diff --git a/crates/red_knot_python_semantic/resources/mdtest/annotations/new_types.md b/crates/red_knot_python_semantic/resources/mdtest/annotations/new_types.md
index c2f2fc2820..825ca9b27d 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/annotations/new_types.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/annotations/new_types.md
@@ -8,7 +8,11 @@ Currently, red-knot doesn't support `typing.NewType` in type annotations.
 from typing_extensions import NewType
 from types import GenericAlias
 
+X = GenericAlias(type, ())
 A = NewType("A", int)
+# TODO: typeshed for `typing.GenericAlias` uses `type` for the first argument. `NewType` should be special-cased
+# to be compatible with `type`
+# error: [invalid-argument-type] "Object of type `NewType` cannot be assigned to parameter 2 (`origin`) of function `__new__`; expected type `type`"
 B = GenericAlias(A, ())
 
 def _(
diff --git a/crates/red_knot_python_semantic/resources/mdtest/call/constructor.md b/crates/red_knot_python_semantic/resources/mdtest/call/constructor.md
index b9927fe086..763b6bd30b 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/call/constructor.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/call/constructor.md
@@ -1,7 +1,325 @@
 # Constructor
 
+When classes are instantiated, Python calls the meta-class `__call__` method, which can either be
+customized by the user or `type.__call__` is used.
+
+The latter calls the `__new__` method of the class, which is responsible for creating the instance
+and then calls the `__init__` method on the resulting instance to initialize it with the same
+arguments.
+
+Both `__new__` and `__init__` are looked up using full descriptor protocol, but `__new__` is then
+called as an implicit static, rather than bound method with `cls` passed as the first argument.
+`__init__` has no special handling, it is fetched as bound method and is called just like any other
+dunder method.
+
+`type.__call__` does other things too, but this is not yet handled by us.
+
+Since every class has `object` in it's MRO, the default implementations are `object.__new__` and
+`object.__init__`. They have some special behavior, namely:
+
+- If neither `__new__` nor `__init__` are defined anywhere in the MRO of class (except for `object`)
+    \- no arguments are accepted and `TypeError` is raised if any are passed.
+- If `__new__` is defined, but `__init__` is not - `object.__init__` will allow arbitrary arguments!
+
+As of today there are a number of behaviors that we do not support:
+
+- `__new__` is assumed to return an instance of the class on which it is called
+- User defined `__call__` on metaclass is ignored
+
+## Creating an instance of the `object` class itself
+
+Test the behavior of the `object` class itself. As implementation has to ignore `object` own methods
+as defined in typeshed due to behavior not expressible in typeshed (see above how `__init__` behaves
+differently depending on whether `__new__` is defined or not), we have to test the behavior of
+`object` itself.
+
+```py
+reveal_type(object())  # revealed: object
+
+# error: [too-many-positional-arguments] "Too many positional arguments to class `object`: expected 0, got 1"
+reveal_type(object(1))  # revealed: object
+```
+
+## No init or new
+
 ```py
 class Foo: ...
 
 reveal_type(Foo())  # revealed: Foo
+
+# error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 0, got 1"
+reveal_type(Foo(1))  # revealed: Foo
+```
+
+## `__new__` present on the class itself
+
+```py
+class Foo:
+    def __new__(cls, x: int) -> "Foo":
+        return object.__new__(cls)
+
+reveal_type(Foo(1))  # revealed: Foo
+
+# error: [missing-argument] "No argument provided for required parameter `x` of function `__new__`"
+reveal_type(Foo())  # revealed: Foo
+# error: [too-many-positional-arguments] "Too many positional arguments to function `__new__`: expected 1, got 2"
+reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## `__new__` present on a superclass
+
+If the `__new__` method is defined on a superclass, we can still infer the signature of the
+constructor from it.
+
+```py
+from typing_extensions import Self
+
+class Base:
+    def __new__(cls, x: int) -> Self: ...
+
+class Foo(Base): ...
+
+reveal_type(Foo(1))  # revealed: Foo
+
+# error: [missing-argument] "No argument provided for required parameter `x` of function `__new__`"
+reveal_type(Foo())  # revealed: Foo
+# error: [too-many-positional-arguments] "Too many positional arguments to function `__new__`: expected 1, got 2"
+reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## Conditional `__new__`
+
+```py
+def _(flag: bool) -> None:
+    class Foo:
+        if flag:
+            def __new__(cls, x: int): ...
+        else:
+            def __new__(cls, x: int, y: int = 1): ...
+
+    reveal_type(Foo(1))  # revealed: Foo
+    # error: [invalid-argument-type] "Object of type `Literal["1"]` cannot be assigned to parameter 2 (`x`) of function `__new__`; expected type `int`"
+    reveal_type(Foo("1"))  # revealed: Foo
+    # error: [missing-argument] "No argument provided for required parameter `x` of function `__new__`"
+    reveal_type(Foo())  # revealed: Foo
+    # error: [too-many-positional-arguments] "Too many positional arguments to function `__new__`: expected 1, got 2"
+    reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## A descriptor in place of `__new__`
+
+```py
+class SomeCallable:
+    def __call__(self, cls, x: int) -> "Foo":
+        obj = object.__new__(cls)
+        obj.x = x
+        return obj
+
+class Descriptor:
+    def __get__(self, instance, owner) -> SomeCallable:
+        return SomeCallable()
+
+class Foo:
+    __new__: Descriptor = Descriptor()
+
+reveal_type(Foo(1))  # revealed: Foo
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+reveal_type(Foo())  # revealed: Foo
+```
+
+## A callable instance in place of `__new__`
+
+### Bound
+
+```py
+class Callable:
+    def __call__(self, cls, x: int) -> "Foo":
+        return object.__new__(cls)
+
+class Foo:
+    __new__ = Callable()
+
+reveal_type(Foo(1))  # revealed: Foo
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+reveal_type(Foo())  # revealed: Foo
+```
+
+### Possibly Unbound
+
+```py
+def _(flag: bool) -> None:
+    class Callable:
+        if flag:
+            def __call__(self, cls, x: int) -> "Foo":
+                return object.__new__(cls)
+
+    class Foo:
+        __new__ = Callable()
+
+    # error: [call-non-callable] "Object of type `Callable` is not callable (possibly unbound `__call__` method)"
+    reveal_type(Foo(1))  # revealed: Foo
+    # TODO should be - error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+    # but we currently infer the signature of `__call__` as unknown, so it accepts any arguments
+    # error: [call-non-callable] "Object of type `Callable` is not callable (possibly unbound `__call__` method)"
+    reveal_type(Foo())  # revealed: Foo
+```
+
+## `__init__` present on the class itself
+
+If the class has an `__init__` method, we can infer the signature of the constructor from it.
+
+```py
+class Foo:
+    def __init__(self, x: int): ...
+
+reveal_type(Foo(1))  # revealed: Foo
+
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
+reveal_type(Foo())  # revealed: Foo
+# error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 1, got 2"
+reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## `__init__` present on a superclass
+
+If the `__init__` method is defined on a superclass, we can still infer the signature of the
+constructor from it.
+
+```py
+class Base:
+    def __init__(self, x: int): ...
+
+class Foo(Base): ...
+
+reveal_type(Foo(1))  # revealed: Foo
+
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
+reveal_type(Foo())  # revealed: Foo
+# error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 1, got 2"
+reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## Conditional `__init__`
+
+```py
+def _(flag: bool) -> None:
+    class Foo:
+        if flag:
+            def __init__(self, x: int): ...
+        else:
+            def __init__(self, x: int, y: int = 1): ...
+
+    reveal_type(Foo(1))  # revealed: Foo
+    # error: [invalid-argument-type] "Object of type `Literal["1"]` cannot be assigned to parameter 2 (`x`) of bound method `__init__`; expected type `int`"
+    reveal_type(Foo("1"))  # revealed: Foo
+    # error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
+    reveal_type(Foo())  # revealed: Foo
+    # error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 1, got 2"
+    reveal_type(Foo(1, 2))  # revealed: Foo
+```
+
+## A descriptor in place of `__init__`
+
+```py
+class SomeCallable:
+    # TODO: at runtime `__init__` is checked to return `None` and
+    # a `TypeError` is raised if it doesn't. However, apparently
+    # this is not true when the descriptor is used as `__init__`.
+    # However, we may still want to check this.
+    def __call__(self, x: int) -> str:
+        return "a"
+
+class Descriptor:
+    def __get__(self, instance, owner) -> SomeCallable:
+        return SomeCallable()
+
+class Foo:
+    __init__: Descriptor = Descriptor()
+
+reveal_type(Foo(1))  # revealed: Foo
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+reveal_type(Foo())  # revealed: Foo
+```
+
+## A callable instance in place of `__init__`
+
+### Bound
+
+```py
+class Callable:
+    def __call__(self, x: int) -> None:
+        pass
+
+class Foo:
+    __init__ = Callable()
+
+reveal_type(Foo(1))  # revealed: Foo
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+reveal_type(Foo())  # revealed: Foo
+```
+
+### Possibly Unbound
+
+```py
+def _(flag: bool) -> None:
+    class Callable:
+        if flag:
+            def __call__(self, x: int) -> None:
+                pass
+
+    class Foo:
+        __init__ = Callable()
+
+    # error: [call-non-callable] "Object of type `Callable` is not callable (possibly unbound `__call__` method)"
+    reveal_type(Foo(1))  # revealed: Foo
+    # TODO should be - error: [missing-argument] "No argument provided for required parameter `x` of bound method `__call__`"
+    # but we currently infer the signature of `__call__` as unknown, so it accepts any arguments
+    # error: [call-non-callable] "Object of type `Callable` is not callable (possibly unbound `__call__` method)"
+    reveal_type(Foo())  # revealed: Foo
+```
+
+## `__new__` and `__init__` both present
+
+### Identical signatures
+
+A common case is to have `__new__` and `__init__` with identical signatures (except for the first
+argument). We report errors for both `__new__` and `__init__` if the arguments are incorrect.
+
+At runtime `__new__` is called first and will fail without executing `__init__` if the arguments are
+incorrect. However, we decided that it is better to report errors for both methods, since after
+fixing the `__new__` method, the user may forget to fix the `__init__` method.
+
+```py
+class Foo:
+    def __new__(cls, x: int) -> "Foo":
+        return object.__new__(cls)
+
+    def __init__(self, x: int): ...
+
+# error: [missing-argument] "No argument provided for required parameter `x` of function `__new__`"
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
+reveal_type(Foo())  # revealed: Foo
+
+reveal_type(Foo(1))  # revealed: Foo
+```
+
+### Compatible signatures
+
+But they can also be compatible, but not identical. We should correctly report errors only for the
+mthod that would fail.
+
+```py
+class Foo:
+    def __new__(cls, *args, **kwargs):
+        return object.__new__(cls)
+
+    def __init__(self, x: int) -> None:
+        self.x = x
+
+# error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
+reveal_type(Foo())  # revealed: Foo
+reveal_type(Foo(1))  # revealed: Foo
+
+# error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 1, got 2"
+reveal_type(Foo(1, 2))  # revealed: Foo
 ```
diff --git a/crates/red_knot_python_semantic/resources/mdtest/call/subclass_of.md b/crates/red_knot_python_semantic/resources/mdtest/call/subclass_of.md
index 37082cfaa4..747367b03f 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/call/subclass_of.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/call/subclass_of.md
@@ -20,9 +20,11 @@ class C:
 def _(subclass_of_c: type[C]):
     reveal_type(subclass_of_c(1))  # revealed: C
 
