diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 7b4fe5be44..829d11bd09 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -9149,7 +9149,7 @@ namespace ts {
                 }
             }
             if (!(indexType.flags & TypeFlags.Nullable) && isTypeAssignableToKind(indexType, TypeFlags.StringLike | TypeFlags.NumberLike | TypeFlags.ESSymbolLike)) {
-                if (isTypeAny(objectType)) {
+                if (objectType.flags & (TypeFlags.Any | TypeFlags.Never)) {
                     return objectType;
                 }
                 const indexInfo = isTypeAssignableToKind(indexType, TypeFlags.NumberLike) && getIndexInfoOfType(objectType, IndexKind.Number) ||
diff --git a/tests/baselines/reference/indexingTypesWithNever.js b/tests/baselines/reference/indexingTypesWithNever.js
index 4e174fc4c9..33f0bcc8c3 100644
--- a/tests/baselines/reference/indexingTypesWithNever.js
+++ b/tests/baselines/reference/indexingTypesWithNever.js
@@ -108,6 +108,14 @@ declare const o3Test: ExpectType<{ a?: string; b?: number }, O3Props>;
 declare const o2Test: ExpectType<{ a?: string }, O2Props>;
 declare const o1Test: ExpectType<{}, O1Props>;
 declare const o0Test: ExpectType<{}, O0Props>;
+
+// Repro from #23005
+
+type Example<T extends Record<'a', string>> = T['a'];
+
+type Res1 = Example<{ a: "x" } | { a: "y" }>;  // "x" | "y"
+type Res2 = Example<{ a: "x" }>;  // "x"
+type Res3 = Example<never>;  // never 
 
 
 //// [indexingTypesWithNever.js]
diff --git a/tests/baselines/reference/indexingTypesWithNever.symbols b/tests/baselines/reference/indexingTypesWithNever.symbols
index 1833e8c637..9b93d00e50 100644
--- a/tests/baselines/reference/indexingTypesWithNever.symbols
+++ b/tests/baselines/reference/indexingTypesWithNever.symbols
@@ -387,3 +387,26 @@ declare const o0Test: ExpectType<{}, O0Props>;
 >ExpectType : Symbol(ExpectType, Decl(indexingTypesWithNever.ts, 54, 22))
 >O0Props : Symbol(O0Props, Decl(indexingTypesWithNever.ts, 102, 33))
 
+// Repro from #23005
+
+type Example<T extends Record<'a', string>> = T['a'];
+>Example : Symbol(Example, Decl(indexingTypesWithNever.ts, 108, 46))
+>T : Symbol(T, Decl(indexingTypesWithNever.ts, 112, 13))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+>T : Symbol(T, Decl(indexingTypesWithNever.ts, 112, 13))
+
+type Res1 = Example<{ a: "x" } | { a: "y" }>;  // "x" | "y"
+>Res1 : Symbol(Res1, Decl(indexingTypesWithNever.ts, 112, 53))
+>Example : Symbol(Example, Decl(indexingTypesWithNever.ts, 108, 46))
+>a : Symbol(a, Decl(indexingTypesWithNever.ts, 114, 21))
+>a : Symbol(a, Decl(indexingTypesWithNever.ts, 114, 34))
+
+type Res2 = Example<{ a: "x" }>;  // "x"
+>Res2 : Symbol(Res2, Decl(indexingTypesWithNever.ts, 114, 45))
+>Example : Symbol(Example, Decl(indexingTypesWithNever.ts, 108, 46))
+>a : Symbol(a, Decl(indexingTypesWithNever.ts, 115, 21))
+
+type Res3 = Example<never>;  // never 
+>Res3 : Symbol(Res3, Decl(indexingTypesWithNever.ts, 115, 32))
+>Example : Symbol(Example, Decl(indexingTypesWithNever.ts, 108, 46))
+
diff --git a/tests/baselines/reference/indexingTypesWithNever.types b/tests/baselines/reference/indexingTypesWithNever.types
index 52583a73ba..d6a97df222 100644
--- a/tests/baselines/reference/indexingTypesWithNever.types
+++ b/tests/baselines/reference/indexingTypesWithNever.types
@@ -264,3 +264,20 @@ declare const o1Test: ExpectType<{}, O1Props>;
 declare const o0Test: ExpectType<{}, O0Props>;
 >o0Test : "Match"
 
+// Repro from #23005
+
+type Example<T extends Record<'a', string>> = T['a'];
+>Example : T["a"]
+
+type Res1 = Example<{ a: "x" } | { a: "y" }>;  // "x" | "y"
+>Res1 : "x" | "y"
+>a : "x"
+>a : "y"
+
+type Res2 = Example<{ a: "x" }>;  // "x"
+>Res2 : "x"
+>a : "x"
+
+type Res3 = Example<never>;  // never 
+>Res3 : never
+
diff --git a/tests/baselines/reference/nonPrimitiveConstraintOfIndexAccessType.errors.txt b/tests/baselines/reference/nonPrimitiveConstraintOfIndexAccessType.errors.txt
index 5678115713..5784d8c46d 100644
--- a/tests/baselines/reference/nonPrimitiveConstraintOfIndexAccessType.errors.txt
+++ b/tests/baselines/reference/nonPrimitiveConstraintOfIndexAccessType.errors.txt
@@ -3,6 +3,7 @@ tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessTy
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(9,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(12,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(15,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
+  Type 'string' is not assignable to type 'never'.
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(18,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(21,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
 tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessType.ts(24,5): error TS2322: Type 'string' is not assignable to type 'T[P]'.
@@ -37,6 +38,7 @@ tests/cases/conformance/types/nonPrimitive/nonPrimitiveConstraintOfIndexAccessTy
         tp = s;
         ~~
 !!! error TS2322: Type 'string' is not assignable to type 'T[P]'.
+!!! error TS2322:   Type 'string' is not assignable to type 'never'.
     }
     function k<T extends number, P extends keyof T>(s: string, tp: T[P]): void {
         tp = s;
diff --git a/tests/cases/compiler/indexingTypesWithNever.ts b/tests/cases/compiler/indexingTypesWithNever.ts
index 9044ded2ff..b81bf533eb 100644
--- a/tests/cases/compiler/indexingTypesWithNever.ts
+++ b/tests/cases/compiler/indexingTypesWithNever.ts
@@ -109,3 +109,11 @@ declare const o3Test: ExpectType<{ a?: string; b?: number }, O3Props>;
 declare const o2Test: ExpectType<{ a?: string }, O2Props>;
 declare const o1Test: ExpectType<{}, O1Props>;
 declare const o0Test: ExpectType<{}, O0Props>;
+
+// Repro from #23005
+
+type Example<T extends Record<'a', string>> = T['a'];
+
+type Res1 = Example<{ a: "x" } | { a: "y" }>;  // "x" | "y"
+type Res2 = Example<{ a: "x" }>;  // "x"
+type Res3 = Example<never>;  // never