diff --git a/mypy/erasetype.py b/mypy/erasetype.py
index 12c10648525d..eb7c98e86df4 100644
--- a/mypy/erasetype.py
+++ b/mypy/erasetype.py
@@ -142,10 +142,13 @@ class LastKnownValueEraser(TypeTranslator):
     def visit_instance(self, t: Instance) -> Type:
         if not t.last_known_value and not t.args:
             return t
-        return t.copy_modified(
+        new_t = t.copy_modified(
             args=[a.accept(self) for a in t.args],
             last_known_value=None,
         )
+        new_t.can_be_true = t.can_be_true
+        new_t.can_be_false = t.can_be_false
+        return new_t
 
     def visit_type_alias_type(self, t: TypeAliasType) -> Type:
         # Type aliases can't contain literal values, because they are
diff --git a/test-data/unit/check-expressions.test b/test-data/unit/check-expressions.test
index 969cf026a467..944f1e8a6901 100644
--- a/test-data/unit/check-expressions.test
+++ b/test-data/unit/check-expressions.test
@@ -343,6 +343,15 @@ b = bool()
 reveal_type(s and b or b)  # N: Revealed type is 'builtins.bool'
 [builtins fixtures/bool.pyi]
 
+[case testRestrictedBoolAndOrWithGenerics]
+from typing import List
+
+def f(a: List[str], b: bool) -> bool:
+    x = a and b
+    y: bool
+    return reveal_type(x or y)  # N: Revealed type is 'builtins.bool'
+[builtins fixtures/list.pyi]
+
 [case testNonBooleanOr]
 c, d, b = None, None, None # type: (C, D, bool)
 if int():