diff --git a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/completion/PyLiteralTypeCompletionContributor.kt b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/completion/PyLiteralTypeCompletionContributor.kt
index bd8f511fbff9..0556134416ba 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/completion/PyLiteralTypeCompletionContributor.kt
+++ b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/completion/PyLiteralTypeCompletionContributor.kt
@@ -18,6 +18,24 @@ import com.jetbrains.python.psi.types.PyType
 import com.jetbrains.python.psi.types.PyTypeUtil
 import com.jetbrains.python.psi.types.TypeEvalContext
 
+/**
+ * Provides literal type variants in the following cases:
+ * ```python
+ * x: Literal["foo", "bar"]
+ * x = <caret>
+ * x = fo<caret>
+ * x = "fo<caret>"
+ * ```
+ *
+ * or
+ *
+ * ```python
+ * def f(x: Literal["foo", "bar"]): ...
+ * f(<caret>)
+ * f(fo<caret>)
+ * f("fo<caret>")
+ * ```
+ */
 class PyLiteralTypeCompletionContributor : CompletionContributor() {
   init {
     extend(CompletionType.BASIC, psiElement(), PyLiteralTypeCompletionProvider())
@@ -27,6 +45,7 @@ class PyLiteralTypeCompletionContributor : CompletionContributor() {
 private class PyLiteralTypeCompletionProvider : CompletionProvider<CompletionParameters?>() {
   override fun addCompletions(parameters: CompletionParameters, context: ProcessingContext, result: CompletionResultSet) {
     val position = parameters.position.parent as? PyExpression ?: return
+    if (!(position is PyStringLiteralExpression || position is PyReferenceExpression && !position.isQualified)) return
     val typeEvalContext = TypeEvalContext.codeCompletion(position.project, position.containingFile)
 
     val mappedParameters = position.getMappedParameters(PyResolveContext.defaultContext(typeEvalContext))
diff --git a/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInAssignmentValue.py b/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInAssignmentValue.py
new file mode 100644
index 000000000000..e7e1dba15dc6
--- /dev/null
+++ b/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInAssignmentValue.py
@@ -0,0 +1,5 @@
+from typing import Literal
+
+x: Literal["upper", "lower"]
+y = ""
+x = y.upp<caret>
\ No newline at end of file
diff --git a/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInCallArgument.py b/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInCallArgument.py
new file mode 100644
index 000000000000..1c45366b3f9d
--- /dev/null
+++ b/python/testData/completion/literalType/noLiteralVariantsOnQualifiedReferenceInCallArgument.py
@@ -0,0 +1,8 @@
+from typing import Literal
+
+
+def f(x: Literal["upper", "lower"]):
+    pass
+
+y = ""
+f(y.up<caret>)
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyLiteralTypeCompletionTest.kt b/python/testSrc/com/jetbrains/python/PyLiteralTypeCompletionTest.kt
index 0810b1281ae4..94a408639216 100644
--- a/python/testSrc/com/jetbrains/python/PyLiteralTypeCompletionTest.kt
+++ b/python/testSrc/com/jetbrains/python/PyLiteralTypeCompletionTest.kt
@@ -75,6 +75,16 @@ class PyLiteralTypeCompletionTest : PyTestCase() {
     myFixture.testCompletionVariants("nestedArgumentLists.py")
   }
 
+  // PY-83039
+  fun testNoLiteralVariantsOnQualifiedReferenceInAssignmentValue() {
+    doTestCompletionVariantsDoesNotContain("noLiteralVariantsOnQualifiedReferenceInAssignmentValue.py", "\"upper\"")
+  }
+
+  // PY-83039
+  fun testNoLiteralVariantsOnQualifiedReferenceInCallArgument() {
+    doTestCompletionVariantsDoesNotContain("noLiteralVariantsOnQualifiedReferenceInCallArgument.py", "\"upper\"")
+  }
+
   override fun getTestDataPath(): String {
     return super.getTestDataPath() + "/completion/literalType"
   }
@@ -84,4 +94,10 @@ class PyLiteralTypeCompletionTest : PyTestCase() {
     assertNotNull(result)
     assertContainsElements(result!!, *items)
   }
+
+  private fun doTestCompletionVariantsDoesNotContain(fileBefore: String, vararg items: String) {
+    val result = myFixture.getCompletionVariants(fileBefore)
+    assertNotNull(result)
+    assertDoesntContain(result!!, *items)
+  }
 }
\ No newline at end of file