diff --git a/crates/red_knot_python_semantic/src/types.rs b/crates/red_knot_python_semantic/src/types.rs
index 4f2d101bf4..b649a6bfb2 100644
--- a/crates/red_knot_python_semantic/src/types.rs
+++ b/crates/red_knot_python_semantic/src/types.rs
@@ -181,6 +181,8 @@ pub enum Type<'db> {
     IntLiteral(i64),
     /// A boolean literal, either `True` or `False`.
     BooleanLiteral(bool),
+    /// A string literal
+    StringLiteral(StringLiteralType<'db>),
     /// A bytes literal
     BytesLiteral(BytesLiteralType<'db>),
     // TODO protocols, callable types, overloads, generics, type vars
@@ -278,6 +280,10 @@ impl<'db> Type<'db> {
                 Type::Unknown
             }
             Type::BooleanLiteral(_) => Type::Unknown,
+            Type::StringLiteral(_) => {
+                // TODO defer to Type::Instance(<str from typeshed>).member
+                Type::Unknown
+            }
             Type::BytesLiteral(_) => {
                 // TODO defer to Type::Instance(<bytes from typeshed>).member
                 Type::Unknown
@@ -378,6 +384,12 @@ pub struct IntersectionType<'db> {
     negative: FxOrderSet<Type<'db>>,
 }
 
+#[salsa::interned]
+pub struct StringLiteralType<'db> {
+    #[return_ref]
+    value: String,
+}
+
 #[salsa::interned]
 pub struct BytesLiteralType<'db> {
     #[return_ref]
diff --git a/crates/red_knot_python_semantic/src/types/display.rs b/crates/red_knot_python_semantic/src/types/display.rs
index 4ce811ae5a..25866738fa 100644
--- a/crates/red_knot_python_semantic/src/types/display.rs
+++ b/crates/red_knot_python_semantic/src/types/display.rs
@@ -41,6 +41,11 @@ impl Display for DisplayType<'_> {
             Type::BooleanLiteral(boolean) => {
                 write!(f, "Literal[{}]", if *boolean { "True" } else { "False" })
             }
+            Type::StringLiteral(string) => write!(
+                f,
+                r#"Literal["{}"]"#,
+                string.value(self.db).replace('"', r#"\""#)
+            ),
             Type::BytesLiteral(bytes) => {
                 let escape =
                     AsciiEscape::with_preferred_quote(bytes.value(self.db).as_ref(), Quote::Double);
diff --git a/crates/red_knot_python_semantic/src/types/infer.rs b/crates/red_knot_python_semantic/src/types/infer.rs
index 1cdfca3812..c5f5d74361 100644
--- a/crates/red_knot_python_semantic/src/types/infer.rs
+++ b/crates/red_knot_python_semantic/src/types/infer.rs
@@ -44,7 +44,7 @@ use crate::semantic_index::SemanticIndex;
 use crate::types::diagnostic::{TypeCheckDiagnostic, TypeCheckDiagnostics};
 use crate::types::{
     builtins_symbol_ty_by_name, definitions_ty, global_symbol_ty_by_name, BytesLiteralType,
-    ClassType, FunctionType, Name, Type, UnionBuilder,
+    ClassType, FunctionType, Name, StringLiteralType, Type, UnionBuilder,
 };
 use crate::Db;
 
@@ -1243,9 +1243,8 @@ impl<'db> TypeInferenceBuilder<'db> {
     }
 
     #[allow(clippy::unused_self)]
-    fn infer_string_literal_expression(&mut self, _literal: &ast::ExprStringLiteral) -> Type<'db> {
-        // TODO Literal["..."] or str
-        Type::Unknown
+    fn infer_string_literal_expression(&mut self, literal: &ast::ExprStringLiteral) -> Type<'db> {
+        Type::StringLiteral(StringLiteralType::new(self.db, literal.value.to_string()))
     }
 
     #[allow(clippy::unused_self)]
@@ -1785,6 +1784,17 @@ impl<'db> TypeInferenceBuilder<'db> {
                     _ => Type::Unknown, // TODO
                 }
             }
+            Type::StringLiteral(lhs) => match right_ty {
+                Type::StringLiteral(rhs) => match op {
+                    ast::Operator::Add => Type::StringLiteral(StringLiteralType::new(self.db, {
+                        let lhs_value = lhs.value(self.db);
+                        let rhs_value = rhs.value(self.db);
+                        lhs_value.clone() + rhs_value
+                    })),
+                    _ => Type::Unknown, // TODO
+                },
+                _ => Type::Unknown, // TODO
+            },
             _ => Type::Unknown, // TODO
         }
     }
@@ -2298,6 +2308,48 @@ mod tests {
         Ok(())
     }
 
+    #[test]
+    fn string_type() -> anyhow::Result<()> {
+        let mut db = setup_db();
+
+        db.write_dedented(
+            "src/a.py",
+            r#"
+            w = "Hello"
+            x = 'world'
+            y = "Guten " + 'tag'
+            z = 'bon ' + "jour"
+            "#,
+        )?;
+
+        assert_public_ty(&db, "src/a.py", "w", r#"Literal["Hello"]"#);
+        assert_public_ty(&db, "src/a.py", "x", r#"Literal["world"]"#);
+        assert_public_ty(&db, "src/a.py", "y", r#"Literal["Guten tag"]"#);
+        assert_public_ty(&db, "src/a.py", "z", r#"Literal["bon jour"]"#);
+
+        Ok(())
+    }
+
+    #[test]
+    fn string_type_with_nested_quotes() -> anyhow::Result<()> {
+        let mut db = setup_db();
+
+        db.write_dedented(
+            "src/a.py",
+            r#"
+            x = 'I say "hello" to you'
+            y = "You say \"hey\" back"
+            z = 'No "closure here'
+            "#,
+        )?;
+
+        assert_public_ty(&db, "src/a.py", "x", r#"Literal["I say \"hello\" to you"]"#);
+        assert_public_ty(&db, "src/a.py", "y", r#"Literal["You say \"hey\" back"]"#);
+        assert_public_ty(&db, "src/a.py", "z", r#"Literal["No \"closure here"]"#);
+
+        Ok(())
+    }
+
     #[test]
     fn bytes_type() -> anyhow::Result<()> {
         let mut db = setup_db();