diff --git a/.codesandbox/ci.json b/.codesandbox/ci.json
index 4b4ad04..5495f01 100644
--- a/.codesandbox/ci.json
+++ b/.codesandbox/ci.json
@@ -1,4 +1,6 @@
 {
   "sandboxes": ["vanilla", "vanilla-ts"],
-  "node": "14"
+  "node": "14",
+  "buildCommand": "build",
+  "packages": ["."]
 }
diff --git a/src/index.ts b/src/index.ts
index 1ac48b1..a550786 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -9,36 +9,49 @@ export type {
   ThunkMiddleware
 } from './types'
 
+/** A function that accepts a potential "extra argument" value to be injected later,
+ * and returns an instance of the thunk middleware that uses that value
+ */
 function createThunkMiddleware<
-  TState = any,
-  TBasicAction extends Action = AnyAction,
-  TExtraThunkArg = undefined
->(extraArgument?: TExtraThunkArg) {
-  const middleware: ThunkMiddleware<TState, TBasicAction, TExtraThunkArg> =
+  State = any,
+  BasicAction extends Action = AnyAction,
+  ExtraThunkArg = undefined
+>(extraArgument?: ExtraThunkArg) {
+  // Standard Redux middleware definition pattern:
+  // See: https://redux.js.org/tutorials/fundamentals/part-4-store#writing-custom-middleware
+  const middleware: ThunkMiddleware<State, BasicAction, ExtraThunkArg> =
     ({ dispatch, getState }) =>
     next =>
     action => {
+      // The thunk middleware looks for any functions that were passed to `store.dispatch`.
+      // If this "action" is really a function, call it and return the result.
       if (typeof action === 'function') {
+        // Inject the store's `dispatch` and `getState` methods, as well as any "extra arg"
         return action(dispatch, getState, extraArgument)
       }
 
+      // Otherwise, pass the action down the middleware chain as usual
       return next(action)
     }
   return middleware
 }
 
+/** The standard thunk middleware, with no extra argument included  */
 const thunk = createThunkMiddleware()
+// Attach the factory function so users can create a customized version
+// with whatever "extra arg" they want to inject into their thunks
 // eslint-disable-next-line @typescript-eslint/ban-ts-comment
-// @ts-expect-error
+// @ts-ignore
 thunk.withExtraArgument = createThunkMiddleware
 
+// Convince TS that the default export has the right type for `withExtraArgument`
 export default thunk as typeof thunk &
   ThunkMiddleware & {
     withExtraArgument<
-      TExtraThunkArg,
-      TState = any,
-      TBasicAction extends Action<any> = AnyAction
+      ExtraThunkArg,
+      State = any,
+      BasicAction extends Action<any> = AnyAction
     >(
-      extraArgument: TExtraThunkArg
-    ): ThunkMiddleware<TState, TBasicAction, TExtraThunkArg>
+      extraArgument: ExtraThunkArg
+    ): ThunkMiddleware<State, BasicAction, ExtraThunkArg>
   }
diff --git a/src/types.ts b/src/types.ts
index c0b4f17..3bd3368 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -1,4 +1,4 @@
-import { Action, AnyAction, Middleware } from 'redux'
+import { Action, AnyAction, Middleware, Dispatch } from 'redux'
 
 /**
  * The dispatch method as modified by React-Thunk; overloaded so that you can
@@ -6,26 +6,30 @@ import { Action, AnyAction, Middleware } from 'redux'
  *   - standard (object) actions: `dispatch()` returns the action itself
  *   - thunk actions: `dispatch()` returns the thunk's return value
  *
- * @template TState The redux state
- * @template TExtraThunkArg The extra argument passed to the inner function of
+ * @template State The redux state
+ * @template ExtraThunkArg The extra argument passed to the inner function of
  * thunks (if specified when setting up the Thunk middleware)
- * @template TBasicAction The (non-thunk) actions that can be dispatched.
+ * @template BasicAction The (non-thunk) actions that can be dispatched.
  */
-export interface ThunkDispatch<
-  TState,
-  TExtraThunkArg,
-  TBasicAction extends Action
-> {
-  <TReturnType>(
-    thunkAction: ThunkAction<TReturnType, TState, TExtraThunkArg, TBasicAction>
-  ): TReturnType
-  <A extends TBasicAction>(action: A): A
-  // This overload is the union of the two above (see TS issue #14107).
-  <TReturnType, TAction extends TBasicAction>(
-    action:
-      | TAction
-      | ThunkAction<TReturnType, TState, TExtraThunkArg, TBasicAction>
-  ): TAction | TReturnType
+export interface ThunkDispatch<State, ExtraThunkArg, BasicAction extends Action>
+  extends Dispatch<BasicAction> {
+  // When the thunk middleware is added, `store.dispatch` now has three overloads:
+
+  // 1) The base overload, which accepts a standard action object, and returns that action object
+
+  // 2) The specific thunk function overload
+  /** Accepts a thunk function, runs it, and returns whatever the thunk itself returns */
+  <ReturnType>(
+    thunkAction: ThunkAction<ReturnType, State, ExtraThunkArg, BasicAction>
+  ): ReturnType
+
+  // 3)
+  /** A union of the other two overloads. This overload exists to work around a problem
+   *  with TS inference ( see https://github.com/microsoft/TypeScript/issues/14107 )
+   */
+  <ReturnType, Action extends BasicAction>(
+    action: Action | ThunkAction<ReturnType, State, ExtraThunkArg, BasicAction>
+  ): Action | ReturnType
 }
 
