diff --git a/crates/ty_python_semantic/resources/mdtest/bidirectional.md b/crates/ty_python_semantic/resources/mdtest/bidirectional.md
index ef42b9714fcfc..f210e5ca811ec 100644
--- a/crates/ty_python_semantic/resources/mdtest/bidirectional.md
+++ b/crates/ty_python_semantic/resources/mdtest/bidirectional.md
@@ -97,11 +97,15 @@ x: list[int | str] = list1(42) * 3
 `typed_dict.py`:
 
 ```py
-from typing import Callable, Hashable, Mapping, TypedDict
+from typing import Any, Callable, Hashable, Mapping, TypedDict
+from typing_extensions import Never
 
 class TD(TypedDict):
     x: int
 
+class BadTD(TypedDict):
+    x: str
+
 d1_literal = {"x": 1}
 d1_dict = dict(x=1)
 
@@ -110,9 +114,11 @@ reveal_type(d1_dict)  # revealed: dict[str, int]
 
 d2_literal: TD = {"x": 1}
 d2_dict: TD = dict(x=1)
+d2_unpack: TD = dict(**d2_literal)
 
 reveal_type(d2_literal)  # revealed: TD
 reveal_type(d2_dict)  # revealed: TD
+reveal_type(d2_unpack)  # revealed: TD
 
 d3_literal: dict[str, int] = {"x": 1}
 d3_dict: dict[str, int] = dict(x=1)
@@ -126,6 +132,30 @@ d4_invalid_dict: TD = dict(x="1")  # error: [invalid-argument-type]
 reveal_type(d4_invalid_literal)  # revealed: TD
 reveal_type(d4_invalid_dict)  # revealed: TD
 
+def unpack_invalid_typed_dict(src: BadTD) -> TD:
+    # The fast path should validate TypedDict-shaped unpacks even when they are not assignable to
+    # the target. That preserves the key-level TypedDict diagnostic instead of falling back to a
+    # broad `dict[str, str]` assignment error.
+    # error: [invalid-argument-type] "Invalid argument to key "x" with declared type `int` on TypedDict `TD`: value of type `str`"
+    return dict(**src)
+
+def return_any_unpack(src: Any) -> TD:
+    return dict(**src)
+
+def pass_never_unpack(src: Never) -> None:
+    takes_td(dict(**src))
+
+def takes_mapping(value: Mapping[str, object]) -> None:
+    pass
+
+def keep_keyword_diagnostics(kwargs: Mapping[str, object]) -> None:
+    # The TypedDict-aware `dict(...)` fast path should not lose diagnostics from named keywords
+    # when unsupported `**kwargs` forces it to fall back to ordinary dict inference.
+    # error: [unresolved-reference] "Name `missing` used when not defined"
+    # error: [invalid-assignment]
+    maybe_td: TD = dict(x=missing, **kwargs)
+    takes_mapping(maybe_td)
+
 # Note: the second variant (`d5_dict`) is not technically allowed by the `dict.__init__` overloads
 # in typeshed, which require the key type to be `str` when using keyword arguments. However, we
 # special-case this pattern to match the behavior of `d5_literal`.
@@ -140,6 +170,15 @@ def return_literal() -> TD:
 def return_dict() -> TD:
     return dict(x=1)
 
+def return_unpack(src: TD) -> TD:
+    return dict(**src)
+
+def takes_td(value: TD) -> None:
+    pass
+
+def pass_unpack(src: TD) -> None:
+    takes_td(dict(**src))
+
 def return_invalid_literal() -> TD:
     # TODO: ideally, this would only emit the first error, but not `invalid-return-type` (like the `return_invalid_dict` case below).
     # error: [missing-typed-dict-key] "Missing required key 'x' in TypedDict `TD` constructor"
diff --git a/crates/ty_python_semantic/src/types/infer/builder/dict.rs b/crates/ty_python_semantic/src/types/infer/builder/dict.rs
index 77cdf711b2943..72d98a403bddd 100644
--- a/crates/ty_python_semantic/src/types/infer/builder/dict.rs
+++ b/crates/ty_python_semantic/src/types/infer/builder/dict.rs
@@ -3,7 +3,10 @@ use ruff_python_ast::{self as ast, HasNodeIndex};
 use rustc_hash::FxHashMap;
 
 use super::{ArgExpr, TypeInferenceBuilder};
-use crate::types::typed_dict::validate_typed_dict_constructor;
+use crate::types::typed_dict::{
+    extract_unpacked_typed_dict_keys_from_value_type, infer_unpacked_keyword_types,
+    validate_typed_dict_constructor,
+};
 use crate::types::{KnownClass, Type, TypeContext};
 
 impl<'db> TypeInferenceBuilder<'db, '_> {
@@ -13,42 +16,66 @@ impl<'db> TypeInferenceBuilder<'db, '_> {
         arguments: &ast::Arguments,
         call_expression_tcx: TypeContext<'db>,
     ) -> Option<Type<'db>> {
-        if !arguments.args.is_empty()
-            || arguments
-                .keywords
-                .iter()
-                .any(|keyword| keyword.arg.is_none())
-        {
+        if !arguments.args.is_empty() {
             return None;
         }
 
         // Fast-path dict(...) in TypedDict context: infer keyword values against fields,
-        // then validate and return the TypedDict type.
