diff --git a/crates/oxc_formatter/src/write/parameters.rs b/crates/oxc_formatter/src/write/parameters.rs
index 1cea13f98fcec..ccb3fedfad82c 100644
--- a/crates/oxc_formatter/src/write/parameters.rs
+++ b/crates/oxc_formatter/src/write/parameters.rs
@@ -382,7 +382,14 @@ pub fn has_only_simple_parameters(
     parameters: &FormalParameters<'_>,
     allow_type_annotations: bool,
 ) -> bool {
-    parameters.items.iter().all(|parameter| is_simple_parameter(parameter, allow_type_annotations))
+    // NOTE: A rest parameter is never considered simple.
+    // Prettier only checks `param.type` is `Identifier` or not.
+    // https://github.com/prettier/prettier/blob/7848357af654883e21ed05c0bbbedf89ee88750e/src/language-js/print/function.js#L72-L74
+    parameters.rest.is_none()
+        && parameters
+            .items
+            .iter()
+            .all(|parameter| is_simple_parameter(parameter, allow_type_annotations))
 }
 
 /// Tests if the single parameter is "simple", as in a plain identifier with no
diff --git a/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts b/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts
new file mode 100644
index 0000000000000..66ae43527d4d7
--- /dev/null
+++ b/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts
@@ -0,0 +1,6 @@
+useStableCallback(function useShowToast(
+    ...args: Parameters<typeof toastService.addToastItem>
+  ): void {
+    toastService.addToastItem(...args);
+  });
+
diff --git a/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts.snap b/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts.snap
new file mode 100644
index 0000000000000..95b820939d5c8
--- /dev/null
+++ b/crates/oxc_formatter/tests/fixtures/ts/parameters/issue-17269.ts.snap
@@ -0,0 +1,31 @@
+---
+source: crates/oxc_formatter/tests/fixtures/mod.rs
+---
+==================== Input ====================
+useStableCallback(function useShowToast(
+    ...args: Parameters<typeof toastService.addToastItem>
+  ): void {
+    toastService.addToastItem(...args);
+  });
+
+
+==================== Output ====================
+------------------
+{ printWidth: 80 }
+------------------
+useStableCallback(function useShowToast(
+  ...args: Parameters<typeof toastService.addToastItem>
+): void {
+  toastService.addToastItem(...args);
+});
+
+-------------------
+{ printWidth: 100 }
+-------------------
+useStableCallback(function useShowToast(
+  ...args: Parameters<typeof toastService.addToastItem>
+): void {
+  toastService.addToastItem(...args);
+});
+
+===================== End =====================