-    # TODO: Those should all be errors
+    # error: [invalid-argument-type] "Object of type `Literal["a"]` cannot be assigned to parameter 2 (`x`) of bound method `__init__`; expected type `int`"
     reveal_type(subclass_of_c("a"))  # revealed: C
+    # error: [missing-argument] "No argument provided for required parameter `x` of bound method `__init__`"
     reveal_type(subclass_of_c())  # revealed: C
+    # error: [too-many-positional-arguments] "Too many positional arguments to bound method `__init__`: expected 1, got 2"
     reveal_type(subclass_of_c(1, 2))  # revealed: C
 ```
 
diff --git a/crates/red_knot_python_semantic/resources/mdtest/generics/classes.md b/crates/red_knot_python_semantic/resources/mdtest/generics/classes.md
index d6f78f1fed..d22660fe81 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/generics/classes.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/generics/classes.md
@@ -111,6 +111,8 @@ class E[T]:
     def __init__(self, x: T) -> None: ...
 
 # TODO: revealed: E[int] or E[Literal[1]]
+# TODO should not emit an error
+# error: [invalid-argument-type] "Object of type `Literal[1]` cannot be assigned to parameter 2 (`x`) of bound method `__init__`; expected type `T`"
 reveal_type(E(1))  # revealed: E
 ```
 
@@ -118,7 +120,8 @@ The types inferred from a type context and from a constructor parameter must be
 other:
 
 ```py
-# TODO: error
+# TODO: the error should not leak the `T` typevar and should mention `E[int]`
+# error: [invalid-argument-type] "Object of type `Literal["five"]` cannot be assigned to parameter 2 (`x`) of bound method `__init__`; expected type `T`"
 wrong_innards: E[int] = E("five")
 ```
 
diff --git a/crates/red_knot_python_semantic/resources/mdtest/unary/invert_add_usub.md b/crates/red_knot_python_semantic/resources/mdtest/unary/invert_add_usub.md
index 98d9c9b1c0..6b07cb1d2e 100644
--- a/crates/red_knot_python_semantic/resources/mdtest/unary/invert_add_usub.md
+++ b/crates/red_knot_python_semantic/resources/mdtest/unary/invert_add_usub.md
@@ -18,7 +18,7 @@ class Number:
     def __invert__(self) -> Literal[True]:
         return True
 
