diff --git a/tsc/internal/checker/inference.go b/tsc/internal/checker/inference.go
index 4bb9d2923d9ab..ab30343d2f734 100644
--- a/tsc/internal/checker/inference.go
+++ b/tsc/internal/checker/inference.go
@@ -1053,14 +1053,10 @@ func (c *Checker) createReverseMappedType(source *Type, target *Type, constraint
 	return reversed
 }
 
-// We consider a type to be partially inferable if it isn't marked non-inferable or if it is
-// an object literal type with at least one property of an inferable type. For example, an object
-// literal { a: 123, b: x => true } is marked non-inferable because it contains a context sensitive
-// arrow function, but is considered partially inferable because property 'a' has an inferable type.
+// We consider a type to be partially inferable if it isn't marked non-inferable. Even when every property is context sensitive,
+// reverse mapped types can still infer the object's keys and defer inference from its property values.
 func (c *Checker) isPartiallyInferableType(t *Type) bool {
-	return t.objectFlags&ObjectFlagsNonInferrableType == 0 || isObjectLiteralType(t) && core.Some(c.getPropertiesOfType(t), func(prop *ast.Symbol) bool {
-		return c.isPartiallyInferableType(c.getTypeOfSymbol(prop))
-	}) || isTupleType(t) && core.Some(c.getElementTypes(t), c.isPartiallyInferableType)
+	return t.objectFlags&ObjectFlagsNonInferrableType == 0 || isObjectLiteralType(t) || isTupleType(t)
 }
 
 func (c *Checker) inferReverseMappedType(source *Type, target *Type, constraint *Type) *Type {
diff --git a/tsc/testdata/baselines/reference/compiler/reverseMappedPartiallyInferableTypes.types b/tsc/testdata/baselines/reference/compiler/reverseMappedPartiallyInferableTypes.types
index c25702df0bbf5..4f80a4747c819 100644
--- a/tsc/testdata/baselines/reference/compiler/reverseMappedPartiallyInferableTypes.types
+++ b/tsc/testdata/baselines/reference/compiler/reverseMappedPartiallyInferableTypes.types
@@ -208,8 +208,8 @@ const obj2 = id({
 // No properties have inferable types
 
 const obj3 = id({
->obj3 : Mapped<unknown>
->id({    foo: {        contains(k) {            return k.length > 0;        }    }}) : Mapped<unknown>
+>obj3 : Mapped<{ foo: unknown; }>
+>id({    foo: {        contains(k) {            return k.length > 0;        }    }}) : Mapped<{ foo: unknown; }>
 >id : <T>(arg: Mapped<T>) => Mapped<T>
 >{    foo: {        contains(k) {            return k.length > 0;        }    }} : { foo: { contains(k: unknown): boolean; }; }
 
diff --git a/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.symbols b/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.symbols
new file mode 100644
index 0000000000000..4f35da315ed43
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.symbols
@@ -0,0 +1,112 @@
+//// [tests/cases/compiler/reverseMappedTypeWithAllContextSensitiveProperties.ts] ////
+
+=== reverseMappedTypeWithAllContextSensitiveProperties.ts ===
+createMachine({
+>createMachine : Symbol(createMachine, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 13, 13))
+
+  initial: "a",
+>initial : Symbol(initial, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 0, 15))
+
+  context: { foo: 1 },
+>context : Symbol(context, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 1, 15))
+>foo : Symbol(foo, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 2, 12))
+
+  states: {
+>states : Symbol(states, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 2, 22))
+
+    a: {
+>a : Symbol(a, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 3, 11))
+
+      entry: (context, state) => {
+>entry : Symbol(entry, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 4, 8))
+>context : Symbol(context, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 5, 14))
+>state : Symbol(state, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 5, 22))
+
+        context.foo.toFixed();
+>context.foo.toFixed : Symbol(Number.toFixed, Decl(lib.es5.d.ts, --, --))
+>context.foo : Symbol(foo, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 2, 12))
+>context : Symbol(context, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 5, 14))
+>foo : Symbol(foo, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 2, 12))
+>toFixed : Symbol(Number.toFixed, Decl(lib.es5.d.ts, --, --))
+
+        const currentState: "a" = state;