+        // then validate and return the TypedDict type. This also covers `dict(**src)` when `src`
+        // is `TypedDict`-shaped.
         if let Some(tcx) = call_expression_tcx.annotation
             && let Some(typed_dict) = tcx
                 .filter_union(self.db(), Type::is_typed_dict)
                 .as_typed_dict()
         {
-            let items = typed_dict.items(self.db());
-            for keyword in &arguments.keywords {
-                if let Some(arg_name) = &keyword.arg {
-                    let value_tcx = items
-                        .get(arg_name.id.as_str())
-                        .map(|field| TypeContext::new(Some(field.declared_ty)))
-                        .unwrap_or_default();
-                    self.infer_expression(&keyword.value, value_tcx);
-                }
-            }
+            // Only speculate the `**kwargs` applicability check. Assignability handles inputs that
+            // are already valid for the target, including gradual and bottom types. The additional
+            // TypedDict-shape check keeps invalid-but-analyzable unpacks on this path so validation
+            // can emit key-level diagnostics instead of falling back to a broad `dict[...]`
+            // assignment error. Unsupported unpacks still fall back to ordinary `dict(...)`
+            // inference.
+            //
+            // Named keyword values are inferred on the real builder so their diagnostics are either
+            // committed with the fast path or left for ordinary `dict(...)` inference when we fall
+            // back.
+            let supports_typed_dict_context = {
+                let mut speculative_builder = self.speculate();
+                infer_unpacked_keyword_types(arguments, &mut |expr, tcx| {
+                    speculative_builder.infer_expression(expr, tcx)
+                })
+                .into_iter()
+                .flatten()
+                .all(|keyword_ty| {
+                    keyword_ty
+                        .is_assignable_to(speculative_builder.db(), Type::TypedDict(typed_dict))
+                        || extract_unpacked_typed_dict_keys_from_value_type(
+                            speculative_builder.db(),
+                            keyword_ty,
+                        )
+                        .is_some()
+                })
+            };
+
+            if supports_typed_dict_context {
+                self.infer_typed_dict_constructor_keyword_values(typed_dict, arguments);
+                validate_typed_dict_constructor(
+                    &self.context,
+                    typed_dict,
+                    arguments,
+                    func.into(),
+                    |expr, _| self.expression_type(expr),
+                );
 
-            validate_typed_dict_constructor(
-                &self.context,
-                typed_dict,
-                arguments,
-                func.into(),
-                |expr, _| self.expression_type(expr),
-            );
+                return Some(Type::TypedDict(typed_dict));
+            }
+        }
 
-            return Some(Type::TypedDict(typed_dict));
+        if arguments
+            .keywords
+            .iter()
+            .any(|keyword| keyword.arg.is_none())
+        {
+            return None;
         }
 
         // Lower `dict(a=..., b=...)` to synthetic `(Literal["a"], value)` pairs so we can
diff --git a/crates/ty_python_semantic/src/types/infer/builder/typed_dict.rs b/crates/ty_python_semantic/src/types/infer/builder/typed_dict.rs
index a58f782938403..f06b5bfcd56b4 100644
--- a/crates/ty_python_semantic/src/types/infer/builder/typed_dict.rs
+++ b/crates/ty_python_semantic/src/types/infer/builder/typed_dict.rs
@@ -402,7 +402,7 @@ impl<'db> TypeInferenceBuilder<'db, '_> {
     /// Named keywords are inferred against the declared type of the matching `TypedDict` field.
     /// Unpacked `**kwargs` and unknown keys fall back to default inference because they do not
     /// map to a single field declaration at this stage.
-    fn infer_typed_dict_constructor_keyword_values(
+    pub(super) fn infer_typed_dict_constructor_keyword_values(
         &mut self,
         typed_dict: TypedDictType<'db>,
         arguments: &ast::Arguments,