diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index dfd479127202c..68d8658fbb2aa 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -19839,7 +19839,10 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                     const typeParamMapper = combineTypeMappers((newType as ConditionalType).mapper, newMapper);
                     const typeArguments = map(newRoot.outerTypeParameters, t => getMappedType(t, typeParamMapper));
                     const newRootMapper = createTypeMapper(newRoot.outerTypeParameters, typeArguments);
-                    const newCheckType = newRoot.isDistributive ? getMappedType(newRoot.checkType, newRootMapper) : undefined;
+                    let newCheckType = newRoot.isDistributive ? getMappedType(newRoot.checkType, newRootMapper) : undefined;
+                    if (newCheckType && isNoInferType(newCheckType)) {
+                        newCheckType = (newCheckType as SubstitutionType).baseType;
+                    }
                     if (!newCheckType || newCheckType === newRoot.checkType || !(newCheckType.flags & (TypeFlags.Union | TypeFlags.Never))) {
                         root = newRoot;
                         mapper = newRootMapper;
@@ -20935,7 +20938,10 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
             if (!result) {
                 const newMapper = createTypeMapper(root.outerTypeParameters, typeArguments);
                 const checkType = root.checkType;
-                const distributionType = root.isDistributive ? getReducedType(getMappedType(checkType, newMapper)) : undefined;
+                let distributionType = root.isDistributive ? getReducedType(getMappedType(checkType, newMapper)) : undefined;
+                if (distributionType && isNoInferType(distributionType)) {
+                    distributionType = (distributionType as SubstitutionType).baseType;
+                }
                 // Distributive conditional types are distributed over union types. For example, when the
                 // distributive conditional type T extends U ? X : Y is instantiated with A | B for T, the
                 // result is (A extends U ? X : Y) | (B extends U ? X : Y).
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType1.symbols b/tests/baselines/reference/noInferVsDistributiveConditionalType1.symbols
new file mode 100644
index 0000000000000..2d73830cc67db
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType1.symbols
@@ -0,0 +1,128 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType1.ts] ////
+
+=== noInferVsDistributiveConditionalType1.ts ===
+// https://github.com/microsoft/TypeScript/issues/61076
+
+type FooEvent = { type: "FOO" };
+>FooEvent : Symbol(FooEvent, Decl(noInferVsDistributiveConditionalType1.ts, 0, 0))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType1.ts, 2, 17))
+
+type BarEvent = { type: "BAR" };
+>BarEvent : Symbol(BarEvent, Decl(noInferVsDistributiveConditionalType1.ts, 2, 32))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType1.ts, 3, 17))
+
+type Input = FooEvent | BarEvent;
+>Input : Symbol(Input, Decl(noInferVsDistributiveConditionalType1.ts, 3, 32))
+>FooEvent : Symbol(FooEvent, Decl(noInferVsDistributiveConditionalType1.ts, 0, 0))
+>BarEvent : Symbol(BarEvent, Decl(noInferVsDistributiveConditionalType1.ts, 2, 32))
+
+type Result = Extract<NoInfer<Input>, FooEvent>;
+>Result : Symbol(Result, Decl(noInferVsDistributiveConditionalType1.ts, 5, 33))
+>Extract : Symbol(Extract, Decl(lib.es5.d.ts, --, --))
+>NoInfer : Symbol(NoInfer, Decl(lib.es5.d.ts, --, --))
+>Input : Symbol(Input, Decl(noInferVsDistributiveConditionalType1.ts, 3, 32))
+>FooEvent : Symbol(FooEvent, Decl(noInferVsDistributiveConditionalType1.ts, 0, 0))
+
+type EventObject = {
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType1.ts, 6, 48))
+
+  type: string;
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType1.ts, 8, 20))
+
+};
+
+type ActionFunction<
+>ActionFunction : Symbol(ActionFunction, Decl(noInferVsDistributiveConditionalType1.ts, 10, 2))
+
+  TExpressionEvent extends EventObject,
+>TExpressionEvent : Symbol(TExpressionEvent, Decl(noInferVsDistributiveConditionalType1.ts, 12, 20))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType1.ts, 6, 48))
+
+  TEvent extends EventObject,
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 13, 39))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType1.ts, 6, 48))
+
+> = {
+  (args: { event: TExpressionEvent }): void;
+>args : Symbol(args, Decl(noInferVsDistributiveConditionalType1.ts, 16, 3))
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType1.ts, 16, 10))
+>TExpressionEvent : Symbol(TExpressionEvent, Decl(noInferVsDistributiveConditionalType1.ts, 12, 20))
+
+  _out_TEvent?: TEvent;
+>_out_TEvent : Symbol(_out_TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 16, 44))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 13, 39))
+
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+>TransitionsConfig : Symbol(TransitionsConfig, Decl(noInferVsDistributiveConditionalType1.ts, 18, 2))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 20, 23))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType1.ts, 6, 48))
+
+  [K in TEvent["type"]]?: {
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType1.ts, 21, 3))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 20, 23))
+
+    actions?: ActionFunction<Extract<TEvent, { type: K }>, TEvent>;
+>actions : Symbol(actions, Decl(noInferVsDistributiveConditionalType1.ts, 21, 27))
+>ActionFunction : Symbol(ActionFunction, Decl(noInferVsDistributiveConditionalType1.ts, 10, 2))
+>Extract : Symbol(Extract, Decl(lib.es5.d.ts, --, --))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 20, 23))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType1.ts, 22, 46))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType1.ts, 21, 3))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 20, 23))
+
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+>createMachine : Symbol(createMachine, Decl(noInferVsDistributiveConditionalType1.ts, 24, 2))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 26, 31))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType1.ts, 6, 48))
+>config : Symbol(config, Decl(noInferVsDistributiveConditionalType1.ts, 26, 59))
+
+  types?: {
+>types : Symbol(types, Decl(noInferVsDistributiveConditionalType1.ts, 26, 68))
+
+    events?: TEvent;
+>events : Symbol(events, Decl(noInferVsDistributiveConditionalType1.ts, 27, 11))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 26, 31))
+
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+>on : Symbol(on, Decl(noInferVsDistributiveConditionalType1.ts, 29, 4))
+>TransitionsConfig : Symbol(TransitionsConfig, Decl(noInferVsDistributiveConditionalType1.ts, 18, 2))
+>NoInfer : Symbol(NoInfer, Decl(lib.es5.d.ts, --, --))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType1.ts, 26, 31))
+
+}): void;
+
+createMachine({
+>createMachine : Symbol(createMachine, Decl(noInferVsDistributiveConditionalType1.ts, 24, 2))
+
+  types: {
+>types : Symbol(types, Decl(noInferVsDistributiveConditionalType1.ts, 33, 15))
+
+    events: {} as Input,
+>events : Symbol(events, Decl(noInferVsDistributiveConditionalType1.ts, 34, 10))
+>Input : Symbol(Input, Decl(noInferVsDistributiveConditionalType1.ts, 3, 32))
+
+  },
+  on: {
+>on : Symbol(on, Decl(noInferVsDistributiveConditionalType1.ts, 36, 4))
+
+    FOO: {
+>FOO : Symbol(FOO, Decl(noInferVsDistributiveConditionalType1.ts, 37, 7))
+
+      actions: ({ event }) => {
+>actions : Symbol(actions, Decl(noInferVsDistributiveConditionalType1.ts, 38, 10))
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType1.ts, 39, 17))
+
+        event; // { type: "FOO"; }
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType1.ts, 39, 17))
+
+      },
+    },
+  },
+});
+
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType1.types b/tests/baselines/reference/noInferVsDistributiveConditionalType1.types
