diff --git a/python/python-psi-api/src/com/jetbrains/python/psi/types/PyTypeVarType.java b/python/python-psi-api/src/com/jetbrains/python/psi/types/PyTypeVarType.java
index ba6d6ad6d7b8..d89c276647ff 100644
--- a/python/python-psi-api/src/com/jetbrains/python/psi/types/PyTypeVarType.java
+++ b/python/python-psi-api/src/com/jetbrains/python/psi/types/PyTypeVarType.java
@@ -34,4 +34,10 @@ public interface PyTypeVarType extends PyTypeParameterType, PyInstantiableType<P
    * in PEP 484.
    */
   @Nullable PyType getBound();
+
+  @NotNull Variance getVariance();
+
+  enum Variance {
+    COVARIANT, CONTRAVARIANT, INVARIANT, INFER_VARIANCE
+  }
 }
diff --git a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
index 924249858f4e..39ae4336a0c4 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/codeInsight/typing/PyTypingTypeProvider.java
@@ -31,6 +31,7 @@ import com.jetbrains.python.codeInsight.functionTypeComments.psi.PyFunctionTypeA
 import com.jetbrains.python.codeInsight.typeHints.PyTypeHintFile;
 import com.jetbrains.python.psi.*;
 import com.jetbrains.python.psi.impl.PyBuiltinCache;
+import com.jetbrains.python.psi.impl.PyEvaluator;
 import com.jetbrains.python.psi.impl.PyPsiUtils;
 import com.jetbrains.python.psi.impl.stubs.PyClassElementType;
 import com.jetbrains.python.psi.impl.stubs.PyTypingAliasStubType;
@@ -1529,7 +1530,8 @@ public final class PyTypingTypeProvider extends PyTypeProviderWithCustomContext<
                 .toList();
               PyExpression boundExpression = assignedCall.getKeywordArgument("bound");
               PyType bound = boundExpression == null ? null : Ref.deref(getType(boundExpression, context));
-              return new PyTypeVarTypeImpl(name, constraints, bound, defaultType);
+              PyTypeVarType.Variance variance = getTypeVarVarianceFromDeclaration(assignedCall);
+              return new PyTypeVarTypeImpl(name, constraints, bound, defaultType, variance);
             }
             case ParamSpec -> {
               return new PyParamSpecType(name)
@@ -1543,6 +1545,25 @@ public final class PyTypingTypeProvider extends PyTypeProviderWithCustomContext<
     return null;
   }
 
+  private static @NotNull PyTypeVarType.Variance getTypeVarVarianceFromDeclaration(@NotNull PyCallExpression assignedCall) {
+    boolean covariant = PyEvaluator.evaluateAsBooleanNoResolve(assignedCall.getKeywordArgument("covariant"), false);
+    boolean contravariant = PyEvaluator.evaluateAsBooleanNoResolve(assignedCall.getKeywordArgument("contravariant"), false);
+    boolean inferVariance = PyEvaluator.evaluateAsBooleanNoResolve(assignedCall.getKeywordArgument("infer_variance"), false);
+
+    if (covariant && !contravariant) {
+      return PyTypeVarType.Variance.COVARIANT;
+    }
+    else if (contravariant && !covariant) {
+      return PyTypeVarType.Variance.CONTRAVARIANT;
+    }
+    else if (inferVariance) {
+      return PyTypeVarType.Variance.INFER_VARIANCE;
+    }
+    else {
+      return PyTypeVarType.Variance.INVARIANT;
+    }
+  }
+
   @ApiStatus.Internal
   public static @Nullable PyAstTypeParameter.Kind getTypeParameterKindFromDeclaration(@NotNull PyCallExpression callExpression,
                                                                                       @NotNull TypeEvalContext context) {
@@ -1600,7 +1621,7 @@ public final class PyTypingTypeProvider extends PyTypeProviderWithCustomContext<
           else if (boundExpression != null) {
             boundType = Ref.deref(getTypePreventingRecursion(boundExpression, context));
           }
-          return new PyTypeVarTypeImpl(name, constraints, boundType, defaultType)
+          return new PyTypeVarTypeImpl(name, constraints, boundType, defaultType, PyTypeVarType.Variance.INFER_VARIANCE)
             .withScopeOwner(scopeOwner)
             .withDeclarationElement(declarationElement);
         }
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyGenericType.java b/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyGenericType.java
index 8078d6c61396..a7a9c5593f86 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyGenericType.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyGenericType.java
@@ -27,6 +27,7 @@ public class PyGenericType implements PyTypeVarType {
   private final @NotNull List<@Nullable PyType> myConstraints;
   private final @Nullable PyType myBound;
   private final @Nullable Ref<PyType> myDefaultType;
+  private final @NotNull Variance myVariance;
   private final boolean myIsDefinition;
   private final @Nullable PyQualifiedNameOwner myDeclarationElement;
   private final @Nullable PyQualifiedNameOwner myScopeOwner;
@@ -34,14 +35,16 @@ public class PyGenericType implements PyTypeVarType {
   public PyGenericType(@NotNull String name,
                        @NotNull List<@Nullable PyType> constraints,
                        @Nullable PyType bound,
-                       @Nullable Ref<PyType> defaultType) {
-    this(name, constraints, bound, defaultType, false, null, null);
+                       @Nullable Ref<PyType> defaultType,
+                       @NotNull Variance variance) {
+    this(name, constraints, bound, defaultType, variance, false, null, null);
   }
 
