diff --git a/extensions/package.json b/extensions/package.json
index 32f5bc84b98..b0bac44993d 100644
--- a/extensions/package.json
+++ b/extensions/package.json
@@ -4,7 +4,7 @@
   "license": "MIT",
   "description": "Dependencies shared by all extensions",
   "dependencies": {
-    "typescript": "^5.2.0-dev.20230731"
+    "typescript": "^5.2.0-dev.20230807"
   },
   "scripts": {
     "postinstall": "node ./postinstall.mjs"
diff --git a/extensions/typescript-language-features/src/languageFeatures/inlayHints.ts b/extensions/typescript-language-features/src/languageFeatures/inlayHints.ts
index fb08f68dc42..5363619579b 100644
--- a/extensions/typescript-language-features/src/languageFeatures/inlayHints.ts
+++ b/extensions/typescript-language-features/src/languageFeatures/inlayHints.ts
@@ -87,17 +87,18 @@ class TypeScriptInlayHintsProvider extends Disposable implements vscode.InlayHin
 	}
 
 	private convertInlayHintText(resource: vscode.Uri, tsHint: Proto.InlayHintItem): string | vscode.InlayHintLabelPart[] {
-		if (typeof tsHint.text === 'string') {
-			return tsHint.text;
+		if (tsHint.displayParts) {
+			return tsHint.displayParts.map((part): vscode.InlayHintLabelPart => {
+				const out = new vscode.InlayHintLabelPart(part.text);
+				if (part.span) {
+					out.location = Location.fromTextSpan(resource, part.span);
+				}
+				return out;
+			});
 		}
 
-		return tsHint.text.map((part): vscode.InlayHintLabelPart => {
-			const out = new vscode.InlayHintLabelPart(part.text);
-			if (part.span) {
-				out.location = Location.fromTextSpan(resource, part.span);
-			}
-			return out;
-		});
+		return tsHint.text;
+
 	}
 }
 
diff --git a/extensions/yarn.lock b/extensions/yarn.lock
index 5b00e9e5431..815d839a79a 100644
--- a/extensions/yarn.lock
+++ b/extensions/yarn.lock
@@ -228,10 +228,10 @@ to-regex-range@^5.0.1:
   dependencies:
     is-number "^7.0.0"
 
-typescript@^5.2.0-dev.20230731:
-  version "5.2.0-dev.20230731"
-  resolved "https://registry.yarnpkg.com/typescript/-/typescript-5.2.0-dev.20230731.tgz#a72083c07043568ab856dd8ca0d8f3a708c3e3a6"
-  integrity sha512-RJVLgnDgu67ZrohYy0aBea+5TICfRod36+24zw0bR/KJDQJO9mlIjTC0k+/PKw87fXP5JuUHqepEk15PvFya7A==
+typescript@^5.2.0-dev.20230807:
+  version "5.2.0-dev.20230807"
+  resolved "https://registry.yarnpkg.com/typescript/-/typescript-5.2.0-dev.20230807.tgz#652fa8a3fcc46958035d9b911c815299deb9f58e"
+  integrity sha512-sF8sZl3r/mpAdKAxASaWaoU+mNPF3g8OrZ601HraU2l4WEwAf6nO7sq0Bzl+Y3FV7sWjy+gb6kdM1CtLjVne/g==
 
 vscode-grammar-updater@^1.1.0:
   version "1.1.0"
diff --git a/package.json b/package.json
index 011eee0ce1f..5cbce3c0e96 100644
--- a/package.json
+++ b/package.json
@@ -212,7 +212,7 @@
     "ts-loader": "^9.4.2",
     "ts-node": "^10.9.1",
     "tsec": "0.2.7",
-    "typescript": "^5.2.0-dev.20230731",
+    "typescript": "^5.2.0-dev.20230807",
     "typescript-formatter": "7.1.0",
     "underscore": "^1.12.1",
     "util": "^0.12.4",
diff --git a/yarn.lock b/yarn.lock
index e264840ade2..451a8cbd0b6 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -10075,10 +10075,10 @@ typescript@^4.7.4:
   resolved "https://registry.yarnpkg.com/typescript/-/typescript-4.8.4.tgz#c464abca159669597be5f96b8943500b238e60e6"
   integrity sha512-QCh+85mCy+h0IGff8r5XWzOVSbBO+KfeYrMQh7NJ58QujwcE22u+NUSmUxqF+un70P9GXKxa2HCNiTTMJknyjQ==
 
-typescript@^5.2.0-dev.20230731:
-  version "5.2.0-dev.20230731"
-  resolved "https://registry.yarnpkg.com/typescript/-/typescript-5.2.0-dev.20230731.tgz#a72083c07043568ab856dd8ca0d8f3a708c3e3a6"
-  integrity sha512-RJVLgnDgu67ZrohYy0aBea+5TICfRod36+24zw0bR/KJDQJO9mlIjTC0k+/PKw87fXP5JuUHqepEk15PvFya7A==
+typescript@^5.2.0-dev.20230807:
+  version "5.2.0-dev.20230807"
+  resolved "https://registry.yarnpkg.com/typescript/-/typescript-5.2.0-dev.20230807.tgz#652fa8a3fcc46958035d9b911c815299deb9f58e"
+  integrity sha512-sF8sZl3r/mpAdKAxASaWaoU+mNPF3g8OrZ601HraU2l4WEwAf6nO7sq0Bzl+Y3FV7sWjy+gb6kdM1CtLjVne/g==
 
 typical@^4.0.0:
   version "4.0.0"