diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8850e83a808fc..833919e002d1b 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -11205,15 +11205,30 @@ namespace ts {
             return type.flags & TypeFlags.Undefined ? type : getUnionType([type, undefinedType]);
         }
 
+        function isUnconstrainedOrNulllUndefinedConstrainedTypeParameter(type: Type) {
+            if (!(type.flags & TypeFlags.Instantiable)) return false;
+            const constraint = getBaseConstraintOfType(type);
+            if (!constraint) return true;
+            return maybeTypeOfKind(constraint, TypeFlags.Undefined | TypeFlags.Null);
+        }
+
         function getGlobalNonNullableTypeInstantiation(type: Type) {
+            const filtered = getTypeWithFacts(type, TypeFacts.NEUndefinedOrNull); // If type alias unavailable, at least mimic non-higherorder behavior
             if (!deferredGlobalNonNullableTypeAlias) {
                 deferredGlobalNonNullableTypeAlias = getGlobalSymbol("NonNullable" as __String, SymbolFlags.TypeAlias, /*diagnostic*/ undefined) || unknownSymbol;
             }
             // Use NonNullable global type alias if available to improve quick info/declaration emit
             if (deferredGlobalNonNullableTypeAlias !== unknownSymbol) {
-                return getTypeAliasInstantiation(deferredGlobalNonNullableTypeAlias, [type]);
+                // The below check prevents us from making a NonNullable<T> where T can't ever be null or undefined
+                // This feels unnecessesary, as if `T extends Foo`, NonNullable<T> is trivially just `T` (as no
+                // value of T could ever be nullable); but our conditional type logic is lacking here and can't make
+                // that leap (it stays generic to allow for, eg T to be instantiated with `never`, which extends `Foo`
+                // _and_ undefined, thereby choosing a different branch than it would simplify to).
+                if (forEachType(filtered, isUnconstrainedOrNulllUndefinedConstrainedTypeParameter)) {
+                    return getTypeAliasInstantiation(deferredGlobalNonNullableTypeAlias, [filtered]);
+                }
             }
-            return getTypeWithFacts(type, TypeFacts.NEUndefinedOrNull); // Type alias unavailable, fall back to non-higherorder behavior
+            return filtered;
         }
 
