diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index ee074403b1b9f..2a721c69ce93f 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -26639,7 +26639,7 @@ namespace ts {
 
         function getNonArrayRestType(signature: Signature) {
             const restType = getEffectiveRestType(signature);
-            return restType && !isArrayType(restType) && !isTypeAny(restType) ? restType : undefined;
+            return restType && !isArrayType(restType) && !isTypeAny(restType) && (getReducedType(restType).flags & TypeFlags.Never) === 0 ? restType : undefined;
         }
 
         function getTypeOfFirstParameterOfSignature(signature: Signature) {
@@ -29029,7 +29029,7 @@ namespace ts {
 
             // Only check rest parameter type if it's not a binding pattern. Since binding patterns are
             // not allowed in a rest parameter, we already have an error from checkGrammarParameterList.
-            if (node.dotDotDotToken && !isBindingPattern(node.name) && !isTypeAssignableTo(getTypeOfSymbol(node.symbol), anyReadonlyArrayType)) {
+            if (node.dotDotDotToken && !isBindingPattern(node.name) && !isTypeAssignableTo(getReducedType(getTypeOfSymbol(node.symbol)), anyReadonlyArrayType)) {
                 error(node, Diagnostics.A_rest_parameter_must_be_of_an_array_type);
             }
         }
diff --git a/tests/baselines/reference/genericRestTypes.errors.txt b/tests/baselines/reference/genericRestTypes.errors.txt
new file mode 100644
index 0000000000000..c0fcb85e49201
--- /dev/null
+++ b/tests/baselines/reference/genericRestTypes.errors.txt
@@ -0,0 +1,39 @@
+tests/cases/compiler/genericRestTypes.ts(21,11): error TS2322: Type '(cb: (x: string, ...rest: T) => void) => void' is not assignable to type '(cb: (...args: never) => void) => void'.
+  Types of parameters 'cb' and 'cb' are incompatible.
+    Types of parameters 'args' and 'x' are incompatible.
+      Type '[string, ...T[number][]]' is not assignable to type 'never'.
+
+
+==== tests/cases/compiler/genericRestTypes.ts (1 errors) ====
+    // Repro from #25793
+    
+    // Gets the parameters of a function type as a tuple
+    // Removes the first element from a tuple
+    type Tail<T extends any[]> = ((...args: T) => any) extends ((head: any, ...tail: infer U) => any) ? U : never;
+    
+    type MyFunctionType = (foo: number, bar: string) => boolean;
+    
+    type Explicit = (...args: Tail<Parameters<MyFunctionType>>) => ReturnType<MyFunctionType>; // (bar: string) => boolean
+    
+    type Bind1<T extends (head: any, ...tail: any[]) => any> = (...args: Tail<Parameters<T>>) => ReturnType<T>;
+    type Generic = Bind1<MyFunctionType>; // (bar: string) => boolean
+    
+    function assignmentWithComplexRest<T extends any[]>() {
+        const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+        const fn2: (...args: never) => void = fn1;
+    }
+    
+    function assignmentWithComplexRest2<T extends any[]>() {
+        const fn1: (cb: (x: string, ...rest: T) => void) => void = (cb) => {};
+        const fn2: (cb: (...args: never) => void) => void = fn1;
+              ~~~
+!!! error TS2322: Type '(cb: (x: string, ...rest: T) => void) => void' is not assignable to type '(cb: (...args: never) => void) => void'.
+!!! error TS2322:   Types of parameters 'cb' and 'cb' are incompatible.
+!!! error TS2322:     Types of parameters 'args' and 'x' are incompatible.
+!!! error TS2322:       Type '[string, ...T[number][]]' is not assignable to type 'never'.