+>currentState : Symbol(currentState, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 7, 13))
+>state : Symbol(state, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 5, 22))
+      }
+    }
+  }
+})
+
+declare const createMachine:
+>createMachine : Symbol(createMachine, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 13, 13))
+
+  <D extends {
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+    initial: keyof D["states"],
+>initial : Symbol(initial, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 14))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+    context: D["context"] extends object ? D["context"] : object,
+>context : Symbol(context, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 15, 31))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+    states: {
+>states : Symbol(states, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 16, 65))
+
+      [S in keyof D["states"]]: {
+>S : Symbol(S, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 18, 7))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+        entry?: (context: D["context"], state: S) => void
+>entry : Symbol(entry, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 18, 33))
+>context : Symbol(context, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 19, 17))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+>state : Symbol(state, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 19, 39))
+>S : Symbol(S, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 18, 7))
+      }
+    }
+  }>
+    (definition: IdentityObject<D>) =>
+>definition : Symbol(definition, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 23, 5))
+>IdentityObject : Symbol(IdentityObject, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 32, 11))
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+      D
+>D : Symbol(D, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 14, 3))
+
+type Identity<T> =
+>Identity : Symbol(Identity, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 24, 7))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+
+  T extends any
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+
+    ? ( T extends (...a: never) => unknown ? T :
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+>a : Symbol(a, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 28, 19))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+
+        T extends object ? IdentityObject<T> :
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+>IdentityObject : Symbol(IdentityObject, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 32, 11))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+
+        T
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 26, 14))
+
+      )
+    : never
+
+type IdentityObject<T> =
+>IdentityObject : Symbol(IdentityObject, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 32, 11))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 34, 20))
+
+  { [K in keyof T]: Identity<T[K]> }
+>K : Symbol(K, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 35, 5))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 34, 20))
+>Identity : Symbol(Identity, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 24, 7))
+>T : Symbol(T, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 34, 20))
+>K : Symbol(K, Decl(reverseMappedTypeWithAllContextSensitiveProperties.ts, 35, 5))
+
diff --git a/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.types b/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.types
new file mode 100644
index 0000000000000..b37dfb6640a45
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/reverseMappedTypeWithAllContextSensitiveProperties.types
@@ -0,0 +1,91 @@
+//// [tests/cases/compiler/reverseMappedTypeWithAllContextSensitiveProperties.ts] ////
+
+=== reverseMappedTypeWithAllContextSensitiveProperties.ts ===
+createMachine({
+>createMachine({  initial: "a",  context: { foo: 1 },  states: {    a: {      entry: (context, state) => {        context.foo.toFixed();        const currentState: "a" = state;      }    }  }}) : { initial: "a"; context: { foo: number; }; states: { a: { entry?: ((context: { foo: number; }, state: "a") => void) | undefined; }; }; }
