diff --git a/CHANGES.rst b/CHANGES.rst
index 11ba6cbdef4..18e7a8038d4 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -94,6 +94,8 @@ Features added
 * #8191, #8159: Add :rst:dir:`inheritance-diagram:include-subclasses` option to
   the :rst:dir:`inheritance-diagram` directive.
   Patch by Walter Dörwald.
+* #11995: autodoc: Add support for :confval:`python_display_short_literal_types`.
+  Patch by Bénédikt Tran and Adam Turner.
 
 Bugs fixed
 ----------
diff --git a/sphinx/ext/autodoc/__init__.py b/sphinx/ext/autodoc/__init__.py
index df951ccd1bf..5c2b202b927 100644
--- a/sphinx/ext/autodoc/__init__.py
+++ b/sphinx/ext/autodoc/__init__.py
@@ -44,7 +44,7 @@
     from sphinx.environment import BuildEnvironment, _CurrentDocument
     from sphinx.events import EventManager
     from sphinx.ext.autodoc.directive import DocumenterBridge
-    from sphinx.util.typing import ExtensionMetadata, OptionSpec
+    from sphinx.util.typing import ExtensionMetadata, OptionSpec, _RestifyMode
 
     _AutodocObjType = Literal[
         'module', 'class', 'exception', 'function', 'method', 'attribute'
@@ -76,6 +76,14 @@
 special_member_re = re.compile(r'^__\S+__$')
 
 
+def _get_render_mode(
+    typehints_format: Literal['fully-qualified', 'short'],
+) -> _RestifyMode:
+    if typehints_format == 'short':
+        return 'smart'
+    return 'fully-qualified-except-typing'
+
+
 def identity(x: Any) -> Any:
     return x
 
@@ -1472,6 +1480,8 @@ def format_args(self, **kwargs: Any) -> str:
             kwargs.setdefault('show_annotation', False)
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         try:
             self._events.emit('autodoc-before-process-signature', self.object, False)
@@ -1507,6 +1517,8 @@ def add_directive_header(self, sig: str) -> None:
     def format_signature(self, **kwargs: Any) -> str:
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         sigs = []
         if (
@@ -1794,6 +1806,8 @@ def format_args(self, **kwargs: Any) -> str:
             kwargs.setdefault('show_annotation', False)
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         try:
             self._signature_class, _signature_method_name, sig = self._get_signature()
@@ -1835,6 +1849,8 @@ def format_signature(self, **kwargs: Any) -> str:
 
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         sig = super().format_signature()
         sigs = []
@@ -1931,10 +1947,8 @@ def add_directive_header(self, sig: str) -> None:
                 'autodoc-process-bases', self.fullname, self.object, self.options, bases
             )
 
-            if self.config.autodoc_typehints_format == 'short':
-                base_classes = [restify(cls, 'smart') for cls in bases]
-            else:
-                base_classes = [restify(cls) for cls in bases]
+            mode = _get_render_mode(self.config.autodoc_typehints_format)
+            base_classes = [restify(cls, mode=mode) for cls in bases]
 
             sourcename = self.get_sourcename()
             self.add_line('', sourcename)
@@ -2047,25 +2061,21 @@ def get_variable_comment(self) -> list[str] | None:
             return None
 
     def add_content(self, more_content: StringList | None) -> None:
+        mode = _get_render_mode(self.config.autodoc_typehints_format)
+        short_literals = self.config.python_display_short_literal_types
+
         if isinstance(self.object, NewType):
-            if self.config.autodoc_typehints_format == 'short':
-                supertype = restify(self.object.__supertype__, 'smart')
-            else:
-                supertype = restify(self.object.__supertype__)
+            supertype = restify(self.object.__supertype__, mode=mode)
 
             more_content = StringList([_('alias of %s') % supertype, ''], source='')
         if isinstance(self.object, TypeVar):
             attrs = [repr(self.object.__name__)]
-            for constraint in self.object.__constraints__:
-                if self.config.autodoc_typehints_format == 'short':
-                    attrs.append(stringify_annotation(constraint, 'smart'))
-                else:
-                    attrs.append(stringify_annotation(constraint))
+            attrs.extend(
+                stringify_annotation(constraint, mode, short_literals=short_literals)
+                for constraint in self.object.__constraints__
+            )
             if self.object.__bound__:
-                if self.config.autodoc_typehints_format == 'short':
-                    bound = restify(self.object.__bound__, 'smart')
-                else:
-                    bound = restify(self.object.__bound__)
+                bound = restify(self.object.__bound__, mode=mode)
                 attrs.append(r'bound=\ ' + bound)
             if self.object.__covariant__:
                 attrs.append('covariant=True')
@@ -2085,10 +2095,7 @@ def add_content(self, more_content: StringList | None) -> None:
 
