diff --git a/crates/oxc_parser/src/js/arrow.rs b/crates/oxc_parser/src/js/arrow.rs
index b7419df8e7fb6..e6ff942427d03 100644
--- a/crates/oxc_parser/src/js/arrow.rs
+++ b/crates/oxc_parser/src/js/arrow.rs
@@ -22,7 +22,7 @@ impl<'a, C: Config> ParserImpl<'a, C> {
         match self.is_parenthesized_arrow_function_expression() {
             Tristate::False => None,
             Tristate::True => Some(self.parse_parenthesized_arrow_function_expression(
-                /* allow_return_type_in_arrow_function */ true,
+                allow_return_type_in_arrow_function,
             )),
             Tristate::Maybe => self.parse_possible_parenthesized_arrow_function_expression(
                 allow_return_type_in_arrow_function,
diff --git a/tasks/coverage/misc/pass/conditional-arrow-alternate-return-type.ts b/tasks/coverage/misc/pass/conditional-arrow-alternate-return-type.ts
new file mode 100644
index 0000000000000..6e4bb4ab66fed
--- /dev/null
+++ b/tasks/coverage/misc/pass/conditional-arrow-alternate-return-type.ts
@@ -0,0 +1,16 @@
+const formErrors = { foo: 'bar' };
+
+type Form = { id: number; errors: Record<string, boolean> };
+
+type Errors<T extends Form> = Pick<T, 'errors'>;
+
+type FooBarForm = Form & { tag: 'foobarform' };
+
+const getFormError =
+  typeof formErrors !== 'object'
+    ? () => ({})
+    : (index: number): Errors<FooBarForm> => {
+        return {
+          errors: { a: true, b: false },
+        };
+      };
diff --git a/tasks/coverage/snapshots/codegen_misc.snap b/tasks/coverage/snapshots/codegen_misc.snap
index e8cc6977d765c..e50492d12fe1b 100644
--- a/tasks/coverage/snapshots/codegen_misc.snap
+++ b/tasks/coverage/snapshots/codegen_misc.snap
@@ -1,3 +1,3 @@
 codegen_misc Summary:
-AST Parsed     : 64/64 (100.00%)
-Positive Passed: 64/64 (100.00%)
+AST Parsed     : 65/65 (100.00%)
+Positive Passed: 65/65 (100.00%)
diff --git a/tasks/coverage/snapshots/formatter_misc.snap b/tasks/coverage/snapshots/formatter_misc.snap
index 420c9be986ebe..c08ca62d32f2a 100644
--- a/tasks/coverage/snapshots/formatter_misc.snap
+++ b/tasks/coverage/snapshots/formatter_misc.snap
@@ -1,3 +1,3 @@
 formatter_misc Summary:
-AST Parsed     : 64/64 (100.00%)
-Positive Passed: 64/64 (100.00%)
+AST Parsed     : 65/65 (100.00%)
+Positive Passed: 65/65 (100.00%)
diff --git a/tasks/coverage/snapshots/parser_misc.snap b/tasks/coverage/snapshots/parser_misc.snap
index 1553977ab4539..2b51317fe2d8d 100644
--- a/tasks/coverage/snapshots/parser_misc.snap
+++ b/tasks/coverage/snapshots/parser_misc.snap
@@ -1,6 +1,6 @@
 parser_misc Summary:
-AST Parsed     : 64/64 (100.00%)
-Positive Passed: 64/64 (100.00%)
+AST Parsed     : 65/65 (100.00%)
+Positive Passed: 65/65 (100.00%)
 Negative Passed: 134/134 (100.00%)
 
   × Cannot assign to 'arguments' in strict mode
diff --git a/tasks/coverage/snapshots/semantic_misc.snap b/tasks/coverage/snapshots/semantic_misc.snap
index 24cc316c513c2..759f999c7c8ca 100644
--- a/tasks/coverage/snapshots/semantic_misc.snap
+++ b/tasks/coverage/snapshots/semantic_misc.snap
@@ -1,6 +1,11 @@
 semantic_misc Summary:
-AST Parsed     : 64/64 (100.00%)
-Positive Passed: 51/64 (79.69%)
+AST Parsed     : 65/65 (100.00%)
+Positive Passed: 51/65 (78.46%)
+semantic Error: tasks/coverage/misc/pass/conditional-arrow-alternate-return-type.ts
+Unresolved references mismatch:
+after transform: ["Pick", "Record"]
+rebuilt        : []
+
 semantic Error: tasks/coverage/misc/pass/declare-let-private.ts
 Bindings mismatch:
 after transform: ScopeId(0): ["private"]
diff --git a/tasks/coverage/snapshots/transformer_misc.snap b/tasks/coverage/snapshots/transformer_misc.snap
index 7ccc8759d7902..1b569262ad10f 100644
--- a/tasks/coverage/snapshots/transformer_misc.snap
+++ b/tasks/coverage/snapshots/transformer_misc.snap
@@ -1,3 +1,3 @@
 transformer_misc Summary:
-AST Parsed     : 64/64 (100.00%)
-Positive Passed: 64/64 (100.00%)
+AST Parsed     : 65/65 (100.00%)
+Positive Passed: 65/65 (100.00%)