new file mode 100644
index 0000000000000..bf448a5660dfc
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType1.types
@@ -0,0 +1,141 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType1.ts] ////
+
+=== noInferVsDistributiveConditionalType1.ts ===
+// https://github.com/microsoft/TypeScript/issues/61076
+
+type FooEvent = { type: "FOO" };
+>FooEvent : FooEvent
+>         : ^^^^^^^^
+>type : "FOO"
+>     : ^^^^^
+
+type BarEvent = { type: "BAR" };
+>BarEvent : BarEvent
+>         : ^^^^^^^^
+>type : "BAR"
+>     : ^^^^^
+
+type Input = FooEvent | BarEvent;
+>Input : Input
+>      : ^^^^^
+
+type Result = Extract<NoInfer<Input>, FooEvent>;
+>Result : FooEvent
+>       : ^^^^^^^^
+
+type EventObject = {
+>EventObject : EventObject
+>            : ^^^^^^^^^^^
+
+  type: string;
+>type : string
+>     : ^^^^^^
+
+};
+
+type ActionFunction<
+>ActionFunction : ActionFunction<TExpressionEvent, TEvent>
+>               : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TExpressionEvent extends EventObject,
+  TEvent extends EventObject,
+> = {
+  (args: { event: TExpressionEvent }): void;
+>args : { event: TExpressionEvent; }
+>     : ^^^^^^^^^                ^^^
+>event : TExpressionEvent
+>      : ^^^^^^^^^^^^^^^^
+
+  _out_TEvent?: TEvent;
+>_out_TEvent : TEvent | undefined
+>            : ^^^^^^^^^^^^^^^^^^
+
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+>TransitionsConfig : TransitionsConfig<TEvent>
+>                  : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  [K in TEvent["type"]]?: {
+    actions?: ActionFunction<Extract<TEvent, { type: K }>, TEvent>;
+>actions : ActionFunction<Extract<TEvent, { type: K; }>, TEvent> | undefined
+>        : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^^^^^^^^^^^^^^^^
+>type : K
+>     : ^
+
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+>createMachine : <TEvent extends EventObject>(config: { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }) => void
+>              : ^      ^^^^^^^^^           ^^      ^^                                                                          ^^^^^    
+>config : { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }
+>       : ^^^^^^^^^^                    ^^^^^^^                                  ^^^
+
+  types?: {
+>types : { events?: TEvent; } | undefined
+>      : ^^^^^^^^^^^      ^^^^^^^^^^^^^^^
+
+    events?: TEvent;
+>events : TEvent | undefined
+>       : ^^^^^^^^^^^^^^^^^^
+
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+>on : TransitionsConfig<NoInfer<TEvent>> | undefined
+>   : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+}): void;
+
+createMachine({
+>createMachine({  types: {    events: {} as Input,  },  on: {    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  },}) : void
+>                                                                                                                                                            : ^^^^
+>createMachine : <TEvent extends EventObject>(config: { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }) => void
+>              : ^      ^^^^^^^^^           ^^      ^^                                                                          ^^^^^    
+>{  types: {    events: {} as Input,  },  on: {    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  },} : { types: { events: Input; }; on: { FOO: { actions: ({ event }: { event: FooEvent; }) => void; }; }; }
+>                                                                                                                                             : ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  types: {
+>types : { events: Input; }
+>      : ^^^^^^^^^^     ^^^
+>{    events: {} as Input,  } : { events: Input; }
+>                             : ^^^^^^^^^^     ^^^
+
+    events: {} as Input,
+>events : Input
+>       : ^^^^^
+>{} as Input : Input
+>            : ^^^^^
+>{} : {}
+>   : ^^
+
+  },
+  on: {
+>on : { FOO: { actions: ({ event }: { event: FooEvent; }) => void; }; }
+>   : ^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>{    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  } : { FOO: { actions: ({ event }: { event: FooEvent; }) => void; }; }
+>                                                                                              : ^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+    FOO: {
+>FOO : { actions: ({ event }: { event: FooEvent; }) => void; }
+>    : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>{      actions: ({ event }) => {        event; // { type: "FOO"; }      },    } : { actions: ({ event }: { event: FooEvent; }) => void; }
+>                                                                                : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+      actions: ({ event }) => {
+>actions : ({ event }: { event: FooEvent; }) => void
+>        : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>({ event }) => {        event; // { type: "FOO"; }      } : ({ event }: { event: FooEvent; }) => void
+>                                                          : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>event : FooEvent
+>      : ^^^^^^^^
+
+        event; // { type: "FOO"; }
+>event : FooEvent
+>      : ^^^^^^^^
+
+      },
+    },
+  },
+});
+
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType2.symbols b/tests/baselines/reference/noInferVsDistributiveConditionalType2.symbols
new file mode 100644
index 0000000000000..2f1b8818ef7e0
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType2.symbols
@@ -0,0 +1,289 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType2.ts] ////
+
+=== noInferVsDistributiveConditionalType2.ts ===
+type EventObject = {
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  type: string;
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 0, 20))
+
+};
+
+type FooEvent = { type: "FOO" };
+>FooEvent : Symbol(FooEvent, Decl(noInferVsDistributiveConditionalType2.ts, 2, 2))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 4, 17))
+
+type BarEvent = { type: "BAR" };
+>BarEvent : Symbol(BarEvent, Decl(noInferVsDistributiveConditionalType2.ts, 4, 32))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 5, 17))
+
+type Input = FooEvent | BarEvent;
+>Input : Symbol(Input, Decl(noInferVsDistributiveConditionalType2.ts, 5, 32))
+>FooEvent : Symbol(FooEvent, Decl(noInferVsDistributiveConditionalType2.ts, 2, 2))
+>BarEvent : Symbol(BarEvent, Decl(noInferVsDistributiveConditionalType2.ts, 4, 32))
+
+type ExtractEventSimplified<
+>ExtractEventSimplified : Symbol(ExtractEventSimplified, Decl(noInferVsDistributiveConditionalType2.ts, 7, 33))
+
+  TEvent extends EventObject,
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 9, 28))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  K extends TEvent["type"],
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType2.ts, 10, 29))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 9, 28))
+
+> = string extends TEvent["type"] ? TEvent : Extract<TEvent, { type: K }>;
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 9, 28))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 9, 28))
+>Extract : Symbol(Extract, Decl(lib.es5.d.ts, --, --))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 9, 28))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 12, 62))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType2.ts, 10, 29))
+
+type Result = ExtractEventSimplified<NoInfer<Input>, "FOO">;
+>Result : Symbol(Result, Decl(noInferVsDistributiveConditionalType2.ts, 12, 74))
+>ExtractEventSimplified : Symbol(ExtractEventSimplified, Decl(noInferVsDistributiveConditionalType2.ts, 7, 33))
+>NoInfer : Symbol(NoInfer, Decl(lib.es5.d.ts, --, --))
+>Input : Symbol(Input, Decl(noInferVsDistributiveConditionalType2.ts, 5, 32))
+
+type EventDescriptorMatches<
+>EventDescriptorMatches : Symbol(EventDescriptorMatches, Decl(noInferVsDistributiveConditionalType2.ts, 14, 60))
+
+  TEventType extends string,
