diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index a5fe578757d04..62f0edcf119ce 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -25536,7 +25536,7 @@ namespace ts {
                 case SyntaxKind.ShorthandPropertyAssignment:
                     return getContextualTypeForObjectLiteralElement(<PropertyAssignment | ShorthandPropertyAssignment>parent, contextFlags);
                 case SyntaxKind.SpreadAssignment:
-                    return getApparentTypeOfContextualType(parent.parent as ObjectLiteralExpression, contextFlags);
+                    return getContextualType(parent.parent as ObjectLiteralExpression, contextFlags);
                 case SyntaxKind.ArrayLiteralExpression: {
                     const arrayLiteral = <ArrayLiteralExpression>parent;
                     const type = getApparentTypeOfContextualType(arrayLiteral, contextFlags);
diff --git a/tests/baselines/reference/spreadExpressionContextualType.js b/tests/baselines/reference/spreadExpressionContextualType.js
new file mode 100644
index 0000000000000..3a11329988469
--- /dev/null
+++ b/tests/baselines/reference/spreadExpressionContextualType.js
@@ -0,0 +1,53 @@
+//// [spreadExpressionContextualType.ts]
+// Repro from #43966
+
+interface Orange {
+    name: string;
+}
+
+interface Apple {
+    name: string;
+}
+
+function test<T extends Apple | Orange>(item: T): T {
+    return { ...item };
+}
+
+function test2<T extends Apple | Orange>(item: T): T {
+    const x = { ...item };
+    return x;
+}
+
+
+//// [spreadExpressionContextualType.js]
+"use strict";
+// Repro from #43966
+var __assign = (this && this.__assign) || function () {
+    __assign = Object.assign || function(t) {
+        for (var s, i = 1, n = arguments.length; i < n; i++) {
+            s = arguments[i];
+            for (var p in s) if (Object.prototype.hasOwnProperty.call(s, p))
+                t[p] = s[p];
+        }
+        return t;
+    };
+    return __assign.apply(this, arguments);
+};
+function test(item) {
+    return __assign({}, item);
+}
+function test2(item) {
+    var x = __assign({}, item);
+    return x;
+}
+
+
+//// [spreadExpressionContextualType.d.ts]
+interface Orange {
+    name: string;
+}
+interface Apple {
+    name: string;
+}
+declare function test<T extends Apple | Orange>(item: T): T;
+declare function test2<T extends Apple | Orange>(item: T): T;
diff --git a/tests/baselines/reference/spreadExpressionContextualType.symbols b/tests/baselines/reference/spreadExpressionContextualType.symbols
new file mode 100644
index 0000000000000..1565856174ec5
--- /dev/null
+++ b/tests/baselines/reference/spreadExpressionContextualType.symbols
@@ -0,0 +1,47 @@
+=== tests/cases/compiler/spreadExpressionContextualType.ts ===
+// Repro from #43966
+
+interface Orange {
+>Orange : Symbol(Orange, Decl(spreadExpressionContextualType.ts, 0, 0))
+
+    name: string;
+>name : Symbol(Orange.name, Decl(spreadExpressionContextualType.ts, 2, 18))
+}
+
+interface Apple {
+>Apple : Symbol(Apple, Decl(spreadExpressionContextualType.ts, 4, 1))
+
+    name: string;
+>name : Symbol(Apple.name, Decl(spreadExpressionContextualType.ts, 6, 17))
+}
+
+function test<T extends Apple | Orange>(item: T): T {
+>test : Symbol(test, Decl(spreadExpressionContextualType.ts, 8, 1))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 10, 14))
+>Apple : Symbol(Apple, Decl(spreadExpressionContextualType.ts, 4, 1))
+>Orange : Symbol(Orange, Decl(spreadExpressionContextualType.ts, 0, 0))
+>item : Symbol(item, Decl(spreadExpressionContextualType.ts, 10, 40))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 10, 14))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 10, 14))
+
+    return { ...item };
+>item : Symbol(item, Decl(spreadExpressionContextualType.ts, 10, 40))
+}
+
+function test2<T extends Apple | Orange>(item: T): T {
+>test2 : Symbol(test2, Decl(spreadExpressionContextualType.ts, 12, 1))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 14, 15))
+>Apple : Symbol(Apple, Decl(spreadExpressionContextualType.ts, 4, 1))
+>Orange : Symbol(Orange, Decl(spreadExpressionContextualType.ts, 0, 0))
+>item : Symbol(item, Decl(spreadExpressionContextualType.ts, 14, 41))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 14, 15))
+>T : Symbol(T, Decl(spreadExpressionContextualType.ts, 14, 15))
+
+    const x = { ...item };
+>x : Symbol(x, Decl(spreadExpressionContextualType.ts, 15, 9))
+>item : Symbol(item, Decl(spreadExpressionContextualType.ts, 14, 41))
+
+    return x;
+>x : Symbol(x, Decl(spreadExpressionContextualType.ts, 15, 9))
+}
+
diff --git a/tests/baselines/reference/spreadExpressionContextualType.types b/tests/baselines/reference/spreadExpressionContextualType.types
new file mode 100644
index 0000000000000..4079e483b3814
--- /dev/null
+++ b/tests/baselines/reference/spreadExpressionContextualType.types
@@ -0,0 +1,35 @@
+=== tests/cases/compiler/spreadExpressionContextualType.ts ===
+// Repro from #43966
+
+interface Orange {
+    name: string;
+>name : string
+}
+
+interface Apple {
+    name: string;
+>name : string
+}
+
+function test<T extends Apple | Orange>(item: T): T {
+>test : <T extends Orange | Apple>(item: T) => T
+>item : T
+
+    return { ...item };
+>{ ...item } : T
+>item : T
+}
+
+function test2<T extends Apple | Orange>(item: T): T {
+>test2 : <T extends Orange | Apple>(item: T) => T
+>item : T
+
+    const x = { ...item };
+>x : T
+>{ ...item } : T
+>item : T
+
+    return x;
+>x : T
+}
+
diff --git a/tests/cases/compiler/spreadExpressionContextualType.ts b/tests/cases/compiler/spreadExpressionContextualType.ts
new file mode 100644
index 0000000000000..ae7ef75c42bc6
--- /dev/null
+++ b/tests/cases/compiler/spreadExpressionContextualType.ts
@@ -0,0 +1,21 @@
+// @strict: true
+// @declaration: true
+
+// Repro from #43966
+
+interface Orange {
+    name: string;
+}
+
+interface Apple {
+    name: string;
+}
+
+function test<T extends Apple | Orange>(item: T): T {
+    return { ...item };
+}
+
+function test2<T extends Apple | Orange>(item: T): T {
+    const x = { ...item };
+    return x;
+}