diff --git a/src/go/parser/parser.go b/src/go/parser/parser.go
index c94f80a149..5a8d9875a6 100644
--- a/src/go/parser/parser.go
+++ b/src/go/parser/parser.go
@@ -1129,18 +1129,25 @@ func (p *parser) parseMethodSpec(scope *ast.Scope) *ast.Field {
 	doc := p.leadComment
 	var idents []*ast.Ident
 	var typ ast.Expr
-	x := p.parseTypeName(nil)
-	if ident, isIdent := x.(*ast.Ident); isIdent && p.tok == token.LPAREN {
-		// method
-		idents = []*ast.Ident{ident}
-		scope := ast.NewScope(nil) // method scope
-		tparams, params := p.parseParameters(scope, methodTypeParamsOk|variadicOk, "method")
-		results := p.parseResult(scope, true)
-		typ = &ast.FuncType{Func: token.NoPos, TParams: tparams, Params: params, Results: results}
-	} else {
-		// embedded interface
-		typ = x
-		p.resolve(typ)
+	switch p.tok {
+	case token.IDENT:
+		x := p.parseTypeName(nil)
+		if ident, isIdent := x.(*ast.Ident); isIdent && p.tok == token.LPAREN {
+			// method
+			idents = []*ast.Ident{ident}
+			scope := ast.NewScope(nil) // method scope
+			tparams, params := p.parseParameters(scope, methodTypeParamsOk|variadicOk, "method")
+			results := p.parseResult(scope, true)
+			typ = &ast.FuncType{Func: token.NoPos, TParams: tparams, Params: params, Results: results}
+		} else {
+			// embedded interface
+			typ = x
+			p.resolve(typ)
+		}
+	case token.LPAREN:
+		// embedded, possibly parameterized interface
+		// (using the enclosing parentheses to distinguish it from a method declaration)
+		typ = p.parseType(true)
 	}
 	p.expectSemi() // call before accessing p.linecomment
 
@@ -1163,7 +1170,7 @@ func (p *parser) parseInterfaceType() *ast.InterfaceType {
 L:
 	for {
 		switch p.tok {
-		case token.IDENT:
+		case token.IDENT, token.LPAREN:
 			mlist = append(mlist, p.parseMethodSpec(scope))
 		case token.TYPE:
 			p.next()
diff --git a/src/go/parser/short_test.go b/src/go/parser/short_test.go
index ade290d90c..2fcba3d429 100644
--- a/src/go/parser/short_test.go
+++ b/src/go/parser/short_test.go
@@ -98,6 +98,11 @@ var valids = []string{
 	// interfaces with (contract) type lists
 	`package p; type _ interface{type int}`,
 	`package p; type _ interface{type int, float32; type bool; m(); type string;}`,
+
+	// interfaces with parenthesized embedded and possibly parameterized interfaces
+	`package p; type I1 interface{}; type I2 interface{ (I1) }`,
+	`package p; type I1(type T) interface{}; type I2 interface{ (I1(int)) }`,
+	`package p; type I1(type T) interface{}; type I2(type T) interface{ (I1(T)) }`,
 }
 
 func TestValid(t *testing.T) {
diff --git a/src/go/types/NOTES b/src/go/types/NOTES
index d912bc838d..102a920f94 100644
--- a/src/go/types/NOTES
+++ b/src/go/types/NOTES
@@ -1,7 +1,9 @@
 This file works as a sort of notebook/implementation log. It replaces my notebook based approach
 so we have a better track record. I only switched to this file recently, hence it is incomplete.
 
+----------------------------------------------------------------------------------------------------
 TODO
+
 - type assertions on/against parameterized types
 - no need for error messages where a _ type parameter cannot be inferred (_ cannot be used)
 - use Underlying() to return a type parameter's bound? investigate!
@@ -11,16 +13,20 @@ TODO
 - improve error messages!
 - use []*TypeParam for tparams in subst? (unclear)
 
+----------------------------------------------------------------------------------------------------
 OPEN ISSUES
+
 - instantiating a parameterized function type w/o value or result parameters may have unexpected side-effects
   (we don't make a copy of the signature in some cases) - investigate
 - using a contract and enumerating type arguments currently leads to an error (e.g. func f(type T C(T)) (x T) ... )
 - leaving away unused receiver type parameters leads to an error; e.g.: "type S(type T) struct{}; func (S) _()"
-- allow parenthesized embedded interfaces so we can embed parameterized interfaces and they won't be confused
-  for methods
 - confirm that it's ok to use inference in missingMethod to compare parameterized methods
+- now that we allow parenthesized embedded interfaces, should we allow parenthesized embedded fields?
+  (probably yes, for symmetry and consistency).
 
