diff --git a/crates/ty_python_semantic/resources/mdtest/narrow/type.md b/crates/ty_python_semantic/resources/mdtest/narrow/type.md
index 004d53be3f..0376ca8d04 100644
--- a/crates/ty_python_semantic/resources/mdtest/narrow/type.md
+++ b/crates/ty_python_semantic/resources/mdtest/narrow/type.md
@@ -3,10 +3,15 @@
 ## `type(x) is C`
 
 ```py
+from typing import final
+
 class A: ...
 class B: ...
 
-def _(x: A | B):
+@final
+class C: ...
+
+def _(x: A | B, y: A | C):
     if type(x) is A:
         reveal_type(x)  # revealed: A
     else:
@@ -14,20 +19,55 @@ def _(x: A | B):
         # of `x` could be a subclass of `A`, so we need
         # to infer the full union type:
         reveal_type(x)  # revealed: A | B
+
+    if type(y) is C:
+        reveal_type(y)  # revealed: C
+    else:
+        # here, however, inferring `A` is fine,
+        # because `C` is `@final`: no subclass of `A`
+        # and `C` could exist
+        reveal_type(y)  # revealed: A
+
+    if type(y) is A:
+        reveal_type(y)  # revealed: A
+    else:
+        # but here, `type(y)` could be a subclass of `A`,
+        # in which case the `type(y) is A` call would evaluate
+        # to `False` even if `y` was an instance of `A`,
+        # so narrowing cannot occur
+        reveal_type(y)  # revealed: A | C
 ```
 
 ## `type(x) is not C`
 
 ```py
+from typing import final
+
 class A: ...
 class B: ...
 
-def _(x: A | B):
+@final
+class C: ...
+
+def _(x: A | B, y: A | C):
     if type(x) is not A:
         # Same reasoning as above: no narrowing should occur here.
         reveal_type(x)  # revealed: A | B
     else:
         reveal_type(x)  # revealed: A
+
+    if type(y) is not C:
+        # same reasoning as above: narrowing *can* occur here because `C` is `@final`
+        reveal_type(y)  # revealed: A
+    else:
+        reveal_type(y)  # revealed: C
+
+    if type(y) is not A:
+        # same reasoning as above: narrowing *cannot* occur here
+        # because `A` is not `@final`
+        reveal_type(y)  # revealed: A | C
+    else:
+        reveal_type(y)  # revealed: A
 ```
 
 ## `type(x) == C`, `type(x) != C`
diff --git a/crates/ty_python_semantic/src/types/narrow.rs b/crates/ty_python_semantic/src/types/narrow.rs
index 2693570e1c..39c2ba402d 100644
--- a/crates/ty_python_semantic/src/types/narrow.rs
+++ b/crates/ty_python_semantic/src/types/narrow.rs
@@ -772,13 +772,15 @@ impl<'db, 'ast> NarrowingConstraintsBuilder<'db, 'ast> {
                         _ => continue,
                     };
 
-                    let is_valid_constraint = if is_positive {
+                    let is_positive = if is_positive {
                         op == &ast::CmpOp::Is
                     } else {
                         op == &ast::CmpOp::IsNot
                     };
 
-                    if !is_valid_constraint {
+                    // `else`-branch narrowing for `if type(x) is Y` can only be done
+                    // if `Y` is a final class
+                    if !rhs_class.is_final(self.db) && !is_positive {
                         continue;
                     }
 
@@ -791,7 +793,8 @@ impl<'db, 'ast> NarrowingConstraintsBuilder<'db, 'ast> {
                         let place = self.expect_place(&target);
                         constraints.insert(
                             place,
-                            Type::instance(self.db, rhs_class.unknown_specialization(self.db)),
+                            Type::instance(self.db, rhs_class.unknown_specialization(self.db))
+                                .negate_if(self.db, !is_positive),
                         );
                     }
                 }