+>createMachine : <D extends { initial: keyof D["states"]; context: D["context"] extends object ? D["context"] : object; states: { [S in keyof D["states"]]: { entry?: (context: D["context"], state: S) => void; }; }; }>(definition: IdentityObject<D>) => D
+>{  initial: "a",  context: { foo: 1 },  states: {    a: {      entry: (context, state) => {        context.foo.toFixed();        const currentState: "a" = state;      }    }  }} : { initial: "a"; context: { foo: number; }; states: { a: { entry: (context: { foo: number; }, state: "a") => void; }; }; }
+
+  initial: "a",
+>initial : "a"
+>"a" : "a"
+
+  context: { foo: 1 },
+>context : { foo: number; }
+>{ foo: 1 } : { foo: number; }
+>foo : number
+>1 : 1
+
+  states: {
+>states : { a: { entry: (context: { foo: number; }, state: "a") => void; }; }
+>{    a: {      entry: (context, state) => {        context.foo.toFixed();        const currentState: "a" = state;      }    }  } : { a: { entry: (context: { foo: number; }, state: "a") => void; }; }
+
+    a: {
+>a : { entry: (context: { foo: number; }, state: "a") => void; }
+>{      entry: (context, state) => {        context.foo.toFixed();        const currentState: "a" = state;      }    } : { entry: (context: { foo: number; }, state: "a") => void; }
+
+      entry: (context, state) => {
+>entry : (context: { foo: number; }, state: "a") => void
+>(context, state) => {        context.foo.toFixed();        const currentState: "a" = state;      } : (context: { foo: number; }, state: "a") => void
+>context : { foo: number; }
+>state : "a"
+
+        context.foo.toFixed();
+>context.foo.toFixed() : string
+>context.foo.toFixed : (fractionDigits?: number) => string
+>context.foo : number
+>context : { foo: number; }
+>foo : number
+>toFixed : (fractionDigits?: number) => string
+
+        const currentState: "a" = state;
+>currentState : "a"
+>state : "a"
+      }
+    }
+  }
+})
+
+declare const createMachine:
+>createMachine : <D extends { initial: keyof D["states"]; context: D["context"] extends object ? D["context"] : object; states: { [S in keyof D["states"]]: { entry?: (context: D["context"], state: S) => void; }; }; }>(definition: IdentityObject<D>) => D
+
+  <D extends {
+    initial: keyof D["states"],
+>initial : keyof D["states"]
+
+    context: D["context"] extends object ? D["context"] : object,
+>context : D["context"] extends object ? D["context"] : object
+
+    states: {
+>states : { [S in keyof D["states"]]: { entry?: (context: D["context"], state: S) => void; }; }
+
+      [S in keyof D["states"]]: {
+        entry?: (context: D["context"], state: S) => void
+>entry : ((context: D["context"], state: S) => void) | undefined
+>context : D["context"]
+>state : S
+      }
+    }
+  }>
+    (definition: IdentityObject<D>) =>
+>definition : IdentityObject<D>
+
+      D
+
+type Identity<T> =
+>Identity : Identity<T>
+
+  T extends any
+    ? ( T extends (...a: never) => unknown ? T :
+>a : never
+
+        T extends object ? IdentityObject<T> :
+        T
+      )
+    : never
+
+type IdentityObject<T> =
+>IdentityObject : IdentityObject<T>
+
+  { [K in keyof T]: Identity<T[K]> }
+
diff --git a/tsc/testdata/tests/cases/compiler/reverseMappedTypeWithAllContextSensitiveProperties.ts b/tsc/testdata/tests/cases/compiler/reverseMappedTypeWithAllContextSensitiveProperties.ts
new file mode 100644
index 0000000000000..64b80015c493d
--- /dev/null
+++ b/tsc/testdata/tests/cases/compiler/reverseMappedTypeWithAllContextSensitiveProperties.ts
@@ -0,0 +1,39 @@
+// @strict: true
+// @noEmit: true
+
+createMachine({
+  initial: "a",
+  context: { foo: 1 },
+  states: {
+    a: {
+      entry: (context, state) => {
+        context.foo.toFixed();
+        const currentState: "a" = state;
+      }
+    }
+  }
+})
+
+declare const createMachine:
+  <D extends {
+    initial: keyof D["states"],
+    context: D["context"] extends object ? D["context"] : object,
+    states: {
+      [S in keyof D["states"]]: {
+        entry?: (context: D["context"], state: S) => void
+      }
+    }
+  }>
+    (definition: IdentityObject<D>) =>
+      D
+
+type Identity<T> =
+  T extends any
+    ? ( T extends (...a: never) => unknown ? T :
+        T extends object ? IdentityObject<T> :
+        T
+      )
+    : never
+
+type IdentityObject<T> =
+  { [K in keyof T]: Identity<T[K]> }