diff --git a/CHANGES b/CHANGES
index 26282a80744..950ce56796c 100644
--- a/CHANGES
+++ b/CHANGES
@@ -61,6 +61,8 @@ Bugs fixed
   class inherites the class having ``_name`` attribute
 * #9537: autodoc: Some objects under ``typing`` module are not displayed well
   with the HEAD of 3.10
+* #9564: smartquotes: don't adjust typography for text with
+  language-highlighted ``:code:`` role.
 * #9512: sphinx-build: crashed with the HEAD of Python 3.10
 
 Testing
diff --git a/sphinx/util/nodes.py b/sphinx/util/nodes.py
index 7ce0933c602..78663e4c707 100644
--- a/sphinx/util/nodes.py
+++ b/sphinx/util/nodes.py
@@ -589,14 +589,16 @@ def copy_source_info(src: Element, dst: Element) -> None:
 
 def is_smartquotable(node: Node) -> bool:
     """Check whether the node is smart-quotable or not."""
-    if isinstance(node.parent, NON_SMARTQUOTABLE_PARENT_NODES):
-        return False
-    elif node.parent.get('support_smartquotes', None) is False:
-        return False
-    elif getattr(node, 'support_smartquotes', None) is False:
+    for pnode in traverse_parent(node.parent):
+        if isinstance(pnode, NON_SMARTQUOTABLE_PARENT_NODES):
+            return False
+        elif pnode.get('support_smartquotes', None) is False:
+            return False
+
+    if getattr(node, 'support_smartquotes', None) is False:
         return False
-    else:
-        return True
+
+    return True
 
 
 def process_only_nodes(document: Node, tags: "Tags") -> None:
diff --git a/tests/roots/test-smartquotes/index.rst b/tests/roots/test-smartquotes/index.rst
index be0d9b89c08..7dfd01a2862 100644
--- a/tests/roots/test-smartquotes/index.rst
+++ b/tests/roots/test-smartquotes/index.rst
@@ -2,3 +2,7 @@ test-smartquotes
 ================
 
 -- "Sphinx" is a tool that makes it easy ...
+
+.. toctree::
+
+   literals
diff --git a/tests/roots/test-smartquotes/literals.rst b/tests/roots/test-smartquotes/literals.rst
new file mode 100644
index 00000000000..ed77c8031fc
--- /dev/null
+++ b/tests/roots/test-smartquotes/literals.rst
@@ -0,0 +1,12 @@
+literals
+========
+
+.. role:: python(code)
+   :language: python
+.. default-role:: python
+
+Standard :code:`code role with 'quotes'`
+
+This is a Python :python:`{'code': 'role', 'with': 'quotes'}`.
+
+This is a ``literal with 'quotes'``
diff --git a/tests/test_smartquotes.py b/tests/test_smartquotes.py
index 4879dedc61f..fda34a28edd 100644
--- a/tests/test_smartquotes.py
+++ b/tests/test_smartquotes.py
@@ -9,6 +9,7 @@
 """
 
 import pytest
+from html5lib import HTMLParser
 
 
 @pytest.mark.sphinx(buildername='html', testroot='smartquotes', freshenv=True)
@@ -19,6 +20,24 @@ def test_basic(app, status, warning):
     assert '<p>– “Sphinx” is a tool that makes it easy …</p>' in content
 
 
+@pytest.mark.sphinx(buildername='html', testroot='smartquotes', freshenv=True)
+def test_literals(app, status, warning):
+    app.build()
+
+    with (app.outdir / 'literals.html').open() as html_file:
+        etree = HTMLParser(namespaceHTMLElements=False).parse(html_file)
+
+    for code_element in etree.iter('code'):
+        code_text = ''.join(code_element.itertext())
+
+        if code_text.startswith('code role'):
+            assert "'quotes'" in code_text
+        elif code_text.startswith('{'):
+            assert code_text == "{'code': 'role', 'with': 'quotes'}"
+        elif code_text.startswith('literal'):
+            assert code_text == "literal with 'quotes'"
+
+
 @pytest.mark.sphinx(buildername='text', testroot='smartquotes', freshenv=True)
 def test_text_builder(app, status, warning):
     app.build()