diff --git a/examples/recursion/src/index.ts b/examples/recursion/src/index.ts
index 6d0a3f0ae2..9237d9ab1b 100644
--- a/examples/recursion/src/index.ts
+++ b/examples/recursion/src/index.ts
@@ -4,7 +4,7 @@ import {
     None,
     Principal,
     query,
-    Service,
+    Canister,
     Some,
     text,
     Tuple,
@@ -35,15 +35,15 @@ const myTupleVar = Variant({ num: int8, varTuple: varTuple });
 //      Vec can't be recursive by itself. At the end of it all it needs to have a concrete type.
 // Opt
 // Service
-const myService = Recursive(() =>
-    Service({
-        serviceQuery: query([myService], myService, (param) => param)
+const MyCanister = Recursive(() =>
+    Canister({
+        myQuery: query([MyCanister], MyCanister, (param) => param)
     })
 );
 // Func
 const myFunc = Recursive(() => Func([myFunc], myFunc, 'query'));
 
-export default Service({
+export default Canister({
     testRecRecordWithOpt: query([optRecord], optRecord, (param) => param),
     testRecRecordWithVec: query([vecRecord], vecRecord, (param) => param),
     testRecRecordWithVariant: query([varRecord], varRecord, (param) => param),
diff --git a/src/lib_new/method_decorators.ts b/src/lib_new/method_decorators.ts
index 78da74a66c..7040b915bb 100644
--- a/src/lib_new/method_decorators.ts
+++ b/src/lib_new/method_decorators.ts
@@ -8,7 +8,8 @@ import {
     toReturnIDLType,
     CandidTypesDefs,
     CandidDef,
-    extractCandid
+    extractCandid,
+    Parent
 } from './utils';
 import { display } from './utils';
 import {
@@ -181,18 +182,20 @@ export function newTypesToStingArr(newTypes: CandidTypesDefs): string[] {
 }
 
 export function handleRecursiveParams(
-    idls: CandidClass[]
+    idls: CandidClass[],
+    parents: Parent[] = []
 ): [IDL.Type<any>[], CandidDef[], CandidTypesDefs] {
-    const paramIdls = toParamIDLTypes(idls);
+    const paramIdls = toParamIDLTypes(idls, parents);
     const paramInfo = paramIdls.map((paramIdl) => display(paramIdl, {}));
     return [paramIdls, ...extractCandid(paramInfo, {})];
 }
 
 export function handleRecursiveReturn(
     returnIdl: ReturnCandidClass,
-    paramCandidTypeDefs: CandidTypesDefs
+    paramCandidTypeDefs: CandidTypesDefs,
+    parents: Parent[] = []
 ): [IDL.Type<any>[], CandidDef[], CandidTypesDefs] {
-    const returnIdls = toReturnIDLType(returnIdl);
+    const returnIdls = toReturnIDLType(returnIdl, parents);
     const returnInfo = returnIdls.map((returnIdl) => display(returnIdl, {}));
     return [returnIdls, ...extractCandid(returnInfo, paramCandidTypeDefs)];
 }