diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index 2722ca0b38a..296cb6d6803 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -65,6 +65,9 @@ Bug fixes
 - Static typing of ``p0`` and ``bounds`` arguments of :py:func:`xarray.DataArray.curvefit` and :py:func:`xarray.Dataset.curvefit`
   was changed to ``Mapping`` (:pull:`8502`).
   By `Michael Niklas <https://github.com/headtr1ck>`_.
+- Fix typing of :py:func:`xarray.DataArray.to_netcdf` and :py:func:`xarray.Dataset.to_netcdf`
+  when ``compute`` is evaluated to bool instead of a Literal (:pull:`8268`).
+  By `Jens Hedegaard Nielsen <https://github.com/jenshnielsen>`_.
 
 Documentation
 ~~~~~~~~~~~~~
diff --git a/xarray/backends/api.py b/xarray/backends/api.py
index c59f2f8d81b..1d538bf94ed 100644
--- a/xarray/backends/api.py
+++ b/xarray/backends/api.py
@@ -1160,6 +1160,62 @@ def to_netcdf(
     ...
 
 
+# if compute cannot be evaluated at type check time
+# we may get back either Delayed or None
+@overload
+def to_netcdf(
+    dataset: Dataset,
+    path_or_file: str | os.PathLike,
+    mode: Literal["w", "a"] = "w",
+    format: T_NetcdfTypes | None = None,
+    group: str | None = None,
+    engine: T_NetcdfEngine | None = None,
+    encoding: Mapping[Hashable, Mapping[str, Any]] | None = None,
+    unlimited_dims: Iterable[Hashable] | None = None,
+    compute: bool = False,
+    multifile: Literal[False] = False,
+    invalid_netcdf: bool = False,
+) -> Delayed | None:
+    ...
+
+
+# if multifile cannot be evaluated at type check time
+# we may get back either writer and datastore or Delayed or None
+@overload
+def to_netcdf(
+    dataset: Dataset,
+    path_or_file: str | os.PathLike,
+    mode: Literal["w", "a"] = "w",
+    format: T_NetcdfTypes | None = None,
+    group: str | None = None,
+    engine: T_NetcdfEngine | None = None,
+    encoding: Mapping[Hashable, Mapping[str, Any]] | None = None,
+    unlimited_dims: Iterable[Hashable] | None = None,
+    compute: bool = False,
+    multifile: bool = False,
+    invalid_netcdf: bool = False,
+) -> tuple[ArrayWriter, AbstractDataStore] | Delayed | None:
+    ...
+
+
+# Any
+@overload
+def to_netcdf(
+    dataset: Dataset,
+    path_or_file: str | os.PathLike | None,
+    mode: Literal["w", "a"] = "w",
+    format: T_NetcdfTypes | None = None,
+    group: str | None = None,
+    engine: T_NetcdfEngine | None = None,
+    encoding: Mapping[Hashable, Mapping[str, Any]] | None = None,
+    unlimited_dims: Iterable[Hashable] | None = None,
+    compute: bool = False,
+    multifile: bool = False,
+    invalid_netcdf: bool = False,
+) -> tuple[ArrayWriter, AbstractDataStore] | bytes | Delayed | None:
+    ...
+
+
 def to_netcdf(
     dataset: Dataset,
     path_or_file: str | os.PathLike | None = None,
diff --git a/xarray/core/dataarray.py b/xarray/core/dataarray.py
index 1d7e82d3044..c8cc579c8b7 100644
--- a/xarray/core/dataarray.py
+++ b/xarray/core/dataarray.py
@@ -3914,6 +3914,23 @@ def to_netcdf(
     ) -> bytes:
         ...
 
+    # compute=False returns dask.Delayed
+    @overload
+    def to_netcdf(
+        self,
+        path: str | PathLike,
+        mode: Literal["w", "a"] = "w",
+        format: T_NetcdfTypes | None = None,
+        group: str | None = None,
+        engine: T_NetcdfEngine | None = None,
+        encoding: Mapping[Hashable, Mapping[str, Any]] | None = None,
+        unlimited_dims: Iterable[Hashable] | None = None,
+        *,
+        compute: Literal[False],
+        invalid_netcdf: bool = False,
+    ) -> Delayed:
+        ...
+
     # default return None
     @overload
     def to_netcdf(
@@ -3930,7 +3947,8 @@ def to_netcdf(
     ) -> None:
         ...
 
-    # compute=False returns dask.Delayed
+    # if compute cannot be evaluated at type check time
+    # we may get back either Delayed or None
     @overload
     def to_netcdf(
         self,
@@ -3941,10 +3959,9 @@ def to_netcdf(
         engine: T_NetcdfEngine | None = None,
         encoding: Mapping[Hashable, Mapping[str, Any]] | None = None,
         unlimited_dims: Iterable[Hashable] | None = None,
-        *,
-        compute: Literal[False],
+        compute: bool = True,
         invalid_netcdf: bool = False,
-    ) -> Delayed:
+    ) -> Delayed | None:
         ...
 
     def to_netcdf(
diff --git a/xarray/core/dataset.py b/xarray/core/dataset.py
index b8093d3dd78..b430b8fddd8 100644
--- a/xarray/core/dataset.py
+++ b/xarray/core/dataset.py
@@ -2159,6 +2159,23 @@ def to_netcdf(
     ) -> bytes:
         ...
 
+    # compute=False returns dask.Delayed
+    @overload
+    def to_netcdf(
+        self,
+        path: str | PathLike,
+        mode: Literal["w", "a"] = "w",
+        format: T_NetcdfTypes | None = None,
+        group: str | None = None,
+        engine: T_NetcdfEngine | None = None,
+        encoding: Mapping[Any, Mapping[str, Any]] | None = None,
+        unlimited_dims: Iterable[Hashable] | None = None,
+        *,
+        compute: Literal[False],
+        invalid_netcdf: bool = False,
+    ) -> Delayed:
+        ...
+
     # default return None
     @overload
     def to_netcdf(
@@ -2175,7 +2192,8 @@ def to_netcdf(
     ) -> None:
         ...
 
-    # compute=False returns dask.Delayed
+    # if compute cannot be evaluated at type check time
+    # we may get back either Delayed or None
     @overload
     def to_netcdf(
         self,
@@ -2186,10 +2204,9 @@ def to_netcdf(
         engine: T_NetcdfEngine | None = None,
         encoding: Mapping[Any, Mapping[str, Any]] | None = None,
         unlimited_dims: Iterable[Hashable] | None = None,
-        *,
-        compute: Literal[False],
+        compute: bool = True,
         invalid_netcdf: bool = False,
-    ) -> Delayed:
+    ) -> Delayed | None:
         ...
 
     def to_netcdf(