diff --git a/crates/ty_python_semantic/resources/mdtest/dataclasses/dataclass_transform.md b/crates/ty_python_semantic/resources/mdtest/dataclasses/dataclass_transform.md
index 90c0502f962f0..876e858be7fea 100644
--- a/crates/ty_python_semantic/resources/mdtest/dataclasses/dataclass_transform.md
+++ b/crates/ty_python_semantic/resources/mdtest/dataclasses/dataclass_transform.md
@@ -92,8 +92,11 @@ CustomerModel(id=1, name="Test")
 
 ### Decorating a metaclass
 
+If the metaclass of a class `A` is decorated with `@dataclass_transform`, `A` will have
+dataclass-like semantics.
+
 ```py
-from typing_extensions import dataclass_transform
+from typing_extensions import Any, dataclass_transform
 
 @dataclass_transform()
 class ModelMeta(type): ...
@@ -110,6 +113,45 @@ CustomerModel(id=1, name="Test")
 CustomerModel()
 ```
 
+This is also true if the metaclass is a subclass of a class decorated with `@dataclass_transform`:
+
+```py
+@dataclass_transform()
+class ModelMeta(type): ...
+
+class RegistryMeta(ModelMeta): ...
+class ModelBase(metaclass=RegistryMeta): ...
+
+class Person(ModelBase):
+    name: str
+
+reveal_type(Person.__init__)  # revealed: (self: Person, name: str) -> None
+
+Person("Alice")
+Person(name="Alice")
+
+# error: [missing-argument]
+Person()
+
+# error: [unknown-argument]
+Person(name="Alice", extra=1)
+```
+
+But when a subclass of `type` is decorated with `@dataclass_transform`, we do not consider its
+subclasses to themselves be dataclasses; this would break the above case. If `RegistryMeta` were
+given dataclass semantics itself, it would no longer be usable as a metaclass, since its `__init__`
+would be overridden with a dataclass-style `__init__` method, instead of the `type.__init__`
+signature.
+
+This is an unclear area in the typing spec, which should be clarified. Pyright does the opposite
+(treats `RegistryMeta` as a dataclass, but does not treat `Person` as a dataclass), but that seems
+less useful in practice, and Pydantic relies on the behavior we implement.
+
+```py
+# revealed: Overload[(self, o: object, /) -> None, (self, name: str, bases: tuple[type, ...], dict: dict[str, Any], /, **kwds: Any) -> None]
+reveal_type(RegistryMeta.__init__)
+```
+
 ### Decorating a base class
 
 ```py
@@ -1033,36 +1075,6 @@ Person("Alice", 30, [], "some notes", email="alice@example.com")
 Person("Bob", email="bob@example.com", notes="other notes")
 ```
 
-#### Inherited metaclass-based transformer
-
-```py
-from typing import Any, dataclass_transform
-
-def field(*, default: Any = ...) -> Any: ...
-
-@dataclass_transform(field_specifiers=(field,))
-class ModelMeta(type): ...
-
-class RegistryMeta(ModelMeta): ...
-class ModelBase(metaclass=RegistryMeta): ...
-
-class Person(ModelBase):
-    name: str
-    age: int = field(default=0)
-
-reveal_type(Person.__init__)  # revealed: (self: Person, name: str, age: int = ...) -> None
-
-Person("Alice")
-Person("Alice", 30)
-Person(name="Alice", age=30)
-
-# error: [missing-argument]
-Person(age=30)
-
-# error: [unknown-argument]
-Person(name="Alice", extra=1)
-```
-
 #### Base-class-based transformer
 
 ```py
diff --git a/crates/ty_python_semantic/src/types/class.rs b/crates/ty_python_semantic/src/types/class.rs
index ea809d830a891..14e6e82240c15 100644
--- a/crates/ty_python_semantic/src/types/class.rs
+++ b/crates/ty_python_semantic/src/types/class.rs
@@ -102,18 +102,34 @@ impl<'db> CodeGeneratorKind<'db> {
             class: StaticClassLiteral<'db>,
             specialization: Option<Specialization<'db>>,
         ) -> Option<CodeGeneratorKind<'db>> {
+            // If a class is directly decorated as a dataclass, it's a dataclass.
+            // If a class' metaclass is a dataclass transformer, it's a dataclass.
+            // If a class inherits from a base class that is a dataclass
+            // transformer, it's a dataclass (unless it is a subclass of `type`,
+            // in which case we assume the subclass is itself also meant for use
+            // as a metaclass dataclass transformer, not itself supposed to be a
+            // dataclass.)
             if class.dataclass_params(db).is_some() {
                 Some(CodeGeneratorKind::DataclassLike(None))
             } else if let Ok((_, Some(info))) = class.try_metaclass(db) {
                 Some(CodeGeneratorKind::DataclassLike(Some(info.params)))
-            } else if let Some(transformer_params) =
-                class.iter_mro(db, specialization).skip(1).find_map(|base| {
-                    base.into_class().and_then(|class| {
-                        class
-                            .static_class_literal(db)
-                            .and_then(|(lit, _)| lit.dataclass_transformer_params(db))
-                    })
+            } else if KnownClass::Type
+                .try_to_class_literal(db)
+                .is_none_or(|type_class| {
+                    !class.is_subclass_of(
+                        db,
+                        None,
+                        ClassType::NonGeneric(ClassLiteral::Static(type_class)),
+                    )
                 })
+                && let Some(transformer_params) =
+                    class.iter_mro(db, specialization).skip(1).find_map(|base| {
+                        base.into_class().and_then(|class| {
+                            class
+                                .static_class_literal(db)
+                                .and_then(|(lit, _)| lit.dataclass_transformer_params(db))
+                        })
+                    })
             {
                 Some(CodeGeneratorKind::DataclassLike(Some(transformer_params)))
             } else if class