diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/check-subforms-unit.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/check-subforms-unit.rkt
index e82416eb..5b6542ce 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/check-subforms-unit.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/check-subforms-unit.rkt
@@ -65,6 +65,8 @@
       (match t
         [(Function: (list _ ... (arr: (list arg1) _ _ #f (list (Keyword: _ _ #f) ...)) _ ...))
          (tc/funapp #'here #'(here) (ret t) (list (ret arg1)) #f)]
+        [(Function: (list _ ... (arr: '() _ (? values rest) #f (list (Keyword: _ _ #f) ...)) _ ...))
+         (tc/funapp #'here #'(here) (ret t) (list (ret rest)) #f)]
         [(? needs-resolving? t)
          (loop (resolve t))]
         [(or (Poly: ns _) (PolyDots: (list ns ... _) _))
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/with-handlers-rest-arg.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/with-handlers-rest-arg.rkt
new file mode 100644
index 00000000..b8820e74
--- /dev/null
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/succeed/with-handlers-rest-arg.rkt
@@ -0,0 +1,5 @@
+#lang typed/racket/base
+
+(define (run-ground-vm)
+  (with-handlers ([exn:break? void])
+    (void)))