diff --git a/crates/ty_python_semantic/resources/mdtest/call/methods.md b/crates/ty_python_semantic/resources/mdtest/call/methods.md
index 986f9ce21d7c37..3d531f55dc8e62 100644
--- a/crates/ty_python_semantic/resources/mdtest/call/methods.md
+++ b/crates/ty_python_semantic/resources/mdtest/call/methods.md
@@ -659,6 +659,18 @@ class Base:
 class Valid(Base, arg=5, metaclass=object): ...
 ```
 
+Class keyword arguments are inferred with type context from the corresponding `__init_subclass__`
+parameters:
+
+```py
+class Base:
+    def __init_subclass__(cls, *, xs: list[int | None]) -> None:
+        pass
+
+# No error here:
+class Sub(Base, xs=[1, 2]): ...
+```
+
 ## `@staticmethod`
 
 ### Basic
diff --git a/crates/ty_python_semantic/src/types/infer/builder/class.rs b/crates/ty_python_semantic/src/types/infer/builder/class.rs
index a5563ddda4a035..7203604dcdb9c1 100644
--- a/crates/ty_python_semantic/src/types/infer/builder/class.rs
+++ b/crates/ty_python_semantic/src/types/infer/builder/class.rs
@@ -1,8 +1,8 @@
 use crate::{
     semantic_index::{definition::Definition, scope::NodeWithScopeRef},
     types::{
-        CallArguments, DataclassParams, KnownClass, KnownInstanceType, SpecialFormType,
-        StaticClassLiteral, Type, TypeContext,
+        CallArguments, ClassLiteral, DataclassParams, KnownClass, KnownInstanceType,
+        MemberLookupPolicy, SpecialFormType, StaticClassLiteral, Type, TypeContext,
         call::CallError,
         function::KnownFunction,
         infer::{
@@ -14,6 +14,7 @@ use crate::{
     },
 };
 use ruff_python_ast::{self as ast, helpers::any_over_expr};
+use rustc_hash::FxHashMap;
 use ty_module_resolver::{KnownModule, file_to_module};
 
 impl<'db> TypeInferenceBuilder<'db, '_> {
@@ -214,15 +215,6 @@ impl<'db> TypeInferenceBuilder<'db, '_> {
         // if there are type parameters, then the keywords and bases are within that scope
         // and we don't need to run inference here
         if type_params.is_none() {
-            // In stub files, keyword values may reference names that are defined later in the file.
-            let in_stub = self.in_stub();
-            let previous_deferred_state =
-                std::mem::replace(&mut self.deferred_state, in_stub.into());
-            for keyword in class_node.keywords() {
-                self.infer_expression(&keyword.value, TypeContext::default());
-            }
-            self.deferred_state = previous_deferred_state;
-
             // Inference of bases deferred in stubs, or if any are string literals.
             if self.in_stub()
                 || class_node
@@ -239,6 +231,8 @@ impl<'db> TypeInferenceBuilder<'db, '_> {
                 }
                 self.typevar_binding_context = previous_typevar_binding_context;
             }
+
+            self.infer_class_keyword_arguments(inferred_ty, class_node);
         }
     }
 
@@ -261,4 +255,63 @@ impl<'db> TypeInferenceBuilder<'db, '_> {
         }
         self.typevar_binding_context = previous_typevar_binding_context;
     }
+
+    /// Infer class keyword argument types with type context from `__init_subclass__` parameters.
+    fn infer_class_keyword_arguments(
+        &mut self,
+        class_ty: Type<'db>,
+        class_node: &ast::StmtClassDef,
+    ) {
+        if class_node.keywords().is_empty() {
+            return;
+        }
+
+        let db = self.db();
+
+        // Build a map from keyword name to the parameter's annotated type.
+        let mut param_types: FxHashMap<String, Type<'db>> = FxHashMap::default();
+        if let Type::ClassLiteral(ClassLiteral::Static(class)) = class_ty {
+            let init_subclass_type = class
+                .class_member_from_mro(
+                    db,
+                    "__init_subclass__",
+                    MemberLookupPolicy::MRO_NO_OBJECT_FALLBACK,
+                    // skip(1) to skip the current class and only consider base classes.
+                    class.iter_mro(db, None).skip(1),
+                )
+                .ignore_possibly_undefined();
+
+            if let Some(init_subclass) = init_subclass_type {
+                let bindings = init_subclass.bindings(db);
+                for binding in bindings.iter_flat() {
+                    for overload in binding.overloads() {
+                        let parameters = overload.signature.parameters();
+                        for param in parameters {
+                            if let Some(name) = param.name() {
+                                param_types
+                                    .entry(name.to_string())
+                                    .or_insert(param.annotated_type());
+                            }
+                        }
+                    }
+                }
+            }
+        }
+
+        // In stub files, keyword values may reference names that are defined later in the file.
+        let in_stub = self.in_stub();
+        let previous_deferred_state = std::mem::replace(&mut self.deferred_state, in_stub.into());
+
+        for keyword in class_node.keywords() {
+            let tcx = keyword
+                .arg
+                .as_ref()
+                .and_then(|name| param_types.get(name.id.as_str()).copied())
+                .map(|param_ty| TypeContext::new(Some(param_ty)))
+                .unwrap_or_default();
+            self.infer_expression(&keyword.value, tcx);
+        }
+
+        self.deferred_state = previous_deferred_state;
+    }
 }