diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 87f3b5a70b61e..c332d41a601bb 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -14246,8 +14246,10 @@ namespace ts {
             // a symbol-like type and a type known to be non-symbol-like, or
             // a void-like type and a type known to be non-void-like, or
             // a non-primitive type and a type known to be primitive.
-            if (includes & TypeFlags.Never ||
-                strictNullChecks && includes & TypeFlags.Nullable && includes & (TypeFlags.Object | TypeFlags.NonPrimitive | TypeFlags.IncludesEmptyObject) ||
+            if (includes & TypeFlags.Never) {
+                return contains(typeSet, silentNeverType) ? silentNeverType : neverType;
+            }
+            if (strictNullChecks && includes & TypeFlags.Nullable && includes & (TypeFlags.Object | TypeFlags.NonPrimitive | TypeFlags.IncludesEmptyObject) ||
                 includes & TypeFlags.NonPrimitive && includes & (TypeFlags.DisjointDomains & ~TypeFlags.NonPrimitive) ||
                 includes & TypeFlags.StringLike && includes & (TypeFlags.DisjointDomains & ~TypeFlags.StringLike) ||
                 includes & TypeFlags.NumberLike && includes & (TypeFlags.DisjointDomains & ~TypeFlags.NumberLike) ||
diff --git a/tests/baselines/reference/silentNeverPropagation.js b/tests/baselines/reference/silentNeverPropagation.js
new file mode 100644
index 0000000000000..cb6548632027f
--- /dev/null
+++ b/tests/baselines/reference/silentNeverPropagation.js
@@ -0,0 +1,56 @@
+//// [silentNeverPropagation.ts]
+// Repro from #45041
+
+type ModuleWithState<TState> = {
+    state: TState;
+};
+
+type State = {
+    a: number;
+};
+
+type MoreState = {
+    z: string;
+};
+
+declare function createModule<TState, TActions>(state: TState, actions: TActions): ModuleWithState<TState> & TActions;
+
+declare function convert<TState, TActions>(m: ModuleWithState<TState> & TActions): ModuleWithState<TState & MoreState> & TActions;
+
+const breaks = convert(
+    createModule({ a: 12 }, { foo() { return true } })
+);
+
+breaks.state.a
+breaks.state.z
+breaks.foo()
+
+
+//// [silentNeverPropagation.js]
+"use strict";
+// Repro from #45041
+var breaks = convert(createModule({ a: 12 }, { foo: function () { return true; } }));
+breaks.state.a;
+breaks.state.z;
+breaks.foo();
+
+
+//// [silentNeverPropagation.d.ts]
+declare type ModuleWithState<TState> = {
+    state: TState;
+};
+declare type State = {
+    a: number;
+};
+declare type MoreState = {
+    z: string;
+};
+declare function createModule<TState, TActions>(state: TState, actions: TActions): ModuleWithState<TState> & TActions;
+declare function convert<TState, TActions>(m: ModuleWithState<TState> & TActions): ModuleWithState<TState & MoreState> & TActions;
+declare const breaks: ModuleWithState<{
+    a: number;
+} & MoreState> & ModuleWithState<{
+    a: number;
+}> & {
+    foo(): true;
+};
diff --git a/tests/baselines/reference/silentNeverPropagation.symbols b/tests/baselines/reference/silentNeverPropagation.symbols
new file mode 100644
index 0000000000000..d52a2436fa4d4
--- /dev/null
+++ b/tests/baselines/reference/silentNeverPropagation.symbols
@@ -0,0 +1,84 @@
+=== tests/cases/compiler/silentNeverPropagation.ts ===
+// Repro from #45041
+
+type ModuleWithState<TState> = {
+>ModuleWithState : Symbol(ModuleWithState, Decl(silentNeverPropagation.ts, 0, 0))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 2, 21))
+
+    state: TState;
+>state : Symbol(state, Decl(silentNeverPropagation.ts, 2, 32))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 2, 21))
