diff --git a/collects/tests/typed-racket/succeed/kw.rkt b/collects/tests/typed-racket/succeed/kw.rkt
index 620dd51a..116a6dcc 100644
--- a/collects/tests/typed-racket/succeed/kw.rkt
+++ b/collects/tests/typed-racket/succeed/kw.rkt
@@ -1,4 +1,4 @@
-#lang typed-scheme
+#lang typed/scheme
 
 (lambda ()
   (open-input-file "foo" #:mode 'binary)
@@ -12,3 +12,7 @@
 ((inst sort Real String) (list 1 2 3) #:key number->string string<?)
 
 ((inst sort Real String) (list 1 2 3) #:key number->string string<? #:cache-keys? #t)
+
+(remove-duplicates  '("foo"))
+
+(sort (list 1 2 3) >)
diff --git a/collects/typed-racket/base-env/base-env.rkt b/collects/typed-racket/base-env/base-env.rkt
index cf03742b..20167645 100644
--- a/collects/typed-racket/base-env/base-env.rkt
+++ b/collects/typed-racket/base-env/base-env.rkt
@@ -1383,11 +1383,6 @@
 [last-pair (-poly (a) ((-mu x (Un a (-val '()) (-pair a x)))
                        . -> .
                        (Un (-pair a a) (-pair a (-val '())))))]
-[remove-duplicates
- (-poly (a)
-        (cl->*
-         ((-lst a) . -> . (-lst a))
-         ((-lst a) (a a . -> . Univ) . -> . (-lst a))))]
 [append-map
  (-polydots (c a b) ((list ((list a) (b b) . ->... . (-lst c)) (-lst a))
                      ((-lst b) b) . ->... .(-lst c)))]
diff --git a/collects/typed-racket/base-env/base-special-env.rkt b/collects/typed-racket/base-env/base-special-env.rkt
index 050c79f4..2d0ee75a 100644
--- a/collects/typed-racket/base-env/base-special-env.rkt
+++ b/collects/typed-racket/base-env/base-special-env.rkt
@@ -7,7 +7,7 @@
  string-constants/string-constant
  racket/private/kw racket/file racket/port syntax/parse racket/path
  (for-template (only-in racket/private/kw kw-expander-proc kw-expander-impl)
-               racket/base racket/file racket/port racket/path)
+               racket/base racket/file racket/port racket/path racket/list)
  (utils tc-utils)
  (env init-envs)
  (except-in (rep filter-rep object-rep type-rep) make-arr)
@@ -310,6 +310,29 @@
             -Boolean -Boolean (a . -> . b) (-val #t)
             (-lst a) (b b . -> . -Boolean)
             (-lst a))))]
+  
+  [((kw-expander-proc (syntax-local-value #'remove-duplicates)))
+   (-poly (a b) (cl->* 
+                 ((-lst a) . -> . (-lst a))
+                 ((-lst a) (a a . -> . Univ)
+                           . -> . (-lst a))
+                 ((-lst a) #:key (a . -> . b) #f
+                           . ->key . (-lst a))                     
+                 ((-lst a) (b b . -> . Univ)
+                           #:key (a . -> . b) #t
+                           . ->key . (-lst a))))]
+  [((kw-expander-impl (syntax-local-value #'remove-duplicates)))
+   (-poly (a b)
+          (cl->*
+           (Univ (-val #f) ;; no key
+            (-lst a) (-val #f) -Boolean
+            . -> . (-lst a))
+           (Univ (-val #f) ;; no key
+            (-lst a) (-> a a Univ) -Boolean
+            . -> . (-lst a))
+           ((a . -> . b) (-val #t) ;; no key
+            (-lst a) (-opt (-> b b Univ)) -Boolean
+            . -> . (-lst a))))]
 
   [((kw-expander-proc (syntax-local-value #'open-input-file)))
    (->key -Pathlike #:mode (one-of/c 'binary 'text) #f -Input-Port)]
diff --git a/collects/typed-racket/infer/infer-unit.rkt b/collects/typed-racket/infer/infer-unit.rkt
index c54a26c3..719aec1b 100644
--- a/collects/typed-racket/infer/infer-unit.rkt
+++ b/collects/typed-racket/infer/infer-unit.rkt
@@ -705,7 +705,7 @@
              [cs  (cgen/list null X Y S T #:expected-cset expected-cset)]
              [cs* (cset-meet cs expected-cset)])
             (if R (subst-gen cs* Y R) #t))))
-  infer)) ;to export a variable binding and not syntax
+   infer)) ;to export a variable binding and not syntax
 
 ;; like infer, but T-var is the vararg type:
 (define (infer/vararg X Y S T T-var R [expected #f])
diff --git a/collects/typed-racket/typecheck/tc-funapp.rkt b/collects/typed-racket/typecheck/tc-funapp.rkt
index 723feabd..2386b01f 100644
--- a/collects/typed-racket/typecheck/tc-funapp.rkt
+++ b/collects/typed-racket/typecheck/tc-funapp.rkt
@@ -105,23 +105,25 @@
          [else (infer fixed-vars (list dotted-var) argtys-t dom rng
                       (and expected (tc-results->values expected)))]))
       t argtys expected)]
-    ;; regular polymorphic functions without dotted rest, and without mandatory
-    ;; keyword args
+    ;; regular polymorphic functions without dotted rest, 
+    ;; we do not choose any instantiations with mandatory keyword arguments
     [((tc-result1:
        (and t (Poly:
                vars
                (Function: (list (and arrs (arr: doms rngs rests (and drests #f)
-                                                (list (Keyword: _ _ #f) ...)))
+                                                (list (Keyword: _ _ kw?) ...)))
                                 ...)))))
       (list (tc-result1: argtys-t) ...))
      (handle-clauses
-      (doms rngs rests arrs) f-stx args-stx
+      (doms rngs rests kw? arrs) f-stx args-stx
       ;; only try inference if the argument lengths are appropriate
-      (λ (dom _ rest a) ((if rest <= =) (length dom) (length argtys)))
+      ;; and there's no mandatory kw
+      (λ (dom _ rest kw? a) 
+        (and (andmap not kw?) ((if rest <= =) (length dom) (length argtys))))
       ;; Only try to infer the free vars of the rng (which includes the vars
       ;; in filters/objects). Note that we have to use argtys-t here, since
       ;; argtys is a list of tc-results.
-      (λ (dom rng rest a)
+      (λ (dom rng rest kw? a)
          (infer/vararg vars null argtys-t dom rest rng
                        (and expected (tc-results->values expected))))
       t argtys expected)]