-a = Number()
+a = Number(0)
 
 reveal_type(+a)  # revealed: int
 reveal_type(-a)  # revealed: int
diff --git a/crates/red_knot_python_semantic/src/types.rs b/crates/red_knot_python_semantic/src/types.rs
index a6fc3c289b..4351f41488 100644
--- a/crates/red_knot_python_semantic/src/types.rs
+++ b/crates/red_knot_python_semantic/src/types.rs
@@ -5,7 +5,7 @@ use std::str::FromStr;
 use bitflags::bitflags;
 use call::{CallDunderError, CallError, CallErrorKind};
 use context::InferContext;
-use diagnostic::{INVALID_CONTEXT_MANAGER, NOT_ITERABLE};
+use diagnostic::{CALL_POSSIBLY_UNBOUND_METHOD, INVALID_CONTEXT_MANAGER, NOT_ITERABLE};
 use itertools::EitherOrBoth;
 use ruff_db::files::{File, FileRange};
 use ruff_python_ast as ast;
@@ -151,20 +151,60 @@ enum InstanceFallbackShadowsNonDataDescriptor {
     No,
 }
 
-/// Dunder methods are looked up on the meta-type of a type without potentially falling
-/// back on attributes on the type itself. For example, when implicitly invoked on an
-/// instance, dunder methods are not looked up as instance attributes. And when invoked
-/// on a class, dunder methods are only looked up on the metaclass, not the class itself.
-///
-/// All other attributes use the `WithInstanceFallback` policy.
-#[derive(Clone, Debug, Copy, PartialEq, Eq, Hash)]
-enum MemberLookupPolicy {
+bitflags! {
+    #[derive(Clone, Debug, Copy, PartialEq, Eq, Hash)]
+    pub(crate) struct MemberLookupPolicy: u8 {
+        /// Dunder methods are looked up on the meta-type of a type without potentially falling
+        /// back on attributes on the type itself. For example, when implicitly invoked on an
+        /// instance, dunder methods are not looked up as instance attributes. And when invoked
+        /// on a class, dunder methods are only looked up on the metaclass, not the class itself.
+        ///
+        /// All other attributes use the `WithInstanceFallback` policy.
+        ///
+        /// If this flag is set - look up the attribute on the meta-type only.
+        const NO_INSTANCE_FALLBACK = 1 << 0;
+
+        /// When looking up an attribute on a class, we sometimes need to avoid
+        /// looking up attributes defined on the `object` class. Usually because
+        /// typeshed doesn't properly encode runtime behavior (e.g. see how `__new__` & `__init__`
+        /// are handled during class creation).
+        ///
+        /// If this flag is set - exclude attributes defined on `object` when looking up attributes.
+        const MRO_NO_OBJECT_FALLBACK = 1 << 1;
+
+        /// When looking up an attribute on a class, we sometimes need to avoid
+        /// looking up attributes defined on `type` if this is the metaclass of the class.
+        ///
+        /// This is similar to no object fallback above
+        const META_CLASS_NO_TYPE_FALLBACK = 1 << 2;
+    }
+}
+
+impl MemberLookupPolicy {
     /// Only look up the attribute on the meta-type.
-    NoInstanceFallback,
-    /// Look up the attribute on the meta-type, but fall back to attributes on the instance
+    ///
+    /// If false - Look up the attribute on the meta-type, but fall back to attributes on the instance
     /// if the meta-type attribute is not found or if the meta-type attribute is not a data
     /// descriptor.
-    WithInstanceFallback,
+    pub(crate) const fn no_instance_fallback(self) -> bool {
+        self.contains(Self::NO_INSTANCE_FALLBACK)
+    }
+
+    /// Exclude attributes defined on `object` when looking up attributes.
+    pub(crate) const fn mro_no_object_fallback(self) -> bool {
+        self.contains(Self::MRO_NO_OBJECT_FALLBACK)
+    }
+
+    /// Exclude attributes defined on `type` when looking up meta-class-attributes.
+    pub(crate) const fn meta_class_no_type_fallback(self) -> bool {
+        self.contains(Self::META_CLASS_NO_TYPE_FALLBACK)
+    }
+}
+
+impl Default for MemberLookupPolicy {
+    fn default() -> Self {
+        Self::empty()
+    }
 }
 
 impl AttributeKind {
@@ -444,6 +484,10 @@ impl<'db> Type<'db> {
             .expect("Expected a Type::ClassLiteral variant")
     }
 
+    pub const fn is_subclass_of(&self) -> bool {
+        matches!(self, Type::SubclassOf(..))
+    }
+
     pub const fn is_class_literal(&self) -> bool {
         matches!(self, Type::ClassLiteral(..))
     }
@@ -1840,9 +1884,18 @@ impl<'db> Type<'db> {
     /// [descriptor guide]: https://docs.python.org/3/howto/descriptor.html#invocation-from-an-instance
     /// [`_PyType_Lookup`]: https://github.com/python/cpython/blob/e285232c76606e3be7bf216efb1be1e742423e4b/Objects/typeobject.c#L5223
     fn find_name_in_mro(&self, db: &'db dyn Db, name: &str) -> Option<SymbolAndQualifiers<'db>> {
+        self.find_name_in_mro_with_policy(db, name, MemberLookupPolicy::default())
+    }
+
+    fn find_name_in_mro_with_policy(
+        &self,
+        db: &'db dyn Db,
+        name: &str,
+        policy: MemberLookupPolicy,
+    ) -> Option<SymbolAndQualifiers<'db>> {
         match self {
             Type::Union(union) => Some(union.map_with_boundness_and_qualifiers(db, |elem| {
-                elem.find_name_in_mro(db, name)
+                elem.find_name_in_mro_with_policy(db, name, policy)
                     // If some elements are classes, and some are not, we simply fall back to `Unbound` for the non-class
                     // elements instead of short-circuiting the whole result to `None`. We would need a more detailed
                     // return type otherwise, and since `find_name_in_mro` is usually called via `class_member`, this is
@@ -1851,7 +1904,7 @@ impl<'db> Type<'db> {
             })),
             Type::Intersection(inter) => {
                 Some(inter.map_with_boundness_and_qualifiers(db, |elem| {
-                    elem.find_name_in_mro(db, name)
+                    elem.find_name_in_mro_with_policy(db, name, policy)
                         // Fall back to Unbound, similar to the union case (see above).
                         .unwrap_or_default()
                 }))
@@ -1903,7 +1956,7 @@ impl<'db> Type<'db> {
                         "__get__" | "__set__" | "__delete__",
                     ) => Some(Symbol::Unbound.into()),
 
-                    _ => Some(class_literal.class_member(db, name)),
+                    _ => Some(class_literal.class_member(db, name, policy)),
                 }
             }
 