         if self.doc_as_attr and not self.get_variable_comment():
             try:
-                if self.config.autodoc_typehints_format == 'short':
-                    alias = restify(self.object, 'smart')
-                else:
-                    alias = restify(self.object)
+                alias = restify(self.object, mode=mode)
                 more_content = StringList([_('alias of %s') % alias], source='')
             except AttributeError:
                 pass  # Invalid class object is passed.
@@ -2180,10 +2187,8 @@ def should_suppress_directive_header(self) -> bool:
 
     def update_content(self, more_content: StringList) -> None:
         if inspect.isgenericalias(self.object):
-            if self.config.autodoc_typehints_format == 'short':
-                alias = restify(self.object, 'smart')
-            else:
-                alias = restify(self.object)
+            mode = _get_render_mode(self.config.autodoc_typehints_format)
+            alias = restify(self.object, mode=mode)
 
             more_content.append(_('alias of %s') % alias, '')
             more_content.append('', '')
@@ -2307,15 +2312,13 @@ def add_directive_header(self, sig: str) -> None:
                     include_extras=True,
                 )
                 if self.objpath[-1] in annotations:
-                    if self.config.autodoc_typehints_format == 'short':
-                        objrepr = stringify_annotation(
-                            annotations.get(self.objpath[-1]), 'smart'
-                        )
-                    else:
-                        objrepr = stringify_annotation(
-                            annotations.get(self.objpath[-1]),
-                            'fully-qualified-except-typing',
-                        )
+                    mode = _get_render_mode(self.config.autodoc_typehints_format)
+                    short_literals = self.config.python_display_short_literal_types
+                    objrepr = stringify_annotation(
+                        annotations.get(self.objpath[-1]),
+                        mode,
+                        short_literals=short_literals,
+                    )
                     self.add_line('   :type: ' + objrepr, sourcename)
 
             try:
@@ -2405,6 +2408,8 @@ def format_args(self, **kwargs: Any) -> str:
             kwargs.setdefault('show_annotation', False)
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         try:
             if self.object == object.__init__ and self.parent != object:  # NoQA: E721
@@ -2474,6 +2479,8 @@ def document_members(self, all_members: bool = False) -> None:
     def format_signature(self, **kwargs: Any) -> str:
         if self.config.autodoc_typehints_format == 'short':
             kwargs.setdefault('unqualified_typehints', True)
+        if self.config.python_display_short_literal_types:
+            kwargs.setdefault('short_literals', True)
 
         sigs = []
         if (
@@ -2957,15 +2964,13 @@ def add_directive_header(self, sig: str) -> None:
                     include_extras=True,
                 )
                 if self.objpath[-1] in annotations:
-                    if self.config.autodoc_typehints_format == 'short':
-                        objrepr = stringify_annotation(
-                            annotations.get(self.objpath[-1]), 'smart'
-                        )
-                    else:
-                        objrepr = stringify_annotation(
-                            annotations.get(self.objpath[-1]),
-                            'fully-qualified-except-typing',
-                        )
+                    mode = _get_render_mode(self.config.autodoc_typehints_format)
+                    short_literals = self.config.python_display_short_literal_types
+                    objrepr = stringify_annotation(
+                        annotations.get(self.objpath[-1]),
+                        mode,
+                        short_literals=short_literals,
+                    )
                     self.add_line('   :type: ' + objrepr, sourcename)
 
