diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 99071469dec4b..83d90529be88a 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -34609,7 +34609,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
 
     function getNonArrayRestType(signature: Signature) {
         const restType = getEffectiveRestType(signature);
-        return restType && !isArrayType(restType) && !isTypeAny(restType) && (getReducedType(restType).flags & TypeFlags.Never) === 0 ? restType : undefined;
+        return restType && !isArrayType(restType) && !isTypeAny(restType) ? restType : undefined;
     }
 
     function getTypeOfFirstParameterOfSignature(signature: Signature) {
diff --git a/tests/baselines/reference/topFunctionTypeNotCallable.errors.txt b/tests/baselines/reference/topFunctionTypeNotCallable.errors.txt
new file mode 100644
index 0000000000000..5ad93310ed474
--- /dev/null
+++ b/tests/baselines/reference/topFunctionTypeNotCallable.errors.txt
@@ -0,0 +1,11 @@
+tests/cases/compiler/topFunctionTypeNotCallable.ts(4,1): error TS2345: Argument of type '[]' is not assignable to parameter of type 'never'.
+
+
+==== tests/cases/compiler/topFunctionTypeNotCallable.ts (1 errors) ====
+    // repro from #48840
+    
+    declare let foo: (...args: never) => void;
+    foo(); // error
+    ~~~~~
+!!! error TS2345: Argument of type '[]' is not assignable to parameter of type 'never'.
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/topFunctionTypeNotCallable.symbols b/tests/baselines/reference/topFunctionTypeNotCallable.symbols
new file mode 100644
index 0000000000000..a146f43382a8d
--- /dev/null
+++ b/tests/baselines/reference/topFunctionTypeNotCallable.symbols
@@ -0,0 +1,10 @@
+=== tests/cases/compiler/topFunctionTypeNotCallable.ts ===
+// repro from #48840
+
+declare let foo: (...args: never) => void;
+>foo : Symbol(foo, Decl(topFunctionTypeNotCallable.ts, 2, 11))
+>args : Symbol(args, Decl(topFunctionTypeNotCallable.ts, 2, 18))
+
+foo(); // error
+>foo : Symbol(foo, Decl(topFunctionTypeNotCallable.ts, 2, 11))
+
diff --git a/tests/baselines/reference/topFunctionTypeNotCallable.types b/tests/baselines/reference/topFunctionTypeNotCallable.types
new file mode 100644
index 0000000000000..18c59cbcf325e
--- /dev/null
+++ b/tests/baselines/reference/topFunctionTypeNotCallable.types
@@ -0,0 +1,11 @@
+=== tests/cases/compiler/topFunctionTypeNotCallable.ts ===
+// repro from #48840
+
+declare let foo: (...args: never) => void;
+>foo : (...args: never) => void
+>args : never
+
+foo(); // error
+>foo() : void
+>foo : (...args: never) => void
+
diff --git a/tests/cases/compiler/topFunctionTypeNotCallable.ts b/tests/cases/compiler/topFunctionTypeNotCallable.ts
new file mode 100644
index 0000000000000..4bca3e878990c
--- /dev/null
+++ b/tests/cases/compiler/topFunctionTypeNotCallable.ts
@@ -0,0 +1,7 @@
+// @strict: true
+// @noEmit: true
+
+// repro from #48840
+
+declare let foo: (...args: never) => void;
+foo(); // error