@@ -1926,7 +1979,9 @@ impl<'db> Type<'db> {
             {
                 Some(Symbol::Unbound.into())
             }
-            Type::SubclassOf(subclass_of_ty) => subclass_of_ty.find_name_in_mro(db, name),
+            Type::SubclassOf(subclass_of_ty) => {
+                subclass_of_ty.find_name_in_mro_with_policy(db, name, policy)
+            }
 
             // We eagerly normalize type[object], i.e. Type::SubclassOf(object) to `type`, i.e. Type::Instance(type).
             // So looking up a name in the MRO of `Type::Instance(type)` is equivalent to looking up the name in the
@@ -1934,7 +1989,7 @@ impl<'db> Type<'db> {
             Type::Instance(InstanceType { class }) if class.is_known(db, KnownClass::Type) => {
                 KnownClass::Object
                     .to_class_literal(db)
-                    .find_name_in_mro(db, name)
+                    .find_name_in_mro_with_policy(db, name, policy)
             }
 
             Type::FunctionLiteral(_)
@@ -1964,17 +2019,28 @@ impl<'db> Type<'db> {
     ///
     /// Basically corresponds to `self.to_meta_type().find_name_in_mro(name)`, except for the handling
     /// of union and intersection types.
-    #[salsa::tracked]
     fn class_member(self, db: &'db dyn Db, name: Name) -> SymbolAndQualifiers<'db> {
+        self.class_member_with_policy(db, name, MemberLookupPolicy::default())
+    }
+
+    #[salsa::tracked]
+    fn class_member_with_policy(
+        self,
+        db: &'db dyn Db,
+        name: Name,
+        policy: MemberLookupPolicy,
+    ) -> SymbolAndQualifiers<'db> {
         tracing::trace!("class_member: {}.{}", self.display(db), name);
         match self {
-            Type::Union(union) => union
-                .map_with_boundness_and_qualifiers(db, |elem| elem.class_member(db, name.clone())),
-            Type::Intersection(inter) => inter
-                .map_with_boundness_and_qualifiers(db, |elem| elem.class_member(db, name.clone())),
+            Type::Union(union) => union.map_with_boundness_and_qualifiers(db, |elem| {
+                elem.class_member_with_policy(db, name.clone(), policy)
+            }),
+            Type::Intersection(inter) => inter.map_with_boundness_and_qualifiers(db, |elem| {
+                elem.class_member_with_policy(db, name.clone(), policy)
+            }),
             _ => self
                 .to_meta_type(db)
-                .find_name_in_mro(db, name.as_str())
+                .find_name_in_mro_with_policy(db, name.as_str(), policy)
                 .expect(
                     "`Type::find_name_in_mro()` should return `Some()` when called on a meta-type",
                 ),
@@ -2235,6 +2301,7 @@ impl<'db> Type<'db> {
         name: &str,
         fallback: SymbolAndQualifiers<'db>,
         policy: InstanceFallbackShadowsNonDataDescriptor,
+        member_policy: MemberLookupPolicy,
     ) -> SymbolAndQualifiers<'db> {
         let (
             SymbolAndQualifiers {
@@ -2244,7 +2311,7 @@ impl<'db> Type<'db> {
             meta_attr_kind,
         ) = Self::try_call_dunder_get_on_attribute(
             db,
-            self.class_member(db, name.into()),
+            self.class_member_with_policy(db, name.into(), member_policy),
             self,
             self.to_meta_type(db),
         );
@@ -2323,7 +2390,7 @@ impl<'db> Type<'db> {
     /// lookup, like a failed `__get__` call on a descriptor.
     #[must_use]
     pub(crate) fn member(self, db: &'db dyn Db, name: &str) -> SymbolAndQualifiers<'db> {
-        self.member_lookup_with_policy(db, name.into(), MemberLookupPolicy::WithInstanceFallback)
+        self.member_lookup_with_policy(db, name.into(), MemberLookupPolicy::default())
     }
 
     /// Similar to [`Type::member`], but allows the caller to specify what policy should be used
@@ -2454,15 +2521,17 @@ impl<'db> Type<'db> {
 
             Type::ModuleLiteral(module) => module.static_member(db, name_str).into(),
 
-            Type::AlwaysFalsy | Type::AlwaysTruthy => self.class_member(db, name),
+            Type::AlwaysFalsy | Type::AlwaysTruthy => {
+                self.class_member_with_policy(db, name, policy)
+            }
 
-            _ if policy == MemberLookupPolicy::NoInstanceFallback => self
-                .invoke_descriptor_protocol(
-                    db,
-                    name_str,
-                    Symbol::Unbound.into(),
-                    InstanceFallbackShadowsNonDataDescriptor::No,
-                ),
+            _ if policy.no_instance_fallback() => self.invoke_descriptor_protocol(
+                db,
+                name_str,
+                Symbol::Unbound.into(),
+                InstanceFallbackShadowsNonDataDescriptor::No,
+                policy,
+            ),
 
             Type::Instance(..)
             | Type::BooleanLiteral(..)
@@ -2483,15 +2552,21 @@ impl<'db> Type<'db> {
                     name_str,
                     fallback,
                     InstanceFallbackShadowsNonDataDescriptor::No,
+                    policy,
                 );
 
                 let custom_getattr_result = || {
-                    // Typeshed has a fake `__getattr__` on `types.ModuleType` to help out with dynamic imports.
-                    // We explicitly hide it here to prevent arbitrary attributes from being available on modules.
-                    if self
-                        .into_instance()
-                        .is_some_and(|instance| instance.class.is_known(db, KnownClass::ModuleType))
-                    {
+                    // Typeshed has a fake `__getattr__` on `types.ModuleType` to help out with
+                    // dynamic imports. We explicitly hide it here to prevent arbitrary attributes
+                    // from being available on modules. Same for `types.GenericAlias` - its
+                    // `__getattr__` method will delegate to `__origin__` to allow looking up
+                    // attributes on the original type. But in typeshed its return type is `Any`.
+                    // It will need a special handling, so it remember the origin type to properly
+                    // resolve the attribute.
+                    if self.into_instance().is_some_and(|instance| {
+                        instance.class.is_known(db, KnownClass::ModuleType)
+                            || instance.class.is_known(db, KnownClass::GenericAlias)
+                    }) {
                         return Symbol::Unbound.into();
                     }
 
@@ -2525,7 +2600,7 @@ impl<'db> Type<'db> {
             }
 
             Type::ClassLiteral(..) | Type::SubclassOf(..) => {
-                let class_attr_plain = self.find_name_in_mro(db, name_str).expect(
+                let class_attr_plain = self.find_name_in_mro_with_policy(db, name_str, policy).expect(
                     "Calling `find_name_in_mro` on class literals and subclass-of types should always return `Some`",
                 );
 
@@ -2550,6 +2625,7 @@ impl<'db> Type<'db> {
                     name_str,
                     class_attr_fallback,
                     InstanceFallbackShadowsNonDataDescriptor::Yes,
+                    policy,
                 )
             }
         }
@@ -3066,6 +3142,12 @@ impl<'db> Type<'db> {
             },
 
