diff --git a/release-notes/CREDITS-2.x b/release-notes/CREDITS-2.x
index e8a8373301..57039d31b9 100644
--- a/release-notes/CREDITS-2.x
+++ b/release-notes/CREDITS-2.x
@@ -1200,6 +1200,7 @@ Marc Carter (drekbour@github)
   (2.12.0)
   * Contributed #3055: Polymorphic subtype deduction ignores `defaultImpl` attribute
   (2.12.2)
+  * Contributed #3139: Deserialization of "empty" subtype with DEDUCTION failed
 
 Mike Gilbode (gilbode@github)
   * Reported #792: Deserialization Not Working Right with Generic Types and Builders
@@ -1313,3 +1314,7 @@ Miguel G (Migwel@github)
 Jelle Voost (jellevoost@github)
   * Reported #3038: Two cases of incorrect error reporting about DeserializationFeature
    (2.12.2)
+
+JoeWoo (xJoeWoo@github)
+  * Reported #3139: Deserialization of "empty" subtype with DEDUCTION failed
+   (2.12.4)
diff --git a/release-notes/VERSION-2.x b/release-notes/VERSION-2.x
index 9b0f2f62a6..e93d8426db 100644
--- a/release-notes/VERSION-2.x
+++ b/release-notes/VERSION-2.x
@@ -4,6 +4,11 @@ Project: jackson-databind
 === Releases === 
 ------------------------------------------------------------------------
 
+2.12.4 (not yet released)
+
+#3139: Deserialization of "empty" subtype with DEDUCTION failed
+ (reported by JoeWoo; fix provided by drekbour@github)
+
 2.12.3 (12-Apr-2021)
 
 #3108: `TypeFactory` cannot convert `Collection` sub-type without type parameters
diff --git a/src/main/java/com/fasterxml/jackson/databind/jsontype/impl/AsDeductionTypeDeserializer.java b/src/main/java/com/fasterxml/jackson/databind/jsontype/impl/AsDeductionTypeDeserializer.java
index ad28b4e898..112e379ea3 100644
--- a/src/main/java/com/fasterxml/jackson/databind/jsontype/impl/AsDeductionTypeDeserializer.java
+++ b/src/main/java/com/fasterxml/jackson/databind/jsontype/impl/AsDeductionTypeDeserializer.java
@@ -25,10 +25,14 @@
  * the absence of child fields infers a parent type. That is, every deducible subtype
  * MUST have some unique fields and the input data MUST contain said unique fields
  * to provide a <i>positive match</i>.
+ *
+ * @since 2.12
  */
 public class AsDeductionTypeDeserializer extends AsPropertyTypeDeserializer
 {
     private static final long serialVersionUID = 1L;
+
+    // 03-May-2021, tatu: for [databind#3139], support for "empty" type
     private static final BitSet EMPTY_CLASS_FINGERPRINT = new BitSet(0);
 
     // Fieldname -> bitmap-index of every field discovered, across all subtypes
@@ -106,16 +110,22 @@ public Object deserializeTypedFromObject(JsonParser p, DeserializationContext ct
             return _deserializeTypedUsingDefaultImpl(p, ctxt, null, "Unexpected input");
         }
 
+        // 03-May-2021, tatu: [databind#3139] Special case, "empty" Object
+        if (t == JsonToken.END_OBJECT) {
+            String emptySubtype = subtypeFingerprints.get(EMPTY_CLASS_FINGERPRINT);
+            if (emptySubtype != null) { // ... and an "empty" subtype registered
+                return _deserializeTypedForId(p, ctxt, null, emptySubtype);
+            }
+        }
+
         List<BitSet> candidates = new LinkedList<>(subtypeFingerprints.keySet());
 
         // Record processed tokens as we must rewind once after deducing the deserializer to use
         @SuppressWarnings("resource")
         TokenBuffer tb = new TokenBuffer(p, ctxt);
         boolean ignoreCase = ctxt.isEnabled(MapperFeature.ACCEPT_CASE_INSENSITIVE_PROPERTIES);
-        boolean incomingIsEmpty = true;
 
         for (; t == JsonToken.FIELD_NAME; t = p.nextToken()) {
-            incomingIsEmpty = false; // Has at least one property
             String name = p.currentName();
             if (ignoreCase) name = name.toLowerCase();
 
@@ -131,13 +141,6 @@ public Object deserializeTypedFromObject(JsonParser p, DeserializationContext ct
             }
         }
 
