diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 087353fb9fdc3..5eb685cb61c4f 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -19390,6 +19390,9 @@ namespace ts {
             if (flags & TypeFlags.NonPrimitive) {
                 return strictNullChecks ? TypeFacts.ObjectStrictFacts : TypeFacts.ObjectFacts;
             }
+            if (flags & TypeFlags.Never) {
+                return TypeFacts.None;
+            }
             if (flags & TypeFlags.Instantiable) {
                 return getTypeFacts(getBaseConstraintOfType(type) || unknownType);
             }
@@ -19626,7 +19629,7 @@ namespace ts {
                 const filtered = filter(types, f);
                 return filtered === types ? type : getUnionTypeFromSortedList(filtered, (<UnionType>type).objectFlags);
             }
-            return f(type) ? type : neverType;
+            return type.flags & TypeFlags.Never || f(type) ? type : neverType;
         }
 
         function countTypes(type: Type) {
diff --git a/tests/baselines/reference/propagateNonInferrableType.js b/tests/baselines/reference/propagateNonInferrableType.js
new file mode 100644
index 0000000000000..b245899049db9
--- /dev/null
+++ b/tests/baselines/reference/propagateNonInferrableType.js
@@ -0,0 +1,10 @@
+//// [propagateNonInferrableType.ts]
+declare function resolver<T>(): () => void;
+declare function wrapResolver<T>(resolverFunction: () => void): void;
+
+wrapResolver(resolver() || []);
+
+
+//// [propagateNonInferrableType.js]
+"use strict";
+wrapResolver(resolver() || []);
diff --git a/tests/baselines/reference/propagateNonInferrableType.symbols b/tests/baselines/reference/propagateNonInferrableType.symbols
new file mode 100644
index 0000000000000..628922c236616
--- /dev/null
+++ b/tests/baselines/reference/propagateNonInferrableType.symbols
@@ -0,0 +1,14 @@
+=== tests/cases/compiler/propagateNonInferrableType.ts ===
+declare function resolver<T>(): () => void;
+>resolver : Symbol(resolver, Decl(propagateNonInferrableType.ts, 0, 0))
+>T : Symbol(T, Decl(propagateNonInferrableType.ts, 0, 26))
+
+declare function wrapResolver<T>(resolverFunction: () => void): void;
+>wrapResolver : Symbol(wrapResolver, Decl(propagateNonInferrableType.ts, 0, 43))
+>T : Symbol(T, Decl(propagateNonInferrableType.ts, 1, 30))
+>resolverFunction : Symbol(resolverFunction, Decl(propagateNonInferrableType.ts, 1, 33))
+
+wrapResolver(resolver() || []);
+>wrapResolver : Symbol(wrapResolver, Decl(propagateNonInferrableType.ts, 0, 43))
+>resolver : Symbol(resolver, Decl(propagateNonInferrableType.ts, 0, 0))
+
diff --git a/tests/baselines/reference/propagateNonInferrableType.types b/tests/baselines/reference/propagateNonInferrableType.types
new file mode 100644
index 0000000000000..f4aa66d6ccfd7
--- /dev/null
+++ b/tests/baselines/reference/propagateNonInferrableType.types
@@ -0,0 +1,16 @@
+=== tests/cases/compiler/propagateNonInferrableType.ts ===
+declare function resolver<T>(): () => void;
+>resolver : <T>() => () => void
+
+declare function wrapResolver<T>(resolverFunction: () => void): void;
+>wrapResolver : <T>(resolverFunction: () => void) => void
+>resolverFunction : () => void
+
+wrapResolver(resolver() || []);
+>wrapResolver(resolver() || []) : void
+>wrapResolver : <T>(resolverFunction: () => void) => void
+>resolver() || [] : () => void
+>resolver() : () => void
+>resolver : <T>() => () => void
+>[] : never[]
+
diff --git a/tests/cases/compiler/propagateNonInferrableType.ts b/tests/cases/compiler/propagateNonInferrableType.ts
new file mode 100644
index 0000000000000..051eb7b083f46
--- /dev/null
+++ b/tests/cases/compiler/propagateNonInferrableType.ts
@@ -0,0 +1,6 @@
+// @strict: true
+
+declare function resolver<T>(): () => void;
+declare function wrapResolver<T>(resolverFunction: () => void): void;
+
+wrapResolver(resolver() || []);