diff --git a/CHANGELOG.md b/CHANGELOG.md
index 72a416a045c..4e46cfc8bb6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,20 @@
 
 ## Unreleased
 
+* Fix parsing of TypeScript `infer` inside a conditional `extends` ([#2675](https://github.com/evanw/esbuild/issues/2675))
+
+    Unlike JavaScript, parsing TypeScript sometimes requires backtracking. The `infer A` type operator can take an optional constraint of the form `infer A extends B`. However, this syntax conflicts with the similar conditional type operator `A extends B ? C : D` in cases where the syntax is combined, such as `infer A extends B ? C : D`. This is supposed to be parsed as `(infer A) extends B ? C : D`. Previously esbuild incorrectly parsed this as `(infer A extends B) ? C : D` instead, which is a parse error since the `?:` conditional operator requires the `extends` keyword as part of the conditional type. TypeScript disambiguates by speculatively parsing the `extends` after the `infer`, but backtracking if a `?` token is encountered afterward. With this release, esbuild should now do the same thing, so esbuild should now correctly parse these types. Here's a real-world example of such a type:
+
+    ```ts
+    type Normalized<T> = T extends Array<infer A extends object ? infer A : never>
+      ? Dictionary<Normalized<A>>
+      : {
+          [P in keyof T]: T[P] extends Array<infer A extends object ? infer A : never>
+            ? Dictionary<Normalized<A>>
+            : Normalized<T[P]>
+        }
+    ```
+
 * Avoid unnecessary watch mode rebuilds when debug logging is enabled ([#2661](https://github.com/evanw/esbuild/issues/2661))
 
     When debug-level logs are enabled (such as with `--log-level=debug`), esbuild's path resolution subsystem generates debug log messages that say something like "Read 20 entries for directory /home/user" to help you debug what esbuild's path resolution is doing. This caused esbuild's watch mode subsystem to add a dependency on the full list of entries in that directory since if that changes, the generated log message would also have to be updated. However, meant that on systems where a parent directory undergoes constant directory entry churn, esbuild's watch mode would continue to rebuild if `--log-level=debug` was passed.
diff --git a/internal/js_parser/ts_parser.go b/internal/js_parser/ts_parser.go
index b980755ae98..081312976cd 100644
--- a/internal/js_parser/ts_parser.go
+++ b/internal/js_parser/ts_parser.go
@@ -316,11 +316,11 @@ loop:
 
 				// "type Foo = Bar extends [infer T] ? T : null"
 				// "type Foo = Bar extends [infer T extends string] ? T : null"
+				// "type Foo = Bar extends [infer T extends string ? infer T : never] ? T : null"
 				if p.lexer.Token != js_lexer.TColon || (!opts.isIndexSignature && !opts.allowTupleLabels) {
 					p.lexer.Expect(js_lexer.TIdentifier)
 					if p.lexer.Token == js_lexer.TExtends {
-						p.lexer.Next()
-						p.skipTypeScriptType(js_ast.LPrefix)
+						p.trySkipTypeScriptConstraintOfInferTypeWithBacktracking()
 					}
 				}
 				break loop
@@ -853,6 +853,32 @@ func (p *parser) trySkipTypeScriptArrowArgsWithBacktracking() bool {
 	return true
 }
 
+func (p *parser) trySkipTypeScriptConstraintOfInferTypeWithBacktracking() bool {
+	oldLexer := p.lexer
+	p.lexer.IsLogDisabled = true
+
+	// Implement backtracking by restoring the lexer's memory to its original state
+	defer func() {
+		r := recover()
+		if _, isLexerPanic := r.(js_lexer.LexerPanic); isLexerPanic {
+			p.lexer = oldLexer
+		} else if r != nil {
+			panic(r)
+		}
+	}()
+
+	p.lexer.Expect(js_lexer.TExtends)
+	p.skipTypeScriptType(js_ast.LPrefix)
+	if p.lexer.Token == js_lexer.TQuestion {
+		p.lexer.Unexpected()
+	}
+
+	// Restore the log disabled flag. Note that we can't just set it back to false
+	// because it may have been true to start with.
+	p.lexer.IsLogDisabled = oldLexer.IsLogDisabled
+	return true
+}
+
 // Returns true if the current less-than token is considered to be an arrow
 // function under TypeScript's rules for files containing JSX syntax
 func (p *parser) isTSArrowFnJSX() (isTSArrowFn bool) {
diff --git a/internal/js_parser/ts_parser_test.go b/internal/js_parser/ts_parser_test.go
index 1dc89d250b7..8a1f34fa889 100644
--- a/internal/js_parser/ts_parser_test.go
+++ b/internal/js_parser/ts_parser_test.go
@@ -180,6 +180,7 @@ func TestTSTypes(t *testing.T) {
 	expectPrintedTS(t, "type Foo = Bar extends [infer T] ? T : null", "")
 	expectPrintedTS(t, "type Foo = Bar extends [infer T extends string] ? T : null", "")
 	expectPrintedTS(t, "let x: A extends B<infer C extends D> ? D : never", "let x;\n")
+	expectPrintedTS(t, "let x: A extends B<infer C extends D ? infer C : never> ? D : never", "let x;\n")
 
 	expectPrintedTS(t, "let x: A.B<X.Y>", "let x;\n")
 	expectPrintedTS(t, "let x: A.B<X.Y>=2", "let x = 2;\n")