diff --git a/src/Psalm/Internal/Analyzer/Statements/Expression/AssignmentAnalyzer.php b/src/Psalm/Internal/Analyzer/Statements/Expression/AssignmentAnalyzer.php
index 72dbba84522..904d801fbf7 100644
--- a/src/Psalm/Internal/Analyzer/Statements/Expression/AssignmentAnalyzer.php
+++ b/src/Psalm/Internal/Analyzer/Statements/Expression/AssignmentAnalyzer.php
@@ -536,13 +536,15 @@ public static function analyze(
                     $statements_analyzer->getSuppressedIssues(),
                 )) {
                     // if the error is suppressed, do not treat it as never anymore
-                    $context->vars_in_scope[$var_id] = Type::getMixed();
+                    $new_mutable = $context->vars_in_scope[$var_id]->getBuilder()->addType(new TMixed);
+                    $new_mutable->removeType('never');
+                    $context->vars_in_scope[$var_id] = $new_mutable->freeze();
                     $context->has_returned = false;
-                }
-
-                $context->inside_assignment = $was_in_assignment;
+                } else {
+                    $context->inside_assignment = $was_in_assignment;
 
-                return $context->vars_in_scope[$var_id];
+                    return $context->vars_in_scope[$var_id];
+                }
             }
 
             if ($statements_analyzer->data_flow_graph) {
diff --git a/tests/UnusedCodeTest.php b/tests/UnusedCodeTest.php
index b6857577c19..947ff34de36 100644
--- a/tests/UnusedCodeTest.php
+++ b/tests/UnusedCodeTest.php
@@ -1332,10 +1332,6 @@ public function b(): void {}
                      */
                     function foo() : void {}
 
-                    function bar(mixed $s) : string {
-                        return is_string($s) ? "hello" : "world";
-                    }
-
                     /** @psalm-suppress NoValue */
                     $a = foo();
                     print_r($a);',
@@ -1349,6 +1345,7 @@ function bar(mixed $s) : string {
                      */
                     function foo() : void {}
 
+                    /** @psalm-suppress UnusedParam */
                     function bar(mixed $s) : void {}
 
                     /** @psalm-suppress NoValue */