diff --git a/docs/release-notes/.FSharp.Compiler.Service/9.0.100.md b/docs/release-notes/.FSharp.Compiler.Service/9.0.100.md
index 4888bd1aad6..f9e23daca3d 100644
--- a/docs/release-notes/.FSharp.Compiler.Service/9.0.100.md
+++ b/docs/release-notes/.FSharp.Compiler.Service/9.0.100.md
@@ -1,6 +1,7 @@
 ### Fixed
 
 * Compiler hangs when compiling inline recursive invocation ([Issue #17376](https://github.com/dotnet/fsharp/issues/17376), [PR #17394](https://github.com/dotnet/fsharp/pull/17394))
+* Fix reporting IsFromComputationExpression only for CE builder type constructors and let bindings. ([PR #17375](https://github.com/dotnet/fsharp/pull/17375))
 
 ### Added
 
diff --git a/src/Compiler/Checking/CheckComputationExpressions.fs b/src/Compiler/Checking/CheckComputationExpressions.fs
index 4fc0c8844ef..9703087e92b 100644
--- a/src/Compiler/Checking/CheckComputationExpressions.fs
+++ b/src/Compiler/Checking/CheckComputationExpressions.fs
@@ -252,7 +252,7 @@ let TcComputationExpression (cenv: cenv) env (overallTy: OverallTy) tpenv (mWhol
         // An unparameterized custom builder, e.g., `query`, `async`.
         | Expr.Val(vref, _, m)
         // A parameterized custom builder, e.g., `builder<…>`, `builder ()`.
-        | Expr.App(funcExpr = Expr.Val(vref, _, m)) ->
+        | Expr.App(funcExpr = Expr.Val(vref, _, m)) when not vref.IsMember || vref.IsConstructor ->
             let item = Item.CustomBuilder(vref.DisplayName, vref)
             CallNameResolutionSink cenv.tcSink (m, env.NameEnv, item, emptyTyparInst, ItemOccurence.Use, env.eAccessRights)
             valRefEq cenv.g vref cenv.g.query_value_vref
diff --git a/tests/FSharp.Compiler.ComponentTests/Language/ComputationExpressionTests.fs b/tests/FSharp.Compiler.ComponentTests/Language/ComputationExpressionTests.fs
index 21c1c0de20f..af588b04975 100644
--- a/tests/FSharp.Compiler.ComponentTests/Language/ComputationExpressionTests.fs
+++ b/tests/FSharp.Compiler.ComponentTests/Language/ComputationExpressionTests.fs
@@ -135,3 +135,20 @@ let _pythags = seqbuilder {{
         |> FSharp     
         |> typecheck
         |> shouldSucceed
+
+    [<Fact>]
+    let ``A CE returned from type member succeeds``() =
+        FSharp """
+module ComputationExpressionTests
+type Builder () =
+    member _.Bind(x, f) = f x
+    member _.Return(x) = x
+
+type A =
+    static member Prop = Builder ()
+
+let x = A.Prop { return 0 }
+        """
+        |> compile
+        |> shouldSucceed
+        |> ignore
diff --git a/tests/FSharp.Compiler.Service.Tests/Symbols.fs b/tests/FSharp.Compiler.Service.Tests/Symbols.fs
index 2a46d5492f9..c63dca9f6de 100644
--- a/tests/FSharp.Compiler.Service.Tests/Symbols.fs
+++ b/tests/FSharp.Compiler.Service.Tests/Symbols.fs
@@ -1,6 +1,5 @@
 module FSharp.Compiler.Service.Tests.Symbols
 
-open System
 open FSharp.Compiler.CodeAnalysis
 open FSharp.Compiler.Service.Tests.Common
 open FSharp.Compiler.Symbols
@@ -1090,19 +1089,32 @@ let builder = Builder ()
 let x = builder { return 3 }
 let y = builder
 let z = Builder () { return 3 }
+
+type A () =
+    let builder = Builder ()
+    let _ = builder { return 3 }
+
+    static member Builder = Builder ()
+
+type System.Object with
+    static member Builder = Builder ()
+
+let c = A.Builder { return 3 }
+let d = System.Object.Builder { return 3 }
 """
+        shouldEqual checkResults.Diagnostics [||]
 
         shouldEqual
             [
                 // type Builder () =
                 (2, 5), false
 
-                // … = Builder ()
-                (6, 14), false
-
                 // let builder = …
                 (6, 4), false
 
+                // … = Builder ()
+                (6, 14), false
+
                 // let x = builder { return 3 }
                 (8, 8), false   // Item.Value _
                 (8, 8), true    // Item.CustomBuilder _
@@ -1112,9 +1124,37 @@ let z = Builder () { return 3 }
 
                 // let z = Builder () { return 3 }
                 (10, 8), false
+
+                // let builder = …
+                (13, 8), false
+
+                // … = Builder ()
+                (13, 18), false
+
+                // let x = builder { return 3 }
+                (14, 12), false   // Item.Value _
+                (14, 12), true    // Item.CustomBuilder _
+
+                // static member Builder = …
+                (16, 18), false
+
+                // … = Builder ()
+                (16, 28), false
+
+                // static member Builder = …
+                (19, 18), false
+
+                // … = Builder ()
+                (19, 28), false
+
+                // A.Builder { return 3 }
+                (21, 8), false
+
+                // System.Object.Builder { return 3 }
+                (22, 8), false
             ]
             [
-                for symbolUse in checkResults.GetAllUsesOfAllSymbolsInFile() do
+                for symbolUse in checkResults.GetAllUsesOfAllSymbolsInFile() |> Seq.sortBy (fun x -> x.Range.StartLine, x.Range.StartColumn) do
                     match symbolUse.Symbol.DisplayName with
                     | "Builder" | "builder" -> (symbolUse.Range.StartLine, symbolUse.Range.StartColumn), symbolUse.IsFromComputationExpression
                     | _ -> ()