diff --git a/packages/pyright-internal/src/analyzer/typeEvaluator.ts b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
index 7f759ee2af06..086524072aa3 100644
--- a/packages/pyright-internal/src/analyzer/typeEvaluator.ts
+++ b/packages/pyright-internal/src/analyzer/typeEvaluator.ts
@@ -14656,7 +14656,7 @@ export function createTypeEvaluator(
                         );
 
                         tdEntries.knownItems.forEach((entry, name) => {
-                            if (entry.isRequired || entry.isProvided) {
+                            if (!expectedTypedDictEntries || entry.isRequired || entry.isProvided) {
                                 keyTypes.push({
                                     node: entryNode,
                                     type: ClassType.cloneWithLiteral(strObject, name),
@@ -14665,11 +14665,11 @@ export function createTypeEvaluator(
                             }
                         });
 
-                        if (!expectedTypedDictEntries) {
+                        if (!expectedTypedDictEntries && tdEntries.extraItems) {
                             keyTypes.push({ node: entryNode, type: ClassType.cloneAsInstance(strObject) });
                             valueTypes.push({
                                 node: entryNode,
-                                type: tdEntries.extraItems?.valueType ?? getObjectType(),
+                                type: tdEntries.extraItems.valueType,
                             });
                         }
 
diff --git a/packages/pyright-internal/src/tests/fourslash/hover.typedDictUnpacking.dictDisplay.fourslash.ts b/packages/pyright-internal/src/tests/fourslash/hover.typedDictUnpacking.dictDisplay.fourslash.ts
new file mode 100644
index 000000000000..39bef71fcbc2
--- /dev/null
+++ b/packages/pyright-internal/src/tests/fourslash/hover.typedDictUnpacking.dictDisplay.fourslash.ts
@@ -0,0 +1,15 @@
+/// <reference path="typings/fourslash.d.ts" />
+
+// @filename: test.py
+//// from typing import TypedDict
+////
+//// class User(TypedDict):
+////     name: str
+////     age: int
+////
+//// user: User = {"name": "Alice", "age": 30}
+//// [|/*marker1*/res|] = {**user}
+
+helper.verifyHover('markdown', {
+    marker1: '```python\n(variable) res: dict[str, Unknown]\n```',
+});
diff --git a/packages/pyright-internal/src/tests/samples/typedDict28.py b/packages/pyright-internal/src/tests/samples/typedDict28.py
new file mode 100644
index 000000000000..190a5a65878d
--- /dev/null
+++ b/packages/pyright-internal/src/tests/samples/typedDict28.py
@@ -0,0 +1,68 @@
+# This sample tests dictionary expansion for TypedDicts without an expected
+# TypedDict target type context, as well as unpacking into typed targets.
+
+from typing import NotRequired, TypedDict, reveal_type
+
+
+class HomogeneousTD(TypedDict):
+    a: int
+    b: int
+
+
+class HeterogeneousTD(TypedDict):
+    a: int
+    b: str
+
+
+class OptionalTD(TypedDict):
+    a: int
+    b: NotRequired[float]
+
+
+class ClosedTD(TypedDict, closed=True):
+    a: int
+
+
+class TargetTD(TypedDict):
+    a: int
+
+
+class ExtraItemsTD(TypedDict, extra_items=str):
+    a: int
+
+
+class TargetExtraTD(TypedDict, extra_items=str):
+    a: int
+
+
+def test_homogeneous(td: HomogeneousTD):
+    res1 = {**td}
+    reveal_type(res1, expected_text="dict[str, int]")
+
+
+def test_heterogeneous_default_mode(td: HeterogeneousTD):
+    # In default mode (without strictDictionaryInference), heterogeneous value types
