diff --git a/conformance/third_party/conformance.exp b/conformance/third_party/conformance.exp
index 100c600a1..ac7ccf4fa 100644
--- a/conformance/third_party/conformance.exp
+++ b/conformance/third_party/conformance.exp
@@ -7700,8 +7700,8 @@
     {
       "code": -2,
       "column": 5,
-      "concise_description": "Augmented assignment produces a value of type `int`, which is not assignable to `Literal[3, 4, 5]`",
-      "description": "Augmented assignment produces a value of type `int`, which is not assignable to `Literal[3, 4, 5]`",
+      "concise_description": "Augmented assignment produces a value of type `Literal[6, 7, 8]`, which is not assignable to `Literal[3, 4, 5]`",
+      "description": "Augmented assignment produces a value of type `Literal[6, 7, 8]`, which is not assignable to `Literal[3, 4, 5]`",
       "line": 33,
       "name": "bad-assignment",
       "severity": "error",
diff --git a/crates/pyrefly_types/src/lit_int.rs b/crates/pyrefly_types/src/lit_int.rs
index 22458f5a8..148de193c 100644
--- a/crates/pyrefly_types/src/lit_int.rs
+++ b/crates/pyrefly_types/src/lit_int.rs
@@ -102,6 +102,23 @@ impl LitInt {
         }
     }
 
+    fn to_bigint(&self) -> BigInt {
+        match &self.0 {
+            LitIntInner::Small(x) => BigInt::from(*x),
+            LitIntInner::Big(x) => (**x).clone(),
+        }
+    }
+
+    pub fn add(&self, other: &Self) -> Self {
+        match (&self.0, &other.0) {
+            (LitIntInner::Small(x), LitIntInner::Small(y)) => match x.checked_add(*y) {
+                Some(sum) => Self::new(sum),
+                None => Self::new_big(BigInt::from(*x) + BigInt::from(*y)),
+            },
+            _ => Self::new_big(self.to_bigint() + other.to_bigint()),
+        }
+    }
+
     pub fn negate(&self) -> Self {
         match &self.0 {
             LitIntInner::Small(x) => match x.checked_neg() {
diff --git a/pyrefly/lib/alt/operators.rs b/pyrefly/lib/alt/operators.rs
index 6663d5ef6..1b1511d18 100644
--- a/pyrefly/lib/alt/operators.rs
+++ b/pyrefly/lib/alt/operators.rs
@@ -273,6 +273,11 @@ impl<'a, Ans: LookupAnswer> AnswersSolver<'a, Ans> {
                     && let Some(r) = self.untype_opt(rhs.clone(), x.right.range())
                 {
                     Type::type_form(self.union(l, r))
+                } else if x.op == Operator::Add
+                    && let Type::Literal(Lit::Int(l)) = lhs
+                    && let Type::Literal(Lit::Int(r)) = rhs
+                {
+                    Type::Literal(Lit::Int(l.add(r)))
                 } else if x.op == Operator::Add
                     && ((*lhs == Type::LiteralString && rhs.is_literal_string())
                         || (*rhs == Type::LiteralString && lhs.is_literal_string()))
@@ -324,6 +329,11 @@ impl<'a, Ans: LookupAnswer> AnswersSolver<'a, Ans> {
                     && rhs.is_literal_string()
                 {
                     Type::LiteralString
+                } else if x.op == Operator::Add
+                    && let Type::Literal(Lit::Int(l)) = lhs
+                    && let Type::Literal(Lit::Int(r)) = rhs
+                {
+                    Type::Literal(Lit::Int(l.add(r)))
                 } else if x.op == Operator::Add
                     && let Type::Tuple(ref l) = base
                     && let Type::Tuple(r) = rhs
diff --git a/pyrefly/lib/test/lsp/completion.rs b/pyrefly/lib/test/lsp/completion.rs
index 320baa600..32d29ef1d 100644
--- a/pyrefly/lib/test/lsp/completion.rs
+++ b/pyrefly/lib/test/lsp/completion.rs
@@ -1844,7 +1844,7 @@ ff
 4 | ff
      ^
 Completion Results:
-- (Variable) fff: int
+- (Variable) fff: Literal[1, 2]
 "#
         .trim(),
         report.trim(),
diff --git a/pyrefly/lib/test/lsp/hover_type.rs b/pyrefly/lib/test/lsp/hover_type.rs
index 00b116034..882c78d0d 100644
--- a/pyrefly/lib/test/lsp/hover_type.rs
+++ b/pyrefly/lib/test/lsp/hover_type.rs
@@ -113,7 +113,7 @@ xy = xy + 1
 # main.py
 3 | xy = xy + 1
      ^
-Hover Result: `int`
+Hover Result: `Literal[6]`
 "#
         .trim(),
         report.trim(),
diff --git a/pyrefly/lib/test/operators.rs b/pyrefly/lib/test/operators.rs
index 15bf37c85..a5405901e 100644
--- a/pyrefly/lib/test/operators.rs
+++ b/pyrefly/lib/test/operators.rs
@@ -19,6 +19,25 @@ def f(a: int, b: int) -> None:
 "#,
 );
 
+testcase!(
+    test_literal_int_add,
+    r#"
+from typing import Literal, assert_type
+
+a: Literal[1] = 1
+b: Literal[2] = 2
+c = a + b
+assert_type(c, Literal[3])
+d: Literal[3] = c
+
+e = a + 5
+assert_type(e, Literal[6])
+
+f = 5 + b
+assert_type(f, Literal[7])
+"#,
+);
+
 testcase!(
     test_bounded_type_var_comparison,
     r#"