diff --git a/.changeset/dull-goats-brush.md b/.changeset/dull-goats-brush.md
new file mode 100644
index 0000000000..16df369233
--- /dev/null
+++ b/.changeset/dull-goats-brush.md
@@ -0,0 +1,5 @@
+---
+'hive': patch
+---
+
+Fix failing schema contract composition.
diff --git a/integration-tests/tests/schema/contracts.spec.ts b/integration-tests/tests/schema/contracts.spec.ts
index 06f1213ffc..927748edd9 100644
--- a/integration-tests/tests/schema/contracts.spec.ts
+++ b/integration-tests/tests/schema/contracts.spec.ts
@@ -348,3 +348,47 @@ test('failed contract composition has errors and no sdl and supergraph', async (
   expect(result.contracts?.[0].supergraph).toEqual(null);
   expect(result.contracts?.[0].errors).toBeDefined();
 });
+
+test('type is marked as inaccessible if all fields are inaccessible and the type is not used', async () => {
+  const result = await client.composeAndValidate.mutate({
+    type: 'federation',
+    native: true,
+    schemas: [
+      {
+        raw: /* GraphQL */ `
+          extend schema
+            @link(url: "https://specs.apollo.dev/link/v1.0")
+            @link(url: "https://specs.apollo.dev/federation/v2.8", import: ["@tag"])
+
+          type Query {
+            hello: String @tag(name: "public")
+          }
+
+          type Brr {
+            a: String
+            b: String
+            c: String
+          }
+        `,
+        source: 'foo.graphql',
+        url: null,
+      },
+    ],
+    external: null,
+    contracts: [
+      {
+        id: 'foo',
+        filter: {
+          removeUnreachableTypesFromPublicApiSchema: true,
+          exclude: null,
+          include: ['public'],
+        },
+      },
+    ],
+  });
+
+  expect(result.contracts?.[0].errors).toEqual([]);
+  expect(result.contracts?.[0].supergraph).toContain(
+    'type Brr @join__type(graph: FOO_GRAPHQL) @inaccessible {',
+  );
+});
diff --git a/packages/services/schema/src/orchestrators.ts b/packages/services/schema/src/orchestrators.ts
index 6e98f888c6..d449c39c34 100644
--- a/packages/services/schema/src/orchestrators.ts
+++ b/packages/services/schema/src/orchestrators.ts
@@ -31,10 +31,9 @@ import {
 } from './lib/compose';
 import { CompositionErrorSource, errorWithSource, toValidationError } from './lib/errors';
 import {
-  applyTagFilterToInaccessibleTransformOnSubgraphSchema,
+  applyTagFilterOnSubgraphs,
   createTagDirectiveNameExtractionStrategy,
   extractTagsFromDocument,
-  Federation2SubgraphDocumentNodeByTagsFilter,
 } from './lib/federation-tag-extraction';
 import { extractMetadata, mergeMetadata } from './lib/metadata-extraction';
 import { SetMap } from './lib/setmap';
@@ -348,20 +347,9 @@ const createFederation: (
       const contractResults = await Promise.all(
         contracts.map(async contract => {
           // apply contracts to replace tags with inaccessible directives
-          const filteredSubgraphs = subgraphs.map(subgraph => {
-            const filter: Federation2SubgraphDocumentNodeByTagsFilter = {
-              include: new Set(contract.filter.include),
-              exclude: new Set(contract.filter.exclude),
-            };
-            const filteredSubgraph = applyTagFilterToInaccessibleTransformOnSubgraphSchema(
-              subgraph.typeDefs,
-              filter,
-            );
-            return {
-              // @note Although it can differ from the supergraph's, ignore metadata on contracts.
-              ...subgraph,
-              typeDefs: filteredSubgraph.typeDefs,
-            };
+          const filteredSubgraphs = applyTagFilterOnSubgraphs(subgraphs, {
+            include: new Set(contract.filter.include),
+            exclude: new Set(contract.filter.exclude),
           });
 
           // attempt to compose the contract filtered subgraph