+>TEventType : Symbol(TEventType, Decl(noInferVsDistributiveConditionalType2.ts, 16, 28))
+
+  TNormalizedDescriptor,
+>TNormalizedDescriptor : Symbol(TNormalizedDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 17, 28))
+
+> = TEventType extends TNormalizedDescriptor ? true : false;
+>TEventType : Symbol(TEventType, Decl(noInferVsDistributiveConditionalType2.ts, 16, 28))
+>TNormalizedDescriptor : Symbol(TNormalizedDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 17, 28))
+
+type PartialEventDescriptor<TEventType extends string> =
+>PartialEventDescriptor : Symbol(PartialEventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 19, 60))
+>TEventType : Symbol(TEventType, Decl(noInferVsDistributiveConditionalType2.ts, 21, 28))
+
+  TEventType extends `${infer TLeading}.${infer TTail}`
+>TEventType : Symbol(TEventType, Decl(noInferVsDistributiveConditionalType2.ts, 21, 28))
+>TLeading : Symbol(TLeading, Decl(noInferVsDistributiveConditionalType2.ts, 22, 29))
+>TTail : Symbol(TTail, Decl(noInferVsDistributiveConditionalType2.ts, 22, 47))
+
+    ? `${TLeading}.*` | `${TLeading}.${PartialEventDescriptor<TTail>}`
+>TLeading : Symbol(TLeading, Decl(noInferVsDistributiveConditionalType2.ts, 22, 29))
+>TLeading : Symbol(TLeading, Decl(noInferVsDistributiveConditionalType2.ts, 22, 29))
+>PartialEventDescriptor : Symbol(PartialEventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 19, 60))
+>TTail : Symbol(TTail, Decl(noInferVsDistributiveConditionalType2.ts, 22, 47))
+
+    : never;
+
+type EventDescriptor<TEvent extends EventObject> =
+>EventDescriptor : Symbol(EventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 24, 12))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 26, 21))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  | TEvent["type"]
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 26, 21))
+
+  | PartialEventDescriptor<TEvent["type"]>
+>PartialEventDescriptor : Symbol(PartialEventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 19, 60))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 26, 21))
+
+  | "*";
+
+type NormalizeDescriptor<TDescriptor extends string> = TDescriptor extends "*"
+>NormalizeDescriptor : Symbol(NormalizeDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 29, 8))
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 31, 25))
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 31, 25))
+
+  ? string
+  : TDescriptor extends `${infer TLeading}.*`
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 31, 25))
+>TLeading : Symbol(TLeading, Decl(noInferVsDistributiveConditionalType2.ts, 33, 32))
+
+  ? `${TLeading}.${string}`
+>TLeading : Symbol(TLeading, Decl(noInferVsDistributiveConditionalType2.ts, 33, 32))
+
+  : TDescriptor;
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 31, 25))
+
+type ExtractEvent<
+>ExtractEvent : Symbol(ExtractEvent, Decl(noInferVsDistributiveConditionalType2.ts, 35, 16))
+
+  TEvent extends EventObject,
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  TDescriptor extends EventDescriptor<TEvent>,
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 38, 29))
+>EventDescriptor : Symbol(EventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 24, 12))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+
+> = string extends TEvent["type"]
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+
+  ? TEvent
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+
+  : NormalizeDescriptor<TDescriptor> extends infer TNormalizedDescriptor
+>NormalizeDescriptor : Symbol(NormalizeDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 29, 8))
+>TDescriptor : Symbol(TDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 38, 29))
+>TNormalizedDescriptor : Symbol(TNormalizedDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 42, 50))
+
+  ? TEvent extends any
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+
+    ? // true is the check type here to match both true and boolean
+      true extends EventDescriptorMatches<TEvent["type"], TNormalizedDescriptor>
+>EventDescriptorMatches : Symbol(EventDescriptorMatches, Decl(noInferVsDistributiveConditionalType2.ts, 14, 60))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+>TNormalizedDescriptor : Symbol(TNormalizedDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 42, 50))
+
+      ? TEvent
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 37, 18))
+
+      : never
+    : never
+  : never;
+
+type ActionFunction<
+>ActionFunction : Symbol(ActionFunction, Decl(noInferVsDistributiveConditionalType2.ts, 49, 10))
+
+  TExpressionEvent extends EventObject,
+>TExpressionEvent : Symbol(TExpressionEvent, Decl(noInferVsDistributiveConditionalType2.ts, 51, 20))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  TEvent extends EventObject,
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 52, 39))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+> = {
+  (args: { event: TExpressionEvent }): void;
+>args : Symbol(args, Decl(noInferVsDistributiveConditionalType2.ts, 55, 3))
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType2.ts, 55, 10))
+>TExpressionEvent : Symbol(TExpressionEvent, Decl(noInferVsDistributiveConditionalType2.ts, 51, 20))
+
+  _out_TEvent?: TEvent;
+>_out_TEvent : Symbol(_out_TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 55, 44))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 52, 39))
+
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+>TransitionsConfig : Symbol(TransitionsConfig, Decl(noInferVsDistributiveConditionalType2.ts, 57, 2))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 59, 23))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+
+  [K in EventDescriptor<TEvent>]?: {
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType2.ts, 60, 3))
+>EventDescriptor : Symbol(EventDescriptor, Decl(noInferVsDistributiveConditionalType2.ts, 24, 12))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 59, 23))
+
+    actions?: ActionFunction<ExtractEvent<TEvent, K>, TEvent>;
+>actions : Symbol(actions, Decl(noInferVsDistributiveConditionalType2.ts, 60, 36))
+>ActionFunction : Symbol(ActionFunction, Decl(noInferVsDistributiveConditionalType2.ts, 49, 10))
+>ExtractEvent : Symbol(ExtractEvent, Decl(noInferVsDistributiveConditionalType2.ts, 35, 16))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 59, 23))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType2.ts, 60, 3))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 59, 23))
+
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+>createMachine : Symbol(createMachine, Decl(noInferVsDistributiveConditionalType2.ts, 63, 2))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 65, 31))
+>EventObject : Symbol(EventObject, Decl(noInferVsDistributiveConditionalType2.ts, 0, 0))
+>config : Symbol(config, Decl(noInferVsDistributiveConditionalType2.ts, 65, 59))
+
+  types?: {
+>types : Symbol(types, Decl(noInferVsDistributiveConditionalType2.ts, 65, 68))
+
+    events?: TEvent;
+>events : Symbol(events, Decl(noInferVsDistributiveConditionalType2.ts, 66, 11))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 65, 31))
+
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+>on : Symbol(on, Decl(noInferVsDistributiveConditionalType2.ts, 68, 4))
+>TransitionsConfig : Symbol(TransitionsConfig, Decl(noInferVsDistributiveConditionalType2.ts, 57, 2))
+>NoInfer : Symbol(NoInfer, Decl(lib.es5.d.ts, --, --))
+>TEvent : Symbol(TEvent, Decl(noInferVsDistributiveConditionalType2.ts, 65, 31))
+
+}): void;
+
+createMachine({
+>createMachine : Symbol(createMachine, Decl(noInferVsDistributiveConditionalType2.ts, 63, 2))
+
+  types: {
+>types : Symbol(types, Decl(noInferVsDistributiveConditionalType2.ts, 72, 15))
+
+    events: {} as { type: "FOO" } | { type: "BAR" },
+>events : Symbol(events, Decl(noInferVsDistributiveConditionalType2.ts, 73, 10))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 74, 19))
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 74, 37))
+
+  },
+  on: {
