diff --git a/pyrefly/lib/alt/expr.rs b/pyrefly/lib/alt/expr.rs
index 559e888bc8..6b1ee6cd92 100644
--- a/pyrefly/lib/alt/expr.rs
+++ b/pyrefly/lib/alt/expr.rs
@@ -1073,16 +1073,23 @@ impl<'a, Ans: LookupAnswer> AnswersSolver<'a, Ans> {
         let mut t_acc = Type::never();
         let last_index = values.len() - 1;
         for (i, value) in values.iter().enumerate() {
-            // If there isn't a hint for the overall expression, use the preceding branches as a "soft" hint
-            // for the next one. Most useful for expressions like `optional_list or []`.
-            let hint = hint.or_else(|| {
-                if t_acc.is_never() {
-                    None
-                } else {
-                    Some(HintRef::soft(&t_acc))
-                }
-            });
-            let mut t = self.expr_infer_with_hint(value, hint, errors);
+            let operand_hint = if matches!(op, BoolOp::Or) && matches!(value, Expr::Call(_)) {
+                // Drop the hint for function calls in 'OR' expressions.
+                // This prevents the expected type (e.g. Optional[str]) from improperly influencing
+                // a generic function's inference (forcing it to return Optional[str]
+                // instead of str), while still preserving hints for literals like [].
+                None
+            } else {
+                // Use external hint, or fall back to previous branches
+                hint.or_else(|| {
+                    if t_acc.is_never() {
+                        None
+                    } else {
+                        Some(HintRef::soft(&t_acc))
+                    }
+                })
+            };
+            let mut t = self.expr_infer_with_hint(value, operand_hint, errors);
             self.expand_vars_mut(&mut t);
             // If this is not the last entry, we have to make a type-dependent decision and also narrow the
             // result; both operations require us to force `Var` first or they become unpredictable.
diff --git a/pyrefly/lib/test/operators.rs b/pyrefly/lib/test/operators.rs
index 24d8783e96..6a82628876 100644
--- a/pyrefly/lib/test/operators.rs
+++ b/pyrefly/lib/test/operators.rs
@@ -681,3 +681,33 @@ def f[S, T](x: type[S], y: type[T]):
     return x == y
     "#,
 );
+
+testcase!(
+    test_or_generic_function_hint_poisoning_fix,
+    r#"
+from typing import TypeVar, assert_type
+
+T = TypeVar("T")
+
+def get_value(default: T) -> T:
+    return default
+
+def test(config: str | None):
+    # 1. Setup: config is explicitly set to None.
+    # The variable 'config' still carries the type hint 'str | None'.
+    config = None
+    
+    # 2. The Test:
+    # We reassign to 'config' using an OR expression with a generic function call.
+    #
+    # Without the fix, the 'str | None' hint from the variable definition flows 
+    # into 'get_value', causing it to infer T='str | None' instead of T='str'.
+    #
+    # With the fix, the hint is dropped for the function call, so it infers 
+    # T='str' purely from the argument "default".
+    config = config or get_value("default")
+    
+    # Since left side was None (discarded) and right side is str, result must be str.
+    assert_type(config, str)
+"#,
+);