+----------------------------------------------------------------------------------------------------
 DESIGN/IMPLEMENTATION
+
 - 11/19/2019: For type parameters with interface bounds to work, the scope of all type parameters in
   a type parameter list starts at the "type" keyword. This makes all type parameters visible for all
   type parameter bounds (interfaces that may be parameterized with the type parameters).
@@ -67,6 +73,12 @@ DESIGN/IMPLEMENTATION
   name cannot be a type parameter name declared later (or by the receiver type specification). This
   seems reasonable and should help avoid confusion which is possible otherwise.
 
-- 1/6/2020: Embedding a parameterized interface in an interface is not possible because it looks
-  like a method declaration. We probably need to find a away around this; maybe parenthesize the
-  embedded interface (which is currently not permitted, syntactically).
+- 1/7/2020: We distinguish embedded instantiated (parameterized) interfaces from methods by enclosing
+  the embedded interfaces in parentheses (the design draft recommends this change). Since this opens
+  the possibility for any parenthesized type (that is an interface), we can also allow (parenthesized)
+  interface literals as it is simpler to permit those than forbid them.
+
+- 1/7/2020: The current implementation permits empty type parameter lists as in: "func f(type)(x int)"
+  but we cannot call such a function as "f()(1)"; the empty type argument list causes problems.
+  We should either disallow empty type parameter lists or document this well.
+
diff --git a/src/go/types/examples/types.go2 b/src/go/types/examples/types.go2
index db70cfe0a1..5c50b5c771 100644
--- a/src/go/types/examples/types.go2
+++ b/src/go/types/examples/types.go2
@@ -18,7 +18,6 @@ var _ List(byte) = []byte{}
 
 // A generic binary tree might be declared as follows.
 type Tree(type E) struct {
-	// TODO(gri) should be able to use Tree w/o repeating type args
 	left, right *Tree(E)
 	payload E
 }
@@ -107,3 +106,43 @@ var _ T // ERROR cannot use generic type T
 // In type context, parameterized (generic) types cannot use instantiation syntax.
 // See also NOTES entry from 12/4/2019.
 var _ (T /* ERROR cannot use generic type T */ )( /* ERROR expected ';' */ int)
+
+// All types may be parameterized, including interfaces.
+type I1(type T) interface{
+	m1(T)
+}
+
+// To differentiate an instantiated interface such as I1(int) from a method
+// declaration when embedding it, we must use parentheses around it:
+type I2 interface {
+	I1(int)       // method!
+	(I1(string))  // embedded I1
+}
+
+func _() {
+	var x I2
+	x.I1(0)
+	x.m1("foo")
+}
+
+// Generally, we now allow any embedded interfaces to be parenthesized.
+// Because that removes the restriction that embedded interfaces must
+// be named, we can even "inline" interface literals (though that's of
+// little practial use - it's simply more complicated to disallow them).
+// Here are some more examples:
+type I0 interface {
+	m0()
+}
+
+type I3 interface {
+	I0
+	(I1(bool))
+	((interface{ m(string) }))
+}
+
+func _() {
+	var x I3
+	x.m0()
+	x.m1(true)
+	x.m("foo")
+}
diff --git a/src/go/types/testdata/tmp.go2 b/src/go/types/testdata/tmp.go2
index 2d18ac3d8d..3dc51460b5 100644
--- a/src/go/types/testdata/tmp.go2
+++ b/src/go/types/testdata/tmp.go2
@@ -14,8 +14,12 @@ func (S) m(type B)(B)
  
 var _ I = S{}
 
+type E(type T) interface {
+        m(type B)(B)
+}
+
 type II interface{
-        m(type C)(C)
+        (E(int))
         mm() int
 }