab/PreDefinition/Main.lean
+++ b/src/Lean/Elab/PreDefinition/Main.lean
@@ -18,15 +18,14 @@ private def addAndCompilePartial (preDefs : Array PreDefinition) (useSorry := fa
   for preDef in preDefs do
     trace[Elab.definition] "processing {preDef.declName}"
     let all := preDefs.toList.map (·.declName)
-    forallTelescope preDef.type fun xs type => do
-      let value ← if useSorry then
-        mkLambdaFVars xs (← mkSorry type (synthetic := true))
-      else
-        liftM <| mkInhabitantFor preDef.declName xs type
-      addNonRec { preDef with
-        kind  := DefKind.«opaque»
-        value
-      } (all := all)
+    let value ← if useSorry then
+      mkSorry preDef.type (synthetic := true)
+    else
+      liftM <| mkInhabitantFor preDef.declName preDef.type
+    addNonRec { preDef with
+      kind  := DefKind.«opaque»
+      value
+    } (all := all)
   addAndCompilePartialRec preDefs
 
 private def isNonRecursive (preDef : PreDefinition) : Bool :=
diff --git a/src/Lean/Elab/PreDefinition/MkInhabitant.lean b/src/Lean/Elab/PreDefinition/MkInhabitant.lean
index 4006a9d28493..21179018ae20 100644
--- a/src/Lean/Elab/PreDefinition/MkInhabitant.lean
+++ b/src/Lean/Elab/PreDefinition/MkInhabitant.lean
@@ -9,64 +9,118 @@ import Lean.PrettyPrinter
 namespace Lean.Elab
 open Meta
 
-private def withInhabitedInstances (xs : Array Expr) (k : Array Expr → MetaM α) : MetaM α := do
-  let rec go (i : Nat) (insts : Array Expr) : MetaM α := do
+private structure InhabitantCache (useOfNonempty : Bool) where
+  /-- Map from types to inhabitants. -/
+  inhabitants : ExprMap Expr := {}
+  /-- Local instances to eliminate with `mkLetFVars`. -/
+  localInstances : Array Expr := #[]
+  /-- Worklist of expressions to try to get more inhabitants out of.
+  The types of these are functions `α → β`, and in `resolve` we try to inhabit `α`. -/
+  unresolved : Array Expr := #[]
+
+private def InhabitantCache.withInhabitant (cache : InhabitantCache useOfNonempty) (x : Expr)
+    (k : InhabitantCache useOfNonempty → MetaM α) : MetaM α := do
+  let xTy ← whnfCore (← inferType x)
+  if cache.inhabitants.contains xTy then
+    k cache
+  else
+    -- Add `Inhabited` instance to help find inhabitants through typeclass inference later.
+    let u ← getLevel xTy
+    let instTy := mkApp (.const ``Inhabited [u]) xTy
+    let instVal := mkApp2 (.const ``Inhabited.mk [u]) xTy x
+    withLetDecl `inst instTy instVal fun inst =>
+      k { inhabitants := cache.inhabitants.insert xTy x
+          localInstances := cache.localInstances.push inst
+          unresolved := if xTy.isForall then cache.unresolved.push x else cache.unresolved }
+
+private def InhabitantCache.withInhabitants (cache : InhabitantCache useOfNonempty) (xs : Array Expr)
+    (k : InhabitantCache useOfNonempty → MetaM α) : MetaM α := do
+  let rec go (i : Nat) cache : MetaM α := do
     if h : i < xs.size then
-      let x := xs[i]
-      let xTy ← inferType x
-      let u ← getLevel xTy
-      let instTy := mkApp (.const ``Inhabited [u]) xTy
-      let instVal := mkApp2 (.const ``Inhabited.mk [u]) xTy x
-      withLetDecl `inst instTy instVal fun inst =>
-        go (i + 1) (insts.push inst)
+      cache.withInhabitant xs[i] (go (i + 1))
     else
-      k insts
-  go 0 #[]
+      k cache
+  go 0 cache
+
+/-- Constructs an inhabitant if possible.
+Eliminates the `localInstances` let variables introduced by `withInhabitant`. -/
+private def InhabitantCache.mkInhabitant? (cache : InhabitantCache useOfNonempty) (type : Expr) :
+    MetaM (Option Expr) := do
+  if let some x := cache.inhabitants[type]? then
+    return some x
+  else
+    try
+      let x ← if useOfNonempty then mkOfNonempty type else mkDefault type
+      mkLetFVars (usedLetOnly := true) cache.localInstances x
+    catch _ =>
+      return none
 