   protected PyGenericType(@NotNull String name,
                           @NotNull List<@Nullable PyType> constraints,
                           @Nullable PyType bound,
                           @Nullable Ref<PyType> defaultType,
+                          @NotNull Variance variance,
                           boolean isDefinition,
                           @Nullable PyQualifiedNameOwner declarationElement,
                           @Nullable PyQualifiedNameOwner scopeOwner) {
@@ -49,6 +52,7 @@ public class PyGenericType implements PyTypeVarType {
     myConstraints = constraints;
     myBound = bound;
     myDefaultType = defaultType;
+    myVariance = variance;
     myIsDefinition = isDefinition;
     myDeclarationElement = declarationElement;
     myScopeOwner = scopeOwner;
@@ -156,6 +160,11 @@ public class PyGenericType implements PyTypeVarType {
     return myBound;
   }
 
+  @Override
+  public @NotNull Variance getVariance() {
+    return myVariance;
+  }
+
   @Override
   public @Nullable Ref<PyType> getDefaultType() {
     return myDefaultType;
@@ -172,7 +181,7 @@ public class PyGenericType implements PyTypeVarType {
   }
 
   public @NotNull PyGenericType withScopeOwner(@Nullable PyQualifiedNameOwner scopeOwner) {
-    return new PyTypeVarTypeImpl(getName(), getConstraints(), getBound(), getDefaultType(), isDefinition(), getDeclarationElement(), scopeOwner);
+    return new PyTypeVarTypeImpl(getName(), getConstraints(), getBound(), getDefaultType(), getVariance(), isDefinition(), getDeclarationElement(), scopeOwner);
   }
 
   public @NotNull PyGenericType withTargetExpression(@Nullable PyTargetExpression targetExpression) {
@@ -180,16 +189,16 @@ public class PyGenericType implements PyTypeVarType {
   }
 
   public @NotNull PyGenericType withDeclarationElement(@Nullable PyQualifiedNameOwner declarationElement) {
-    return new PyTypeVarTypeImpl(getName(), getConstraints(), getBound(), getDefaultType(), isDefinition(), declarationElement, getScopeOwner());
+    return new PyTypeVarTypeImpl(getName(), getConstraints(), getBound(), getDefaultType(), getVariance(), isDefinition(), declarationElement, getScopeOwner());
   }
 
   @Override
   public @NotNull PyGenericType toInstance() {
-    return myIsDefinition ? new PyTypeVarTypeImpl(myName, myConstraints, myBound, myDefaultType, false, myDeclarationElement, myScopeOwner) : this;
+    return myIsDefinition ? new PyTypeVarTypeImpl(myName, myConstraints, myBound, myDefaultType, myVariance, false, myDeclarationElement, myScopeOwner) : this;
   }
 
   @Override
   public @NotNull PyGenericType toClass() {
-    return myIsDefinition ? this : new PyTypeVarTypeImpl(myName, myConstraints, myBound, myDefaultType, true, myDeclarationElement, myScopeOwner);
+    return myIsDefinition ? this : new PyTypeVarTypeImpl(myName, myConstraints, myBound, myDefaultType, myVariance, true, myDeclarationElement, myScopeOwner);
   }
 }
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyTypeVarTypeImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyTypeVarTypeImpl.java
index cdd09fbe1601..68bf05c9cd30 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyTypeVarTypeImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/types/PyTypeVarTypeImpl.java
@@ -9,24 +9,26 @@ import java.util.List;
 
 public final class PyTypeVarTypeImpl extends PyGenericType {
   public PyTypeVarTypeImpl(@NotNull String name, @Nullable PyType bound) {
-    this(name, List.of(), bound, null);
+    this(name, List.of(), bound, null, Variance.INVARIANT);
   }
 
   public PyTypeVarTypeImpl(@NotNull String name,
                            @NotNull List<@Nullable PyType> constraints,
                            @Nullable PyType bound,
-                           @Nullable Ref<PyType> defaultType) {
-    super(name, constraints, bound, defaultType);
+                           @Nullable Ref<PyType> defaultType,
+                           @NotNull Variance variance) {
+    super(name, constraints, bound, defaultType, variance);
   }
 
   PyTypeVarTypeImpl(@NotNull String name,
                     @NotNull List<@Nullable PyType> constraints,
                     @Nullable PyType bound,
                     @Nullable Ref<PyType> defaultType,
+                    @NotNull Variance variance,
                     boolean isDefinition,
                     @Nullable PyQualifiedNameOwner declarationElement,
                     @Nullable PyQualifiedNameOwner scopeOwner) {
-    super(name, constraints, bound, defaultType, isDefinition, declarationElement, scopeOwner);
+    super(name, constraints, bound, defaultType, variance, isDefinition, declarationElement, scopeOwner);
   }
 
   @Override