diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index b439b7fd9c579..4f7618dccfe59 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -22340,11 +22340,11 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
             }
         }
 
-        function getTypeOfPropertyInTypes(types: Type[], name: __String) {
+        function getTypeOfPropertyInTargetTypes(types: Type[], name: __String) {
             const appendPropType = (propTypes: Type[] | undefined, type: Type) => {
                 type = getApparentType(type);
                 const prop = type.flags & TypeFlags.UnionOrIntersection ? getPropertyOfUnionOrIntersectionType(type as UnionOrIntersectionType, name) : getPropertyOfObjectType(type, name);
-                const propType = prop && getTypeOfSymbol(prop) || getApplicableIndexInfoForName(type, name)?.type || undefinedType;
+                const propType = prop && getNonMissingTypeOfSymbol(prop) || getApplicableIndexInfoForName(type, name)?.type || undefinedType;
                 return append(propTypes, propType);
             };
             return getUnionType(reduceLeft(types, appendPropType, /*initial*/ undefined) || emptyArray);
@@ -22421,7 +22421,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                         }
                         return true;
                     }
-                    if (checkTypes && !isRelatedTo(getTypeOfSymbol(prop), getTypeOfPropertyInTypes(checkTypes, prop.escapedName), RecursionFlags.Both, reportErrors)) {
+                    if (checkTypes && !isRelatedTo(getTypeOfSymbol(prop), getTypeOfPropertyInTargetTypes(checkTypes, prop.escapedName), RecursionFlags.Both, reportErrors)) {
                         if (reportErrors) {
                             reportIncompatibleError(Diagnostics.Types_of_property_0_are_incompatible, symbolToString(prop));
                         }
@@ -23646,8 +23646,7 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
         }
 
         function isPropertySymbolTypeRelated(sourceProp: Symbol, targetProp: Symbol, getTypeOfSourceProperty: (sym: Symbol) => Type, reportErrors: boolean, intersectionState: IntersectionState): Ternary {
-            const targetIsOptional = strictNullChecks && !!(getCheckFlags(targetProp) & CheckFlags.Partial);
-            const effectiveTarget = addOptionality(getNonMissingTypeOfSymbol(targetProp), /*isProperty*/ false, targetIsOptional);
+            const effectiveTarget = getNonMissingTypeOfSymbol(targetProp);
             const effectiveSource = getTypeOfSourceProperty(sourceProp);
             return isRelatedTo(effectiveSource, effectiveTarget, RecursionFlags.Both, reportErrors, /*headMessage*/ undefined, intersectionState);
         }
diff --git a/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.errors.txt b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.errors.txt
new file mode 100644
index 0000000000000..246d8e7d7335b
--- /dev/null
+++ b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.errors.txt
@@ -0,0 +1,59 @@
+incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts(5,3): error TS2322: Type 'number' is not assignable to type 'never'.
+incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts(10,7): error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T2'.
+  Types of property 'b' are incompatible.
+    Type 'number' is not assignable to type 'never'.
+incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts(21,7): error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T1'.
+  Types of property 'b' are incompatible.
+    Type 'number' is not assignable to type 'never'.
+incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts(28,7): error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T2'.
+  Type '{ a: number; b: number; }' is not assignable to type '{ a: number; b?: never; }'.
+    Types of property 'b' are incompatible.
+      Type 'number' is not assignable to type 'never'.
+
+
+==== incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts (4 errors) ====
+    type T1 = { a: number; b?: never };
+    
+    const t1: T1 = {
+      a: 0,
+      b: 0,
+      ~
+!!! error TS2322: Type 'number' is not assignable to type 'never'.
+!!! related TS6500 incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts:1:24: The expected type comes from property 'b' which is declared here on type 'T1'
+    };
+    
+    type T2 = { a: number; b?: never } | { a?: never; b: number };
+    
+    const t2: T2 = {
+          ~~
+!!! error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T2'.
+!!! error TS2322:   Types of property 'b' are incompatible.
+!!! error TS2322:     Type 'number' is not assignable to type 'never'.
+      a: 0,
+      b: 0,
+    };
+    
+    // for comparison with the above:
+    const obj1 = {
+      a: 0,
+      b: 0,
+    }
+    
+    const t3: T1 = obj1;
+          ~~
+!!! error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T1'.
+!!! error TS2322:   Types of property 'b' are incompatible.
+!!! error TS2322:     Type 'number' is not assignable to type 'never'.
+    
+    const obj2 = {
+      a: 0,
+      b: 0,
+    };
+    
+    const t4: T2 = obj2;
+          ~~
+!!! error TS2322: Type '{ a: number; b: number; }' is not assignable to type 'T2'.
+!!! error TS2322:   Type '{ a: number; b: number; }' is not assignable to type '{ a: number; b?: never; }'.
+!!! error TS2322:     Types of property 'b' are incompatible.
+!!! error TS2322:       Type 'number' is not assignable to type 'never'.
