diff --git a/zio-schema-derivation/shared/src/main/scala-2/zio/schema/DeriveSchema.scala b/zio-schema-derivation/shared/src/main/scala-2/zio/schema/DeriveSchema.scala
index aca1ba21e..78e8f5b0f 100644
--- a/zio-schema-derivation/shared/src/main/scala-2/zio/schema/DeriveSchema.scala
+++ b/zio-schema-derivation/shared/src/main/scala-2/zio/schema/DeriveSchema.scala
@@ -379,7 +379,7 @@ object DeriveSchema {
               val getArg     = TermName(fieldLabel)
 
               val getFunc = q" (z: $tpe) => z.$getArg"
-              val setFunc = q" (z: $tpe, v: ${fieldType}) => z.copy($getArg = v)"
+              val setFunc = q" (z: $tpe, v: $fieldType) => z.copy[..${tpe.typeArgs}]($getArg = v)"
 
               if (annotations.nonEmpty) {
                 val newName       = getFieldName(annotations).getOrElse(fieldLabel)
@@ -404,9 +404,9 @@ object DeriveSchema {
 
           val constructExpr =
             if (arity < 2)
-              q"defaultConstruct0 = (..$constructArgs) => $tpeCompanion(..$constructApplyArgs)"
+              q"defaultConstruct0 = (..$constructArgs) => $tpeCompanion[..${tpe.typeArgs}](..$constructApplyArgs)"
             else
-              q"construct0 = (..$constructArgs) => $tpeCompanion(..$constructApplyArgs)"
+              q"construct0 = (..$constructArgs) => $tpeCompanion[..${tpe.typeArgs}](..$constructApplyArgs)"
 
           val applyArgs =
             if (typeAnnotations.isEmpty)
diff --git a/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala b/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
index 7b377c881..f179f90c8 100644
--- a/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
+++ b/zio-schema-derivation/shared/src/test/scala/zio/schema/DeriveSchemaSpec.scala
@@ -175,6 +175,12 @@ object DeriveSchemaSpec extends ZIOSpecDefault with VersionSpecificDeriveSchemaS
     case class BLeaf[B](value: B)                                    extends RBTree[Nothing, B]
   }
 
+  sealed trait AdtWithTypeParameters[+Param1, +Param2]
+
+  object AdtWithTypeParameters {
+    case class A[Param1, Param2](fieldWithParam1: Param1) extends AdtWithTypeParameters[Param1, Param2]
+    case class B[Param1, Param2](fieldWithParam2: Param2) extends AdtWithTypeParameters[Param1, Param2]
+  }
   @annotation1("enum") sealed trait AnnotatedEnum
 
   object AnnotatedEnum {
@@ -398,6 +404,10 @@ object DeriveSchemaSpec extends ZIOSpecDefault with VersionSpecificDeriveSchemaS
         val derived: Schema[RBTree[String, Int]] = DeriveSchema.gen[RBTree[String, Int]]
         assert(derived)(anything)
       },
+      test("correctly derives schema with unused type parameters") {
+        val derived: Schema[AdtWithTypeParameters[Int, Int]] = DeriveSchema.gen[AdtWithTypeParameters[Int, Int]]
+        assert(derived)(anything)
+      },
       test("correctly derives recursive Enum") {
         assert(Schema[RecursiveEnum].toString)(not(containsString("null")) && not(equalTo("$Lazy$")))
       },