+>on : Symbol(on, Decl(noInferVsDistributiveConditionalType2.ts, 75, 4))
+
+    FOO: {
+>FOO : Symbol(FOO, Decl(noInferVsDistributiveConditionalType2.ts, 76, 7))
+
+      actions: ({ event }) => {
+>actions : Symbol(actions, Decl(noInferVsDistributiveConditionalType2.ts, 77, 10))
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType2.ts, 78, 17))
+
+        event; // { type: "FOO"; }
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType2.ts, 78, 17))
+
+      },
+    },
+  },
+});
+
+createMachine({
+>createMachine : Symbol(createMachine, Decl(noInferVsDistributiveConditionalType2.ts, 63, 2))
+
+  types: {} as {
+>types : Symbol(types, Decl(noInferVsDistributiveConditionalType2.ts, 85, 15))
+
+    events:
+>events : Symbol(events, Decl(noInferVsDistributiveConditionalType2.ts, 86, 16))
+
+      | { type: "mouse.click.up"; direction: "up" }
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 88, 9))
+>direction : Symbol(direction, Decl(noInferVsDistributiveConditionalType2.ts, 88, 33))
+
+      | { type: "mouse.click.down"; direction: "down" }
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 89, 9))
+>direction : Symbol(direction, Decl(noInferVsDistributiveConditionalType2.ts, 89, 35))
+
+      | { type: "mouse.move" }
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 90, 9))
+
+      | { type: "mouse" }
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 91, 9))
+
+      | { type: "keypress" };
+>type : Symbol(type, Decl(noInferVsDistributiveConditionalType2.ts, 92, 9))
+
+  },
+  on: {
+>on : Symbol(on, Decl(noInferVsDistributiveConditionalType2.ts, 93, 4))
+
+    "mouse.*": {
+>"mouse.*" : Symbol("mouse.*", Decl(noInferVsDistributiveConditionalType2.ts, 94, 7))
+
+      actions: ({ event }) => {
+>actions : Symbol(actions, Decl(noInferVsDistributiveConditionalType2.ts, 95, 16))
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType2.ts, 96, 17))
+
+        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }
+>event : Symbol(event, Decl(noInferVsDistributiveConditionalType2.ts, 96, 17))
+
+      },
+    },
+  },
+});
+
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType2.types b/tests/baselines/reference/noInferVsDistributiveConditionalType2.types
new file mode 100644
index 0000000000000..57ee7de52fba9
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType2.types
@@ -0,0 +1,282 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType2.ts] ////
+
+=== noInferVsDistributiveConditionalType2.ts ===
+type EventObject = {
+>EventObject : EventObject
+>            : ^^^^^^^^^^^
+
+  type: string;
+>type : string
+>     : ^^^^^^
+
+};
+
+type FooEvent = { type: "FOO" };
+>FooEvent : FooEvent
+>         : ^^^^^^^^
+>type : "FOO"
+>     : ^^^^^
+
+type BarEvent = { type: "BAR" };
+>BarEvent : BarEvent
+>         : ^^^^^^^^
+>type : "BAR"
+>     : ^^^^^
+
+type Input = FooEvent | BarEvent;
+>Input : Input
+>      : ^^^^^
+
+type ExtractEventSimplified<
+>ExtractEventSimplified : ExtractEventSimplified<TEvent, K>
+>                       : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TEvent extends EventObject,
+  K extends TEvent["type"],
+> = string extends TEvent["type"] ? TEvent : Extract<TEvent, { type: K }>;
+>type : K
+>     : ^
+
+type Result = ExtractEventSimplified<NoInfer<Input>, "FOO">;
+>Result : FooEvent
+>       : ^^^^^^^^
+
+type EventDescriptorMatches<
+>EventDescriptorMatches : EventDescriptorMatches<TEventType, TNormalizedDescriptor>
+>                       : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TEventType extends string,
+  TNormalizedDescriptor,
+> = TEventType extends TNormalizedDescriptor ? true : false;
+>true : true
+>     : ^^^^
+>false : false
+>      : ^^^^^
+
+type PartialEventDescriptor<TEventType extends string> =
+>PartialEventDescriptor : PartialEventDescriptor<TEventType>
+>                       : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TEventType extends `${infer TLeading}.${infer TTail}`
+    ? `${TLeading}.*` | `${TLeading}.${PartialEventDescriptor<TTail>}`
+    : never;
+
+type EventDescriptor<TEvent extends EventObject> =
+>EventDescriptor : EventDescriptor<TEvent>
+>                : ^^^^^^^^^^^^^^^^^^^^^^^
+
+  | TEvent["type"]
+  | PartialEventDescriptor<TEvent["type"]>
+  | "*";
+
+type NormalizeDescriptor<TDescriptor extends string> = TDescriptor extends "*"
+>NormalizeDescriptor : NormalizeDescriptor<TDescriptor>
+>                    : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  ? string
+  : TDescriptor extends `${infer TLeading}.*`
+  ? `${TLeading}.${string}`
+  : TDescriptor;
+
+type ExtractEvent<
+>ExtractEvent : ExtractEvent<TEvent, TDescriptor>
+>             : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TEvent extends EventObject,
+  TDescriptor extends EventDescriptor<TEvent>,
+> = string extends TEvent["type"]
+  ? TEvent
+  : NormalizeDescriptor<TDescriptor> extends infer TNormalizedDescriptor
+  ? TEvent extends any
+    ? // true is the check type here to match both true and boolean
+      true extends EventDescriptorMatches<TEvent["type"], TNormalizedDescriptor>
+>true : true
+>     : ^^^^
+
+      ? TEvent
+      : never
+    : never
+  : never;
+
+type ActionFunction<
+>ActionFunction : ActionFunction<TExpressionEvent, TEvent>
+>               : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  TExpressionEvent extends EventObject,
+  TEvent extends EventObject,
+> = {
+  (args: { event: TExpressionEvent }): void;
+>args : { event: TExpressionEvent; }
+>     : ^^^^^^^^^                ^^^
+>event : TExpressionEvent
+>      : ^^^^^^^^^^^^^^^^
+
+  _out_TEvent?: TEvent;
+>_out_TEvent : TEvent | undefined
+>            : ^^^^^^^^^^^^^^^^^^
+
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+>TransitionsConfig : TransitionsConfig<TEvent>
+>                  : ^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  [K in EventDescriptor<TEvent>]?: {
+    actions?: ActionFunction<ExtractEvent<TEvent, K>, TEvent>;
+>actions : ActionFunction<ExtractEvent<TEvent, K>, TEvent> | undefined
+>        : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+>createMachine : <TEvent extends EventObject>(config: { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }) => void
+>              : ^      ^^^^^^^^^           ^^      ^^                                                                          ^^^^^    
+>config : { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }
+>       : ^^^^^^^^^^                    ^^^^^^^                                  ^^^
+
+  types?: {
+>types : { events?: TEvent; } | undefined
+>      : ^^^^^^^^^^^      ^^^^^^^^^^^^^^^
+
+    events?: TEvent;
+>events : TEvent | undefined
+>       : ^^^^^^^^^^^^^^^^^^
+
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+>on : TransitionsConfig<NoInfer<TEvent>> | undefined
+>   : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+}): void;
+
+createMachine({
+>createMachine({  types: {    events: {} as { type: "FOO" } | { type: "BAR" },  },  on: {    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  },}) : void
+>                                                                                                                                                                                        : ^^^^
+>createMachine : <TEvent extends EventObject>(config: { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }) => void
+>              : ^      ^^^^^^^^^           ^^      ^^                                                                          ^^^^^    
+>{  types: {    events: {} as { type: "FOO" } | { type: "BAR" },  },  on: {    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  },} : { types: { events: { type: "FOO"; } | { type: "BAR"; }; }; on: { FOO: { actions: ({ event }: { event: { type: "FOO"; }; }) => void; }; }; }
+>                                                                                                                                                                         : ^^^^^^^^^^^^^^^^^^^                                   ^^^^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^^^^^^^
