diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index cb5b3abfda23a..918a7ac2c9a6e 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -25026,12 +25026,14 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         }
 
         function inferFromSignature(source: Signature, target: Signature) {
-            const saveBivariant = bivariant;
-            const kind = target.declaration ? target.declaration.kind : SyntaxKind.Unknown;
-            // Once we descend into a bivariant signature we remain bivariant for all nested inferences
-            bivariant = bivariant || kind === SyntaxKind.MethodDeclaration || kind === SyntaxKind.MethodSignature || kind === SyntaxKind.Constructor;
-            applyToParameterTypes(source, target, inferFromContravariantTypesIfStrictFunctionTypes);
-            bivariant = saveBivariant;
+            if (!(source.flags & SignatureFlags.IsNonInferrable)) {
+                const saveBivariant = bivariant;
+                const kind = target.declaration ? target.declaration.kind : SyntaxKind.Unknown;
+                // Once we descend into a bivariant signature we remain bivariant for all nested inferences
+                bivariant = bivariant || kind === SyntaxKind.MethodDeclaration || kind === SyntaxKind.MethodSignature || kind === SyntaxKind.Constructor;
+                applyToParameterTypes(source, target, inferFromContravariantTypesIfStrictFunctionTypes);
+                bivariant = saveBivariant;
+            }
             applyToReturnTypes(source, target, inferFromTypes);
         }
 
@@ -35783,7 +35785,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                         return links.contextFreeType;
                     }
                     const returnType = getReturnTypeFromBody(node, checkMode);
-                    const returnOnlySignature = createSignature(/*declaration*/ undefined, /*typeParameters*/ undefined, /*thisParameter*/ undefined, emptyArray, returnType, /*resolvedTypePredicate*/ undefined, 0, SignatureFlags.None);
+                    const returnOnlySignature = createSignature(/*declaration*/ undefined, /*typeParameters*/ undefined, /*thisParameter*/ undefined, emptyArray, returnType, /*resolvedTypePredicate*/ undefined, 0, SignatureFlags.IsNonInferrable);
                     const returnOnlyType = createAnonymousType(node.symbol, emptySymbols, [returnOnlySignature], emptyArray, emptyArray);
                     returnOnlyType.objectFlags |= ObjectFlags.NonInferrableType;
                     return links.contextFreeType = returnOnlyType;
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index b97d9becc8f68..80890b92df76b 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -6704,6 +6704,7 @@ export const enum SignatureFlags {
     IsInnerCallChain = 1 << 3,          // Indicates signature comes from a CallChain nested in an outer OptionalChain
     IsOuterCallChain = 1 << 4,          // Indicates signature comes from a CallChain that is the outermost chain of an optional expression
     IsUntypedSignatureInJSFile = 1 << 5, // Indicates signature is from a js file and has no types
+    IsNonInferrable = 1 << 6,           // Indicates signature comes from a non-inferrable type
 
     // We do not propagate `IsInnerCallChain` or `IsOuterCallChain` to instantiated signatures, as that would result in us
     // attempting to add `| undefined` on each recursive call to `getReturnTypeOfSignature` when
diff --git a/tests/baselines/reference/nonInferrableTypePropagation3.symbols b/tests/baselines/reference/nonInferrableTypePropagation3.symbols