-        if (incomingIsEmpty) { // Special case - if we have empty content ...
-            String emptySubtype = subtypeFingerprints.get(EMPTY_CLASS_FINGERPRINT);
-            if (emptySubtype != null) { // ... and an "empty" subtype registered
-                return _deserializeTypedForId(p, ctxt, null, emptySubtype);
-            }
-        }
-
         // We have zero or multiple candidates, deduction has failed
         String msgToReportIfDefaultImplFailsToo = String.format("Cannot deduce unique subtype of %s (%d candidates match)", ClassUtil.getTypeDescription(_baseType), candidates.size());
         return _deserializeTypedUsingDefaultImpl(p, ctxt, tb, msgToReportIfDefaultImplFailsToo);
diff --git a/src/test/java/com/fasterxml/jackson/databind/jsontype/TestPolymorphicDeduction.java b/src/test/java/com/fasterxml/jackson/databind/jsontype/TestPolymorphicDeduction.java
index 3e4d8aeeeb..799f7754df 100644
--- a/src/test/java/com/fasterxml/jackson/databind/jsontype/TestPolymorphicDeduction.java
+++ b/src/test/java/com/fasterxml/jackson/databind/jsontype/TestPolymorphicDeduction.java
@@ -60,18 +60,18 @@ static class Box {
   /**********************************************************
    */
 
-  private static final String deadCatJson = aposToQuotes("{'name':'Felix','causeOfDeath':'entropy'}");
-  private static final String liveCatJson = aposToQuotes("{'name':'Felix','angry':true}");
-  private static final String luckyCatJson = aposToQuotes("{'name':'Felix','angry':true,'lives':8}");
-  private static final String ambiguousCatJson = aposToQuotes("{'name':'Felix','age':2}");
-  private static final String fleabagJson = aposToQuotes("{}");
-  private static final String box1Json = aposToQuotes("{'feline':" + liveCatJson + "}");
-  private static final String box2Json = aposToQuotes("{'feline':" + deadCatJson + "}");
-  private static final String box3Json = aposToQuotes("{'feline':" + fleabagJson + "}");
-  private static final String box4Json = aposToQuotes("{'feline':null}");
-  private static final String box5Json = aposToQuotes("{}");
-  private static final String arrayOfCatsJson = aposToQuotes("[" + liveCatJson + "," + deadCatJson + "]");
-  private static final String mapOfCatsJson = aposToQuotes("{'live':" + liveCatJson + "}");
+  private static final String deadCatJson = a2q("{'name':'Felix','causeOfDeath':'entropy'}");
+  private static final String liveCatJson = a2q("{'name':'Felix','angry':true}");
+  private static final String luckyCatJson = a2q("{'name':'Felix','angry':true,'lives':8}");
+  private static final String ambiguousCatJson = a2q("{'name':'Felix','age':2}");
+  private static final String fleabagJson = a2q("{}");
+  private static final String box1Json = a2q("{'feline':" + liveCatJson + "}");
+  private static final String box2Json = a2q("{'feline':" + deadCatJson + "}");
+  private static final String box3Json = a2q("{'feline':" + fleabagJson + "}");
+  private static final String box4Json = a2q("{'feline':null}");
+  private static final String box5Json = a2q("{}");
+  private static final String arrayOfCatsJson = a2q("[" + liveCatJson + "," + deadCatJson + "]");
+  private static final String mapOfCatsJson = a2q("{'live':" + liveCatJson + "}");
 
   /*
   /**********************************************************
@@ -79,14 +79,16 @@ static class Box {
   /**********************************************************
    */
 
+  private final ObjectMapper MAPPER = newJsonMapper();
+
   public void testSimpleInference() throws Exception {
-    Cat cat = sharedMapper().readValue(liveCatJson, Cat.class);
+    Cat cat = MAPPER.readValue(liveCatJson, Cat.class);
     assertTrue(cat instanceof LiveCat);
     assertSame(cat.getClass(), LiveCat.class);
     assertEquals("Felix", cat.name);
     assertTrue(((LiveCat)cat).angry);
 
-    cat = sharedMapper().readValue(deadCatJson, Cat.class);
+    cat = MAPPER.readValue(deadCatJson, Cat.class);
     assertTrue(cat instanceof DeadCat);
     assertSame(cat.getClass(), DeadCat.class);
     assertEquals("Felix", cat.name);
@@ -95,7 +97,7 @@ public void testSimpleInference() throws Exception {
 
   public void testSimpleInferenceOfEmptySubtype() throws Exception {
     // Given:
-    ObjectMapper mapper = sharedMapper();
+    ObjectMapper mapper = MAPPER;
     // When:
     Feline feline = mapper.readValue(fleabagJson, Feline.class);
     // Then:
@@ -104,7 +106,7 @@ public void testSimpleInferenceOfEmptySubtype() throws Exception {
 
   public void testSimpleInferenceOfEmptySubtypeDoesntMatchNull() throws Exception {
     // Given:
-    ObjectMapper mapper = sharedMapper();
+    ObjectMapper mapper = MAPPER;
     // When:
     Feline feline = mapper.readValue("null", Feline.class);
     // Then:
@@ -136,13 +138,13 @@ public void testCaseInsensitiveInference() throws Exception {
 //  }
 
   public void testContainedInference() throws Exception {
-    Box box = sharedMapper().readValue(box1Json, Box.class);
+    Box box = MAPPER.readValue(box1Json, Box.class);
     assertTrue(box.feline instanceof LiveCat);
     assertSame(box.feline.getClass(), LiveCat.class);
     assertEquals("Felix", ((LiveCat)box.feline).name);
     assertTrue(((LiveCat)box.feline).angry);
 