+
+};
+
+type State = {
+>State : Symbol(State, Decl(silentNeverPropagation.ts, 4, 2))
+
+    a: number;
+>a : Symbol(a, Decl(silentNeverPropagation.ts, 6, 14))
+
+};
+
+type MoreState = {
+>MoreState : Symbol(MoreState, Decl(silentNeverPropagation.ts, 8, 2))
+
+    z: string;
+>z : Symbol(z, Decl(silentNeverPropagation.ts, 10, 18))
+
+};
+
+declare function createModule<TState, TActions>(state: TState, actions: TActions): ModuleWithState<TState> & TActions;
+>createModule : Symbol(createModule, Decl(silentNeverPropagation.ts, 12, 2))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 14, 30))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 14, 37))
+>state : Symbol(state, Decl(silentNeverPropagation.ts, 14, 48))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 14, 30))
+>actions : Symbol(actions, Decl(silentNeverPropagation.ts, 14, 62))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 14, 37))
+>ModuleWithState : Symbol(ModuleWithState, Decl(silentNeverPropagation.ts, 0, 0))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 14, 30))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 14, 37))
+
+declare function convert<TState, TActions>(m: ModuleWithState<TState> & TActions): ModuleWithState<TState & MoreState> & TActions;
+>convert : Symbol(convert, Decl(silentNeverPropagation.ts, 14, 118))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 16, 25))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 16, 32))
+>m : Symbol(m, Decl(silentNeverPropagation.ts, 16, 43))
+>ModuleWithState : Symbol(ModuleWithState, Decl(silentNeverPropagation.ts, 0, 0))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 16, 25))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 16, 32))
+>ModuleWithState : Symbol(ModuleWithState, Decl(silentNeverPropagation.ts, 0, 0))
+>TState : Symbol(TState, Decl(silentNeverPropagation.ts, 16, 25))
+>MoreState : Symbol(MoreState, Decl(silentNeverPropagation.ts, 8, 2))
+>TActions : Symbol(TActions, Decl(silentNeverPropagation.ts, 16, 32))
+
+const breaks = convert(
+>breaks : Symbol(breaks, Decl(silentNeverPropagation.ts, 18, 5))
+>convert : Symbol(convert, Decl(silentNeverPropagation.ts, 14, 118))
+
+    createModule({ a: 12 }, { foo() { return true } })
+>createModule : Symbol(createModule, Decl(silentNeverPropagation.ts, 12, 2))
+>a : Symbol(a, Decl(silentNeverPropagation.ts, 19, 18))
+>foo : Symbol(foo, Decl(silentNeverPropagation.ts, 19, 29))
+
+);
+
+breaks.state.a
+>breaks.state.a : Symbol(a, Decl(silentNeverPropagation.ts, 19, 18))
+>breaks.state : Symbol(state, Decl(silentNeverPropagation.ts, 2, 32), Decl(silentNeverPropagation.ts, 2, 32))
+>breaks : Symbol(breaks, Decl(silentNeverPropagation.ts, 18, 5))
+>state : Symbol(state, Decl(silentNeverPropagation.ts, 2, 32), Decl(silentNeverPropagation.ts, 2, 32))
+>a : Symbol(a, Decl(silentNeverPropagation.ts, 19, 18))
+
+breaks.state.z
+>breaks.state.z : Symbol(z, Decl(silentNeverPropagation.ts, 10, 18))
+>breaks.state : Symbol(state, Decl(silentNeverPropagation.ts, 2, 32), Decl(silentNeverPropagation.ts, 2, 32))
+>breaks : Symbol(breaks, Decl(silentNeverPropagation.ts, 18, 5))
+>state : Symbol(state, Decl(silentNeverPropagation.ts, 2, 32), Decl(silentNeverPropagation.ts, 2, 32))
+>z : Symbol(z, Decl(silentNeverPropagation.ts, 10, 18))
+
+breaks.foo()
+>breaks.foo : Symbol(foo, Decl(silentNeverPropagation.ts, 19, 29))
+>breaks : Symbol(breaks, Decl(silentNeverPropagation.ts, 18, 5))
+>foo : Symbol(foo, Decl(silentNeverPropagation.ts, 19, 29))
