diff --git a/packages/eslint-plugin/docs/rules/restrict-template-expressions.md b/packages/eslint-plugin/docs/rules/restrict-template-expressions.md
index e2d18d8e267..d7afae0ee26 100644
--- a/packages/eslint-plugin/docs/rules/restrict-template-expressions.md
+++ b/packages/eslint-plugin/docs/rules/restrict-template-expressions.md
@@ -90,6 +90,15 @@ const arg = /foo/;
 const msg1 = `arg = ${arg}`;
 ```
 
+### `allowNever`
+
+Examples of additional **correct** code for this rule with `{ allowNever: true }`:
+
+```ts
+const arg = 'something';
+const msg1 = typeof arg === 'string' ? arg : `arg = ${arg}`;
+```
+
 ## Related To
 
 - [`no-base-to-string`](./no-base-to-string.md)
diff --git a/packages/eslint-plugin/src/rules/restrict-template-expressions.ts b/packages/eslint-plugin/src/rules/restrict-template-expressions.ts
index 382f8ce0137..485ba42378b 100644
--- a/packages/eslint-plugin/src/rules/restrict-template-expressions.ts
+++ b/packages/eslint-plugin/src/rules/restrict-template-expressions.ts
@@ -11,6 +11,7 @@ type Options = [
     allowAny?: boolean;
     allowNullish?: boolean;
     allowRegExp?: boolean;
+    allowNever?: boolean;
   },
 ];
 
@@ -58,6 +59,11 @@ export default util.createRule<Options, MessageId>({
               'Whether to allow `regexp` typed values in template expressions.',
             type: 'boolean',
           },
+          allowNever: {
+            description:
+              'Whether to allow `never` typed values in template expressions.',
+            type: 'boolean',
+          },
         },
       },
     ],
@@ -111,6 +117,10 @@ export default util.createRule<Options, MessageId>({
         return true;
       }
 
+      if (options.allowNever && util.isTypeNeverType(type)) {
+        return true;
+      }
+
       return false;
     }
 
diff --git a/packages/eslint-plugin/tests/rules/restrict-template-expressions.test.ts b/packages/eslint-plugin/tests/rules/restrict-template-expressions.test.ts
index 7e80bdbdf5d..b58305051fa 100644
--- a/packages/eslint-plugin/tests/rules/restrict-template-expressions.test.ts
+++ b/packages/eslint-plugin/tests/rules/restrict-template-expressions.test.ts
@@ -227,6 +227,50 @@ ruleTester.run('restrict-template-expressions', rule, {
         }
       `,
     },
+    // allowNever
+    {
+      options: [{ allowNever: true }],
+      code: `
+        declare const value: never;
+        const stringy = \`\${value}\`;
+      `,
+    },
+    {
+      options: [{ allowNever: true }],
+      code: `
+        const arg = 'hello';
+        const msg = typeof arg === 'string' ? arg : \`arg = \${arg}\`;
+      `,
+    },
+    {
+      options: [{ allowNever: true }],
+      code: `
+        function test(arg: 'one' | 'two') {
+          switch (arg) {
+            case 'one':
+              return 1;
+            case 'two':
+              return 2;
+            default:
+              throw new Error(\`Unrecognised arg: \${arg}\`);
+          }
+        }
+      `,
+    },
+    {
+      options: [{ allowNever: true }],
+      code: `
+        // more variants may be added to Foo in the future
+        type Foo = { type: 'a'; value: number };
+
+        function checkFoosAreMatching(foo1: Foo, foo2: Foo) {
+          if (foo1.type !== foo2.type) {
+            // since Foo currently only has one variant, this code is never run, and \`foo1.type\` has type \`never\`.
+            throw new Error(\`expected \${foo1.type}, found \${foo2.type}\`);
+          }
+        }
+      `,
+    },
     // allow ALL
     {
       options: [
@@ -235,10 +279,11 @@ ruleTester.run('restrict-template-expressions', rule, {
           allowBoolean: true,
           allowNullish: true,
           allowRegExp: true,
+          allowNever: true,
         },
       ],
       code: `
-        type All = string | number | boolean | null | undefined | RegExp;
+        type All = string | number | boolean | null | undefined | RegExp | never;
         function test<T extends All>(arg: T) {
           return \`arg = \${arg}\`;
         }
@@ -418,6 +463,21 @@ ruleTester.run('restrict-template-expressions', rule, {
         },
       ],
     },
+    {
+      options: [{ allowNever: false }],
+      code: `
+        declare const value: never;
+        const stringy = \`\${value}\`;
+      `,
+      errors: [
+        {
+          messageId: 'invalidType',
+          data: { type: 'never' },
+          line: 3,
+          column: 28,
+        },
+      ],
+    },
     // TS 3.9 change
     {
       options: [{ allowAny: true }],