             Type::ClassLiteral(ClassLiteralType { class }) => match class.known(db) {
+                // TODO: Ideally we'd use `try_call_constructor` for all constructor calls.
+                // Currently we don't for a few special known types, either because their
+                // constructors are defined with overloads, or because we want to special case
+                // their return type beyond what typeshed provides (though this support could
+                // likely be moved into the `try_call_constructor` path). Once we support
+                // overloads, re-evaluate the need for these arms.
                 Some(KnownClass::Bool) => {
                     // ```py
                     // class bool(int):
@@ -3165,6 +3247,21 @@ impl<'db> Type<'db> {
                     );
                     Signatures::single(signature)
                 }
+                Some(KnownClass::Object) => {
+                    // ```py
+                    // class object:
+                    //    def __init__(self) -> None: ...
+                    //    def __new__(cls) -> Self: ...
+                    // ```
+                    let signature = CallableSignature::from_overloads(
+                        self,
+                        [Signature::new(
+                            Parameters::empty(),
+                            Some(KnownClass::Object.to_instance(db)),
+                        )],
+                    );
+                    Signatures::single(signature)
+                }
 
                 Some(KnownClass::Property) => {
                     let getter_signature = Signature::new(
@@ -3234,8 +3331,11 @@ impl<'db> Type<'db> {
                     Signatures::single(signature)
                 }
 
-                // TODO annotated return type on `__new__` or metaclass `__call__`
-                // TODO check call vs signatures of `__new__` and/or `__init__`
+                // Most class literal constructor calls are handled by `try_call_constructor` and
+                // not via getting the signature here. This signature can still be used in some
+                // cases (e.g. evaluating callable subtyping). TODO improve this definition
+                // (intersection of `__new__` and `__init__` signatures? and respect metaclass
+                // `__call__`).
                 _ => {
                     let signature = CallableSignature::single(
                         self,
@@ -3247,6 +3347,10 @@ impl<'db> Type<'db> {
 
             Type::SubclassOf(subclass_of_type) => match subclass_of_type.subclass_of() {
                 ClassBase::Dynamic(dynamic_type) => Type::Dynamic(dynamic_type).signatures(db),
+                // Most type[] constructor calls are handled by `try_call_constructor` and not via
+                // getting the signature here. This signature can still be used in some cases (e.g.
+                // evaluating callable subtyping). TODO improve this definition (intersection of
+                // `__new__` and `__init__` signatures? and respect metaclass `__call__`).
                 ClassBase::Class(class) => Type::class_literal(class).signatures(db),
             },
 
@@ -3260,7 +3364,7 @@ impl<'db> Type<'db> {
                     .member_lookup_with_policy(
                         db,
                         Name::new_static("__call__"),
-                        MemberLookupPolicy::NoInstanceFallback,
+                        MemberLookupPolicy::NO_INSTANCE_FALLBACK,
                     )
                     .symbol
                 {
@@ -3324,7 +3428,7 @@ impl<'db> Type<'db> {
         mut argument_types: CallArgumentTypes<'_, 'db>,
     ) -> Result<Bindings<'db>, CallDunderError<'db>> {
         match self
-            .member_lookup_with_policy(db, name.into(), MemberLookupPolicy::NoInstanceFallback)
+            .member_lookup_with_policy(db, name.into(), MemberLookupPolicy::NO_INSTANCE_FALLBACK)
             .symbol
         {
             Symbol::Type(dunder_callable, boundness) => {
@@ -3485,6 +3589,124 @@ impl<'db> Type<'db> {
         }
     }
 
+    /// Given a class literal or non-dynamic SubclassOf type, try calling it (creating an instance)
+    /// and return the resulting instance type.
+    ///
+    /// Models `type.__call__` behavior.
+    /// TODO: model metaclass `__call__`.
+    ///
+    /// E.g., for the following code, infer the type of `Foo()`:
+    /// ```python
+    /// class Foo:
+    ///     pass
+    ///
+    /// Foo()
+    /// ```
+    fn try_call_constructor(
+        self,
+        db: &'db dyn Db,
+        argument_types: CallArgumentTypes<'_, 'db>,
+    ) -> Result<Type<'db>, ConstructorCallError<'db>> {
+        debug_assert!(matches!(self, Type::ClassLiteral(_) | Type::SubclassOf(_)));
+
+        // As of now we do not model custom `__call__` on meta-classes, so the code below
+        // only deals with interplay between `__new__` and `__init__` methods.
+        // The logic is roughly as follows:
+        // 1. If `__new__` is defined anywhere in the MRO (except for `object`, since it is always
+        //    present), we call it and analyze outcome. We then analyze `__init__` call, but only
+        //    if it is defined somewhere except object. This is because `object.__init__`
+        //    allows arbitrary arguments if and only if `__new__` is defined, but typeshed
+        //    defines `__init__` for `object` with no arguments.
+        // 2. If `__new__` is not found, we call `__init__`. Here, we allow it to fallback all
+        //    the way to `object` (single `self` argument call). This time it is correct to
+        //    fallback to `object.__init__`, since it will indeed check that no arguments are
+        //    passed.
+        //
+        // Note that we currently ignore `__new__` return type, since we do not yet support `Self`
+        // and most builtin classes use it as return type annotation. We always return the instance
+        // type.
+
+        // Lookup `__new__` method in the MRO up to, but not including, `object`. Also, we must
+        // avoid `__new__` on `type` since per descriptor protocol, if `__new__` is not defined on
+        // a class, metaclass attribute would take precedence. But by avoiding `__new__` on
+        // `object` we would inadvertently unhide `__new__` on `type`, which is not what we want.
+        // An alternative might be to not skip `object.__new__` but instead mark it such that it's
+        // easy to check if that's the one we found?
+        let new_call_outcome: Option<Result<Bindings<'db>, CallDunderError<'db>>> = match self
+            .member_lookup_with_policy(
+                db,
+                "__new__".into(),
+                MemberLookupPolicy::MRO_NO_OBJECT_FALLBACK
+                    | MemberLookupPolicy::META_CLASS_NO_TYPE_FALLBACK,
+            )
+            .symbol
+        {
+            Symbol::Type(dunder_callable, boundness) => {
+                let signatures = dunder_callable.signatures(db);
+                // `__new__` is a static method, so we must inject the `cls` argument.
+                let mut argument_types = argument_types.prepend_synthetic(self);
+
+                Some(
+                    match Bindings::match_parameters(signatures, &mut argument_types)
+                        .check_types(db, &mut argument_types)
+                    {
+                        Ok(bindings) => {
+                            if boundness == Boundness::PossiblyUnbound {
+                                Err(CallDunderError::PossiblyUnbound(Box::new(bindings)))
+                            } else {
+                                Ok(bindings)
+                            }
+                        }
+                        Err(err) => Err(err.into()),
+                    },
+                )
+            }
+            // No explicit `__new__` method found
+            Symbol::Unbound => None,
+        };
+
+        // TODO: we should use the actual return type of `__new__` to determine the instance type
+        let instance_ty = self
+            .to_instance(db)
+            .expect("Class literal type and subclass-of types should always be convertible to instance type");
+
+        let init_call_outcome = if new_call_outcome.is_none()
+            || !instance_ty
+                .member_lookup_with_policy(
+                    db,
+                    "__init__".into(),
+                    MemberLookupPolicy::MRO_NO_OBJECT_FALLBACK,
+                )
+                .symbol
+                .is_unbound()
+        {
+            Some(instance_ty.try_call_dunder(db, "__init__", argument_types))
+        } else {
+            None
+        };
+
+        match (new_call_outcome, init_call_outcome) {
+            // All calls are successful or not called at all
+            (None | Some(Ok(_)), None | Some(Ok(_))) => Ok(instance_ty),
+            (None | Some(Ok(_)), Some(Err(error))) => {
+                // no custom `__new__` or it was called and succeeded, but `__init__` failed.
+                Err(ConstructorCallError::Init(instance_ty, error))
+            }
+            (Some(Err(error)), None | Some(Ok(_))) => {
+                // custom `__new__` was called and failed, but init is ok
+                Err(ConstructorCallError::New(instance_ty, error))
+            }
+            (Some(Err(new_error)), Some(Err(init_error))) => {
+                // custom `__new__` was called and failed, and `__init__` is also not ok
+                Err(ConstructorCallError::NewAndInit(
+                    instance_ty,
+                    new_error,
+                    init_error,
+                ))
+            }
+        }
+    }
+
     #[must_use]
     pub fn to_instance(&self, db: &'db dyn Db) -> Option<Type<'db>> {
         match self {
@@ -4718,6 +4940,98 @@ impl<'db> BoolError<'db> {
     }
 }
 