+    }
+    
+    function assignmentWithComplexRest3<T extends any[]>() {
+        const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+        const fn2: (...args: {x: "a"} & {x: "b"}) => void = fn1;
+    }
\ No newline at end of file
diff --git a/tests/baselines/reference/genericRestTypes.js b/tests/baselines/reference/genericRestTypes.js
index 5abf8113f388c..286e2aba1b73a 100644
--- a/tests/baselines/reference/genericRestTypes.js
+++ b/tests/baselines/reference/genericRestTypes.js
@@ -11,8 +11,46 @@ type Explicit = (...args: Tail<Parameters<MyFunctionType>>) => ReturnType<MyFunc
 
 type Bind1<T extends (head: any, ...tail: any[]) => any> = (...args: Tail<Parameters<T>>) => ReturnType<T>;
 type Generic = Bind1<MyFunctionType>; // (bar: string) => boolean
-
+
+function assignmentWithComplexRest<T extends any[]>() {
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+    const fn2: (...args: never) => void = fn1;
+}
+
+function assignmentWithComplexRest2<T extends any[]>() {
+    const fn1: (cb: (x: string, ...rest: T) => void) => void = (cb) => {};
+    const fn2: (cb: (...args: never) => void) => void = fn1;
+}
+
+function assignmentWithComplexRest3<T extends any[]>() {
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+    const fn2: (...args: {x: "a"} & {x: "b"}) => void = fn1;
+}
 
 //// [genericRestTypes.js]
 "use strict";
 // Repro from #25793
+function assignmentWithComplexRest() {
+    var fn1 = function (x) {
+        var _ = [];
+        for (var _i = 1; _i < arguments.length; _i++) {
+            _[_i - 1] = arguments[_i];
+        }
+        return x;
+    };
+    var fn2 = fn1;
+}
+function assignmentWithComplexRest2() {
+    var fn1 = function (cb) { };
+    var fn2 = fn1;
+}
+function assignmentWithComplexRest3() {
+    var fn1 = function (x) {
+        var _ = [];
+        for (var _i = 1; _i < arguments.length; _i++) {
+            _[_i - 1] = arguments[_i];
+        }
+        return x;
+    };
+    var fn2 = fn1;
+}
diff --git a/tests/baselines/reference/genericRestTypes.symbols b/tests/baselines/reference/genericRestTypes.symbols
index c8ab347609cb9..bd2545d9b9c2e 100644
--- a/tests/baselines/reference/genericRestTypes.symbols
+++ b/tests/baselines/reference/genericRestTypes.symbols
@@ -44,3 +44,61 @@ type Generic = Bind1<MyFunctionType>; // (bar: string) => boolean
 >Bind1 : Symbol(Bind1, Decl(genericRestTypes.ts, 8, 90))
 >MyFunctionType : Symbol(MyFunctionType, Decl(genericRestTypes.ts, 4, 110))
 
+function assignmentWithComplexRest<T extends any[]>() {
+>assignmentWithComplexRest : Symbol(assignmentWithComplexRest, Decl(genericRestTypes.ts, 11, 37))
+>T : Symbol(T, Decl(genericRestTypes.ts, 13, 35))
+
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 14, 9))
+>x : Symbol(x, Decl(genericRestTypes.ts, 14, 16))
+>rest : Symbol(rest, Decl(genericRestTypes.ts, 14, 26))
+>T : Symbol(T, Decl(genericRestTypes.ts, 13, 35))
+>x : Symbol(x, Decl(genericRestTypes.ts, 14, 50))
+>_ : Symbol(_, Decl(genericRestTypes.ts, 14, 52))
+>x : Symbol(x, Decl(genericRestTypes.ts, 14, 50))
+
+    const fn2: (...args: never) => void = fn1;
+>fn2 : Symbol(fn2, Decl(genericRestTypes.ts, 15, 9))
+>args : Symbol(args, Decl(genericRestTypes.ts, 15, 16))
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 14, 9))
+}
+
+function assignmentWithComplexRest2<T extends any[]>() {
+>assignmentWithComplexRest2 : Symbol(assignmentWithComplexRest2, Decl(genericRestTypes.ts, 16, 1))
+>T : Symbol(T, Decl(genericRestTypes.ts, 18, 36))
+
+    const fn1: (cb: (x: string, ...rest: T) => void) => void = (cb) => {};
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 19, 9))
+>cb : Symbol(cb, Decl(genericRestTypes.ts, 19, 16))
+>x : Symbol(x, Decl(genericRestTypes.ts, 19, 21))
+>rest : Symbol(rest, Decl(genericRestTypes.ts, 19, 31))
+>T : Symbol(T, Decl(genericRestTypes.ts, 18, 36))
+>cb : Symbol(cb, Decl(genericRestTypes.ts, 19, 64))
+
+    const fn2: (cb: (...args: never) => void) => void = fn1;
+>fn2 : Symbol(fn2, Decl(genericRestTypes.ts, 20, 9))
+>cb : Symbol(cb, Decl(genericRestTypes.ts, 20, 16))
+>args : Symbol(args, Decl(genericRestTypes.ts, 20, 21))
