diff --git a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/scopeanalysis/AbstractScopeAnalyzerVisitor.java b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/scopeanalysis/AbstractScopeAnalyzerVisitor.java
index dea3262307..e5fe60de14 100644
--- a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/scopeanalysis/AbstractScopeAnalyzerVisitor.java
+++ b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/scopeanalysis/AbstractScopeAnalyzerVisitor.java
@@ -1104,7 +1104,7 @@ private void visitListCompGenerators(ListComp node, List<exprType> eltsToVisit)
      * @param node
      */
     protected void startScope(int newScopeType, SimpleNode node) {
-        scope.startScope(newScopeType);
+        scope.startScope(newScopeType, node);
         onAfterStartScope(newScopeType, node);
     }
 
diff --git a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/OccurrencesVisitor.java b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/OccurrencesVisitor.java
index 6a68abf26a..be7f33516b 100644
--- a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/OccurrencesVisitor.java
+++ b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/OccurrencesVisitor.java
@@ -58,6 +58,7 @@
 import org.python.pydev.parser.jython.ast.decoratorsType;
 import org.python.pydev.parser.jython.ast.match_caseType;
 import org.python.pydev.parser.jython.ast.str_typeType;
+import org.python.pydev.parser.visitors.NodeUtils;
 import org.python.pydev.shared_core.callbacks.ICallbackListener;
 import org.python.pydev.shared_core.model.ErrorDescription;
 import org.python.pydev.shared_core.structure.FastStack;
@@ -251,33 +252,40 @@ public Object visitAssign(Assign node) throws Exception {
     @Override
     public Object visitStr(Str node) throws Exception {
         if (this.scope.isVisitingTypeAnnotation()) {
-            String s = node.s;
-            IGrammar grammar = PyParser.createGrammar(true, this.nature.getGrammarVersion(), s.toCharArray());
-            Throwable errorOnParsing = null;
-            int startInternalStrColOffset = getStrOffset(node);
-            try {
-                SimpleNode typingNode = grammar.file_input();
-                errorOnParsing = grammar.getErrorOnParsing();
-                if (errorOnParsing == null) {
-                    new FixLinesVisitor(node.beginLine - 1, node.beginColumn + startInternalStrColOffset - 1)
-                            .traverse(typingNode);
-                    this.scope.startScope(Scope.SCOPE_TYPE_ANNOTATION_STR);
-                    try {
-                        this.traverse(typingNode);
-                    } finally {
-                        this.scope.endScope();
+            String fullRepresentationString = NodeUtils.getFullRepresentationString(scope.currentScope().scopeNode);
+
+            // If a string is found inside a typing.Literal, don't parse it for type definitions
+            // (i.e.: those are considered constants in this case and not class references as in
+            // generic classes).
+            if (!"typing.Literal".equals(fullRepresentationString)) {
+                String s = node.s;
+                IGrammar grammar = PyParser.createGrammar(true, this.nature.getGrammarVersion(), s.toCharArray());
+                Throwable errorOnParsing = null;
+                int startInternalStrColOffset = getStrOffset(node);
+                try {
+                    SimpleNode typingNode = grammar.file_input();
+                    errorOnParsing = grammar.getErrorOnParsing();
+                    if (errorOnParsing == null) {
+                        new FixLinesVisitor(node.beginLine - 1, node.beginColumn + startInternalStrColOffset - 1)
+                                .traverse(typingNode);
+                        this.scope.startScope(Scope.SCOPE_TYPE_ANNOTATION_STR, node);
+                        try {
+                            this.traverse(typingNode);
+                        } finally {
+                            this.scope.endScope();
+                        }
+                    }
+                } catch (Exception e) {
+                    if (errorOnParsing == null) {
+                        errorOnParsing = e;
                     }
                 }
-            } catch (Exception e) {
-                if (errorOnParsing == null) {
-                    errorOnParsing = e;
+                if (errorOnParsing != null) {
+                    IDocument doc = new Document(s);
+                    reportParserError(node, node.beginLine, node.beginColumn + startInternalStrColOffset, doc,
+                            errorOnParsing);
                 }
             }
-            if (errorOnParsing != null) {
-                IDocument doc = new Document(s);
-                reportParserError(node, node.beginLine, node.beginColumn + startInternalStrColOffset, doc,
-                        errorOnParsing);
-            }
         }
         if (node.fstring && (node.fstring_nodes == null || node.fstring_nodes.length == 0)) {
             // Note: if fstring_nodes have been pre-processed (i.e.: in cython parsing), we don't parse
diff --git a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/Scope.java b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/Scope.java
index 70101b7337..4ee4d47c71 100644
--- a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/Scope.java
+++ b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/Scope.java
@@ -19,6 +19,7 @@
 import org.python.pydev.core.IToken;
 import org.python.pydev.core.IterTokenEntry;
 import org.python.pydev.core.TokensList;
+import org.python.pydev.parser.jython.SimpleNode;
 import org.python.pydev.parser.jython.ast.If;
 import org.python.pydev.parser.jython.ast.TryExcept;
 import org.python.pydev.shared_core.string.FastStringBuffer;
@@ -312,8 +313,9 @@ public ScopeItems getCurrScopeItems() {
 