+
+  types: {
+>types : { events: { type: "FOO"; } | { type: "BAR"; }; }
+>      : ^^^^^^^^^^                                   ^^^
+>{    events: {} as { type: "FOO" } | { type: "BAR" },  } : { events: { type: "FOO"; } | { type: "BAR"; }; }
+>                                                         : ^^^^^^^^^^                                   ^^^
+
+    events: {} as { type: "FOO" } | { type: "BAR" },
+>events : { type: "FOO"; } | { type: "BAR"; }
+>       : ^^^^^^^^     ^^^^^^^^^^^^^^     ^^^
+>{} as { type: "FOO" } | { type: "BAR" } : { type: "FOO"; } | { type: "BAR"; }
+>                                        : ^^^^^^^^     ^^^^^^^^^^^^^^     ^^^
+>{} : {}
+>   : ^^
+>type : "FOO"
+>     : ^^^^^
+>type : "BAR"
+>     : ^^^^^
+
+  },
+  on: {
+>on : { FOO: { actions: ({ event }: { event: { type: "FOO"; }; }) => void; }; }
+>   : ^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^^^^
+>{    FOO: {      actions: ({ event }) => {        event; // { type: "FOO"; }      },    },  } : { FOO: { actions: ({ event }: { event: { type: "FOO"; }; }) => void; }; }
+>                                                                                              : ^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^^^^
+
+    FOO: {
+>FOO : { actions: ({ event }: { event: { type: "FOO"; }; }) => void; }
+>    : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^
+>{      actions: ({ event }) => {        event; // { type: "FOO"; }      },    } : { actions: ({ event }: { event: { type: "FOO"; }; }) => void; }
+>                                                                                : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^
+
+      actions: ({ event }) => {
+>actions : ({ event }: { event: { type: "FOO"; }; }) => void
+>        : ^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^
+>({ event }) => {        event; // { type: "FOO"; }      } : ({ event }: { event: { type: "FOO"; }; }) => void
+>                                                          : ^         ^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^
+>event : { type: "FOO"; }
+>      : ^^^^^^^^     ^^^
+
+        event; // { type: "FOO"; }
+>event : { type: "FOO"; }
+>      : ^^^^^^^^     ^^^
+
+      },
+    },
+  },
+});
+
+createMachine({
+>createMachine({  types: {} as {    events:      | { type: "mouse.click.up"; direction: "up" }      | { type: "mouse.click.down"; direction: "down" }      | { type: "mouse.move" }      | { type: "mouse" }      | { type: "keypress" };  },  on: {    "mouse.*": {      actions: ({ event }) => {        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }      },    },  },}) : void
+>                                                                                                                                                                                                                                                                                                                                                                                                                                                               : ^^^^
+>createMachine : <TEvent extends EventObject>(config: { types?: { events?: TEvent; }; on?: TransitionsConfig<NoInfer<TEvent>>; }) => void
+>              : ^      ^^^^^^^^^           ^^      ^^                                                                          ^^^^^    
+>{  types: {} as {    events:      | { type: "mouse.click.up"; direction: "up" }      | { type: "mouse.click.down"; direction: "down" }      | { type: "mouse.move" }      | { type: "mouse" }      | { type: "keypress" };  },  on: {    "mouse.*": {      actions: ({ event }) => {        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }      },    },  },} : { types: { events: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; } | { type: "mouse"; } | { type: "keypress"; }; }; on: { "mouse.*": { actions: ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void; }; }; }
+>                                                                                                                                                                                                                                                                                                                                                                                                                                                : ^^^^^^^^^                                                                                                                                                                                   ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^^^^^^^^^^
+
+  types: {} as {
+>types : { events: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; } | { type: "mouse"; } | { type: "keypress"; }; }
+>      : ^^^^^^^^^^                                                                                                                                                                      ^^^
+>{} as {    events:      | { type: "mouse.click.up"; direction: "up" }      | { type: "mouse.click.down"; direction: "down" }      | { type: "mouse.move" }      | { type: "mouse" }      | { type: "keypress" };  } : { events: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; } | { type: "mouse"; } | { type: "keypress"; }; }
+>                                                                                                                                                                                                                    : ^^^^^^^^^^                                                                                                                                                                      ^^^
+>{} : {}
+>   : ^^
+
+    events:
+>events : { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; } | { type: "mouse"; } | { type: "keypress"; }
+>       : ^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^       ^^^^^^^^^^^^^^          ^^^
+
+      | { type: "mouse.click.up"; direction: "up" }
+>type : "mouse.click.up"
+>     : ^^^^^^^^^^^^^^^^
+>direction : "up"
+>          : ^^^^
+
+      | { type: "mouse.click.down"; direction: "down" }
+>type : "mouse.click.down"
+>     : ^^^^^^^^^^^^^^^^^^
+>direction : "down"
+>          : ^^^^^^
+
+      | { type: "mouse.move" }
+>type : "mouse.move"
+>     : ^^^^^^^^^^^^
+
+      | { type: "mouse" }
+>type : "mouse"
+>     : ^^^^^^^
+
+      | { type: "keypress" };
+>type : "keypress"
+>     : ^^^^^^^^^^
+
+  },
+  on: {
+>on : { "mouse.*": { actions: ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void; }; }
+>   : ^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^^^^^^^
+>{    "mouse.*": {      actions: ({ event }) => {        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }      },    },  } : { "mouse.*": { actions: ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void; }; }
+>                                                                                                                                                                                                          : ^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^^^^^^^
+
+    "mouse.*": {
+>"mouse.*" : { actions: ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void; }
+>          : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^^^^
+>{      actions: ({ event }) => {        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }      },    } : { actions: ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void; }
+>                                                                                                                                                                                      : ^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^^^^
+
+      actions: ({ event }) => {
+>actions : ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void