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 19, 9))
+}
+
+function assignmentWithComplexRest3<T extends any[]>() {
+>assignmentWithComplexRest3 : Symbol(assignmentWithComplexRest3, Decl(genericRestTypes.ts, 21, 1))
+>T : Symbol(T, Decl(genericRestTypes.ts, 23, 36))
+
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 24, 9))
+>x : Symbol(x, Decl(genericRestTypes.ts, 24, 16))
+>rest : Symbol(rest, Decl(genericRestTypes.ts, 24, 26))
+>T : Symbol(T, Decl(genericRestTypes.ts, 23, 36))
+>x : Symbol(x, Decl(genericRestTypes.ts, 24, 50))
+>_ : Symbol(_, Decl(genericRestTypes.ts, 24, 52))
+>x : Symbol(x, Decl(genericRestTypes.ts, 24, 50))
+
+    const fn2: (...args: {x: "a"} & {x: "b"}) => void = fn1;
+>fn2 : Symbol(fn2, Decl(genericRestTypes.ts, 25, 9))
+>args : Symbol(args, Decl(genericRestTypes.ts, 25, 16))
+>x : Symbol(x, Decl(genericRestTypes.ts, 25, 26))
+>x : Symbol(x, Decl(genericRestTypes.ts, 25, 37))
+>fn1 : Symbol(fn1, Decl(genericRestTypes.ts, 24, 9))
+}
diff --git a/tests/baselines/reference/genericRestTypes.types b/tests/baselines/reference/genericRestTypes.types
index b2fb37871bd23..78da48e79baf9 100644
--- a/tests/baselines/reference/genericRestTypes.types
+++ b/tests/baselines/reference/genericRestTypes.types
@@ -27,3 +27,58 @@ type Bind1<T extends (head: any, ...tail: any[]) => any> = (...args: Tail<Parame
 type Generic = Bind1<MyFunctionType>; // (bar: string) => boolean
 >Generic : Bind1<MyFunctionType>
 
+function assignmentWithComplexRest<T extends any[]>() {
+>assignmentWithComplexRest : <T extends any[]>() => void
+
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+>fn1 : (x: string, ...rest: T) => void
+>x : string
+>rest : T
+>(x, ..._) => x : (x: string, ..._: T) => string
+>x : string
+>_ : T
+>x : string
+
+    const fn2: (...args: never) => void = fn1;
+>fn2 : (...args: never) => void
+>args : never
+>fn1 : (x: string, ...rest: T) => void
+}
+
+function assignmentWithComplexRest2<T extends any[]>() {
+>assignmentWithComplexRest2 : <T extends any[]>() => void
+
+    const fn1: (cb: (x: string, ...rest: T) => void) => void = (cb) => {};
+>fn1 : (cb: (x: string, ...rest: T) => void) => void
+>cb : (x: string, ...rest: T) => void
+>x : string
+>rest : T
+>(cb) => {} : (cb: (x: string, ...rest: T) => void) => void
+>cb : (x: string, ...rest: T) => void
+
+    const fn2: (cb: (...args: never) => void) => void = fn1;
+>fn2 : (cb: (...args: never) => void) => void
+>cb : (...args: never) => void
+>args : never
+>fn1 : (cb: (x: string, ...rest: T) => void) => void
+}
+
+function assignmentWithComplexRest3<T extends any[]>() {
+>assignmentWithComplexRest3 : <T extends any[]>() => void
+
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+>fn1 : (x: string, ...rest: T) => void
+>x : string
+>rest : T
+>(x, ..._) => x : (x: string, ..._: T) => string
+>x : string
+>_ : T
+>x : string
+
+    const fn2: (...args: {x: "a"} & {x: "b"}) => void = fn1;
+>fn2 : (...args: never) => void
+>args : never
+>x : "a"
+>x : "b"
+>fn1 : (x: string, ...rest: T) => void
+}
diff --git a/tests/cases/compiler/genericRestTypes.ts b/tests/cases/compiler/genericRestTypes.ts
index 78eb9b53f7010..a8ecedeb070e9 100644
--- a/tests/cases/compiler/genericRestTypes.ts
+++ b/tests/cases/compiler/genericRestTypes.ts
@@ -12,3 +12,18 @@ type Explicit = (...args: Tail<Parameters<MyFunctionType>>) => ReturnType<MyFunc
 
 type Bind1<T extends (head: any, ...tail: any[]) => any> = (...args: Tail<Parameters<T>>) => ReturnType<T>;
 type Generic = Bind1<MyFunctionType>; // (bar: string) => boolean
+
+function assignmentWithComplexRest<T extends any[]>() {
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+    const fn2: (...args: never) => void = fn1;
+}
+
+function assignmentWithComplexRest2<T extends any[]>() {
+    const fn1: (cb: (x: string, ...rest: T) => void) => void = (cb) => {};
+    const fn2: (cb: (...args: never) => void) => void = fn1;
+}
+
+function assignmentWithComplexRest3<T extends any[]>() {
+    const fn1: (x: string, ...rest: T) => void = (x, ..._) => x;
+    const fn2: (...args: {x: "a"} & {x: "b"}) => void = fn1;
+}
\ No newline at end of file