diff --git a/src/python/pants/backend/scala/dependency_inference/ScalaParser.scala b/src/python/pants/backend/scala/dependency_inference/ScalaParser.scala
index f8cfd820e6c..03906bcb22d 100644
--- a/src/python/pants/backend/scala/dependency_inference/ScalaParser.scala
+++ b/src/python/pants/backend/scala/dependency_inference/ScalaParser.scala
@@ -35,11 +35,16 @@ object Analysis {
   case class ProvidedSymbol(name: String, recursive: Boolean)
 }
 
-case class ProvidedSymbol(sawClass: Boolean, sawTrait: Boolean, sawObject: Boolean, recursive: Boolean)
+case class ProvidedSymbol(
+    sawClass: Boolean,
+    sawTrait: Boolean,
+    sawObject: Boolean,
+    recursive: Boolean
+)
 
 class SourceAnalysisTraverser extends Traverser {
   val nameParts = ArrayBuffer[String]()
-  var skipProvidedNames = false  
+  var skipProvidedNames = false
 
   val providedSymbolsByScope = HashMap[String, HashMap[String, ProvidedSymbol]]()
   val importsByScope = HashMap[String, ArrayBuffer[AnImport]]()
@@ -56,7 +61,7 @@ class SourceAnalysisTraverser extends Traverser {
         case (None, None)             => None
       }
 
-    def maybeExtractName(tree: Tree): Option[String] = 
+    def maybeExtractName(tree: Tree): Option[String] =
       tree match {
         case Term.Select(qual, name)  => extractNameSelect(qual, name)
         case Type.Select(qual, name)  => extractNameSelect(qual, name)
@@ -192,9 +197,9 @@ class SourceAnalysisTraverser extends Traverser {
 
   def visitMods(mods: List[Mod]): Unit = {
     mods.foreach({
-      case Mod.Annot(init) =>        
-        apply(init) // rely on `Init` extraction in main parsing match code        
-      case _               => ()
+      case Mod.Annot(init) =>
+        apply(init) // rely on `Init` extraction in main parsing match code
+      case _ => ()
     })
   }
 
@@ -209,8 +214,25 @@ class SourceAnalysisTraverser extends Traverser {
       visitMods(mods)
       val name = extractName(nameNode)
       recordScope(name)
-      recordProvidedName(name, sawObject = true)
-      visitTemplate(templ, name)
+
+      // TODO: should object already be recursive?
+      // an object is recursive if extends another type because we cannot figure out the provided types
+      // in the parents, we just mark the object as recursive (which is indicated by non-empty inits)
+      val recursive = !templ.inits.isEmpty
+      recordProvidedName(name, sawObject = true, recursive = recursive)
+
+      // visitTemplate visits the inits part of the template in the outer scope,
+      // however for a package object the inits part can actually be found both in the inner scope as well (package inner).
+      // therefore we are not calling visitTemplate, calling all the apply methods in the inner scope.
+      // issue https://github.com/pantsbuild/pants/issues/16259
+      withNamePart(
+        name,
+        () => {
+          templ.inits.foreach(init => apply(init))
+          apply(templ.early)
+          apply(templ.stats)
+        }
+      )
     }
 
     case Defn.Class(mods, nameNode, _tparams, ctor, templ) => {
@@ -238,7 +260,7 @@ class SourceAnalysisTraverser extends Traverser {
       // in the parents, we just mark the object as recursive (which is indicated by non-empty inits)
       val recursive = !templ.inits.isEmpty
       recordProvidedName(name, sawObject = true, recursive = recursive)
-      
+
       // If the object is recursive, no need to provide the symbols inside
       if (recursive)
         withSuppressProvidedNames(() => visitTemplate(templ, name))
@@ -333,7 +355,7 @@ class SourceAnalysisTraverser extends Traverser {
     }
 
     case Init(tpe, _name, argss) => {
-      extractNamesFromTypeTree(tpe).foreach(recordConsumedSymbol(_))      
+      extractNamesFromTypeTree(tpe).foreach(recordConsumedSymbol(_))
       argss.foreach(_.foreach(apply))
     }
 
@@ -376,7 +398,9 @@ class SourceAnalysisTraverser extends Traverser {
   def gatherProvidedSymbols(): Vector[Analysis.ProvidedSymbol] = {
     providedSymbolsByScope
       .flatMap({ case (scopeName, symbolsForScope) =>
-        symbolsForScope.map { case(symbolName, symbol) => Analysis.ProvidedSymbol(s"${scopeName}.${symbolName}", symbol.recursive)}.toVector
+        symbolsForScope.map { case (symbolName, symbol) =>
+          Analysis.ProvidedSymbol(s"${scopeName}.${symbolName}", symbol.recursive)
+        }.toVector
       })
       .toVector
   }
@@ -387,10 +411,14 @@ class SourceAnalysisTraverser extends Traverser {
         val encodedSymbolsForScope = symbolsForScope.flatMap({
           case (symbolName, symbol) => {
             val encodedSymbolName = NameTransformer.encode(symbolName)
-            val result = ArrayBuffer[Analysis.ProvidedSymbol](Analysis.ProvidedSymbol(encodedSymbolName, symbol.recursive))
+            val result = ArrayBuffer[Analysis.ProvidedSymbol](
+              Analysis.ProvidedSymbol(encodedSymbolName, symbol.recursive)
+            )
             if (symbol.sawObject) {
               result.append(Analysis.ProvidedSymbol(encodedSymbolName + "$", symbol.recursive))
-              result.append(Analysis.ProvidedSymbol(encodedSymbolName + "$.MODULE$", symbol.recursive))
+              result.append(
+                Analysis.ProvidedSymbol(encodedSymbolName + "$.MODULE$", symbol.recursive)
+              )
             }
             result.toVector
           }
diff --git a/src/python/pants/backend/scala/dependency_inference/scala_parser_test.py b/src/python/pants/backend/scala/dependency_inference/scala_parser_test.py
index f58ceba4e5c..a67f1b6d91e 100644
--- a/src/python/pants/backend/scala/dependency_inference/scala_parser_test.py
+++ b/src/python/pants/backend/scala/dependency_inference/scala_parser_test.py
@@ -577,3 +577,19 @@ def test_object_extends_ctor(rule_runner: RuleRunner) -> None:
         "foo.Bar",
         "foo.hello",
     ]
+
+
+def test_package_object_extends_trait(rule_runner: RuleRunner) -> None:
+    analysis = _analyze(
+        rule_runner,
+        textwrap.dedent(
+            """
+            package foo
+
+            package object bar extends Trait {
+            }
+            """
+        ),
+    )
+
+    assert sorted(analysis.fully_qualified_consumed_symbols()) == ["foo.Trait", "foo.bar.Trait"]