+>        : ^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^
+>({ event }) => {        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }      } : ({ event }: { event: { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }; }) => void
+>                                                                                                                                                                : ^         ^^^^^^^^^^^^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^^^^^^^^^^^^^
+>event : { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }
+>      : ^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^
+
+        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }
+>event : { type: "mouse.click.up"; direction: "up"; } | { type: "mouse.click.down"; direction: "down"; } | { type: "mouse.move"; }
+>      : ^^^^^^^^                ^^^^^^^^^^^^^    ^^^^^^^^^^^^^^                  ^^^^^^^^^^^^^      ^^^^^^^^^^^^^^            ^^^
+
+      },
+    },
+  },
+});
+
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType3.symbols b/tests/baselines/reference/noInferVsDistributiveConditionalType3.symbols
new file mode 100644
index 0000000000000..289ddd030424c
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType3.symbols
@@ -0,0 +1,176 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType3.ts] ////
+
+=== noInferVsDistributiveConditionalType3.ts ===
+// based on https://github.com/microsoft/TypeScript/issues/51831
+
+type NoMatchAll<K> = Exclude<K, "_">
+>NoMatchAll : Symbol(NoMatchAll, Decl(noInferVsDistributiveConditionalType3.ts, 0, 0))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 2, 16))
+>Exclude : Symbol(Exclude, Decl(lib.es5.d.ts, --, --))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 2, 16))
+
+type Union<T extends object> = {
+>Union : Symbol(Union, Decl(noInferVsDistributiveConditionalType3.ts, 2, 36))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 4, 11))
+
+  [P in keyof T]: ({ [Q in "kind"]: P } & T[P]) extends infer U ? { [Q in keyof U]: U[Q] } : never
+>P : Symbol(P, Decl(noInferVsDistributiveConditionalType3.ts, 5, 3))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 4, 11))
+>Q : Symbol(Q, Decl(noInferVsDistributiveConditionalType3.ts, 5, 22))
+>P : Symbol(P, Decl(noInferVsDistributiveConditionalType3.ts, 5, 3))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 4, 11))
+>P : Symbol(P, Decl(noInferVsDistributiveConditionalType3.ts, 5, 3))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 5, 61))
+>Q : Symbol(Q, Decl(noInferVsDistributiveConditionalType3.ts, 5, 69))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 5, 61))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 5, 61))
+>Q : Symbol(Q, Decl(noInferVsDistributiveConditionalType3.ts, 5, 69))
+
+}[keyof T]
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 4, 11))
+
+type UnionMap<U extends { kind: string }> = { [K in U["kind"]]: U extends { kind: K } ? U : never }
+>UnionMap : Symbol(UnionMap, Decl(noInferVsDistributiveConditionalType3.ts, 6, 10))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 7, 14))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 7, 25))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 7, 47))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 7, 14))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 7, 14))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 7, 75))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 7, 47))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 7, 14))
+
+type ExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]: (u1: UnionMap<T>[K]) => R };
+>ExhaustivePattern : Symbol(ExhaustivePattern, Decl(noInferVsDistributiveConditionalType3.ts, 7, 99))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 8, 23))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 8, 34))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 8, 50))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 8, 59))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 8, 23))
+>NoMatchAll : Symbol(NoMatchAll, Decl(noInferVsDistributiveConditionalType3.ts, 0, 0))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 8, 59))
+>u1 : Symbol(u1, Decl(noInferVsDistributiveConditionalType3.ts, 8, 94))
+>UnionMap : Symbol(UnionMap, Decl(noInferVsDistributiveConditionalType3.ts, 6, 10))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 8, 23))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 8, 59))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 8, 50))
+
+type NonExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]?: (u2: UnionMap<T>[K]) => R } & {_: (union: T) => R};
+>NonExhaustivePattern : Symbol(NonExhaustivePattern, Decl(noInferVsDistributiveConditionalType3.ts, 8, 121))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 9, 26))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 9, 37))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 9, 53))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 9, 62))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 9, 26))
+>NoMatchAll : Symbol(NoMatchAll, Decl(noInferVsDistributiveConditionalType3.ts, 0, 0))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 9, 62))
+>u2 : Symbol(u2, Decl(noInferVsDistributiveConditionalType3.ts, 9, 98))
+>UnionMap : Symbol(UnionMap, Decl(noInferVsDistributiveConditionalType3.ts, 6, 10))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 9, 26))
+>K : Symbol(K, Decl(noInferVsDistributiveConditionalType3.ts, 9, 62))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 9, 53))
+>_ : Symbol(_, Decl(noInferVsDistributiveConditionalType3.ts, 9, 128))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 9, 132))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 9, 26))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 9, 53))
+
+type Pattern<T extends { kind: string }, R> = ExhaustivePattern<T, R> | NonExhaustivePattern<T, R>;
+>Pattern : Symbol(Pattern, Decl(noInferVsDistributiveConditionalType3.ts, 9, 148))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 10, 13))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 10, 24))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 10, 40))
+>ExhaustivePattern : Symbol(ExhaustivePattern, Decl(noInferVsDistributiveConditionalType3.ts, 7, 99))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 10, 13))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 10, 40))
+>NonExhaustivePattern : Symbol(NonExhaustivePattern, Decl(noInferVsDistributiveConditionalType3.ts, 8, 121))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 10, 13))
+>R : Symbol(R, Decl(noInferVsDistributiveConditionalType3.ts, 10, 40))
+
+function match<U extends { kind: string }, T>(union: U, pattern: Pattern<NoInfer<U>, T>): T {
+>match : Symbol(match, Decl(noInferVsDistributiveConditionalType3.ts, 10, 99))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 12, 15))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 12, 26))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 12, 42))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 12, 46))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 12, 15))
+>pattern : Symbol(pattern, Decl(noInferVsDistributiveConditionalType3.ts, 12, 55))
+>Pattern : Symbol(Pattern, Decl(noInferVsDistributiveConditionalType3.ts, 9, 148))
+>NoInfer : Symbol(NoInfer, Decl(lib.es5.d.ts, --, --))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 12, 15))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 12, 42))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 12, 42))
+
+  if((pattern as any)[union.kind]) {
+>pattern : Symbol(pattern, Decl(noInferVsDistributiveConditionalType3.ts, 12, 55))
+>union.kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 12, 26))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 12, 46))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 12, 26))
+
+    return (pattern as any)[union.kind](union as U) as T