     /**
      * initializes a new scope
+     * @param node
      */
-    public void startScope(int scopeType) {
+    public void startScope(int scopeType, SimpleNode node) {
         if (scopeType == SCOPE_TYPE_ANNOTATION) {
             this.visitingTypeAnnotation += 1;
         } else if (scopeType == SCOPE_TYPE_ANNOTATION_STR) {
@@ -335,7 +337,7 @@ public void startScope(int scopeType) {
                 }
             }
         }
-        scope.push(new ScopeItems(newId, scopeType, globalClassOrMethodScopeType));
+        scope.push(new ScopeItems(newId, scopeType, globalClassOrMethodScopeType, node));
         scopeId.push(newId);
     }
 
diff --git a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/ScopeItems.java b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/ScopeItems.java
index 3c2c88c380..7ff5b1f0f7 100644
--- a/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/ScopeItems.java
+++ b/plugins/com.python.pydev.analysis/src/com/python/pydev/analysis/visitors/ScopeItems.java
@@ -17,6 +17,7 @@
 import java.util.Map;
 
 import org.python.pydev.core.IToken;
+import org.python.pydev.parser.jython.SimpleNode;
 import org.python.pydev.parser.jython.ast.If;
 import org.python.pydev.parser.jython.ast.TryExcept;
 import org.python.pydev.parser.jython.ast.excepthandlerType;
@@ -91,11 +92,13 @@ public ScopeItems.TryExceptInfo getTryExceptImportError() {
     private final int scopeId;
     private final int scopeType;
     public final int globalClassOrMethodScopeType;
+    public final SimpleNode scopeNode;
 
-    public ScopeItems(int scopeId, int scopeType, int globalClassOrMethodScopeType) {
+    public ScopeItems(int scopeId, int scopeType, int globalClassOrMethodScopeType, SimpleNode node) {
         this.scopeId = scopeId;
         this.scopeType = scopeType;
         this.globalClassOrMethodScopeType = globalClassOrMethodScopeType;
+        this.scopeNode = node;
     }
 
     public Found getLastAppearance(String rep) {
diff --git a/plugins/org.python.pydev/tests_analysis/com/python/pydev/analysis/OccurrencesAnalyzerPy310Test.java b/plugins/org.python.pydev/tests_analysis/com/python/pydev/analysis/OccurrencesAnalyzerPy310Test.java
index 757e6a63b1..f91e43ef59 100644
--- a/plugins/org.python.pydev/tests_analysis/com/python/pydev/analysis/OccurrencesAnalyzerPy310Test.java
+++ b/plugins/org.python.pydev/tests_analysis/com/python/pydev/analysis/OccurrencesAnalyzerPy310Test.java
@@ -699,4 +699,12 @@ public void testTypingInTypeCheckingUndefinedWithoutFutureImport() {
         assertEquals(1, messages.length);
         assertEquals(7, messages[0].getStartLine(doc));
     }
+
+    public void testTypingWithLiterals() {
+        doc = new Document("import typing\n"
+                + "def method() -> typing.Literal['a', 'b']:\n"
+                + "    return 'a'\n"
+                + "");
+        checkNoError();
+    }
 }