             try:
@@ -3100,12 +3105,11 @@ def add_directive_header(self, sig: str) -> None:
                 func, type_aliases=self.config.autodoc_type_aliases
             )
             if signature.return_annotation is not Parameter.empty:
-                if self.config.autodoc_typehints_format == 'short':
-                    objrepr = stringify_annotation(signature.return_annotation, 'smart')
-                else:
-                    objrepr = stringify_annotation(
-                        signature.return_annotation, 'fully-qualified-except-typing'
-                    )
+                mode = _get_render_mode(self.config.autodoc_typehints_format)
+                short_literals = self.config.python_display_short_literal_types
+                objrepr = stringify_annotation(
+                    signature.return_annotation, mode, short_literals=short_literals
+                )
                 self.add_line('   :type: ' + objrepr, sourcename)
         except TypeError as exc:
             logger.warning(
diff --git a/sphinx/ext/autodoc/typehints.py b/sphinx/ext/autodoc/typehints.py
index c5f8a2c9afd..63403772137 100644
--- a/sphinx/ext/autodoc/typehints.py
+++ b/sphinx/ext/autodoc/typehints.py
@@ -20,7 +20,7 @@
 
     from sphinx.application import Sphinx
     from sphinx.ext.autodoc import Options
-    from sphinx.util.typing import ExtensionMetadata
+    from sphinx.util.typing import ExtensionMetadata, _StringifyMode
 
 
 def record_typehints(
@@ -33,11 +33,14 @@ def record_typehints(
     retann: str,
 ) -> None:
     """Record type hints to env object."""
+    mode: _StringifyMode
     if app.config.autodoc_typehints_format == 'short':
         mode = 'smart'
     else:
         mode = 'fully-qualified'
 
+    short_literals = app.config.python_display_short_literal_types
+
     try:
         if callable(obj):
             current_document = app.env.current_document
@@ -46,11 +49,12 @@ def record_typehints(
             for param in sig.parameters.values():
                 if param.annotation is not param.empty:
                     annotation[param.name] = stringify_annotation(
-                        param.annotation,
-                        mode,  # type: ignore[arg-type]
+                        param.annotation, mode, short_literals=short_literals
                     )
             if sig.return_annotation is not sig.empty:
-                annotation['return'] = stringify_annotation(sig.return_annotation, mode)  # type: ignore[arg-type]
+                annotation['return'] = stringify_annotation(
+                    sig.return_annotation, mode, short_literals=short_literals
+                )
     except (TypeError, ValueError):
         pass
 
diff --git a/sphinx/ext/napoleon/docstring.py b/sphinx/ext/napoleon/docstring.py
index 1a3ffd8bdc4..d1317e9d841 100644
--- a/sphinx/ext/napoleon/docstring.py
+++ b/sphinx/ext/napoleon/docstring.py
@@ -1095,8 +1095,13 @@ def _lookup_annotation(self, _name: str) -> str:
                     )
                     self._annotations = get_type_hints(self._obj, None, localns)
                 if _name in self._annotations:
+                    short_literals = getattr(
+                        self._config, 'python_display_short_literal_types', False
+                    )
                     return stringify_annotation(
-                        self._annotations[_name], 'fully-qualified-except-typing'
+                        self._annotations[_name],
+                        mode='fully-qualified-except-typing',
+                        short_literals=short_literals,
                     )
         # No annotation found
         return ''
diff --git a/sphinx/util/inspect.py b/sphinx/util/inspect.py
index 73d75c40447..d77f31161ec 100644
--- a/sphinx/util/inspect.py
+++ b/sphinx/util/inspect.py
@@ -31,6 +31,8 @@
 
     from typing_extensions import TypeIs
 
+    from sphinx.util.typing import _StringifyMode
+
     class _SupportsGet(Protocol):
         def __get__(self, instance: Any, owner: type | None = ..., /) -> Any: ...
 
@@ -842,6 +844,7 @@ def stringify_signature(
     show_annotation: bool = True,
     show_return_annotation: bool = True,
     unqualified_typehints: bool = False,
+    short_literals: bool = False,
 ) -> str:
     """Stringify a :class:`~inspect.Signature` object.
 
@@ -849,7 +852,9 @@ def stringify_signature(
     :param show_return_annotation: If enabled, show annotation of the return value
     :param unqualified_typehints: If enabled, show annotations as unqualified
                                   (ex. io.StringIO -> StringIO)
+    :param short_literals: If enabled, use short literal types.
     """
+    mode: _StringifyMode
     if unqualified_typehints:
         mode = 'smart'
     else:
@@ -884,7 +889,11 @@ def stringify_signature(
 