new file mode 100644
index 0000000000000..86bd7610d34c9
--- /dev/null
+++ b/tests/baselines/reference/nonInferrableTypePropagation3.symbols
@@ -0,0 +1,52 @@
+=== tests/cases/compiler/nonInferrableTypePropagation3.ts ===
+// Repro from #53748
+
+declare type Callback<Args extends any[], Out, R> = (...args: Args) => (data: Out) => R;
+>Callback : Symbol(Callback, Decl(nonInferrableTypePropagation3.ts, 0, 0))
+>Args : Symbol(Args, Decl(nonInferrableTypePropagation3.ts, 2, 22))
+>Out : Symbol(Out, Decl(nonInferrableTypePropagation3.ts, 2, 41))
+>R : Symbol(R, Decl(nonInferrableTypePropagation3.ts, 2, 46))
+>args : Symbol(args, Decl(nonInferrableTypePropagation3.ts, 2, 53))
+>Args : Symbol(Args, Decl(nonInferrableTypePropagation3.ts, 2, 22))
+>data : Symbol(data, Decl(nonInferrableTypePropagation3.ts, 2, 72))
+>Out : Symbol(Out, Decl(nonInferrableTypePropagation3.ts, 2, 41))
+>R : Symbol(R, Decl(nonInferrableTypePropagation3.ts, 2, 46))
+
+declare function factory<Out>(): <Args extends any[], R>(callback: Callback<Args, Out, R>) => (...args: Args) => R;
+>factory : Symbol(factory, Decl(nonInferrableTypePropagation3.ts, 2, 88))
+>Out : Symbol(Out, Decl(nonInferrableTypePropagation3.ts, 3, 25))
+>Args : Symbol(Args, Decl(nonInferrableTypePropagation3.ts, 3, 34))
+>R : Symbol(R, Decl(nonInferrableTypePropagation3.ts, 3, 53))
+>callback : Symbol(callback, Decl(nonInferrableTypePropagation3.ts, 3, 57))
+>Callback : Symbol(Callback, Decl(nonInferrableTypePropagation3.ts, 0, 0))
+>Args : Symbol(Args, Decl(nonInferrableTypePropagation3.ts, 3, 34))
+>Out : Symbol(Out, Decl(nonInferrableTypePropagation3.ts, 3, 25))
+>R : Symbol(R, Decl(nonInferrableTypePropagation3.ts, 3, 53))
+>args : Symbol(args, Decl(nonInferrableTypePropagation3.ts, 3, 95))
+>Args : Symbol(Args, Decl(nonInferrableTypePropagation3.ts, 3, 34))
+>R : Symbol(R, Decl(nonInferrableTypePropagation3.ts, 3, 53))
+
+const make = factory<{id: string, age: number}[]>();
+>make : Symbol(make, Decl(nonInferrableTypePropagation3.ts, 5, 5))
+>factory : Symbol(factory, Decl(nonInferrableTypePropagation3.ts, 2, 88))
+>id : Symbol(id, Decl(nonInferrableTypePropagation3.ts, 5, 22))
+>age : Symbol(age, Decl(nonInferrableTypePropagation3.ts, 5, 33))
+
+const usersOverAge = make((age: number) => data => {
+>usersOverAge : Symbol(usersOverAge, Decl(nonInferrableTypePropagation3.ts, 7, 5))
+>make : Symbol(make, Decl(nonInferrableTypePropagation3.ts, 5, 5))
+>age : Symbol(age, Decl(nonInferrableTypePropagation3.ts, 7, 27))
+>data : Symbol(data, Decl(nonInferrableTypePropagation3.ts, 7, 42))
+
+    return data.filter(user => user.age >= age);
+>data.filter : Symbol(Array.filter, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
+>data : Symbol(data, Decl(nonInferrableTypePropagation3.ts, 7, 42))
+>filter : Symbol(Array.filter, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
+>user : Symbol(user, Decl(nonInferrableTypePropagation3.ts, 8, 23))
+>user.age : Symbol(age, Decl(nonInferrableTypePropagation3.ts, 5, 33))
+>user : Symbol(user, Decl(nonInferrableTypePropagation3.ts, 8, 23))
+>age : Symbol(age, Decl(nonInferrableTypePropagation3.ts, 5, 33))
+>age : Symbol(age, Decl(nonInferrableTypePropagation3.ts, 7, 27))
+
+});
+
diff --git a/tests/baselines/reference/nonInferrableTypePropagation3.types b/tests/baselines/reference/nonInferrableTypePropagation3.types
new file mode 100644
index 0000000000000..2ba181f7cce69
--- /dev/null
+++ b/tests/baselines/reference/nonInferrableTypePropagation3.types
@@ -0,0 +1,44 @@