 /**
@@ -35,22 +39,22 @@ export interface ThunkDispatch<
  * Also known as the "thunk inner function", when used with the typical pattern
  * of an action creator function that returns a thunk action.
  *
- * @template TReturnType The return type of the thunk's inner function
- * @template TState The redux state
- * @template TExtraThunkARg Optional extra argument passed to the inner function
+ * @template ReturnType The return type of the thunk's inner function
+ * @template State The redux state
+ * @template ExtraThunkArg Optional extra argument passed to the inner function
  * (if specified when setting up the Thunk middleware)
- * @template TBasicAction The (non-thunk) actions that can be dispatched.
+ * @template BasicAction The (non-thunk) actions that can be dispatched.
  */
 export type ThunkAction<
-  TReturnType,
-  TState,
-  TExtraThunkArg,
-  TBasicAction extends Action
+  ReturnType,
+  State,
+  ExtraThunkArg,
+  BasicAction extends Action
 > = (
-  dispatch: ThunkDispatch<TState, TExtraThunkArg, TBasicAction>,
-  getState: () => TState,
-  extraArgument: TExtraThunkArg
-) => TReturnType
+  dispatch: ThunkDispatch<State, ExtraThunkArg, BasicAction>,
+  getState: () => State,
+  extraArgument: ExtraThunkArg
+) => ReturnType
 
 /**
  * A generic type that takes a thunk action creator and returns a function
@@ -58,26 +62,26 @@ export type ThunkAction<
  * bindActionCreators(): a function that takes the arguments of the outer
  * function, and returns the return type of the inner "thunk" function.
  *
- * @template TActionCreator Thunk action creator to be wrapped
+ * @template ActionCreator Thunk action creator to be wrapped
  */
 export type ThunkActionDispatch<
-  TActionCreator extends (...args: any[]) => ThunkAction<any, any, any, any>
+  ActionCreator extends (...args: any[]) => ThunkAction<any, any, any, any>
 > = (
-  ...args: Parameters<TActionCreator>
-) => ReturnType<ReturnType<TActionCreator>>
+  ...args: Parameters<ActionCreator>
+) => ReturnType<ReturnType<ActionCreator>>
 
 /**
- * @template TState The redux state
- * @template TBasicAction The (non-thunk) actions that can be dispatched
- * @template TExtraThunkArg An optional extra argument to pass to a thunk's
+ * @template State The redux state
+ * @template BasicAction The (non-thunk) actions that can be dispatched
+ * @template ExtraThunkArg An optional extra argument to pass to a thunk's
  * inner function. (Only used if you call `thunk.withExtraArgument()`)
  */
 export type ThunkMiddleware<
-  TState = any,
-  TBasicAction extends Action = AnyAction,
-  TExtraThunkArg = undefined
+  State = any,
+  BasicAction extends Action = AnyAction,
+  ExtraThunkArg = undefined
 > = Middleware<
-  ThunkDispatch<TState, TExtraThunkArg, TBasicAction>,
-  TState,
-  ThunkDispatch<TState, TExtraThunkArg, TBasicAction>
+  ThunkDispatch<State, ExtraThunkArg, BasicAction>,
+  State,
+  ThunkDispatch<State, ExtraThunkArg, BasicAction>
 >
diff --git a/typescript_test/typescript.ts b/typescript_test/typescript.ts
index 627e856..1ea9c0f 100644
--- a/typescript_test/typescript.ts
+++ b/typescript_test/typescript.ts
@@ -1,5 +1,11 @@
 /* eslint-disable @typescript-eslint/no-unused-vars */
-import { applyMiddleware, bindActionCreators, createStore } from 'redux'
+import {
+  applyMiddleware,
+  bindActionCreators,
+  createStore,
+  Action,
+  AnyAction
+} from 'redux'
 
 import thunk, {
   ThunkAction,
@@ -71,6 +77,7 @@ const storeThunkArg = createStore(
     thunk.withExtraArgument('bar') as ThunkMiddleware<State, Actions, string>
   )
 )
+storeThunkArg.dispatch({ type: 'FOO' })
 
 storeThunkArg.dispatch((dispatch, getState, extraArg) => {
   const bar: string = extraArg
@@ -145,3 +152,15 @@ const untypedStore = createStore(fakeReducer, applyMiddleware(thunk))
 untypedStore.dispatch(anotherThunkAction())
 // @ts-expect-error
 untypedStore.dispatch(promiseThunkAction()).then(() => Promise.resolve())
+
+// #248: Need a union overload to handle generic dispatched types
+function testIssue248() {
+  const dispatch: ThunkDispatch<any, unknown, AnyAction> = undefined as any
+
+  function dispatchWrap(
+    action: Action | ThunkAction<any, any, unknown, AnyAction>
+  ) {
+    // Should not have an error here thanks to the extra union overload
+    dispatch(action)
+  }
+}
diff --git a/webpack.config.babel.js b/webpack.config.babel.js
deleted file mode 100644
index 3de7d2d..0000000
--- a/webpack.config.babel.js
+++ /dev/null
@@ -1,39 +0,0 @@
-import webpack from 'webpack';
-import path from 'path';
-
-const { NODE_ENV } = process.env;
-
-const plugins = [
-  new webpack.DefinePlugin({
-    'process.env.NODE_ENV': JSON.stringify(NODE_ENV),
-  }),
-];
-
-const filename = `redux-thunk${NODE_ENV === 'production' ? '.min' : ''}.js`;
-
-export default {
-  mode: NODE_ENV === 'production' ? 'production' : 'development',
-
-  module: {
-    rules: [
-      { test: /\.js$/, loader: 'babel-loader', exclude: /node_modules/ },
-    ],
-  },
-
-  entry: [
-    './src/index',
-  ],
-
-  optimization: {
-    minimize: NODE_ENV === 'production',
-  },
-
-  output: {
-    path: path.join(__dirname, 'dist'),
-    filename,
-    library: 'ReduxThunk',
-    libraryTarget: 'umd',
-  },
-
-  plugins,
-};