diff --git a/packages/safe-ds-lang/src/language/typing/safe-ds-type-computer.ts b/packages/safe-ds-lang/src/language/typing/safe-ds-type-computer.ts
index c772e8bd5..d57c60021 100644
--- a/packages/safe-ds-lang/src/language/typing/safe-ds-type-computer.ts
+++ b/packages/safe-ds-lang/src/language/typing/safe-ds-type-computer.ts
@@ -49,13 +49,11 @@ import {
     SdsAbstractCall,
     SdsAbstractResult,
     SdsAssignee,
-    type SdsBlockLambda,
     SdsCall,
     SdsCallableType,
     SdsClass,
     SdsDeclaration,
     SdsExpression,
-    type SdsExpressionLambda,
     SdsFunction,
     SdsIndexedAccess,
     SdsInfixOperation,
@@ -127,6 +125,12 @@ export class SafeDsTypeComputer {
     private readonly partialEvaluator: SafeDsPartialEvaluator;
     private readonly typeChecker: SafeDsTypeChecker;
 
+    /**
+     * Contains all lambda parameters that are currently being computed. When computing the types of lambda parameters,
+     * they must only access the type of the containing lambda, if they are not contained in this set themselves.
+     * Otherwise, this would cause endless recursion.
+     */
+    private readonly incompleteLambdaParameters = new Set<SdsParameter>();
     private readonly nodeTypeCache: WorkspaceCache<string, Type>;
 
     constructor(services: SafeDsServices) {
@@ -154,10 +158,18 @@ export class SafeDsTypeComputer {
             return UnknownType;
         }
 
-        // Ignore type parameter substitutions for caching
-        const unsubstitutedType = this.nodeTypeCache.get(this.getNodeId(node), () =>
-            this.doComputeType(node).simplify(),
-        );
+        const id = this.getNodeId(node);
+
+        // Only cache fully substituted types
+        let unsubstitutedType: Type | undefined = this.nodeTypeCache.get(id);
+        if (!unsubstitutedType) {
+            unsubstitutedType = this.doComputeType(node).simplify();
+
+            if (unsubstitutedType.isFullySubstituted) {
+                this.nodeTypeCache.set(id, unsubstitutedType);
+            }
+        }
+
         if (isEmpty(substitutions)) {
             return unsubstitutedType;
         }
@@ -292,6 +304,12 @@ export class SafeDsTypeComputer {
 
         // Lambda passed as argument
         if (isSdsArgument(containerOfLambda)) {
+            // Lookup parameter type in lambda unless the lambda is being computed. These contain the correct
+            // substitutions for type parameters.
+            if (!this.incompleteLambdaParameters.has(node)) {
+                return this.computeType(containingCallable);
+            }
+
             const parameter = this.nodeMapper.argumentToParameter(containerOfLambda);
             if (!parameter) {
                 return UnknownType;
@@ -347,12 +365,8 @@ export class SafeDsTypeComputer {
         // Recursive cases
         else if (isSdsArgument(node)) {
             return this.computeType(node.value);
-        } else if (isSdsBlockLambda(node)) {
-            return this.computeTypeOfBlockLambda(node);
         } else if (isSdsCall(node)) {
             return this.computeTypeOfCall(node);
-        } else if (isSdsExpressionLambda(node)) {
-            return this.computeTypeOfExpressionLambda(node);
         } else if (isSdsIndexedAccess(node)) {
             return this.computeTypeOfIndexedAccess(node);
         } else if (isSdsInfixOperation(node)) {
@@ -392,6 +406,8 @@ export class SafeDsTypeComputer {
                 default:
                     return UnknownType;
             }
+        } else if (isSdsLambda(node)) {
+            return this.computeTypeOfLambda(node);
         } else if (isSdsList(node)) {
             const elementType = this.lowestCommonSupertype(node.elements.map((it) => this.computeType(it)));
             return this.coreTypes.List(elementType);
@@ -431,24 +447,6 @@ export class SafeDsTypeComputer {
         } /* c8 ignore stop */
     }
 
