diff --git a/mypy/checker.py b/mypy/checker.py
index f2873c7d58e4..06d770665ea9 100644
--- a/mypy/checker.py
+++ b/mypy/checker.py
@@ -1475,7 +1475,8 @@ def check___new___signature(self, fdef: FuncDef, typ: CallableType) -> None:
                 "but must return a subtype of",
             )
         elif not isinstance(
-            get_proper_type(bound_type.ret_type), (AnyType, Instance, TupleType, UninhabitedType)
+            get_proper_type(bound_type.ret_type),
+            (AnyType, Instance, TupleType, UninhabitedType, LiteralType),
         ):
             self.fail(
                 message_registry.NON_INSTANCE_NEW_TYPE.format(