+/// Error returned if a class instantiation call failed
+#[derive(Debug)]
+enum ConstructorCallError<'db> {
+    Init(Type<'db>, CallDunderError<'db>),
+    New(Type<'db>, CallDunderError<'db>),
+    NewAndInit(Type<'db>, CallDunderError<'db>, CallDunderError<'db>),
+}
+
+impl<'db> ConstructorCallError<'db> {
+    fn return_type(&self) -> Type<'db> {
+        match self {
+            Self::Init(ty, _) => *ty,
+            Self::New(ty, _) => *ty,
+            Self::NewAndInit(ty, _, _) => *ty,
+        }
+    }
+
+    fn report_diagnostic(
+        &self,
+        context: &InferContext<'db>,
+        context_expression_type: Type<'db>,
+        context_expression_node: ast::AnyNodeRef,
+    ) {
+        let report_init_error = |call_dunder_error: &CallDunderError<'db>| match call_dunder_error {
+            CallDunderError::MethodNotAvailable => {
+                // If we are using vendored typeshed, it should be impossible to have missing
+                // or unbound `__init__` method on a class, as all classes have `object` in MRO.
+                // Thus the following may only trigger if a custom typeshed is used.
+                context.report_lint(
+                    &CALL_POSSIBLY_UNBOUND_METHOD,
+                    context_expression_node,
+                    format_args!(
+                        "`__init__` method is missing on type `{}`. Make sure your `object` in typeshed has its definition.",
+                        context_expression_type.display(context.db()),
+                    ),
+                );
+            }
+            CallDunderError::PossiblyUnbound(bindings) => {
+                context.report_lint(
+                    &CALL_POSSIBLY_UNBOUND_METHOD,
+                    context_expression_node,
+                    format_args!(
+                        "Method `__init__` on type `{}` is possibly unbound.",
+                        context_expression_type.display(context.db()),
+                    ),
+                );
+
+                bindings.report_diagnostics(context, context_expression_node);
+            }
+            CallDunderError::CallError(_, bindings) => {
+                bindings.report_diagnostics(context, context_expression_node);
+            }
+        };
+
+        let report_new_error = |call_dunder_error: &CallDunderError<'db>| match call_dunder_error {
+            CallDunderError::MethodNotAvailable => {
+                // We are explicitly checking for `__new__` before attempting to call it,
+                // so this should never happen.
+                unreachable!("`__new__` method may not be called if missing");
+            }
+            CallDunderError::PossiblyUnbound(bindings) => {
+                context.report_lint(
+                    &CALL_POSSIBLY_UNBOUND_METHOD,
+                    context_expression_node,
+                    format_args!(
+                        "Method `__new__` on type `{}` is possibly unbound.",
+                        context_expression_type.display(context.db()),
+                    ),
+                );
+
+                bindings.report_diagnostics(context, context_expression_node);
+            }
+            CallDunderError::CallError(_, bindings) => {
+                bindings.report_diagnostics(context, context_expression_node);
+            }
+        };
+
+        match self {
+            Self::Init(_, call_dunder_error) => {
+                report_init_error(call_dunder_error);
+            }
+            Self::New(_, call_dunder_error) => {
+                report_new_error(call_dunder_error);
+            }
+            Self::NewAndInit(_, new_call_dunder_error, init_call_dunder_error) => {
+                report_new_error(new_call_dunder_error);
+                report_init_error(init_call_dunder_error);
+            }
+        }
+    }
+}
+
 #[derive(Debug, Copy, Clone, PartialEq, Eq)]
 pub enum Truthiness {
     /// For an object `x`, `bool(x)` will always return `True`
diff --git a/crates/red_knot_python_semantic/src/types/call/arguments.rs b/crates/red_knot_python_semantic/src/types/call/arguments.rs
index cce0c81c0b..fd2cd4a313 100644
--- a/crates/red_knot_python_semantic/src/types/call/arguments.rs
+++ b/crates/red_knot_python_semantic/src/types/call/arguments.rs
@@ -109,6 +109,21 @@ impl<'a, 'db> CallArgumentTypes<'a, 'db> {
         result
     }
 
+    /// Create a new [`CallArgumentTypes`] by prepending a synthetic argument to the front of this
+    /// argument list.
+    pub(crate) fn prepend_synthetic(&self, synthetic: Type<'db>) -> Self {
+        Self {
+            arguments: CallArguments(
+                std::iter::once(Argument::Synthetic)
+                    .chain(self.arguments.iter())
+                    .collect(),
+            ),
+            types: std::iter::once(synthetic)
+                .chain(self.types.iter().copied())
+                .collect(),
+        }
+    }
+
     pub(crate) fn iter(&self) -> impl Iterator<Item = (Argument<'a>, Type<'db>)> + '_ {
         self.arguments.iter().zip(self.types.iter().copied())
     }
diff --git a/crates/red_knot_python_semantic/src/types/call/bind.rs b/crates/red_knot_python_semantic/src/types/call/bind.rs
index 8714e48120..a2f25b1289 100644
--- a/crates/red_knot_python_semantic/src/types/call/bind.rs
+++ b/crates/red_knot_python_semantic/src/types/call/bind.rs
@@ -924,8 +924,14 @@ impl<'db> Binding<'db> {
                     first_excess_argument_index,
                     num_synthetic_args,
                 ),
-                expected_positional_count: parameters.positional().count(),
-                provided_positional_count: next_positional,
+                expected_positional_count: parameters
+                    .positional()
+                    .count()
+                    // using saturating_sub to avoid negative values due to invalid syntax in source code
+                    .saturating_sub(num_synthetic_args),
+                provided_positional_count: next_positional
+                    // using saturating_sub to avoid negative values due to invalid syntax in source code
+                    .saturating_sub(num_synthetic_args),
             });
         }
         let mut missing = vec![];
diff --git a/crates/red_knot_python_semantic/src/types/class.rs b/crates/red_knot_python_semantic/src/types/class.rs
index 21e4c5e6c8..b73a62c792 100644
--- a/crates/red_knot_python_semantic/src/types/class.rs
+++ b/crates/red_knot_python_semantic/src/types/class.rs
@@ -2,8 +2,8 @@ use std::sync::{LazyLock, Mutex};
 