+    # fall back to Unknown.
+    res2 = {**td}
+    reveal_type(res2, expected_text="dict[str, Unknown]")
+
+
+def test_optional_default_mode(td: OptionalTD):
+    res3 = {**td}
+    reveal_type(res3, expected_text="dict[str, Unknown]")
+
+
+def test_unpack_closed_into_target(td: ClosedTD):
+    # Unpacking a closed TypedDict into a typed target should not produce assignment errors.
+    target: TargetTD = {**td}
+
+
+def test_unpack_extra_items_into_target(td: ExtraItemsTD):
+    target: TargetExtraTD = {**td}
+
+
+def test_unpack_extra_items_into_dict(td: ExtraItemsTD):
+    res5 = {**td}
+    # Unpacking extra_items=str TypedDict into dict display under strictDictionaryInference (or combineTypes)
+    # includes extraItems valueType str. In default mode, int | str falls back to Unknown.
+    reveal_type(res5, expected_text="dict[str, Unknown]")
diff --git a/packages/pyright-internal/src/tests/samples/typedDict29.py b/packages/pyright-internal/src/tests/samples/typedDict29.py
new file mode 100644
index 000000000000..e5613b5bd89d
--- /dev/null
+++ b/packages/pyright-internal/src/tests/samples/typedDict29.py
@@ -0,0 +1,42 @@
+# This sample tests dictionary expansion for TypedDicts when strictDictionaryInference is enabled.
+
+from typing import NotRequired, TypedDict, reveal_type
+
+
+class HomogeneousTD(TypedDict):
+    a: int
+    b: int
+
+
+class HeterogeneousTD(TypedDict):
+    a: int
+    b: str
+
+
+class OptionalTD(TypedDict):
+    a: int
+    b: NotRequired[float]
+
+
+class ExtraItemsTD(TypedDict, extra_items=str):
+    a: int
+
+
+def test_heterogeneous_strict(td: HeterogeneousTD):
+    res1 = {**td}
+    reveal_type(res1, expected_text="dict[str, int | str]")
+
+
+def test_optional_strict(td: OptionalTD):
+    res2 = {**td}
+    reveal_type(res2, expected_text="dict[str, int | float]")
+
+
+def test_multiple_strict(td1: HomogeneousTD, td2: HeterogeneousTD, td3: OptionalTD):
+    res3 = {**td1, **td2, **td3}
+    reveal_type(res3, expected_text="dict[str, int | str | float]")
+
+
+def test_extra_items_strict(td: ExtraItemsTD):
+    res4 = {**td}
+    reveal_type(res4, expected_text="dict[str, int | str]")
diff --git a/packages/pyright-internal/src/tests/typeEvaluator7.test.ts b/packages/pyright-internal/src/tests/typeEvaluator7.test.ts
index 0776c53fb944..f28ef59c72f3 100644
--- a/packages/pyright-internal/src/tests/typeEvaluator7.test.ts
+++ b/packages/pyright-internal/src/tests/typeEvaluator7.test.ts
@@ -808,6 +808,25 @@ test('TypedDict27', () => {
     TestUtils.validateResults(analysisResults, 7);
 });
 
+test('TypedDict28', () => {
+    const configOptions = new ConfigOptions(Uri.empty());
+    configOptions.defaultPythonVersion = pythonVersion3_13;
+
+    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['typedDict28.py'], configOptions);
+
+    TestUtils.validateResults(analysisResults, 0);
+});
+
+test('TypedDict29', () => {
+    const configOptions = new ConfigOptions(Uri.empty());
+    configOptions.defaultPythonVersion = pythonVersion3_13;
+    configOptions.diagnosticRuleSet.strictDictionaryInference = true;
+
+    const analysisResults = TestUtils.typeAnalyzeSampleFiles(['typedDict29.py'], configOptions);
+
+    TestUtils.validateResults(analysisResults, 0);
+});
+
 test('TypedDictInline1', () => {
     const configOptions = new ConfigOptions(Uri.empty());
     configOptions.diagnosticRuleSet.enableExperimentalFeatures = true;