diff --git a/src/Type/Php/ReplaceFunctionsDynamicReturnTypeExtension.php b/src/Type/Php/ReplaceFunctionsDynamicReturnTypeExtension.php
index db046bbe10..01bb1dd29e 100644
--- a/src/Type/Php/ReplaceFunctionsDynamicReturnTypeExtension.php
+++ b/src/Type/Php/ReplaceFunctionsDynamicReturnTypeExtension.php
@@ -89,6 +89,9 @@ private function getPreliminarilyResolvedTypeFromFunctionCall(
 
 			if (count($functionCall->getArgs()) > $replaceArgumentPosition) {
 				$replaceArgumentType = $scope->getType($functionCall->getArgs()[$replaceArgumentPosition]->value);
+				if ($replaceArgumentType->isArray()->yes()) {
+					$replaceArgumentType = $replaceArgumentType->getIterableValueType();
+				}
 
 				$accessories = [];
 				if ($subjectArgumentType->isNonFalsyString()->yes() && $replaceArgumentType->isNonFalsyString()->yes()) {
diff --git a/tests/PHPStan/Rules/Methods/ReturnTypeRuleTest.php b/tests/PHPStan/Rules/Methods/ReturnTypeRuleTest.php
index bc3a1b1fae..548589722e 100644
--- a/tests/PHPStan/Rules/Methods/ReturnTypeRuleTest.php
+++ b/tests/PHPStan/Rules/Methods/ReturnTypeRuleTest.php
@@ -1246,4 +1246,14 @@ public function testBug4443(): void
 		]);
 	}
 
+	public function testBug12928(): void
+	{
+		$this->analyse([__DIR__ . '/data/bug-12928.php'], [
+			[
+				'Method Bug12928\FooBarBaz::render() should return non-empty-string but returns string.',
+				59,
+			],
+		]);
+	}
+
 }
diff --git a/tests/PHPStan/Rules/Methods/data/bug-12928.php b/tests/PHPStan/Rules/Methods/data/bug-12928.php
new file mode 100644
index 0000000000..2b6e038fe9
--- /dev/null
+++ b/tests/PHPStan/Rules/Methods/data/bug-12928.php
@@ -0,0 +1,68 @@
+<?php
+
+namespace Bug12928;
+
+class Foo {
+	/**
+	 * @param non-empty-string $phptFile
+	 * @param non-empty-string $code
+	 *
+	 * @return non-empty-string
+	 */
+	public function render(string $phptFile, string $code): string
+	{
+		return str_replace(
+			[
+				'__DIR__',
+				'__FILE__',
+			],
+			[
+				"'" . dirname($phptFile) . "'",
+				"'" . $phptFile . "'",
+			],
+			$code,
+		);
+	}
+}
+
+class FooBar {
+	/**
+	 * @param non-empty-string $phptFile
+	 * @param non-falsy-string $code
+	 * @param array<non-falsy-string> $replace
+	 *
+	 * @return non-falsy-string
+	 */
+	public function render(string $code, array $replace): string
+	{
+		return str_replace(
+			[
+				'__DIR__',
+				'__FILE__',
+			],
+			$replace,
+			$code,
+		);
+	}
+}
+
+
+class FooBarBaz {
+	/**
+	 * @param non-empty-string $phptFile
+	 * @param non-empty-string $code
+	 *
+	 * @return non-empty-string
+	 */
+	public function render(string $code, array $replace): string
+	{
+		return str_replace(
+			[
+				'__DIR__',
+				'__FILE__',
+			],
+			$replace,
+			$code,
+		);
+	}
+}