         if show_annotation and param.annotation is not EMPTY:
             arg.write(': ')
-            arg.write(stringify_annotation(param.annotation, mode))  # type: ignore[arg-type]
+            arg.write(
+                stringify_annotation(
+                    param.annotation, mode, short_literals=short_literals
+                )
+            )
         if param.default is not EMPTY:
             if show_annotation and param.annotation is not EMPTY:
                 arg.write(' = ')
@@ -907,7 +916,9 @@ def stringify_signature(
     ):
         return f'({concatenated_args})'
     else:
-        retann = stringify_annotation(sig.return_annotation, mode)  # type: ignore[arg-type]
+        retann = stringify_annotation(
+            sig.return_annotation, mode, short_literals=short_literals
+        )
         return f'({concatenated_args}) -> {retann}'
 
 
diff --git a/sphinx/util/typing.py b/sphinx/util/typing.py
index ef7b9462364..594b050dfa6 100644
--- a/sphinx/util/typing.py
+++ b/sphinx/util/typing.py
@@ -388,6 +388,8 @@ def stringify_annotation(
     annotation: Any,
     /,
     mode: _StringifyMode = 'fully-qualified-except-typing',
+    *,
+    short_literals: bool = False,
 ) -> str:
     """Stringify type annotation object.
 
@@ -401,6 +403,8 @@ def stringify_annotation(
                      Show the name of the annotation.
                  'fully-qualified'
                      Show the module name and qualified name of the annotation.
+
+    :param short_literals: Render :py:class:`Literals` in PEP 604 style (``|``).
     """
     from sphinx.ext.autodoc.mock import ismock, ismockmodule  # lazy loading
 
@@ -462,7 +466,10 @@ def stringify_annotation(
         if not args:  # Empty tuple, list, ...
             return repr(annotation)
 
-        concatenated_args = ', '.join(stringify_annotation(arg, mode) for arg in args)
+        concatenated_args = ', '.join(
+            stringify_annotation(arg, mode=mode, short_literals=short_literals)
+            for arg in args
+        )
         return f'{annotation_qualname}[{concatenated_args}]'
     else:
         # add other special cases that can be directly formatted
@@ -496,13 +503,16 @@ def stringify_annotation(
                 # of ``typing`` and all of them define ``__origin__``
                 qualname = stringify_annotation(
                     annotation.__origin__,
-                    'fully-qualified-except-typing',
+                    mode='fully-qualified-except-typing',
+                    short_literals=short_literals,
                 ).replace('typing.', '')  # ex. Union
     elif annotation_qualname:
         qualname = annotation_qualname
     elif hasattr(annotation, '__origin__'):
         # instantiated generic provided by a user
-        qualname = stringify_annotation(annotation.__origin__, mode)
+        qualname = stringify_annotation(
+            annotation.__origin__, mode=mode, short_literals=short_literals
+        )
     elif isinstance(annotation, types.UnionType):
         qualname = 'types.UnionType'
     else:
@@ -525,33 +535,49 @@ def stringify_annotation(
             )
             return f'{module_prefix}Literal[{args}]'
         if qualname in {'Optional', 'Union', 'types.UnionType'}:
-            return ' | '.join(stringify_annotation(a, mode) for a in annotation_args)
+            return ' | '.join(
+                stringify_annotation(a, mode=mode, short_literals=short_literals)
+                for a in annotation_args
+            )
         elif qualname == 'Callable':
             args = ', '.join(
-                stringify_annotation(a, mode) for a in annotation_args[:-1]
+                stringify_annotation(a, mode=mode, short_literals=short_literals)
+                for a in annotation_args[:-1]
+            )
+            returns = stringify_annotation(
+                annotation_args[-1], mode=mode, short_literals=short_literals
             )
-            returns = stringify_annotation(annotation_args[-1], mode)
             return f'{module_prefix}Callable[[{args}], {returns}]'
         elif qualname == 'Literal':
+            if short_literals:
+                return ' | '.join(
+                    _format_literal_arg_stringify(a, mode=mode) for a in annotation_args
+                )
             args = ', '.join(
                 _format_literal_arg_stringify(a, mode=mode) for a in annotation_args
             )
             return f'{module_prefix}Literal[{args}]'
         elif _is_annotated_form(annotation):  # for py310+
-            args = stringify_annotation(annotation_args[0], mode)
+            args = stringify_annotation(
+                annotation_args[0], mode=mode, short_literals=short_literals
+            )
             meta_args = []
             for m in annotation.__metadata__:
                 if isinstance(m, type):
-                    meta_args.append(stringify_annotation(m, mode))
+                    meta_args.append(
+                        stringify_annotation(
+                            m, mode=mode, short_literals=short_literals
+                        )
+                    )
                 elif dataclasses.is_dataclass(m):
                     # use stringify_annotation for the repr of field values rather than repr
                     d_fields = ', '.join([
-                        f'{f.name}={stringify_annotation(getattr(m, f.name), mode)}'
+                        f'{f.name}={stringify_annotation(getattr(m, f.name), mode=mode, short_literals=short_literals)}'  # NoQA: E501
                         for f in dataclasses.fields(m)
                         if f.repr
                     ])
                     meta_args.append(
-                        f'{stringify_annotation(type(m), mode)}({d_fields})'
+                        f'{stringify_annotation(type(m), mode=mode, short_literals=short_literals)}({d_fields})'  # NoQA: E501
                     )
                 else:
                     meta_args.append(repr(m))
@@ -566,7 +592,10 @@ def stringify_annotation(
             # Suppress arguments if all system defined TypeVars (ex. Dict[KT, VT])
             return module_prefix + qualname
         else:
-            args = ', '.join(stringify_annotation(a, mode) for a in annotation_args)
+            args = ', '.join(
+                stringify_annotation(a, mode=mode, short_literals=short_literals)
+                for a in annotation_args
+            )
             return f'{module_prefix}{qualname}[{args}]'
 