-    private computeTypeOfBlockLambda(node: SdsBlockLambda): Type {
-        const parameterEntries = getParameters(node).map(
-            (it) => new NamedTupleEntry(it, it.name, this.computeType(it)),
-        );
-        const resultEntries = streamBlockLambdaResults(node)
-            .map((it) => new NamedTupleEntry(it, it.name, this.computeType(it)))
-            .toArray();
-
-        const unsubstitutedType = this.factory.createCallableType(
-            node,
-            undefined,
-            this.factory.createNamedTupleType(...parameterEntries),
-            this.factory.createNamedTupleType(...resultEntries),
-        );
-        const substitutions = this.computeSubstitutionsForLambda(node, unsubstitutedType);
-        return unsubstitutedType.substituteTypeParameters(substitutions);
-    }
-
     private computeTypeOfCall(node: SdsCall): Type {
         const receiverType = this.computeType(node.receiver);
         const nonNullableReceiverType = this.computeNonNullableType(receiverType);
@@ -486,24 +484,6 @@ export class SafeDsTypeComputer {
         return result.withExplicitNullability(receiverType.isExplicitlyNullable && node.isNullSafe);
     }
 
-    private computeTypeOfExpressionLambda(node: SdsExpressionLambda): Type {
-        const parameterEntries = getParameters(node).map(
-            (it) => new NamedTupleEntry(it, it.name, this.computeType(it)),
-        );
-        const resultEntries = [
-            new NamedTupleEntry<SdsAbstractResult>(undefined, 'result', this.computeType(node.result)),
-        ];
-
-        const unsubstitutedType = this.factory.createCallableType(
-            node,
-            undefined,
-            this.factory.createNamedTupleType(...parameterEntries),
-            this.factory.createNamedTupleType(...resultEntries),
-        );
-        const substitutions = this.computeSubstitutionsForLambda(node, unsubstitutedType);
-        return unsubstitutedType.substituteTypeParameters(substitutions);
-    }
-
     private computeTypeOfIndexedAccess(node: SdsIndexedAccess): Type {
         const receiverType = this.computeType(node.receiver);
         if (!(receiverType instanceof ClassType) && !(receiverType instanceof TypeVariable)) {
@@ -553,6 +533,44 @@ export class SafeDsTypeComputer {
         }
     }
 
+    private computeTypeOfLambda(node: SdsLambda): Type {
+        // Remember lambda parameters
+        const parameters = getParameters(node);
+        parameters.forEach((it) => {
+            this.incompleteLambdaParameters.add(it);
+        });
+
+        const parameterEntries = parameters.map((it) => new NamedTupleEntry(it, it.name, this.computeType(it)));
+        const resultEntries = this.buildLambdaResultEntries(node);
+
+        const unsubstitutedType = this.factory.createCallableType(
+            node,
+            undefined,
+            this.factory.createNamedTupleType(...parameterEntries),
+            this.factory.createNamedTupleType(...resultEntries),
+        );
+        const substitutions = this.computeSubstitutionsForLambda(node, unsubstitutedType);
+
+        // Forget lambda parameters
+        parameters.forEach((it) => {
+            this.incompleteLambdaParameters.delete(it);
+        });
+
+        return unsubstitutedType.substituteTypeParameters(substitutions);
+    }
+
+    private buildLambdaResultEntries(node: SdsLambda): NamedTupleEntry<SdsAbstractResult>[] {
+        if (isSdsExpressionLambda(node)) {
+            return [new NamedTupleEntry<SdsAbstractResult>(undefined, 'result', this.computeType(node.result))];
+        } else if (isSdsBlockLambda(node)) {
+            return streamBlockLambdaResults(node)
+                .map((it) => new NamedTupleEntry(it, it.name, this.computeType(it)))
+                .toArray();
+        } /* c8 ignore start */ else {
+            return [];
+        } /* c8 ignore stop */
+    }
+
     private computeTypeOfMemberAccess(node: SdsMemberAccess) {
         const memberType = this.computeType(node.member);