+
diff --git a/tests/baselines/reference/silentNeverPropagation.types b/tests/baselines/reference/silentNeverPropagation.types
new file mode 100644
index 0000000000000..c64dfc61f6e96
--- /dev/null
+++ b/tests/baselines/reference/silentNeverPropagation.types
@@ -0,0 +1,73 @@
+=== tests/cases/compiler/silentNeverPropagation.ts ===
+// Repro from #45041
+
+type ModuleWithState<TState> = {
+>ModuleWithState : ModuleWithState<TState>
+
+    state: TState;
+>state : TState
+
+};
+
+type State = {
+>State : State
+
+    a: number;
+>a : number
+
+};
+
+type MoreState = {
+>MoreState : MoreState
+
+    z: string;
+>z : string
+
+};
+
+declare function createModule<TState, TActions>(state: TState, actions: TActions): ModuleWithState<TState> & TActions;
+>createModule : <TState, TActions>(state: TState, actions: TActions) => ModuleWithState<TState> & TActions
+>state : TState
+>actions : TActions
+
+declare function convert<TState, TActions>(m: ModuleWithState<TState> & TActions): ModuleWithState<TState & MoreState> & TActions;
+>convert : <TState, TActions>(m: ModuleWithState<TState> & TActions) => ModuleWithState<TState & MoreState> & TActions
+>m : ModuleWithState<TState> & TActions
+
+const breaks = convert(
+>breaks : ModuleWithState<{ a: number; } & MoreState> & ModuleWithState<{ a: number; }> & { foo(): true; }
+>convert(    createModule({ a: 12 }, { foo() { return true } })) : ModuleWithState<{ a: number; } & MoreState> & ModuleWithState<{ a: number; }> & { foo(): true; }
+>convert : <TState, TActions>(m: ModuleWithState<TState> & TActions) => ModuleWithState<TState & MoreState> & TActions
+
+    createModule({ a: 12 }, { foo() { return true } })
+>createModule({ a: 12 }, { foo() { return true } }) : ModuleWithState<{ a: number; }> & { foo(): true; }
+>createModule : <TState, TActions>(state: TState, actions: TActions) => ModuleWithState<TState> & TActions
+>{ a: 12 } : { a: number; }
+>a : number
+>12 : 12
+>{ foo() { return true } } : { foo(): true; }
+>foo : () => true
+>true : true
+
+);
+
+breaks.state.a
+>breaks.state.a : number
+>breaks.state : { a: number; } & MoreState
+>breaks : ModuleWithState<{ a: number; } & MoreState> & ModuleWithState<{ a: number; }> & { foo(): true; }
+>state : { a: number; } & MoreState
+>a : number
+
+breaks.state.z
+>breaks.state.z : string
+>breaks.state : { a: number; } & MoreState
+>breaks : ModuleWithState<{ a: number; } & MoreState> & ModuleWithState<{ a: number; }> & { foo(): true; }
+>state : { a: number; } & MoreState
+>z : string
+
+breaks.foo()
+>breaks.foo() : true
+>breaks.foo : () => true
+>breaks : ModuleWithState<{ a: number; } & MoreState> & ModuleWithState<{ a: number; }> & { foo(): true; }
+>foo : () => true
+
diff --git a/tests/cases/compiler/silentNeverPropagation.ts b/tests/cases/compiler/silentNeverPropagation.ts
new file mode 100644
index 0000000000000..4fb46c0c9bbd1
--- /dev/null
+++ b/tests/cases/compiler/silentNeverPropagation.ts
@@ -0,0 +1,28 @@
+// @strict: true
+// @declaration: true
+
+// Repro from #45041
+
+type ModuleWithState<TState> = {
+    state: TState;
+};
+
+type State = {
+    a: number;
+};
+
+type MoreState = {
+    z: string;
+};
+
+declare function createModule<TState, TActions>(state: TState, actions: TActions): ModuleWithState<TState> & TActions;
+
+declare function convert<TState, TActions>(m: ModuleWithState<TState> & TActions): ModuleWithState<TState & MoreState> & TActions;
+
+const breaks = convert(
+    createModule({ a: 12 }, { foo() { return true } })
+);
+
+breaks.state.a
+breaks.state.z
+breaks.foo()