diff --git a/src/index.d.ts b/src/index.d.ts
index 45c38e2e16..96f9b42dde 100644
--- a/src/index.d.ts
+++ b/src/index.d.ts
@@ -66,7 +66,7 @@ export interface ClassAttributes<T> extends Attributes {
 export interface PreactDOMAttributes {
 	children?: ComponentChildren;
 	dangerouslySetInnerHTML?: {
-		__html: string;
+		__html: Parameters<DOMParser['parseFromString']>[0];
 	};
 }
 
diff --git a/test/ts/dom-attributes.test-d.tsx b/test/ts/dom-attributes.test-d.tsx
index 3c6e3db471..bf60185fc7 100644
--- a/test/ts/dom-attributes.test-d.tsx
+++ b/test/ts/dom-attributes.test-d.tsx
@@ -1,4 +1,10 @@
-import { createElement, Fragment, SignalLike, UnpackSignal, AriaAttributes } from 'preact';
+import {
+	createElement,
+	Fragment,
+	SignalLike,
+	UnpackSignal,
+	AriaAttributes
+} from 'preact';
 
 function createSignal<T>(value: T): SignalLike<T> {
 	return {
@@ -249,3 +255,9 @@ const booleanishTest = (
 		<div aria-haspopup={'dialog'} />
 	</>
 );
+
+const dangerouslySetInnerHTML = (
+	<>
+		<div dangerouslySetInnerHTML={{ __html: 'string' }} />
+	</>
+);