     return module_prefix + qualname
diff --git a/tests/roots/test-ext-autodoc/target/literal.py b/tests/roots/test-ext-autodoc/target/literal.py
index 4340e5103f0..4ba841c7f10 100644
--- a/tests/roots/test-ext-autodoc/target/literal.py
+++ b/tests/roots/test-ext-autodoc/target/literal.py
@@ -6,19 +6,20 @@
 
 class MyEnum(Enum):
     a = 1
+    b = 2
 
 
-T = TypeVar('T', bound=Literal[1234])
+T = TypeVar('T', bound=Literal[1234, 'abcd'])
 """docstring"""
 
 
-U = TypeVar('U', bound=Literal[MyEnum.a])
+U = TypeVar('U', bound=Literal[MyEnum.a, MyEnum.b])
 """docstring"""
 
 
-def bar(x: Literal[1234]):
+def bar(x: Literal[1234, 'abcd']):
     """docstring"""
 
 
-def foo(x: Literal[MyEnum.a]):
+def foo(x: Literal[MyEnum.a, MyEnum.b]):
     """docstring"""
diff --git a/tests/test_extensions/test_ext_autodoc.py b/tests/test_extensions/test_ext_autodoc.py
index fe7ff9a907b..b1ba884033c 100644
--- a/tests/test_extensions/test_ext_autodoc.py
+++ b/tests/test_extensions/test_ext_autodoc.py
@@ -3119,30 +3119,32 @@ def test_canonical(app):
     ]
 
 
-@pytest.mark.sphinx('html', testroot='ext-autodoc')
-def test_literal_render(app):
-    def bounded_typevar_rst(name, bound):
-        return [
-            '',
-            f'.. py:class:: {name}',
-            '   :module: target.literal',
-            '',
-            '   docstring',
-            '',
-            f'   alias of TypeVar({name!r}, bound={bound})',
-            '',
-        ]
+def bounded_typevar_rst(name, bound):
+    return [
+        '',
+        f'.. py:class:: {name}',
+        '   :module: target.literal',
+        '',
+        '   docstring',
+        '',
+        f'   alias of TypeVar({name!r}, bound={bound})',
+        '',
+    ]
 
-    def function_rst(name, sig):
-        return [
-            '',
-            f'.. py:function:: {name}({sig})',
-            '   :module: target.literal',
-            '',
-            '   docstring',
-            '',
-        ]
 
