diff --git a/code/core/src/docs-tools/argTypes/convert/typescript/convert.ts b/code/core/src/docs-tools/argTypes/convert/typescript/convert.ts
index 3beaae0a3542..c66504aee88a 100644
--- a/code/core/src/docs-tools/argTypes/convert/typescript/convert.ts
+++ b/code/core/src/docs-tools/argTypes/convert/typescript/convert.ts
@@ -4,6 +4,13 @@ import type { SBType } from 'storybook/internal/types';
 import { parseLiteral } from '../utils';
 import type { TSSigType, TSType } from './types';
 
+// Type guards for narrowing TSType discriminant unions
+type TSLiteralType = Extract<TSType, { name: 'literal' }>;
+type TSUndefinedType = Extract<TSType, { name: 'undefined' }>;
+
+const isLiteral = (type: TSType): type is TSLiteralType => type.name === 'literal';
+const isUndefined = (type: TSType): type is TSUndefinedType => type.name === 'undefined';
+
 const convertSig = (type: TSSigType) => {
   switch (type.type) {
     case 'function':
@@ -41,21 +48,23 @@ export const convert = (type: TSType): SBType | void => {
     }
     case 'signature':
       return { ...base, ...convertSig(type) };
-    case 'union':
-      let result;
-      if (type.elements?.every((element) => element.name === 'literal')) {
-        result = {
+    case 'union': {
+      const nonUndefinedElements = type.elements.filter((element) => !isUndefined(element));
+      const allLiterals = nonUndefinedElements.length > 0 && nonUndefinedElements.every(isLiteral);
+
+      if (allLiterals) {
+        // TypeScript can't infer from .every(), so we filter again with the type guard
+        const literalElements = nonUndefinedElements.filter(isLiteral);
+        return {
           ...base,
           name: 'enum',
-          // @ts-expect-error fix types
-          value: type.elements?.map((v) => parseLiteral(v.value)),
+          value: literalElements.map((element) => parseLiteral(element.value)),
         };
-      } else {
-        result = { ...base, name, value: type.elements?.map(convert) };
       }
-      return result;
+      return { ...base, name, value: type.elements.map(convert) };
+    }
     case 'intersection':
-      return { ...base, name, value: type.elements?.map(convert) };
+      return { ...base, name, value: type.elements.map(convert) };
     default:
       return { ...base, name: 'other', value: name };
   }
diff --git a/code/core/src/docs-tools/argTypes/convert/typescript/types.ts b/code/core/src/docs-tools/argTypes/convert/typescript/types.ts
index 79df2e812c00..ba4f02a090b8 100644
--- a/code/core/src/docs-tools/argTypes/convert/typescript/types.ts
+++ b/code/core/src/docs-tools/argTypes/convert/typescript/types.ts
@@ -9,7 +9,7 @@ type TSArgType = TSType;
 
 type TSCombinationType = TSBaseType & {
   name: 'union' | 'intersection';
-  elements?: TSType[];
+  elements: TSType[];
 };
 
 type TSFuncSigType = TSBaseType & {
@@ -33,7 +33,12 @@ type TSObjectSigType = TSBaseType & {
 };
 
 type TSScalarType = TSBaseType & {
-  name: 'any' | 'boolean' | 'number' | 'void' | 'string' | 'symbol' | 'literal';
+  name: 'any' | 'boolean' | 'number' | 'void' | 'string' | 'symbol' | 'undefined';
+};
+
+type TSLiteralType = TSBaseType & {
+  name: 'literal';
+  value: string;
 };
 
 type TSArrayType = TSBaseType & {
@@ -43,4 +48,4 @@ type TSArrayType = TSBaseType & {
 
 export type TSSigType = TSObjectSigType | TSFuncSigType;
 
-export type TSType = TSScalarType | TSCombinationType | TSSigType | TSArrayType;
+export type TSType = TSScalarType | TSLiteralType | TSCombinationType | TSSigType | TSArrayType;