+>pattern : Symbol(pattern, Decl(noInferVsDistributiveConditionalType3.ts, 12, 55))
+>union.kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 12, 26))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 12, 46))
+>kind : Symbol(kind, Decl(noInferVsDistributiveConditionalType3.ts, 12, 26))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 12, 46))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 12, 15))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 12, 42))
+  }
+  return (pattern as any)["_"](union as U) as T
+>pattern : Symbol(pattern, Decl(noInferVsDistributiveConditionalType3.ts, 12, 55))
+>union : Symbol(union, Decl(noInferVsDistributiveConditionalType3.ts, 12, 46))
+>U : Symbol(U, Decl(noInferVsDistributiveConditionalType3.ts, 12, 15))
+>T : Symbol(T, Decl(noInferVsDistributiveConditionalType3.ts, 12, 42))
+}
+
+type ValueType = Union<{
+>ValueType : Symbol(ValueType, Decl(noInferVsDistributiveConditionalType3.ts, 17, 1))
+>Union : Symbol(Union, Decl(noInferVsDistributiveConditionalType3.ts, 2, 36))
+
+  String: {value: string},
+>String : Symbol(String, Decl(noInferVsDistributiveConditionalType3.ts, 19, 24))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 20, 11))
+
+  Number: {value: number},
+>Number : Symbol(Number, Decl(noInferVsDistributiveConditionalType3.ts, 20, 26))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 21, 11))
+
+  Boolean: {value: boolean},
+>Boolean : Symbol(Boolean, Decl(noInferVsDistributiveConditionalType3.ts, 21, 26))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 22, 12))
+
+  Date: {value: Date}
+>Date : Symbol(Date, Decl(noInferVsDistributiveConditionalType3.ts, 22, 28))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 23, 9))
+>Date : Symbol(Date, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --), Decl(lib.scripthost.d.ts, --, --), Decl(lib.es2015.symbol.wellknown.d.ts, --, --))
+
+}>
+
+function main(value: ValueType) {
+>main : Symbol(main, Decl(noInferVsDistributiveConditionalType3.ts, 24, 2))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 26, 14))
+>ValueType : Symbol(ValueType, Decl(noInferVsDistributiveConditionalType3.ts, 17, 1))
+
+  let test1 = match(value, {
+>test1 : Symbol(test1, Decl(noInferVsDistributiveConditionalType3.ts, 27, 5))
+>match : Symbol(match, Decl(noInferVsDistributiveConditionalType3.ts, 10, 99))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 26, 14))
+
+    String: ({value}) => value,
+>String : Symbol(String, Decl(noInferVsDistributiveConditionalType3.ts, 27, 28))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 28, 14))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 28, 14))
+
+    Number: ({value}) => value.toString(),
+>Number : Symbol(Number, Decl(noInferVsDistributiveConditionalType3.ts, 28, 31))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 29, 14))
+>value.toString : Symbol(Number.toString, Decl(lib.es5.d.ts, --, --))
+>value : Symbol(value, Decl(noInferVsDistributiveConditionalType3.ts, 29, 14))
+>toString : Symbol(Number.toString, Decl(lib.es5.d.ts, --, --))
+
+    _: (token) => "Unknown"
+>_ : Symbol(_, Decl(noInferVsDistributiveConditionalType3.ts, 29, 42))
+>token : Symbol(token, Decl(noInferVsDistributiveConditionalType3.ts, 30, 8))
+
+  });
+}
+
diff --git a/tests/baselines/reference/noInferVsDistributiveConditionalType3.types b/tests/baselines/reference/noInferVsDistributiveConditionalType3.types
new file mode 100644
index 0000000000000..d042137bf2b59
--- /dev/null
+++ b/tests/baselines/reference/noInferVsDistributiveConditionalType3.types
@@ -0,0 +1,196 @@
+//// [tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType3.ts] ////
+
+=== noInferVsDistributiveConditionalType3.ts ===
+// based on https://github.com/microsoft/TypeScript/issues/51831
+
+type NoMatchAll<K> = Exclude<K, "_">
+>NoMatchAll : NoMatchAll<K>
+>           : ^^^^^^^^^^^^^
+
+type Union<T extends object> = {
+>Union : Union<T>
+>      : ^^^^^^^^
+
+  [P in keyof T]: ({ [Q in "kind"]: P } & T[P]) extends infer U ? { [Q in keyof U]: U[Q] } : never
+}[keyof T]
+type UnionMap<U extends { kind: string }> = { [K in U["kind"]]: U extends { kind: K } ? U : never }
+>UnionMap : UnionMap<U>
+>         : ^^^^^^^^^^^
+>kind : string
+>     : ^^^^^^
+>kind : K
+>     : ^
+
+type ExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]: (u1: UnionMap<T>[K]) => R };
+>ExhaustivePattern : ExhaustivePattern<T, R>
+>                  : ^^^^^^^^^^^^^^^^^^^^^^^
+>kind : string
+>     : ^^^^^^
+>u1 : UnionMap<T>[K]
+>   : ^^^^^^^^^^^^^^
+
+type NonExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]?: (u2: UnionMap<T>[K]) => R } & {_: (union: T) => R};
+>NonExhaustivePattern : NonExhaustivePattern<T, R>
+>                     : ^^^^^^^^^^^^^^^^^^^^^^^^^^
+>kind : string
+>     : ^^^^^^
+>u2 : UnionMap<T>[K]
+>   : ^^^^^^^^^^^^^^
+>_ : (union: T) => R
+>  : ^     ^^ ^^^^^ 
+>union : T
+>      : ^
+
+type Pattern<T extends { kind: string }, R> = ExhaustivePattern<T, R> | NonExhaustivePattern<T, R>;
+>Pattern : Pattern<T, R>
+>        : ^^^^^^^^^^^^^
+>kind : string
+>     : ^^^^^^
+
+function match<U extends { kind: string }, T>(union: U, pattern: Pattern<NoInfer<U>, T>): T {
+>match : <U extends { kind: string; }, T>(union: U, pattern: Pattern<NoInfer<U>, T>) => T
+>      : ^ ^^^^^^^^^                 ^^ ^^     ^^ ^^       ^^                      ^^^^^ 
+>kind : string
+>     : ^^^^^^
+>union : U
+>      : ^
+>pattern : Pattern<NoInfer<U>, T>
+>        : ^^^^^^^^^^^^^^^^^^^^^^
+
+  if((pattern as any)[union.kind]) {
+>(pattern as any)[union.kind] : any
+>(pattern as any) : any
+>pattern as any : any
+>pattern : Pattern<NoInfer<U>, T>
+>        : ^^^^^^^^^^^^^^^^^^^^^^
+>union.kind : string
+>           : ^^^^^^
+>union : U
+>      : ^
+>kind : string
+>     : ^^^^^^
+
+    return (pattern as any)[union.kind](union as U) as T
+>(pattern as any)[union.kind](union as U) as T : T
+>                                              : ^
+>(pattern as any)[union.kind](union as U) : any
+>(pattern as any)[union.kind] : any
+>(pattern as any) : any
+>pattern as any : any
+>pattern : Pattern<NoInfer<U>, T>
+>        : ^^^^^^^^^^^^^^^^^^^^^^
+>union.kind : string
+>           : ^^^^^^
+>union : U
+>      : ^
+>kind : string
+>     : ^^^^^^
+>union as U : U
+>           : ^
+>union : U
+>      : ^
+  }
+  return (pattern as any)["_"](union as U) as T
+>(pattern as any)["_"](union as U) as T : T
+>                                       : ^
+>(pattern as any)["_"](union as U) : any
+>(pattern as any)["_"] : any
+>(pattern as any) : any
+>pattern as any : any
+>pattern : Pattern<NoInfer<U>, T>
+>        : ^^^^^^^^^^^^^^^^^^^^^^
+>"_" : "_"
+>    : ^^^
+>union as U : U
+>           : ^
+>union : U
+>      : ^
+}
+
+type ValueType = Union<{
+>ValueType : ValueType
+>          : ^^^^^^^^^
+
+  String: {value: string},
+>String : { value: string; }
+>       : ^^^^^^^^^      ^^^
+>value : string
+>      : ^^^^^^
+
+  Number: {value: number},
+>Number : { value: number; }
+>       : ^^^^^^^^^      ^^^
+>value : number
+>      : ^^^^^^
+
+  Boolean: {value: boolean},
+>Boolean : { value: boolean; }
+>        : ^^^^^^^^^       ^^^
+>value : boolean
+>      : ^^^^^^^
+
+  Date: {value: Date}
+>Date : { value: Date; }
+>     : ^^^^^^^^^    ^^^
+>value : Date
+>      : ^^^^
+
+}>
+
+function main(value: ValueType) {
+>main : (value: ValueType) => void
+>     : ^     ^^         ^^^^^^^^^
+>value : ValueType
+>      : ^^^^^^^^^
+
+  let test1 = match(value, {
+>test1 : string
+>      : ^^^^^^
+>match(value, {    String: ({value}) => value,    Number: ({value}) => value.toString(),    _: (token) => "Unknown"  }) : string
+>                                                                                                                       : ^^^^^^
+>match : <U extends { kind: string; }, T>(union: U, pattern: Pattern<NoInfer<U>, T>) => T
+>      : ^ ^^^^^^^^^                 ^^ ^^     ^^ ^^       ^^                      ^^^^^ 
+>value : ValueType
+>      : ^^^^^^^^^