         function getNonNullableType(type: Type): Type {
diff --git a/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.js b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.js
new file mode 100644
index 0000000000000..e2b8d1ae6130b
--- /dev/null
+++ b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.js
@@ -0,0 +1,38 @@
+//// [bangOperatorRemovesNonNullableWhereSensible.ts]
+export class Entry<T extends Table> {
+    private _table: T | null = null;
+    createSubsetForDirectory(): void {
+        const entry = new Entry<T>();
+        this._table!.fn(entry);
+    }
+}
+
+export abstract class Table {
+    fn(directoryEntry: Entry<this>): this | null {
+        return null;
+    }
+}
+
+//// [bangOperatorRemovesNonNullableWhereSensible.js]
+"use strict";
+exports.__esModule = true;
+var Entry = /** @class */ (function () {
+    function Entry() {
+        this._table = null;
+    }
+    Entry.prototype.createSubsetForDirectory = function () {
+        var entry = new Entry();
+        this._table.fn(entry);
+    };
+    return Entry;
+}());
+exports.Entry = Entry;
+var Table = /** @class */ (function () {
+    function Table() {
+    }
+    Table.prototype.fn = function (directoryEntry) {
+        return null;
+    };
+    return Table;
+}());
+exports.Table = Table;
diff --git a/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.symbols b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.symbols
new file mode 100644
index 0000000000000..7478c61d5992d
--- /dev/null
+++ b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.symbols
@@ -0,0 +1,39 @@
+=== tests/cases/compiler/bangOperatorRemovesNonNullableWhereSensible.ts ===
+export class Entry<T extends Table> {
+>Entry : Symbol(Entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 0))
+>T : Symbol(T, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 19))
+>Table : Symbol(Table, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 6, 1))
+
+    private _table: T | null = null;
+>_table : Symbol(Entry._table, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 37))
+>T : Symbol(T, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 19))
+
+    createSubsetForDirectory(): void {
+>createSubsetForDirectory : Symbol(Entry.createSubsetForDirectory, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 1, 36))
+
+        const entry = new Entry<T>();
+>entry : Symbol(entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 3, 13))
+>Entry : Symbol(Entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 0))
+>T : Symbol(T, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 19))
+
+        this._table!.fn(entry);
+>this._table!.fn : Symbol(Table.fn, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 8, 29))
+>this._table : Symbol(Entry._table, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 37))
+>this : Symbol(Entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 0))
+>_table : Symbol(Entry._table, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 37))
+>fn : Symbol(Table.fn, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 8, 29))
+>entry : Symbol(entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 3, 13))
+    }
+}
+
+export abstract class Table {
+>Table : Symbol(Table, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 6, 1))
+
+    fn(directoryEntry: Entry<this>): this | null {
+>fn : Symbol(Table.fn, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 8, 29))
+>directoryEntry : Symbol(directoryEntry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 9, 7))
+>Entry : Symbol(Entry, Decl(bangOperatorRemovesNonNullableWhereSensible.ts, 0, 0))
+
+        return null;
+    }
+}
diff --git a/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.types b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.types
new file mode 100644
index 0000000000000..c05cc1bdae9ea
--- /dev/null
+++ b/tests/baselines/reference/bangOperatorRemovesNonNullableWhereSensible.types
@@ -0,0 +1,46 @@
+=== tests/cases/compiler/bangOperatorRemovesNonNullableWhereSensible.ts ===
+export class Entry<T extends Table> {
+>Entry : Entry<T>
+>T : T
+>Table : Table
+
+    private _table: T | null = null;
+>_table : T | null
+>T : T
+>null : null
+>null : null
+
+    createSubsetForDirectory(): void {
+>createSubsetForDirectory : () => void
+
+        const entry = new Entry<T>();
+>entry : Entry<T>
+>new Entry<T>() : Entry<T>
+>Entry : typeof Entry
+>T : T
+
+        this._table!.fn(entry);
+>this._table!.fn(entry) : T | null
+>this._table!.fn : (directoryEntry: Entry<T>) => T | null
+>this._table! : T
+>this._table : T | null
+>this : this
+>_table : T | null
+>fn : (directoryEntry: Entry<T>) => T | null
+>entry : Entry<T>
+    }
+}
+
+export abstract class Table {
+>Table : Table
+
+    fn(directoryEntry: Entry<this>): this | null {
+>fn : (directoryEntry: Entry<this>) => this | null
+>directoryEntry : Entry<this>
+>Entry : Entry<T>
+>null : null
+
+        return null;
+>null : null
+    }
+}
diff --git a/tests/baselines/reference/nonNullParameterExtendingStringAssignableToString.types b/tests/baselines/reference/nonNullParameterExtendingStringAssignableToString.types
index 8590db628d0df..9304ead67637b 100644
--- a/tests/baselines/reference/nonNullParameterExtendingStringAssignableToString.types
+++ b/tests/baselines/reference/nonNullParameterExtendingStringAssignableToString.types
@@ -29,7 +29,7 @@ function fn<T extends string | undefined, U extends string>(one: T, two: U) {
     foo(two!);
 >foo(two!) : void
 >foo : (p: string) => void
->two! : NonNullable<U>
+>two! : U
 >two : U
 
     foo(three!); // this line is the important one
diff --git a/tests/cases/compiler/bangOperatorRemovesNonNullableWhereSensible.ts b/tests/cases/compiler/bangOperatorRemovesNonNullableWhereSensible.ts
new file mode 100644
index 0000000000000..9f12d41ccb40a
--- /dev/null
+++ b/tests/cases/compiler/bangOperatorRemovesNonNullableWhereSensible.ts
@@ -0,0 +1,14 @@
+// @strict: true
+export class Entry<T extends Table> {
+    private _table: T | null = null;
+    createSubsetForDirectory(): void {
+        const entry = new Entry<T>();
+        this._table!.fn(entry);
+    }
+}
+
+export abstract class Table {
+    fn(directoryEntry: Entry<this>): this | null {
+        return null;
+    }
+}
\ No newline at end of file