+=== tests/cases/compiler/nonInferrableTypePropagation3.ts ===
+// Repro from #53748
+
+declare type Callback<Args extends any[], Out, R> = (...args: Args) => (data: Out) => R;
+>Callback : Callback<Args, Out, R>
+>args : Args
+>data : Out
+
+declare function factory<Out>(): <Args extends any[], R>(callback: Callback<Args, Out, R>) => (...args: Args) => R;
+>factory : <Out>() => <Args extends any[], R>(callback: Callback<Args, Out, R>) => (...args: Args) => R
+>callback : Callback<Args, Out, R>
+>args : Args
+
+const make = factory<{id: string, age: number}[]>();
+>make : <Args extends any[], R>(callback: Callback<Args, { id: string; age: number; }[], R>) => (...args: Args) => R
+>factory<{id: string, age: number}[]>() : <Args extends any[], R>(callback: Callback<Args, { id: string; age: number; }[], R>) => (...args: Args) => R
+>factory : <Out>() => <Args extends any[], R>(callback: Callback<Args, Out, R>) => (...args: Args) => R
+>id : string
+>age : number
+
+const usersOverAge = make((age: number) => data => {
+>usersOverAge : (age: number) => { id: string; age: number; }[]
+>make((age: number) => data => {    return data.filter(user => user.age >= age);}) : (age: number) => { id: string; age: number; }[]
+>make : <Args extends any[], R>(callback: Callback<Args, { id: string; age: number; }[], R>) => (...args: Args) => R
+>(age: number) => data => {    return data.filter(user => user.age >= age);} : (age: number) => (data: { id: string; age: number; }[]) => { id: string; age: number; }[]
+>age : number
+>data => {    return data.filter(user => user.age >= age);} : (data: { id: string; age: number; }[]) => { id: string; age: number; }[]
+>data : { id: string; age: number; }[]
+
+    return data.filter(user => user.age >= age);
+>data.filter(user => user.age >= age) : { id: string; age: number; }[]
+>data.filter : { <S extends { id: string; age: number; }>(predicate: (value: { id: string; age: number; }, index: number, array: { id: string; age: number; }[]) => value is S, thisArg?: any): S[]; (predicate: (value: { id: string; age: number; }, index: number, array: { id: string; age: number; }[]) => unknown, thisArg?: any): { id: string; age: number; }[]; }
+>data : { id: string; age: number; }[]
+>filter : { <S extends { id: string; age: number; }>(predicate: (value: { id: string; age: number; }, index: number, array: { id: string; age: number; }[]) => value is S, thisArg?: any): S[]; (predicate: (value: { id: string; age: number; }, index: number, array: { id: string; age: number; }[]) => unknown, thisArg?: any): { id: string; age: number; }[]; }
+>user => user.age >= age : (user: { id: string; age: number; }) => boolean
+>user : { id: string; age: number; }
+>user.age >= age : boolean
+>user.age : number
+>user : { id: string; age: number; }
+>age : number
+>age : number
+
+});
+
diff --git a/tests/cases/compiler/nonInferrableTypePropagation3.ts b/tests/cases/compiler/nonInferrableTypePropagation3.ts
new file mode 100644
index 0000000000000..5deec87658897
--- /dev/null
+++ b/tests/cases/compiler/nonInferrableTypePropagation3.ts
@@ -0,0 +1,13 @@
+// @strict: true
+// @noEmit: true
+
+// Repro from #53748
+
+declare type Callback<Args extends any[], Out, R> = (...args: Args) => (data: Out) => R;
+declare function factory<Out>(): <Args extends any[], R>(callback: Callback<Args, Out, R>) => (...args: Args) => R;
+
+const make = factory<{id: string, age: number}[]>();
+
+const usersOverAge = make((age: number) => data => {
+    return data.filter(user => user.age >= age);
+});