diff --git a/python/python-psi-impl/src/com/jetbrains/python/validation/CompatibilityVisitor.java b/python/python-psi-impl/src/com/jetbrains/python/validation/CompatibilityVisitor.java
index 1ddeba3ee242..6d9cd2a3c4b4 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/validation/CompatibilityVisitor.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/validation/CompatibilityVisitor.java
@@ -28,8 +28,13 @@ import com.jetbrains.python.codeInsight.imports.AddImportHelper;
 import com.jetbrains.python.codeInsight.typing.PyTypingTypeProvider;
 import com.jetbrains.python.inspections.quickfix.*;
 import com.jetbrains.python.psi.*;
+import com.jetbrains.python.psi.impl.PyBuiltinCache;
 import com.jetbrains.python.psi.impl.PyPsiUtils;
-import com.jetbrains.python.psi.types.*;
+import com.jetbrains.python.psi.resolve.PyResolveContext;
+import com.jetbrains.python.psi.types.PyClassType;
+import com.jetbrains.python.psi.types.PyType;
+import com.jetbrains.python.psi.types.PyUnionType;
+import com.jetbrains.python.psi.types.TypeEvalContext;
 import org.jetbrains.annotations.Nls;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -729,6 +734,7 @@ public abstract class CompatibilityVisitor extends PyAnnotator {
 
   private void checkBitwiseOrUnionSyntax(@NotNull PyBinaryExpression node) {
     if (node.getOperator() != PyTokenTypes.OR) return;
+
     final PsiFile file = node.getContainingFile();
     if (file == null ||
         file instanceof PyFile &&
@@ -737,10 +743,21 @@ public abstract class CompatibilityVisitor extends PyAnnotator {
       return;
     }
 
+    final TypeEvalContext context = TypeEvalContext.codeAnalysis(node.getProject(), node.getContainingFile());
+
+    final List<PsiElement> resolvedVariants = PyUtil.multiResolveTopPriority(node.getReference(PyResolveContext.defaultContext(context)));
+    for (PsiElement resolved : resolvedVariants) {
+      if (resolved instanceof PyFunction) {
+        final PyClass containingClass = ((PyFunction)resolved).getContainingClass();
+        if (containingClass == null) return;
+        final String classQualifiedName = containingClass.getQualifiedName();
+        if (!PyNames.TYPE.equals(classQualifiedName) && !"types.Union".equals(classQualifiedName)) return;
+      }
+    }
+
     // Consider only full expression not parts to have only one registered problem
     if (PsiTreeUtil.getParentOfType(node, PyBinaryExpression.class, true, PyStatement.class) != null) return;
 
-    final TypeEvalContext context = TypeEvalContext.codeAnalysis(node.getProject(), node.getContainingFile());
     final Ref<PyType> refType = PyTypingTypeProvider.getType(node, context);
     if (refType != null && refType.get() instanceof PyUnionType) {
       registerForAllMatchingVersions(level -> level.isOlderThan(LanguageLevel.PYTHON310),
diff --git a/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperator.py b/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperator.py
new file mode 100644
index 000000000000..869b80980f77
--- /dev/null
+++ b/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperator.py
@@ -0,0 +1,14 @@
+class MetaA(type):
+    def __or__(self, other):
+        return 42
+
+
+class A(metaclass=MetaA):
+    pass
+
+
+class B:
+    pass
+
+
+print(A | B)
diff --git a/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperatorReturnTypesUnion.py b/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperatorReturnTypesUnion.py
new file mode 100644
index 000000000000..ead370abff7c
--- /dev/null
+++ b/python/testData/highlighting/noErrorMetaClassOverloadBitwiseOrOperatorReturnTypesUnion.py
@@ -0,0 +1,17 @@
+import types
+
+
+class MetaA(type):
+    def __or__(self, other) -> types.Union:
+        return types.Union()
+
+
+class A(metaclass=MetaA):
+    pass
+
+
+class B:
+    pass
+
+
+print(A | B)
diff --git a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
index 103dfbd7efdd..58d97f70125d 100644
--- a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
+++ b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
@@ -518,6 +518,16 @@ public class PythonHighlightingTest extends PyTestCase {
     doTest(LanguageLevel.PYTHON39, false, false);
   }
 
+  // PY-49697
+  public void testNoErrorMetaClassOverloadBitwiseOrOperator() {
+    doTest(LanguageLevel.PYTHON39, false, false);
+  }
+
+  // PY-49697
+  public void testNoErrorMetaClassOverloadBitwiseOrOperatorReturnTypesUnion() {
+    doTest(LanguageLevel.PYTHON39, false, false);
+  }
+
   @NotNull
   private static EditorColorsScheme createTemporaryColorScheme() {
     EditorColorsManager manager = EditorColorsManager.getInstance();