diff --git a/mypy/checker.py b/mypy/checker.py
index d371f40ccaae..b2a444721604 100644
--- a/mypy/checker.py
+++ b/mypy/checker.py
@@ -6812,13 +6812,20 @@ def narrow_type_by_identity_equality(
                     # We patch this here because it is desirable to widen to any for cases like
                     # isinstance(x, (y: Any))
                     continue
+
+                arg_type = self.lookup_type(expr_in_type_expr)
+                if_type, else_type = self.conditional_types_with_intersection(
+                    arg_type, [current_type_range], expr_in_type_expr
+                )
+                if if_type is not None and (
+                    not current_type_range.is_upper_bound
+                    and not is_equivalent(if_type, current_type_range.item)
+                ):
+                    # type(x) and x.__class__ checks must exact match
+                    if_type = UninhabitedType()
+
                 if_map, else_map = conditional_types_to_typemaps(
-                    expr_in_type_expr,
-                    *self.conditional_types_with_intersection(
-                        self.lookup_type(expr_in_type_expr),
-                        [current_type_range],
-                        expr_in_type_expr,
-                    ),
+                    expr_in_type_expr, if_type, else_type
                 )
 
                 is_final = (
diff --git a/test-data/unit/check-narrowing.test b/test-data/unit/check-narrowing.test
index b9bb0c1efa6a..675ff86e64ae 100644
--- a/test-data/unit/check-narrowing.test
+++ b/test-data/unit/check-narrowing.test
@@ -3152,7 +3152,7 @@ else:
     reveal_type(y) # N: Revealed type is "builtins.str"
 [builtins fixtures/isinstance.pyi]
 
-[case testTypeEqualsCheckUsingIsNonOverlappingChild-xfail]
+[case testTypeEqualsCheckUsingIsNonOverlappingChild]
 # flags: --strict-equality --warn-unreachable
 from typing import Union
 
@@ -3168,6 +3168,46 @@ def main(x: Union[B, C]):
         reveal_type(x)  # N: Revealed type is "__main__.B | __main__.C"
 [builtins fixtures/isinstance.pyi]
 
+[case testTypeEqualsCheckTypeVar]
+# flags: --strict-equality --warn-unreachable
+from typing import TypeVar
+
+class A: ...
+class B: ...
+
+T = TypeVar("T")
+
+def forgets_about_subclasses1(self, obj: T) -> T:
+    if isinstance(obj, A):
+        return A()  # E: Incompatible return value type (got "A", expected "T")
+    elif isinstance(obj, B):
+        return B()  # E: Incompatible return value type (got "B", expected "T")
+    raise
+
+def correct1(self, obj: T) -> T:
+    if type(obj) == A:
+        return A()  # E: Incompatible return value type (got "A", expected "T")
+    elif type(obj) == B:
+        return B()  # E: Incompatible return value type (got "B", expected "T")
+    raise
+
+T_value = TypeVar("T_value", A, B)
+
+def forgets_about_subclasses2(self, obj: T_value) -> T_value:
+    if isinstance(obj, A):
+        return A()  # E: Incompatible return value type (got "A", expected "B")
+    elif isinstance(obj, B):
+        return B()
+    raise
+
+def correct2(self, obj: T_value) -> T_value:
+    if type(obj) == A:
+        return A()
+    elif type(obj) == B:
+        return B()
+    raise
+[builtins fixtures/primitives.pyi]
+
 [case testTypeEqualsCheckUsingDifferentSpecializedTypes]
 # flags: --warn-unreachable
 from collections import defaultdict