diff --git a/src/Psalm/Internal/Type/SimpleAssertionReconciler.php b/src/Psalm/Internal/Type/SimpleAssertionReconciler.php
index f31b7d0fe..3db3e8ada 100644
--- a/src/Psalm/Internal/Type/SimpleAssertionReconciler.php
+++ b/src/Psalm/Internal/Type/SimpleAssertionReconciler.php
@@ -1642,7 +1642,7 @@ class SimpleAssertionReconciler extends \Psalm\Type\Reconciler
 
         $existing_var_atomic_types = $existing_var_type->getAtomicTypes();
 
-        if ($existing_var_type->hasMixed() || $existing_var_type->hasTemplate()) {
+        if ($existing_var_type->hasMixed()) {
             return Type::getArray();
         }
 
@@ -1666,6 +1666,24 @@ class SimpleAssertionReconciler extends \Psalm\Type\Reconciler
 
                 $array_types[] = new TArray($clone_type->type_params);
 
+                $did_remove_type = true;
+            } elseif ($type instanceof TTemplateParam) {
+                if ($type->as->hasArray() || $type->as->hasMixed()) {
+                   $type = clone $type;
+
+                    $type->as = self::reconcileArray(
+                        $type->as,
+                        null,
+                        false,
+                        null,
+                        $suppressed_issues,
+                        $failed_reconciliation,
+                        $is_equality
+                    );
+
+                    $array_types[] = $type;
+                }
+
                 $did_remove_type = true;
             } else {
                 $did_remove_type = true;
diff --git a/tests/Template/ConditionalReturnTypeTest.php b/tests/Template/ConditionalReturnTypeTest.php
index 3d096863c..d849c25fc 100644
--- a/tests/Template/ConditionalReturnTypeTest.php
+++ b/tests/Template/ConditionalReturnTypeTest.php
@@ -653,6 +653,21 @@ class ConditionalReturnTypeTest extends TestCase
                     '$expect_mixed_from_literal' => 'mixed',
                 ]
             ],
+            'isArryCheckOnTemplate' => [
+                '<?php
+                    /**
+                     * @template TResult as string|list<string>
+                     * @param TResult $result
+                     * @return (TResult is array ? list<string> : string)
+                     */
+                    function recursion($result) {
+                        if (\is_array($result)) {
+                            return $result;
+                        }
+
+                        return strtoupper($result);
+                    }'
+            ],
         ];
     }
 }