diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/tc-apply.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/tc-apply.rkt
index a2a58cc9..ca8e6bef 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/tc-apply.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/typecheck/tc-apply.rkt
@@ -183,14 +183,14 @@
              ;; ... function, (Listof A) or (List A B C etc) arg
              [(and drest (not tail-bound)
                    (eq? (cdr drest) dotted-var)
-                   (= (length domain) (length arg-tys))
+                   (<= (length domain) (length arg-tys))
                    (match full-tail-ty
                      [(List: tail-arg-tys #:tail (Listof: tail-arg-ty))
                       (infer/vararg
                         fixed-vars (list dotted-var)
-                        (cons tail-arg-ty (append tail-arg-tys arg-tys))
-                        (cons (car drest) (append (map (λ _ (car drest)) tail-arg-tys) domain))
-                        rest
+                        (cons tail-arg-ty (append arg-tys tail-arg-tys))
+                        (cons (car drest) domain)
+                        (car drest)
                         range)]
                      [(List: tail-arg-tys)
                       (infer/dots fixed-vars dotted-var (append arg-tys tail-arg-tys) domain
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
index f1733ad5..ef4d6222 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/typecheck-tests.rkt
@@ -2859,6 +2859,13 @@
          #:ret (ret (->* (list) Univ Univ))
          #:expected (ret (->* (list) Univ Univ))]
 
+       [tc-e
+         (let: ([f : (All (b ...) (Any ... b -> Any)) (lambda x 'x)])
+           (lambda xs (apply f 'y xs)))
+         #:ret (ret (->* (list) Univ Univ))
+         #:expected (ret (->* (list) Univ Univ))]
+
+
        [tc-e
          (let ()
            (: a Symbol)