-private def mkInhabitant? (type : Expr) (useOfNonempty : Bool) : MetaM (Option Expr) := do
-  try
-    if useOfNonempty then
-      return some (← mkOfNonempty type)
+/-- Tries to find new inhabitants from the worklist. Does a single pass, instantiating foralls as far as possible. -/
+private def InhabitantCache.resolve (cache : InhabitantCache useOfNonempty)
+    (kOk : InhabitantCache useOfNonempty → MetaM α) (kFail : MetaM α) : MetaM α := do
+  let unresolved := cache.unresolved
+  let rec go (i : Nat) (cache : InhabitantCache useOfNonempty) (doOk : Bool) : MetaM α := do
+    if h : i < unresolved.size then
+      let mut x := unresolved[i]
+      let mut xTy ← whnfCore (← inferType x)
+      let mut changed := false
+      while xTy.isForall do
+        if let some domVal ← cache.mkInhabitant? xTy.bindingDomain! then
+          x := .app x domVal
+          xTy ← whnfCore (xTy.bindingBody!.instantiate1 domVal)
+          changed := true
+        else
+          break
+      if changed then
+        cache.withInhabitant x fun cache => do go (i + 1) cache true
+      else
+        go (i + 1) { cache with unresolved := cache.unresolved.push x } doOk
     else
-      return some (← mkDefault type)
-  catch _ =>
-    return none
+      if doOk then
+        kOk cache
+      else
+        kFail
+  go 0 { cache with unresolved := #[] } false
 
 /--
 Find an inhabitant while doing delta unfolding.
 -/
-private partial def mkInhabitantForAux? (xs insts : Array Expr) (type : Expr) (useOfNonempty : Bool) : MetaM (Option Expr) := withIncRecDepth do
-  if let some val ← mkInhabitant? type useOfNonempty then
-    mkLambdaFVars xs (← mkLetFVars (usedLetOnly := true) insts val)
+private partial def mkInhabitantForAux? (useOfNonempty : Bool) (cache : InhabitantCache useOfNonempty) (type : Expr) :
+    MetaM (Option Expr) := withIncRecDepth do
+  let type ← whnfCore type
+  if type.isForall then
+    forallTelescope type fun xs type' =>
+      cache.withInhabitants xs fun cache => do
+        let some val ← mkInhabitantForAux? _ cache type' | return none
+        mkLambdaFVars xs val
+  else if let some val ← cache.mkInhabitant? type then
+    return val
   else
-    let type ← whnfCore type
-    if type.isForall then
-      forallTelescope type fun xs' type' =>
-        withInhabitedInstances xs' fun insts' =>
-          mkInhabitantForAux? (xs ++ xs') (insts ++ insts') type' useOfNonempty
-    else if let some type' ← unfoldDefinition? type then
-      mkInhabitantForAux? xs insts type' useOfNonempty
-    else
-      return none
+    cache.resolve
+      (kOk := fun cache => mkInhabitantForAux? _ cache type)
+      (kFail := do
+        if let some type ← unfoldDefinition? type then
+          mkInhabitantForAux? _ cache type
+        else
+          return none)
 
 /- TODO: add a global IO.Ref to let users customize/extend this procedure -/
-def mkInhabitantFor (declName : Name) (xs : Array Expr) (type : Expr) : MetaM Expr :=
-  withInhabitedInstances xs fun insts => do
-    if let some val ← mkInhabitantForAux? xs insts type false <||> mkInhabitantForAux? xs insts type true then
-      return val
-    else
-      throwError "\
-        failed to compile 'partial' definition '{declName}', could not prove that the type\
-        {indentExpr (← mkForallFVars xs type)}\n\
-        is nonempty.\n\
-        \n\
-        This process uses multiple strategies:\n\
-        - It looks for a parameter that matches the return type.\n\
-        - It tries synthesizing '{.ofConstName ``Inhabited}' and '{.ofConstName ``Nonempty}' \
-          instances for the return type, while making every parameter into a local '{.ofConstName ``Inhabited}' instance.\n\
-        - It tries unfolding the return type.\n\
-        \n\
-        If the return type is defined using the 'structure' or 'inductive' command, \
-        you can try adding a 'deriving Nonempty' clause to it."
+def mkInhabitantFor (declName : Name) (type : Expr) : MetaM Expr := do
+  if let some val ← mkInhabitantForAux? false {} type <||> mkInhabitantForAux? true {} type then
+    return val
+  else
+    throwError "\
+      failed to compile 'partial' definition '{declName}', could not prove that the type\
+      {indentExpr type}\n\
+      is nonempty.\n\
+      \n\
+      This process uses multiple strategies:\n\
+      - It looks for a parameter that matches the return type.\n\
+      - It tries synthesizing '{.ofConstName ``Inhabited}' and '{.ofConstName ``Nonempty}' \
+        instances for the return type, while making every parameter into a local '{.ofConstName ``Inhabited}' instance.\n\
+      - It tries unfolding the return type.\n\
+      \n\
+      If the return type is defined using the 'structure' or 'inductive' command, \
+      you can try adding a 'deriving Nonempty' clause to it."
 
 end Lean.Elab
diff --git a/tests/lean/run/partialInhabitation.lean b/tests/lean/run/partialInhabitation.lean
new file mode 100644
index 000000000000..918b05c30388
--- /dev/null
+++ b/tests/lean/run/partialInhabitation.lean
@@ -0,0 +1,17 @@
+/-!
+# Tests of the metaprogram to prove types are inhabited for `partial`
+-/
+
+/-!
+Example: callbacks that depend on some inhabited arguments.
+-/
+partial def callback1 (k : Array Nat → α) : α := callback1 k
+
+partial def callback2 (k : Array Nat → IO α) : IO α := callback2 k
+
+partial def callback3 (k : Array Nat → α) : IO α := callback3 k
+
+/-!
+Example: some arguments might depend on results of other functions.
+-/
+partial def callback4 (k : Array α → β → α) (f : Unit → β) : IO α := callback4 k f