+>{    String: ({value}) => value,    Number: ({value}) => value.toString(),    _: (token) => "Unknown"  } : { String: ({ value }: { kind: "String"; value: string; }) => string; Number: ({ value }: { kind: "Number"; value: number; }) => string; _: (token: NoInfer<ValueType>) => string; }
+>                                                                                                         : ^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^^^^^^^^^^^^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^^^^^^^     ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+    String: ({value}) => value,
+>String : ({ value }: { kind: "String"; value: string; }) => string
+>       : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^
+>({value}) => value : ({ value }: { kind: "String"; value: string; }) => string
+>                   : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^
+>value : string
+>      : ^^^^^^
+>value : string
+>      : ^^^^^^
+
+    Number: ({value}) => value.toString(),
+>Number : ({ value }: { kind: "Number"; value: number; }) => string
+>       : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^
+>({value}) => value.toString() : ({ value }: { kind: "Number"; value: number; }) => string
+>                              : ^         ^^^^^^^^^^^^^^^^^^^^^^^^^^^      ^^^^^^^^^^^^^^
+>value : number
+>      : ^^^^^^
+>value.toString() : string
+>                 : ^^^^^^
+>value.toString : (radix?: number) => string
+>               : ^     ^^^      ^^^^^      
+>value : number
+>      : ^^^^^^
+>toString : (radix?: number) => string
+>         : ^     ^^^      ^^^^^      
+
+    _: (token) => "Unknown"
+>_ : (token: NoInfer<ValueType>) => string
+>  : ^     ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>(token) => "Unknown" : (token: NoInfer<ValueType>) => string
+>                     : ^     ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>token : NoInfer<ValueType>
+>      : ^^^^^^^^^^^^^^^^^^
+>"Unknown" : "Unknown"
+>          : ^^^^^^^^^
+
+  });
+}
+
diff --git a/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType1.ts b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType1.ts
new file mode 100644
index 0000000000000..e924e33e2f31f
--- /dev/null
+++ b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType1.ts
@@ -0,0 +1,48 @@
+// @strict: true
+// @noEmit: true
+
+// https://github.com/microsoft/TypeScript/issues/61076
+
+type FooEvent = { type: "FOO" };
+type BarEvent = { type: "BAR" };
+
+type Input = FooEvent | BarEvent;
+type Result = Extract<NoInfer<Input>, FooEvent>;
+
+type EventObject = {
+  type: string;
+};
+
+type ActionFunction<
+  TExpressionEvent extends EventObject,
+  TEvent extends EventObject,
+> = {
+  (args: { event: TExpressionEvent }): void;
+  _out_TEvent?: TEvent;
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+  [K in TEvent["type"]]?: {
+    actions?: ActionFunction<Extract<TEvent, { type: K }>, TEvent>;
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+  types?: {
+    events?: TEvent;
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+}): void;
+
+createMachine({
+  types: {
+    events: {} as Input,
+  },
+  on: {
+    FOO: {
+      actions: ({ event }) => {
+        event; // { type: "FOO"; }
+      },
+    },
+  },
+});
diff --git a/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType2.ts b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType2.ts
new file mode 100644
index 0000000000000..b49c8f94c2fd1
--- /dev/null
+++ b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType2.ts
@@ -0,0 +1,105 @@
+// @strict: true
+// @noEmit: true
+
+type EventObject = {
+  type: string;
+};
+
+type FooEvent = { type: "FOO" };
+type BarEvent = { type: "BAR" };
+
+type Input = FooEvent | BarEvent;
+
+type ExtractEventSimplified<
+  TEvent extends EventObject,
+  K extends TEvent["type"],
+> = string extends TEvent["type"] ? TEvent : Extract<TEvent, { type: K }>;
+
+type Result = ExtractEventSimplified<NoInfer<Input>, "FOO">;
+
+type EventDescriptorMatches<
+  TEventType extends string,
+  TNormalizedDescriptor,
+> = TEventType extends TNormalizedDescriptor ? true : false;
+
+type PartialEventDescriptor<TEventType extends string> =
+  TEventType extends `${infer TLeading}.${infer TTail}`
+    ? `${TLeading}.*` | `${TLeading}.${PartialEventDescriptor<TTail>}`
+    : never;
+
+type EventDescriptor<TEvent extends EventObject> =
+  | TEvent["type"]
+  | PartialEventDescriptor<TEvent["type"]>
+  | "*";
+
+type NormalizeDescriptor<TDescriptor extends string> = TDescriptor extends "*"
+  ? string
+  : TDescriptor extends `${infer TLeading}.*`
+  ? `${TLeading}.${string}`
+  : TDescriptor;
+
+type ExtractEvent<
+  TEvent extends EventObject,
+  TDescriptor extends EventDescriptor<TEvent>,
+> = string extends TEvent["type"]
+  ? TEvent
+  : NormalizeDescriptor<TDescriptor> extends infer TNormalizedDescriptor
+  ? TEvent extends any
+    ? // true is the check type here to match both true and boolean
+      true extends EventDescriptorMatches<TEvent["type"], TNormalizedDescriptor>
+      ? TEvent
+      : never
+    : never
+  : never;
+
+type ActionFunction<
+  TExpressionEvent extends EventObject,
+  TEvent extends EventObject,
+> = {
+  (args: { event: TExpressionEvent }): void;
+  _out_TEvent?: TEvent;
+};
+
+type TransitionsConfig<TEvent extends EventObject> = {
+  [K in EventDescriptor<TEvent>]?: {
+    actions?: ActionFunction<ExtractEvent<TEvent, K>, TEvent>;
+  };
+};
+
+declare function createMachine<TEvent extends EventObject>(config: {
+  types?: {
+    events?: TEvent;
+  };
+  on?: TransitionsConfig<NoInfer<TEvent>>;
+}): void;
+
+createMachine({
+  types: {
+    events: {} as { type: "FOO" } | { type: "BAR" },
+  },
+  on: {
+    FOO: {
+      actions: ({ event }) => {
+        event; // { type: "FOO"; }
+      },
+    },
+  },
+});
+
+createMachine({
+  types: {} as {
+    events:
+      | { type: "mouse.click.up"; direction: "up" }
+      | { type: "mouse.click.down"; direction: "down" }
+      | { type: "mouse.move" }
+      | { type: "mouse" }
+      | { type: "keypress" };
+  },
+  on: {
+    "mouse.*": {
+      actions: ({ event }) => {
+        event; // { type: "mouse.click.up"; direction: "up" } | { type: "mouse.click.down"; direction: "down" } | { type: "mouse.move" }
+      },
+    },
+  },
+});
diff --git a/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType3.ts b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType3.ts
new file mode 100644
index 0000000000000..cff3ed1253e6d
--- /dev/null
+++ b/tests/cases/conformance/types/typeRelationships/typeInference/noInferVsDistributiveConditionalType3.ts
@@ -0,0 +1,36 @@
+// @strict: true
+// @noEmit: true
+
+// based on https://github.com/microsoft/TypeScript/issues/51831
+
+type NoMatchAll<K> = Exclude<K, "_">
+
+type Union<T extends object> = {
+  [P in keyof T]: ({ [Q in "kind"]: P } & T[P]) extends infer U ? { [Q in keyof U]: U[Q] } : never
+}[keyof T]
+type UnionMap<U extends { kind: string }> = { [K in U["kind"]]: U extends { kind: K } ? U : never }
+type ExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]: (u1: UnionMap<T>[K]) => R };
+type NonExhaustivePattern<T extends { kind: string }, R> = { [K in T["kind"] as NoMatchAll<K>]?: (u2: UnionMap<T>[K]) => R } & {_: (union: T) => R};
+type Pattern<T extends { kind: string }, R> = ExhaustivePattern<T, R> | NonExhaustivePattern<T, R>;
+
+function match<U extends { kind: string }, T>(union: U, pattern: Pattern<NoInfer<U>, T>): T {
+  if((pattern as any)[union.kind]) {
+    return (pattern as any)[union.kind](union as U) as T
+  }
+  return (pattern as any)["_"](union as U) as T
+}
+
+type ValueType = Union<{
+  String: {value: string},
+  Number: {value: number},
+  Boolean: {value: boolean},
+  Date: {value: Date}
+}>
+
+function main(value: ValueType) {
+  let test1 = match(value, {
+    String: ({value}) => value,
+    Number: ({value}) => value.toString(),
+    _: (token) => "Unknown"
+  });
+}