diff --git a/compiler/semstmts.nim b/compiler/semstmts.nim
index 4b9dd3e7a4880..22167d153f922 100644
--- a/compiler/semstmts.nim
+++ b/compiler/semstmts.nim
@@ -1837,6 +1837,18 @@ proc typeSectionFinalPass(c: PContext, n: PNode) =
   for (owner, field, expectedType) in c.forwardFieldUpdates:
     semDelayedFieldDefault(c, owner, expectedType, field)
   c.forwardFieldUpdates = @[]
+
+  # every type in the section started out as a `tyForward`, so types that were
+  # referenced before their definition could not propagate `tfHasAsgn` and
+  # friends to their owners yet. Now that all bodies are known, redo it:
+  block:
+    var marker = initIntSet()
+    for i in 0..<n.len:
+      let a = n[i]
+      if a.kind == nkCommentStmt: continue
+      let s = typeSectionTypeName(c, a[0]).sym
+      if s.typ != nil: repropagateFlags(s.typ, marker)
+
   for i in 0..<n.len:
     var a = n[i]
     if a.kind == nkCommentStmt: continue
diff --git a/compiler/semtypes.nim b/compiler/semtypes.nim
index 1c4c81c64c083..c04dad40cc390 100644
--- a/compiler/semtypes.nim
+++ b/compiler/semtypes.nim
@@ -356,6 +356,53 @@ proc containsForwardType(t: PType): bool =
   var seen = initIntSet()
   containsForwardTypeAux(t, seen)
 
+proc repropagateFlags(t: PType; marker: var IntSet)
+
+proc repropagateFlagsNode(owner: PType; n: PNode; marker: var IntSet) =
+  ## walks the fields of an object/tuple, see `searchTypeNodeForAux`.
+  case n.kind
+  of nkRecList:
+    for i in 0..<n.len: repropagateFlagsNode(owner, n[i], marker)
+  of nkRecCase:
+    repropagateFlagsNode(owner, n[0], marker)
+    for i in 1..<n.len:
+      case n[i].kind
+      of nkOfBranch, nkElse: repropagateFlagsNode(owner, lastSon(n[i]), marker)
+      else: discard
+  of nkSym:
+    let field = n.sym.typ
+    if field != nil and field.state == Complete:
+      repropagateFlags(field, marker)
+      propagateToOwner(owner, field)
+  else: discard
+
+proc repropagateFlags(t: PType; marker: var IntSet) =
+  ## `propagateToOwner` computes `tfHasAsgn` & friends when a type is
+  ## constructed. Within a type section a type can be used before it has been
+  ## reified, so back then a `tyForward` had nothing to propagate yet and the
+  ## enclosing types ended up with stale flags. Now that every forward
+  ## declaration has a body, redo the propagation bottom-up. Only value based
+  ## containment is followed (as in `searchTypeForAux`) because that is the
+  ## only relation `propagateToOwner` propagates these flags along; this also
+  ## keeps the traversal acyclic so a single pass suffices.
+  if t.state != Complete or containsOrIncl(marker, t.id): return
+
+  template follow(elem: PType) =
+    let e = elem
+    if e != nil and e.state == Complete:
+      repropagateFlags(e, marker)
+      propagateToOwner(t, e)
+
+  case t.kind
+  of tyObject:
+    follow(t.baseClass)
+    if t.n != nil: repropagateFlagsNode(t, t.n, marker)
+  of tyGenericInst, tyDistinct, tyAlias, tySink:
+    follow(t.skipModifier)
+  of tyArray, tySet, tyTuple:
+    for a in t.kids: follow(a)
+  else: discard
+
 proc semFieldDefault(c: PContext; owner, expectedType: PType; field: PNode): PType =
   result = expectedType
   field[^1] = semExprWithType(c, field[^1], {efDetermineType, efAllowSymChoice}, result)
diff --git a/tests/arc/tarcmisc.nim b/tests/arc/tarcmisc.nim
index 22a1b69a438f7..d9a17ec795b5e 100644
--- a/tests/arc/tarcmisc.nim
+++ b/tests/arc/tarcmisc.nim
@@ -937,3 +937,23 @@ proc mainRegen() =
   doAssert b.a.c == right
 
 mainRegen()
+
+
+from std/typetraits import distinctBase, supportsCopyMem
+
+block: # bug #26025
+  type
+    M[B] = distinct seq[B]
+    W = object
+      g: U           # `U` is only declared below, so it used to be a `tyForward`
+                     # here and `W` ended up without `tfHasAsgn`
+    U = M[uint64]
+
+  doAssert not supportsCopyMem(W)
+
+  var h: M[W]
+  seq[W](h).add W(g: U(@[1'u64]))
+  var copied = h
+  for it in items(distinctBase(copied)):
+    doAssert seq[uint64](it.g) == @[1'u64]
+  doAssert seq[uint64](seq[W](h)[0].g) == @[1'u64]