diff --git a/crates/red_knot_python_semantic/resources/mdtest/type_properties/is_subtype_of.md b/crates/red_knot_python_semantic/resources/mdtest/type_properties/is_subtype_of.md
index 6eb506e602..413edf54b1 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/type_properties/is_subtype_of.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/type_properties/is_subtype_of.md
@@ -1166,6 +1166,56 @@ static_assert(is_subtype_of(TypeOf[C], Callable[[int], int]))
 static_assert(is_subtype_of(TypeOf[C], Callable[[], str]))
 ```
 
+#### Classes with `__new__`
+
+```py
+from typing import Callable
+from knot_extensions import TypeOf, static_assert, is_subtype_of
+
+class A:
+    def __new__(cls, a: int) -> int:
+        return a
+
+static_assert(is_subtype_of(TypeOf[A], Callable[[int], int]))
+static_assert(not is_subtype_of(TypeOf[A], Callable[[], int]))
+
+class B: ...
+class C(B): ...
+
+class D:
+    def __new__(cls) -> B:
+        return B()
+
+class E(D):
+    def __new__(cls) -> C:
+        return C()
+
+static_assert(is_subtype_of(TypeOf[E], Callable[[], C]))
+static_assert(is_subtype_of(TypeOf[E], Callable[[], B]))
+static_assert(not is_subtype_of(TypeOf[D], Callable[[], C]))
+static_assert(is_subtype_of(TypeOf[D], Callable[[], B]))
+```
+
+#### Classes with `__call__` and `__new__`
+
+If `__call__` and `__new__` are both present, `__call__` takes precedence.
+
+```py
+from typing import Callable
+from knot_extensions import TypeOf, static_assert, is_subtype_of
+
+class MetaWithIntReturn(type):
+    def __call__(cls) -> int:
+        return super().__call__()
+
+class F(metaclass=MetaWithIntReturn):
+    def __new__(cls) -> str:
+        return super().__new__(cls)
+
+static_assert(is_subtype_of(TypeOf[F], Callable[[], int]))
+static_assert(not is_subtype_of(TypeOf[F], Callable[[], str]))
+```
+
 ### Bound methods
 
 ```py
diff --git a/crates/red_knot_python_semantic/src/types.rs b/crates/red_knot_python_semantic/src/types.rs
index f65054c182..ec35873e32 100644
--- a/crates/red_knot_python_semantic/src/types.rs
+++ b/crates/red_knot_python_semantic/src/types.rs
@@ -1175,25 +1175,9 @@ impl<'db> Type<'db> {
                 self_subclass_ty.is_subtype_of(db, target_subclass_ty)
             }
 
-            (Type::ClassLiteral(_), Type::Callable(_)) => {
-                let metaclass_call_function_symbol = self
-                    .member_lookup_with_policy(
-                        db,
-                        "__call__".into(),
-                        MemberLookupPolicy::NO_INSTANCE_FALLBACK
-                            | MemberLookupPolicy::META_CLASS_NO_TYPE_FALLBACK,
-                    )
-                    .symbol;
-
-                if let Symbol::Type(Type::BoundMethod(metaclass_call_function), _) =
-                    metaclass_call_function_symbol
-                {
-                    // TODO: this intentionally diverges from step 1 in
-                    // https://typing.python.org/en/latest/spec/constructors.html#converting-a-constructor-to-callable
-                    // by always respecting the signature of the metaclass `__call__`, rather than
-                    // using a heuristic which makes unwarranted assumptions to sometimes ignore it.
-                    let metaclass_call_function = metaclass_call_function.into_callable_type(db);
-                    return metaclass_call_function.is_subtype_of(db, target);
+            (Type::ClassLiteral(class_literal), Type::Callable(_)) => {
+                if let Some(callable) = class_literal.into_callable(db) {
+                    return callable.is_subtype_of(db, target);
                 }
                 false
             }
@@ -5961,6 +5945,15 @@ impl<'db> FunctionType<'db> {
         ))
     }
 
+    /// Convert the `FunctionType` into a [`Type::BoundMethod`].
+    pub(crate) fn into_bound_method_type(
+        self,
+        db: &'db dyn Db,
+        self_instance: Type<'db>,
+    ) -> Type<'db> {
+        Type::BoundMethod(BoundMethodType::new(db, self, self_instance))
+    }
+
     /// Returns the [`FileRange`] of the function's name.
     pub fn focus_range(self, db: &dyn Db) -> FileRange {
         FileRange::new(
diff --git a/crates/red_knot_python_semantic/src/types/class.rs b/crates/red_knot_python_semantic/src/types/class.rs
index e90ef080d4..8eaa0c7988 100644
--- a/crates/red_knot_python_semantic/src/types/class.rs
+++ b/crates/red_knot_python_semantic/src/types/class.rs
@@ -818,6 +818,43 @@ impl<'db> ClassLiteralType<'db> {
         ))
     }
 
+    pub(super) fn into_callable(self, db: &'db dyn Db) -> Option<Type<'db>> {
+        let self_ty = Type::from(self);
+        let metaclass_call_function_symbol = self_ty
+            .member_lookup_with_policy(
+                db,
+                "__call__".into(),
+                MemberLookupPolicy::NO_INSTANCE_FALLBACK
+                    | MemberLookupPolicy::META_CLASS_NO_TYPE_FALLBACK,
+            )
+            .symbol;
+
+        if let Symbol::Type(Type::BoundMethod(metaclass_call_function), _) =
+            metaclass_call_function_symbol
+        {
+            // TODO: this intentionally diverges from step 1 in
+            // https://typing.python.org/en/latest/spec/constructors.html#converting-a-constructor-to-callable
+            // by always respecting the signature of the metaclass `__call__`, rather than
+            // using a heuristic which makes unwarranted assumptions to sometimes ignore it.
+            return Some(metaclass_call_function.into_callable_type(db));
+        }
+
+        let new_function_symbol = self_ty
+            .member_lookup_with_policy(
+                db,
+                "__new__".into(),
+                MemberLookupPolicy::MRO_NO_OBJECT_FALLBACK
+                    | MemberLookupPolicy::META_CLASS_NO_TYPE_FALLBACK,
+            )
+            .symbol;
+
+        if let Symbol::Type(Type::FunctionLiteral(new_function), _) = new_function_symbol {
+            return Some(new_function.into_bound_method_type(db, self.into()));
+        }
+        // TODO handle `__init__` also
+        None
+    }
+
     /// Returns the class member of this class named `name`.
     ///
     /// The member resolves to a member on the class itself or any of its proper superclasses.