diff --git a/crates/ty_python_semantic/resources/mdtest/attributes.md b/crates/ty_python_semantic/resources/mdtest/attributes.md
index 5c40647c88184d..0a42a69406efd3 100644
--- a/crates/ty_python_semantic/resources/mdtest/attributes.md
+++ b/crates/ty_python_semantic/resources/mdtest/attributes.md
@@ -2741,8 +2741,7 @@ class ManyCycles2:
         self.x3 = [1]
 
     def f1(self: "ManyCycles2"):
-        # TODO: should be Unknown | list[int] | list[Divergent]
-        reveal_type(self.x3)  # revealed: Unknown | list[int] | list[Divergent] | list[Unknown]
+        reveal_type(self.x3)  # revealed: Unknown | list[int] | list[Divergent]
 
         self.x1 = [self.x2] + [self.x3]
         self.x2 = [self.x1] + [self.x3]
diff --git a/crates/ty_python_semantic/resources/mdtest/pep695_type_aliases.md b/crates/ty_python_semantic/resources/mdtest/pep695_type_aliases.md
index 6cc94fca6d7d5d..cdcdc7560a6a04 100644
--- a/crates/ty_python_semantic/resources/mdtest/pep695_type_aliases.md
+++ b/crates/ty_python_semantic/resources/mdtest/pep695_type_aliases.md
@@ -583,10 +583,17 @@ def foo(a: int, b: int) -> RecursiveT:
 
 ```py
 from typing_extensions import TypeGuard, TypeIs
+from collections.abc import Callable
 
 type RecursiveIs = TypeIs[RecursiveIs]  # error: [cyclic-type-alias-definition]
 type RecursiveGuard = TypeGuard[RecursiveGuard]
 
 type AliasIs = RecursiveIs  # error: [cyclic-type-alias-definition]
 type AliasGuard = RecursiveGuard
+
+type CallableIs = TypeIs[Callable[[], CallableIs]]
+type CallableGuard = TypeGuard[Callable[[], CallableGuard]]
+
+reveal_type(CallableIs)  # revealed: TypeAliasType
+reveal_type(CallableGuard)  # revealed: TypeAliasType
 ```
diff --git a/crates/ty_python_semantic/src/types.rs b/crates/ty_python_semantic/src/types.rs
index 7c4b4df370459c..32db314e75cf98 100644
--- a/crates/ty_python_semantic/src/types.rs
+++ b/crates/ty_python_semantic/src/types.rs
@@ -5586,9 +5586,17 @@ impl<'db> Type<'db> {
                 TypeMapping::ReplaceParameterDefaults |
                 TypeMapping::EagerExpansion |
                 TypeMapping::RescopeReturnCallables(_) => self,
-                TypeMapping::Materialize(materialization_kind) => match materialization_kind {
-                    MaterializationKind::Top => Type::object(),
-                    MaterializationKind::Bottom => Type::Never,
+                TypeMapping::Materialize(materialization_kind) => match self {
+                    // `Divergent` is an internal cycle marker rather than a gradual type like
+                    // `Any` or `Unknown`. Materializing it away would destroy the marker we rely
+                    // on for recursive alias convergence.
+                    // TODO: We elsewhere treat `Divergent` as a dynamic type, so failing to
+                    // materialize it away here could lead to odd behavior.
+                    Type::Dynamic(DynamicType::Divergent(_)) => self,
+                    _ => match materialization_kind {
+                        MaterializationKind::Top => Type::object(),
+                        MaterializationKind::Bottom => Type::Never,
+                    },
                 }
             }