diff --git a/src/rules/no-misused-observables.ts b/src/rules/no-misused-observables.ts
index 1b28b03b..ac4d06d7 100644
--- a/src/rules/no-misused-observables.ts
+++ b/src/rules/no-misused-observables.ts
@@ -11,6 +11,7 @@ import {
   isJSXExpressionContainer,
   isMethodDefinition,
   isPropertyDefinition,
+  couldBeType as tsutilsEtcCouldBeType,
 } from '../etc';
 import { ruleCreator } from '../utils';
 
@@ -418,6 +419,12 @@ function isVoidReturningFunctionType(
     for (const signature of subType.getCallSignatures()) {
       const returnType = signature.getReturnType();
 
+      // If a certain positional argument accepts both Observable and void returns,
+      // an Observable-returning function is valid.
+      if (tsutilsEtcCouldBeType(returnType, 'Observable')) {
+        return false;
+      }
+
       hasVoidReturn ||= tsutils.isTypeFlagSet(returnType, ts.TypeFlags.Void);
     }
   }
diff --git a/tests/rules/no-misused-observables.test.ts b/tests/rules/no-misused-observables.test.ts
index 5f93c8aa..bc7f0696 100644
--- a/tests/rules/no-misused-observables.test.ts
+++ b/tests/rules/no-misused-observables.test.ts
@@ -233,6 +233,18 @@ ruleTester({ types: true }).run('no-misused-observables', noMisusedObservablesRu
         bar,
       };
     `,
+    stripIndent`
+      // void return property; union type
+      import { Observable, of } from "rxjs";
+
+      interface Hook {
+        onInit?: ((field: string) => void) | ((field: string) => Observable<any>);
+      }
+
+      const hook: Hook = {
+        onInit: field => of(field),
+      };
+    `,
     // #endregion valid; void return property
     // #region valid; void return return value
     {