diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 88376a3dcb0..8748fd6db95 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -10337,6 +10337,10 @@ namespace ts {
             if (!type) {
                 return undefined;
             }
+            // If the contextual signature has fewer parameters than the function expression, do not use it
+            if (isFunctionExpressionOrArrowFunction(node) && isAritySmaller(type, node)) {
+                return undefined;
+            }
             if (!(type.flags & TypeFlags.Union)) {
                 return getNonGenericSignature(type);
             }
@@ -10371,6 +10375,26 @@ namespace ts {
             return result;
         }
 
+        function isAritySmaller(sourceType: Type, target: FunctionExpression | ArrowFunction) {
+            if (isFunctionType(sourceType)) {
+                let targetParameterCount = 0;
+                for (; targetParameterCount < target.parameters.length; targetParameterCount++) {
+                    const param = target.parameters[targetParameterCount];
+                    if (param.initializer || param.questionToken || param.dotDotDotToken || isJSDocOptionalParameter(param)) {
+                        break;
+                    }
+                }
+                if (target.parameters.length && parameterIsThisKeyword(target.parameters[0])) {
+                    targetParameterCount--;
+                }
+                const sourceSignatures = getSignaturesOfType(sourceType, SignatureKind.Call);
+                const sourceLengths = sourceSignatures.map(sig => !sig.hasRestParameter ? sig.parameters.length : Number.MAX_VALUE);
+                return forEach(sourceLengths, len => len < targetParameterCount);
+            }
+
+            return false;
+        }
+
         /**
          * Detect if the mapper implies an inference context. Specifically, there are 4 possible values
          * for a mapper. Let's go through each one of them:
@@ -11884,12 +11908,6 @@ namespace ts {
                     // If the effective argument type is 'undefined', there is no synthetic type
                     // for the argument. In that case, we should check the argument.
                     if (argType === undefined) {
-                        // If the parameter and argument are both functions and the parameter has fewer arguments than the argument,
-                        // then this signature is not applicable. Exit early to avoid fixing incorrect
-                        // contextual types to the function expression parameters.
-                        if (!reportErrors && isAritySmaller(paramType, arg)) {
-                            return false;
-                        }
                         argType = checkExpressionWithContextualType(arg, paramType, excludeArgument && excludeArgument[i] ? identityMapper : undefined);
                     }
 
@@ -11904,16 +11922,6 @@ namespace ts {
             return true;
         }
 
-        function isAritySmaller(sourceType: Type, target: Expression) {
-            if (isFunctionExpressionOrArrowFunction(target) && isFunctionType(sourceType)) {
-                const sourceSignatures = getSignaturesOfType(sourceType, SignatureKind.Call);
-                const sourceLengths = sourceSignatures.map(sig => !sig.hasRestParameter ? sig.parameters.length : Number.MAX_VALUE);
-                return forEach(sourceLengths, len => len < target.parameters.length);
-            }
-
-            return false;
-        }
-
         /**
          * Returns the this argument in calls like x.f(...) and x[f](...). Undefined otherwise.
          */
diff --git a/tests/baselines/reference/contextualTypingOfTooShortOverloads.types b/tests/baselines/reference/contextualTypingOfTooShortOverloads.types
index 9e306da3e61..769bd55d4b5 100644
--- a/tests/baselines/reference/contextualTypingOfTooShortOverloads.types
+++ b/tests/baselines/reference/contextualTypingOfTooShortOverloads.types
@@ -7,9 +7,9 @@ var use: Overload;
 use((req, res) => {});
 >use((req, res) => {}) : void
 >use : Overload
->(req, res) => {} : (req: number, res: number) => void
->req : number
->res : number
+>(req, res) => {} : (req: any, res: any) => void
+>req : any
+>res : any
 
 interface Overload {
 >Overload : Overload
diff --git a/tests/baselines/reference/genericCallWithOverloadedFunctionTypedArguments.types b/tests/baselines/reference/genericCallWithOverloadedFunctionTypedArguments.types
index c26370a7640..ab07e9c880a 100644
--- a/tests/baselines/reference/genericCallWithOverloadedFunctionTypedArguments.types
+++ b/tests/baselines/reference/genericCallWithOverloadedFunctionTypedArguments.types
@@ -122,8 +122,8 @@ module GenericParameter {
 >'' : ""
 
     var r11 = foo6(<T>(x: T, y?: T) => ''); // any => string (+1 overload)
->r11 : any
->foo6(<T>(x: T, y?: T) => '') : any
+>r11 : { (x: any): string; (x: any, y?: any): string; }
+>foo6(<T>(x: T, y?: T) => '') : { (x: any): string; (x: any, y?: any): string; }
 >foo6 : <T>(cb: { (x: T): string; (x: T, y?: T): string; }) => { (x: T): string; (x: T, y?: T): string; }
 ><T>(x: T, y?: T) => '' : <T>(x: T, y?: T) => string
 >T : T
diff --git a/tests/baselines/reference/partiallyAnnotatedFunctionInferenceError.errors.txt b/tests/baselines/reference/partiallyAnnotatedFunctionInferenceError.errors.txt
index d1e84494fa9..a6a45245929 100644
--- a/tests/baselines/reference/partiallyAnnotatedFunctionInferenceError.errors.txt
+++ b/tests/baselines/reference/partiallyAnnotatedFunctionInferenceError.errors.txt
@@ -1,6 +1,6 @@
-tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(12,11): error TS2345: Argument of type '(t1: D, t2: C, t3: any) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
-tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(13,11): error TS2345: Argument of type '(t1: C, t2: D, t3: any) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
-tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(14,11): error TS2345: Argument of type '(t1: C, t2: C, t3: D) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
+tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(12,11): error TS2345: Argument of type '(t1: D, t2: any, t3: any) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
+tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(13,11): error TS2345: Argument of type '(t1: any, t2: D, t3: any) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
+tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts(14,11): error TS2345: Argument of type '(t1: any, t2: any, t3: D) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
 
 
 ==== tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partiallyAnnotatedFunctionInferenceError.ts (3 errors) ====
@@ -17,11 +17,11 @@ tests/cases/conformance/types/contextualTypes/partiallyAnnotatedFunction/partial
     // more args
     testError((t1: D, t2, t3) => {})
               ~~~~~~~~~~~~~~~~~~~~~
-!!! error TS2345: Argument of type '(t1: D, t2: C, t3: any) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
+!!! error TS2345: Argument of type '(t1: D, t2: any, t3: any) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
     testError((t1, t2: D, t3) => {})
               ~~~~~~~~~~~~~~~~~~~~~
-!!! error TS2345: Argument of type '(t1: C, t2: D, t3: any) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
+!!! error TS2345: Argument of type '(t1: any, t2: D, t3: any) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
     testError((t1, t2, t3: D) => {})
               ~~~~~~~~~~~~~~~~~~~~~
-!!! error TS2345: Argument of type '(t1: C, t2: C, t3: D) => void' is not assignable to parameter of type '(t: C, t1: C) => void'.
+!!! error TS2345: Argument of type '(t1: any, t2: any, t3: D) => void' is not assignable to parameter of type '(t: any, t1: any) => void'.
     
\ No newline at end of file