diff --git a/compiler/src/dotty/tools/dotc/typer/Deriving.scala b/compiler/src/dotty/tools/dotc/typer/Deriving.scala
index 619dfcf4d7cb..60148319a61c 100644
--- a/compiler/src/dotty/tools/dotc/typer/Deriving.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Deriving.scala
@@ -292,10 +292,21 @@ trait Deriving {
           val companion = companionRef(resultType)
           val module = untpd.ref(companion).withSpan(sym.span)
           val rhs = untpd.Select(module, nme.derived)
-          if companion.termSymbol.exists then typed(rhs, resultType)
-          else errorTree(rhs, em"$resultType cannot be derived since ${resultType.typeSymbol} has no companion object")
+          val derivedMember = companion.member(nme.derived)
+
+          if !companion.termSymbol.exists then 
+            errorTree(rhs, em"$resultType cannot be derived since ${resultType.typeSymbol} has no companion object")
+          else if hasExplicitParams(derivedMember.symbol) then 
+            errorTree(rhs, em"""derived instance $resultType failed to generate:
+            |method `derived` from object ${module} takes explicit term parameters""")
+          else 
+            typed(rhs, resultType)
       end typeclassInstance
 
+      // checks whether any of the params of 'sym' is explicit
+      def hasExplicitParams(sym: Symbol) = 
+        !sym.paramSymss.flatten.forall(sym => sym.isType || sym.is(Flags.Given) || sym.is(Flags.Implicit))
+
       def syntheticDef(sym: Symbol): Tree = inContext(ctx.fresh.setOwner(sym).setNewScope) {
         if sym.is(Method) then tpd.DefDef(sym.asTerm, typeclassInstance(sym))
         else tpd.ValDef(sym.asTerm, typeclassInstance(sym)(Nil))
diff --git a/tests/neg/i15987/DerivedIssue.check b/tests/neg/i15987/DerivedIssue.check
new file mode 100644
index 000000000000..f1254c1c6f57
--- /dev/null
+++ b/tests/neg/i15987/DerivedIssue.check
@@ -0,0 +1,4 @@
+-- Error: tests/neg/7722.scala:2:40 ------------------------------------------------------------------------------------
+2 |  @scala.annotation.targetName("E") def this() = this(3) // error
+  |  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+  |  @targetName annotation may not be used on a constructor
diff --git a/tests/neg/i15987/DerivedIssue.scala b/tests/neg/i15987/DerivedIssue.scala
new file mode 100644
index 000000000000..3da8b7765607
--- /dev/null
+++ b/tests/neg/i15987/DerivedIssue.scala
@@ -0,0 +1,32 @@
+import scala.language.experimental.clauseInterleaving
+
+trait ShowWithExplicit[A]
+
+object ShowWithExplicit:
+  def derived[A, B](explicit: String)(using DummyImplicit)(implicit dummy: DummyImplicit): ShowWithExplicit[A] = ???
+
+trait ShowUsingAndImplicit[A]
+
+object ShowUsingAndImplicit:
+  def derived[A, B](using DummyImplicit)(implicit dummy: DummyImplicit): ShowUsingAndImplicit[A] = ???
+
+trait ShowUsing[A]
+
+object ShowUsing:
+  def derived[A](using DummyImplicit): ShowUsing[A] = ???
+
+trait ShowImplicit[A]
+
+object ShowImplicit:
+  def derived[A](implicit ev: DummyImplicit): ShowImplicit[A] = ???
+
+trait ShowContra[-A]
+
+object ShowContra:
+  val derived: ShowContra[Any] = ???
+
+case class Person(name: String) derives ShowWithExplicit, // error
+  ShowUsingAndImplicit,
+  ShowUsing,
+  ShowImplicit,
+  ShowContra