-    box = sharedMapper().readValue(box2Json, Box.class);
+    box = MAPPER.readValue(box2Json, Box.class);
     assertTrue(box.feline instanceof DeadCat);
     assertSame(box.feline.getClass(), DeadCat.class);
     assertEquals("Felix", ((DeadCat)box.feline).name);
@@ -150,38 +152,38 @@ public void testContainedInference() throws Exception {
   }
 
   public void testContainedInferenceOfEmptySubtype() throws Exception {
-    Box box = sharedMapper().readValue(box3Json, Box.class);
+    Box box = MAPPER.readValue(box3Json, Box.class);
     assertTrue(box.feline instanceof Fleabag);
 
-    box = sharedMapper().readValue(box4Json, Box.class);
+    box = MAPPER.readValue(box4Json, Box.class);
     assertNull("null != {}", box.feline);
 
-    box = sharedMapper().readValue(box5Json, Box.class);
+    box = MAPPER.readValue(box5Json, Box.class);
     assertNull("<absent> != {}", box.feline);
   }
 
   public void testListInference() throws Exception {
     JavaType listOfCats = TypeFactory.defaultInstance().constructParametricType(List.class, Cat.class);
-    List<Cat> boxes = sharedMapper().readValue(arrayOfCatsJson, listOfCats);
+    List<Cat> boxes = MAPPER.readValue(arrayOfCatsJson, listOfCats);
     assertTrue(boxes.get(0) instanceof LiveCat);
     assertTrue(boxes.get(1) instanceof DeadCat);
   }
 
   public void testMapInference() throws Exception {
     JavaType mapOfCats = TypeFactory.defaultInstance().constructParametricType(Map.class, String.class, Cat.class);
-    Map<String, Cat> map = sharedMapper().readValue(mapOfCatsJson, mapOfCats);
+    Map<String, Cat> map = MAPPER.readValue(mapOfCatsJson, mapOfCats);
     assertEquals(1, map.size());
     assertTrue(map.entrySet().iterator().next().getValue() instanceof LiveCat);
   }
 
   public void testArrayInference() throws Exception {
-    Cat[] boxes = sharedMapper().readValue(arrayOfCatsJson, Cat[].class);
+    Cat[] boxes = MAPPER.readValue(arrayOfCatsJson, Cat[].class);
     assertTrue(boxes[0] instanceof LiveCat);
     assertTrue(boxes[1] instanceof DeadCat);
   }
 
   public void testIgnoreProperties() throws Exception {
-    Cat cat = sharedMapper().reader()
+    Cat cat = MAPPER.reader()
       .without(DeserializationFeature.FAIL_ON_UNKNOWN_PROPERTIES)
       .readValue(luckyCatJson, Cat.class);
     assertTrue(cat instanceof LiveCat);
@@ -210,7 +212,7 @@ public void testAmbiguousClasses() throws Exception {
 
   public void testAmbiguousProperties() throws Exception {
     try {
-      /*Cat cat =*/ sharedMapper().readValue(ambiguousCatJson, Cat.class);
+      /*Cat cat =*/ MAPPER.readValue(ambiguousCatJson, Cat.class);
       fail("Should not get here");
     } catch (InvalidTypeIdException e) {
         verifyException(e, "Cannot deduce unique subtype");
@@ -250,10 +252,10 @@ public void testDefaultImpl() throws Exception {
   public void testSimpleSerialization() throws Exception {
     // Given:
     JavaType listOfCats = TypeFactory.defaultInstance().constructParametricType(List.class, Cat.class);
-    List<Cat> list = sharedMapper().readValue(arrayOfCatsJson, listOfCats);
+    List<Cat> list = MAPPER.readValue(arrayOfCatsJson, listOfCats);
     Cat cat = list.get(0);
     // When:
-    String json = sharedMapper().writeValueAsString(cat);
+    String json = MAPPER.writeValueAsString(cat);
     // Then:
     assertEquals(liveCatJson, json);
   }
@@ -261,9 +263,9 @@ public void testSimpleSerialization() throws Exception {
   public void testListSerialization() throws Exception {
     // Given:
     JavaType listOfCats = TypeFactory.defaultInstance().constructParametricType(List.class, Cat.class);
-    List<Cat> list = sharedMapper().readValue(arrayOfCatsJson, listOfCats);
+    List<Cat> list = MAPPER.readValue(arrayOfCatsJson, listOfCats);
     // When:
-    String json = sharedMapper().writeValueAsString(list);
+    String json = MAPPER.writeValueAsString(list);
     // Then:
     assertEquals(arrayOfCatsJson, json);
   }