diff --git a/conformance/third_party/conformance.exp b/conformance/third_party/conformance.exp
index 872442f7f4..b80eb3421f 100644
--- a/conformance/third_party/conformance.exp
+++ b/conformance/third_party/conformance.exp
@@ -10830,17 +10830,6 @@
   ],
   "specialtypes_any.py": [],
   "specialtypes_never.py": [
-    {
-      "code": -2,
-      "column": 22,
-      "concise_description": "Function declared to return `NoReturn` but is missing an explicit `return`",
-      "description": "Function declared to return `NoReturn` but is missing an explicit `return`",
-      "line": 19,
-      "name": "bad-return",
-      "severity": "error",
-      "stop_column": 30,
-      "stop_line": 19
-    },
     {
       "code": -2,
       "column": 21,
diff --git a/conformance/third_party/conformance.result b/conformance/third_party/conformance.result
index 91efdbb9f9..2bf4ba192b 100644
--- a/conformance/third_party/conformance.result
+++ b/conformance/third_party/conformance.result
@@ -137,7 +137,9 @@
   "qualifiers_final_annotation.py": [],
   "qualifiers_final_decorator.py": [],
   "specialtypes_any.py": [],
-  "specialtypes_never.py": [],
+  "specialtypes_never.py": [
+    "Line 19: Expected 1 errors"
+  ],
   "specialtypes_none.py": [],
   "specialtypes_promotions.py": [],
   "specialtypes_type.py": [],
diff --git a/conformance/third_party/results.json b/conformance/third_party/results.json
index b986c48fb0..75ded7791b 100644
--- a/conformance/third_party/results.json
+++ b/conformance/third_party/results.json
@@ -1,9 +1,9 @@
 {
   "total": 140,
-  "pass": 134,
-  "fail": 6,
-  "pass_rate": 0.96,
-  "differences": 13,
+  "pass": 133,
+  "fail": 7,
+  "pass_rate": 0.95,
+  "differences": 14,
   "passing": [
     "aliases_explicit.py",
     "aliases_implicit.py",
@@ -117,7 +117,6 @@
     "qualifiers_final_annotation.py",
     "qualifiers_final_decorator.py",
     "specialtypes_any.py",
-    "specialtypes_never.py",
     "specialtypes_none.py",
     "specialtypes_promotions.py",
     "specialtypes_type.py",
@@ -146,7 +145,8 @@
     "constructors_callable.py": 2,
     "dataclasses_descriptors.py": 2,
     "exceptions_context_managers.py": 2,
-    "generics_scoping.py": 4
+    "generics_scoping.py": 4,
+    "specialtypes_never.py": 1
   },
   "comment": "@generated"
 }
\ No newline at end of file
diff --git a/pyrefly/lib/alt/solve.rs b/pyrefly/lib/alt/solve.rs
index 3bc1e6b388..6749fe4a2a 100644
--- a/pyrefly/lib/alt/solve.rs
+++ b/pyrefly/lib/alt/solve.rs
@@ -5435,6 +5435,10 @@ impl<'a, Ans: LookupAnswer> AnswersSolver<'a, Ans> {
                 );
             }
         } else {
+            // If the annotation is `NoReturn` or `Never` and there is no explicit return, there is no need to check further.
+            if annotation.is_never() && !has_explicit_returns {
+                return;
+            }
             self.check_type(implicit_return.ty(), annotation, range, errors, &|| {
                 TypeCheckContext::of_kind(TypeCheckKind::ImplicitFunctionReturn(
                     has_explicit_returns,
diff --git a/pyrefly/lib/test/returns.rs b/pyrefly/lib/test/returns.rs
index 669c1eccb6..e1d9f77f76 100644
--- a/pyrefly/lib/test/returns.rs
+++ b/pyrefly/lib/test/returns.rs
@@ -388,6 +388,16 @@ def g():
 "#,
 );
 
+testcase!(
+    test_no_explicit_return_if_return_type_is_never,
+    r#"
+from typing import Never
+
+def f() -> Never:
+    print("hello")
+"#,
+);
+
 testcase!(
     test_return_no_error,
     r#"