 use super::{
     class_base::ClassBase, infer_expression_type, infer_unpack_types, IntersectionBuilder,
-    KnownFunction, Mro, MroError, MroIterator, SubclassOfType, Truthiness, Type, TypeAliasType,
-    TypeQualifiers, TypeVarInstance,
+    KnownFunction, MemberLookupPolicy, Mro, MroError, MroIterator, SubclassOfType, Truthiness,
+    Type, TypeAliasType, TypeQualifiers, TypeVarInstance,
 };
 use crate::semantic_index::definition::Definition;
 use crate::{
@@ -323,7 +323,12 @@ impl<'db> Class<'db> {
     /// The member resolves to a member on the class itself or any of its proper superclasses.
     ///
     /// TODO: Should this be made private...?
-    pub(super) fn class_member(self, db: &'db dyn Db, name: &str) -> SymbolAndQualifiers<'db> {
+    pub(super) fn class_member(
+        self,
+        db: &'db dyn Db,
+        name: &str,
+        policy: MemberLookupPolicy,
+    ) -> SymbolAndQualifiers<'db> {
         if name == "__mro__" {
             let tuple_elements = self.iter_mro(db).map(Type::from);
             return Symbol::bound(TupleType::from_elements(db, tuple_elements)).into();
@@ -354,6 +359,18 @@ impl<'db> Class<'db> {
                     dynamic_type_to_intersect_with.get_or_insert(Type::from(superclass));
                 }
                 ClassBase::Class(class) => {
+                    if class.is_known(db, KnownClass::Object)
+                        // Only exclude `object` members if this is not an `object` class itself
+                        && (policy.mro_no_object_fallback() && !self.is_known(db, KnownClass::Object))
+                    {
+                        continue;
+                    }
+
+                    if class.is_known(db, KnownClass::Type) && policy.meta_class_no_type_fallback()
+                    {
+                        continue;
+                    }
+
                     lookup_result = lookup_result.or_else(|lookup_error| {
                         lookup_error.or_fall_back_to(db, class.own_class_member(db, name))
                     });
@@ -776,8 +793,13 @@ impl<'db> ClassLiteralType<'db> {
         self.class.body_scope(db)
     }
 
-    pub(super) fn class_member(self, db: &'db dyn Db, name: &str) -> SymbolAndQualifiers<'db> {
-        self.class.class_member(db, name)
+    pub(super) fn class_member(
+        self,
+        db: &'db dyn Db,
+        name: &str,
+        policy: MemberLookupPolicy,
+    ) -> SymbolAndQualifiers<'db> {
+        self.class.class_member(db, name, policy)
     }
 }
 
diff --git a/crates/red_knot_python_semantic/src/types/infer.rs b/crates/red_knot_python_semantic/src/types/infer.rs
index 98502ca061..97f2c56840 100644
--- a/crates/red_knot_python_semantic/src/types/infer.rs
+++ b/crates/red_knot_python_semantic/src/types/infer.rs
@@ -100,7 +100,7 @@ use super::slots::check_class_slots;
 use super::string_annotation::{
     parse_string_annotation, BYTE_STRING_TYPE_ANNOTATION, FSTRING_TYPE_ANNOTATION,
 };
-use super::CallDunderError;
+use super::{CallDunderError, ClassLiteralType};
 
 /// Infer all types for a [`ScopeId`], including all definitions and expressions in that scope.
 /// Use when checking a scope, or needing to provide a type for an arbitrary expression in the
@@ -2380,10 +2380,11 @@ impl<'db> TypeInferenceBuilder<'db> {
             | Type::WrapperDescriptor(_)
             | Type::TypeVar(..)
             | Type::AlwaysTruthy
-            | Type::AlwaysFalsy => match object_ty.class_member(db, attribute.into()) {
-                meta_attr @ SymbolAndQualifiers { .. } if meta_attr.is_class_var() => {
-                    if emit_diagnostics {
-                        self.context.report_lint(
+            | Type::AlwaysFalsy => {
+                match object_ty.class_member(db, attribute.into()) {
+                    meta_attr @ SymbolAndQualifiers { .. } if meta_attr.is_class_var() => {
+                        if emit_diagnostics {
+                            self.context.report_lint(
                                 &INVALID_ATTRIBUTE_ACCESS,
                                 target,
                                 format_args!(
@@ -2391,26 +2392,30 @@ impl<'db> TypeInferenceBuilder<'db> {
                                     ty = object_ty.display(self.db()),
                                 ),
                             );
+                        }
+                        false
                     }
-                    false
-                }
-                SymbolAndQualifiers {
-                    symbol: Symbol::Type(meta_attr_ty, meta_attr_boundness),
-                    qualifiers: _,
-                } => {
-                    let assignable_to_meta_attr = if let Symbol::Type(meta_dunder_set, _) =
-                        meta_attr_ty.class_member(db, "__set__".into()).symbol
-                    {
-                        let successful_call = meta_dunder_set
-                            .try_call(
-                                db,
-                                CallArgumentTypes::positional([meta_attr_ty, object_ty, value_ty]),
-                            )
-                            .is_ok();
+                    SymbolAndQualifiers {
+                        symbol: Symbol::Type(meta_attr_ty, meta_attr_boundness),
+                        qualifiers: _,
+                    } => {
+                        let assignable_to_meta_attr = if let Symbol::Type(meta_dunder_set, _) =
+                            meta_attr_ty.class_member(db, "__set__".into()).symbol
+                        {
+                            let successful_call = meta_dunder_set
+                                .try_call(
+                                    db,
+                                    CallArgumentTypes::positional([
+                                        meta_attr_ty,
+                                        object_ty,
+                                        value_ty,
+                                    ]),
+                                )
+                                .is_ok();
 