+def function_rst(name, sig):
+    return [
+        '',
+        f'.. py:function:: {name}({sig})',
+        '   :module: target.literal',
+        '',
+        '   docstring',
+        '',
+    ]
+
+
+@pytest.mark.sphinx('html', testroot='ext-autodoc', freshenv=True)
+def test_literal_render(app):
     # autodoc_typehints_format can take 'short' or 'fully-qualified' values
     # and this will be interpreted as 'smart' or 'fully-qualified-except-typing' by restify()
     # and 'smart' or 'fully-qualified' by stringify_annotation().
@@ -3157,12 +3159,66 @@ def function_rst(name, sig):
         '',
         '.. py:module:: target.literal',
         '',
-        *bounded_typevar_rst('T', r'\ :py:obj:`~typing.Literal`\ [1234]'),
+        *bounded_typevar_rst('T', r"\ :py:obj:`~typing.Literal`\ [1234, 'abcd']"),
+        *bounded_typevar_rst(
+            'U',
+            r'\ :py:obj:`~typing.Literal`\ ['
+            r':py:attr:`~target.literal.MyEnum.a`, '
+            r':py:attr:`~target.literal.MyEnum.b`]',
+        ),
+        *function_rst('bar', "x: ~typing.Literal[1234, 'abcd']"),
+        *function_rst('foo', 'x: ~typing.Literal[MyEnum.a, MyEnum.b]'),
+    ]
+
+    # restify() assumes that 'fully-qualified' is 'fully-qualified-except-typing'
+    # because it is more likely that a user wants to suppress 'typing.*'
+    app.config.autodoc_typehints_format = 'fully-qualified'
+    actual = do_autodoc(app, 'module', 'target.literal', options)
+    assert list(actual) == [
+        '',
+        '.. py:module:: target.literal',
+        '',
+        *bounded_typevar_rst('T', r"\ :py:obj:`~typing.Literal`\ [1234, 'abcd']"),
+        *bounded_typevar_rst(
+            'U',
+            r'\ :py:obj:`~typing.Literal`\ ['
+            r':py:attr:`target.literal.MyEnum.a`, '
+            r':py:attr:`target.literal.MyEnum.b`]',
+        ),
+        *function_rst('bar', "x: typing.Literal[1234, 'abcd']"),
+        *function_rst(
+            'foo',
+            'x: typing.Literal[target.literal.MyEnum.a, target.literal.MyEnum.b]',
+        ),
+    ]
+
+
+@pytest.mark.sphinx(
+    'html',
+    testroot='ext-autodoc',
+    freshenv=True,
+    confoverrides={'python_display_short_literal_types': True},
+)
+def test_literal_render_pep604(app):
+    options = {
+        'members': None,
+        'exclude-members': 'MyEnum',
+    }
+    app.config.autodoc_typehints_format = 'short'
+    actual = do_autodoc(app, 'module', 'target.literal', options)
+    assert list(actual) == [
+        '',
+        '.. py:module:: target.literal',
+        '',
+        *bounded_typevar_rst('T', r"\ :py:obj:`~typing.Literal`\ [1234, 'abcd']"),
         *bounded_typevar_rst(
-            'U', r'\ :py:obj:`~typing.Literal`\ [:py:attr:`~target.literal.MyEnum.a`]'
+            'U',
+            r'\ :py:obj:`~typing.Literal`\ ['
+            r':py:attr:`~target.literal.MyEnum.a`, '
+            r':py:attr:`~target.literal.MyEnum.b`]',
         ),
-        *function_rst('bar', 'x: ~typing.Literal[1234]'),
-        *function_rst('foo', 'x: ~typing.Literal[MyEnum.a]'),
+        *function_rst('bar', "x: 1234 | 'abcd'"),
+        *function_rst('foo', 'x: MyEnum.a | MyEnum.b'),
     ]
 
     # restify() assumes that 'fully-qualified' is 'fully-qualified-except-typing'
@@ -3173,12 +3229,15 @@ def function_rst(name, sig):
         '',
         '.. py:module:: target.literal',
         '',
-        *bounded_typevar_rst('T', r'\ :py:obj:`~typing.Literal`\ [1234]'),
+        *bounded_typevar_rst('T', r"\ :py:obj:`~typing.Literal`\ [1234, 'abcd']"),
         *bounded_typevar_rst(
-            'U', r'\ :py:obj:`~typing.Literal`\ [:py:attr:`target.literal.MyEnum.a`]'
+            'U',
+            r'\ :py:obj:`~typing.Literal`\ ['
+            r':py:attr:`target.literal.MyEnum.a`, '
+            r':py:attr:`target.literal.MyEnum.b`]',
         ),
-        *function_rst('bar', 'x: typing.Literal[1234]'),
-        *function_rst('foo', 'x: typing.Literal[target.literal.MyEnum.a]'),
+        *function_rst('bar', "x: 1234 | 'abcd'"),
+        *function_rst('foo', 'x: target.literal.MyEnum.a | target.literal.MyEnum.b'),
     ]