+    
\ No newline at end of file
diff --git a/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.symbols b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.symbols
new file mode 100644
index 0000000000000..ebff86c9b8d9a
--- /dev/null
+++ b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.symbols
@@ -0,0 +1,71 @@
+//// [tests/cases/compiler/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts] ////
+
+=== incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts ===
+type T1 = { a: number; b?: never };
+>T1 : Symbol(T1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 0, 0))
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 0, 11))
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 0, 22))
+
+const t1: T1 = {
+>t1 : Symbol(t1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 2, 5))
+>T1 : Symbol(T1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 0, 0))
+
+  a: 0,
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 2, 16))
+
+  b: 0,
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 3, 7))
+
+};
+
+type T2 = { a: number; b?: never } | { a?: never; b: number };
+>T2 : Symbol(T2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 5, 2))
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 7, 11))
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 7, 22))
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 7, 38))
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 7, 49))
+
+const t2: T2 = {
+>t2 : Symbol(t2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 9, 5))
+>T2 : Symbol(T2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 5, 2))
+
+  a: 0,
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 9, 16))
+
+  b: 0,
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 10, 7))
+
+};
+
+// for comparison with the above:
+const obj1 = {
+>obj1 : Symbol(obj1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 15, 5))
+
+  a: 0,
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 15, 14))
+
+  b: 0,
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 16, 7))
+}
+
+const t3: T1 = obj1;
+>t3 : Symbol(t3, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 20, 5))
+>T1 : Symbol(T1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 0, 0))
+>obj1 : Symbol(obj1, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 15, 5))
+
+const obj2 = {
+>obj2 : Symbol(obj2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 22, 5))
+
+  a: 0,
+>a : Symbol(a, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 22, 14))
+
+  b: 0,
+>b : Symbol(b, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 23, 7))
+
+};
+
+const t4: T2 = obj2;
+>t4 : Symbol(t4, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 27, 5))
+>T2 : Symbol(T2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 5, 2))
+>obj2 : Symbol(obj2, Decl(incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts, 22, 5))
+
diff --git a/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.types b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.types
new file mode 100644
index 0000000000000..f8b187f4fff7e
--- /dev/null
+++ b/tests/baselines/reference/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.types
@@ -0,0 +1,115 @@
+//// [tests/cases/compiler/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts] ////
+
+=== incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts ===
+type T1 = { a: number; b?: never };
+>T1 : T1
+>   : ^^
+>a : number
+>  : ^^^^^^
+>b : undefined
+>  : ^^^^^^^^^
+
+const t1: T1 = {
+>t1 : T1
+>   : ^^
+>{  a: 0,  b: 0,} : { a: number; b: number; }
+>                 : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  a: 0,
+>a : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+  b: 0,
+>b : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+};
+
+type T2 = { a: number; b?: never } | { a?: never; b: number };
+>T2 : T2
+>   : ^^
+>a : number
+>  : ^^^^^^
+>b : undefined
+>  : ^^^^^^^^^
+>a : undefined
+>  : ^^^^^^^^^
+>b : number
+>  : ^^^^^^
+
+const t2: T2 = {
+>t2 : T2
+>   : ^^
+>{  a: 0,  b: 0,} : { a: number; b: number; }
+>                 : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  a: 0,
+>a : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+  b: 0,
+>b : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+};
+
+// for comparison with the above:
+const obj1 = {
+>obj1 : { a: number; b: number; }
+>     : ^^^^^^^^^^^^^^^^^^^^^^^^^
+>{  a: 0,  b: 0,} : { a: number; b: number; }
+>                 : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  a: 0,
+>a : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+  b: 0,
+>b : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+}
+
+const t3: T1 = obj1;
+>t3 : T1
+>   : ^^
+>obj1 : { a: number; b: number; }
+>     : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+const obj2 = {
+>obj2 : { a: number; b: number; }
+>     : ^^^^^^^^^^^^^^^^^^^^^^^^^
+>{  a: 0,  b: 0,} : { a: number; b: number; }
+>                 : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  a: 0,
+>a : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+  b: 0,
+>b : number
+>  : ^^^^^^
+>0 : 0
+>  : ^
+
+};
+
+const t4: T2 = obj2;
+>t4 : T2
+>   : ^^
+>obj2 : { a: number; b: number; }
+>     : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
diff --git a/tests/cases/compiler/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts b/tests/cases/compiler/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts
new file mode 100644
index 0000000000000..9d8d5b0255a1f
--- /dev/null
+++ b/tests/cases/compiler/incompatiblePropertyErrorObjLiteralExactOptionalPropertyTypes1.ts
@@ -0,0 +1,32 @@
+// @strict: true
+// @noEmit: true
+// @exactOptionalPropertyTypes: true
+
+type T1 = { a: number; b?: never };
+
+const t1: T1 = {
+  a: 0,
+  b: 0,
+};
+
+type T2 = { a: number; b?: never } | { a?: never; b: number };
+
+const t2: T2 = {
+  a: 0,
+  b: 0,
+};
+
+// for comparison with the above:
+const obj1 = {
+  a: 0,
+  b: 0,
+}
+
+const t3: T1 = obj1;
+
+const obj2 = {
+  a: 0,
+  b: 0,
+};
+
+const t4: T2 = obj2;