-                        if !successful_call && emit_diagnostics {
-                            // TODO: Here, it would be nice to emit an additional diagnostic that explains why the call failed
-                            self.context.report_lint(
+                            if !successful_call && emit_diagnostics {
+                                // TODO: Here, it would be nice to emit an additional diagnostic that explains why the call failed
+                                self.context.report_lint(
                                 &INVALID_ASSIGNMENT,
                                 target,
                                 format_args!(
@@ -2418,15 +2423,16 @@ impl<'db> TypeInferenceBuilder<'db> {
                                     object_ty.display(db)
                                 ),
                             );
-                        }
+                            }
 
-                        successful_call
-                    } else {
-                        ensure_assignable_to(meta_attr_ty)
-                    };
+                            successful_call
+                        } else {
+                            ensure_assignable_to(meta_attr_ty)
+                        };
 
-                    let assignable_to_instance_attribute =
-                        if meta_attr_boundness == Boundness::PossiblyUnbound {
+                        let assignable_to_instance_attribute = if meta_attr_boundness
+                            == Boundness::PossiblyUnbound
+                        {
                             let (assignable, boundness) =
                                 if let Symbol::Type(instance_attr_ty, instance_attr_boundness) =
                                     object_ty.instance_member(db, attribute).symbol
@@ -2453,43 +2459,44 @@ impl<'db> TypeInferenceBuilder<'db> {
                             true
                         };
 
-                    assignable_to_meta_attr && assignable_to_instance_attribute
-                }
+                        assignable_to_meta_attr && assignable_to_instance_attribute
+                    }
 
-                SymbolAndQualifiers {
-                    symbol: Symbol::Unbound,
-                    ..
-                } => {
-                    if let Symbol::Type(instance_attr_ty, instance_attr_boundness) =
-                        object_ty.instance_member(db, attribute).symbol
-                    {
-                        if instance_attr_boundness == Boundness::PossiblyUnbound {
-                            report_possibly_unbound_attribute(
-                                &self.context,
-                                target,
-                                attribute,
-                                object_ty,
-                            );
-                        }
-
-                        ensure_assignable_to(instance_attr_ty)
-                    } else {
-                        if emit_diagnostics {
-                            self.context.report_lint(
-                                &UNRESOLVED_ATTRIBUTE,
-                                target,
-                                format_args!(
-                                    "Unresolved attribute `{}` on type `{}`.",
+                    SymbolAndQualifiers {
+                        symbol: Symbol::Unbound,
+                        ..
+                    } => {
+                        if let Symbol::Type(instance_attr_ty, instance_attr_boundness) =
+                            object_ty.instance_member(db, attribute).symbol
+                        {
+                            if instance_attr_boundness == Boundness::PossiblyUnbound {
+                                report_possibly_unbound_attribute(
+                                    &self.context,
+                                    target,
                                     attribute,
-                                    object_ty.display(db)
-                                ),
-                            );
-                        }
+                                    object_ty,
+                                );
+                            }
 
-                        false
+                            ensure_assignable_to(instance_attr_ty)
+                        } else {
+                            if emit_diagnostics {
+                                self.context.report_lint(
+                                    &UNRESOLVED_ATTRIBUTE,
+                                    target,
+                                    format_args!(
+                                        "Unresolved attribute `{}` on type `{}`.",
+                                        attribute,
+                                        object_ty.display(db)
+                                    ),
+                                );
+                            }
+
+                            false
+                        }
                     }
                 }
-            },
+            }
 
             Type::ClassLiteral(..) | Type::SubclassOf(..) => {
                 match object_ty.class_member(db, attribute.into()) {
@@ -3970,8 +3977,48 @@ impl<'db> TypeInferenceBuilder<'db> {
         // arguments after matching them to parameters, but before checking that the argument types
         // are assignable to any parameter annotations.
         let mut call_arguments = Self::parse_arguments(arguments);
-        let function_type = self.infer_expression(func);
-        let signatures = function_type.signatures(self.db());
+        let callable_type = self.infer_expression(func);
+
+        // For class literals we model the entire class instantiation logic, so it is handled
+        // in a separate function.
+        let class = match callable_type {
+            Type::SubclassOf(subclass_of_type) => match subclass_of_type.subclass_of() {
+                ClassBase::Dynamic(_) => None,
+                ClassBase::Class(class) => Some(class),
+            },
+            Type::ClassLiteral(ClassLiteralType { class }) => Some(class),
+            _ => None,
+        };
+
+        if class.is_some_and(|class| {
+            // For some known classes we have manual signatures defined and use the `try_call` path
+            // below. TODO: it should be possible to move these special cases into the
+            // `try_call_constructor` path instead, or even remove some entirely once we support
+            // overloads fully.
+            class.known(self.db()).is_none_or(|class| {
+                !matches!(
+                    class,
+                    KnownClass::Bool
+                        | KnownClass::Str
+                        | KnownClass::Type
+                        | KnownClass::Object
+                        | KnownClass::Property
+                )
+            })
+        }) {
+            let argument_forms = vec![Some(ParameterForm::Value); call_arguments.len()];
+            let call_argument_types =
+                self.infer_argument_types(arguments, call_arguments, &argument_forms);
+
+            return callable_type
+                .try_call_constructor(self.db(), call_argument_types)
+                .unwrap_or_else(|err| {
+                    err.report_diagnostic(&self.context, callable_type, call_expression.into());
+                    err.return_type()
+                });
+        }
+
+        let signatures = callable_type.signatures(self.db());
         let bindings = Bindings::match_parameters(signatures, &mut call_arguments);
         let mut call_argument_types =
             self.infer_argument_types(arguments, call_arguments, &bindings.argument_forms);
diff --git a/crates/red_knot_python_semantic/src/types/subclass_of.rs b/crates/red_knot_python_semantic/src/types/subclass_of.rs
index 903fce42a4..b69c7505c8 100644
--- a/crates/red_knot_python_semantic/src/types/subclass_of.rs
+++ b/crates/red_knot_python_semantic/src/types/subclass_of.rs
@@ -1,6 +1,6 @@
 use crate::symbol::SymbolAndQualifiers;
 
-use super::{ClassBase, ClassLiteralType, Db, KnownClass, Type};
+use super::{ClassBase, ClassLiteralType, Db, KnownClass, MemberLookupPolicy, Type};
 
 /// A type that represents `type[C]`, i.e. the class object `C` and class objects that are subclasses of `C`.
 #[derive(Debug, Clone, Copy, PartialEq, Eq, Hash, salsa::Update)]
@@ -66,12 +66,13 @@ impl<'db> SubclassOfType<'db> {
         !self.is_dynamic()
     }
 
-    pub(crate) fn find_name_in_mro(
+    pub(crate) fn find_name_in_mro_with_policy(
         self,
         db: &'db dyn Db,
         name: &str,
+        policy: MemberLookupPolicy,
     ) -> Option<SymbolAndQualifiers<'db>> {
-        Type::from(self.subclass_of).find_name_in_mro(db, name)
+        Type::from(self.subclass_of).find_name_in_mro_with_policy(db, name, policy)
     }
 
     /// Return `true` if `self` is a subtype of `other`.