diff --git a/crates/red_knot_python_semantic/src/types/infer.rs b/crates/red_knot_python_semantic/src/types/infer.rs
index de3384e4e54cd3..336830aa267c99 100644
--- a/crates/red_knot_python_semantic/src/types/infer.rs
+++ b/crates/red_knot_python_semantic/src/types/infer.rs
@@ -1654,48 +1654,47 @@ impl<'db> TypeInferenceBuilder<'db> {
     fn infer_fstring_expression(&mut self, fstring: &ast::ExprFString) -> Type<'db> {
         let ast::ExprFString { range: _, value } = fstring;
 
+        // When we infer an fstring, there are only 2 outcomes:
+        // - The fstring contains *any* expression, and we infer `builtins.str`
+        // - The fstring contains *only* literals, and we use the same logic as
+        //   `infer_string_literal_expression`
+        let mut has_expression = false;
+        let mut literals = Vec::new();
         for part in value {
             match part {
-                ast::FStringPart::Literal(_) => {
-                    // TODO string literal type
+                ast::FStringPart::Literal(literal) => {
+                    literals.push(&literal.value);
                 }
                 ast::FStringPart::FString(fstring) => {
-                    let ast::FString {
-                        range: _,
-                        elements,
-                        flags: _,
-                    } = fstring;
-                    for element in elements {
-                        self.infer_fstring_element(element);
+                    for element in fstring.elements.into_iter() {
+                        match element {
+                            ast::FStringElement::Expression(_) => {
+                                // We can short-circuit on any found expression
+                                has_expression = true;
+                                break;
+                            }
+                            ast::FStringElement::Literal(literal) => {
+                                literals.push(&literal.value);
+                            }
+                        }
                     }
                 }
             }
         }
 
-        // TODO str type
-        Type::Unknown
-    }
-
-    fn infer_fstring_element(&mut self, element: &ast::FStringElement) {
-        match element {
-            ast::FStringElement::Literal(_) => {
-                // TODO string literal type
-            }
-            ast::FStringElement::Expression(expr_element) => {
-                let ast::FStringExpressionElement {
-                    range: _,
-                    expression,
-                    debug_text: _,
-                    conversion: _,
-                    format_spec,
-                } = expr_element;
-                self.infer_expression(expression);
-
-                if let Some(format_spec) = format_spec {
-                    for spec_element in &format_spec.elements {
-                        self.infer_fstring_element(spec_element);
-                    }
-                }
+        if has_expression {
+            builtins_symbol_ty(self.db, "str").to_instance(self.db)
+        } else {
+            if literals.iter().fold(0, |acc, box_str| acc + box_str.len())
+                <= Self::MAX_STRING_LITERAL_SIZE
+            {
+                let concatenated: String = literals.into_iter().map(Box::as_ref).collect();
+                Type::StringLiteral(StringLiteralType::new(
+                    self.db,
+                    concatenated.into_boxed_str(),
+                ))
+            } else {
+                Type::LiteralString
             }
         }
     }
@@ -2574,10 +2573,7 @@ impl<'db> TypeInferenceBuilder<'db> {
                 self.infer_call_expression(call_expr);
                 Type::Unknown
             }
-            ast::Expr::FString(fstring) => {
-                self.infer_fstring_expression(fstring);
-                Type::Unknown
-            }
+            ast::Expr::FString(_) => Type::Unknown,
             //
             ast::Expr::Attribute(attribute) => {
                 self.infer_attribute_expression(attribute);
@@ -3362,6 +3358,29 @@ mod tests {
         Ok(())
     }
 
+    #[test]
+    fn fstring_expression() -> anyhow::Result<()> {
+        let mut db = setup_db();
+
+        db.write_dedented(
+            "src/a.py",
+            "
+            x = 0
+            a = f'hello'
+            b = f'hello {x}'
+            c = 'one ' f'single ' f'literal'
+            d = 'first ' f'second({x})' f'third'
+            ",
+        )?;
+
+        assert_public_ty(&db, "src/a.py", "a", "Literal[\"hello\"]");
+        assert_public_ty(&db, "src/a.py", "b", "str");
+        assert_public_ty(&db, "src/a.py", "c", "Literal[\"one single literal\"]");
+        assert_public_ty(&db, "src/a.py", "d", "str");
+
+        Ok(())
+    }
+
     #[test]
     fn basic_call_expression() -> anyhow::Result<()> {
         let mut db = setup_db();