diff --git a/tsc/internal/checker/checker.go b/tsc/internal/checker/checker.go
index d19cf6b214b79..a87cdda29ad99 100644
--- a/tsc/internal/checker/checker.go
+++ b/tsc/internal/checker/checker.go
@@ -29492,6 +29492,14 @@ func (c *Checker) getConstraintDeclaration(t *Type) *ast.Node {
 	return nil
 }
 
+// Limits on the size of a template literal type produced by getTemplateLiteralType. Recursive instantiations
+// such as `Recur<any, `${S}_${S}`>` double the text (or the number of placeholders) on every iteration and
+// exhaust memory long before the tail recursion limit in getConditionalType is reached (see #63271).
+const (
+	maxTemplateLiteralTypeLength = 50_000_000
+	maxTemplateLiteralTypeSpans  = 100_000
+)
+
 func (c *Checker) getTemplateLiteralType(texts []string, types []*Type) *Type {
 	unionIndex := core.FindIndex(types, func(t *Type) bool {
 		return t.flags&(TypeFlagsNever|TypeFlagsUnion) != 0
@@ -29511,6 +29519,8 @@ func (c *Checker) getTemplateLiteralType(texts []string, types []*Type) *Type {
 	var newTexts []string
 	var sb strings.Builder
 	sb.WriteString(texts[0])
+	textLength := 0 // combined length of the segments already moved into newTexts
+	tooLarge := false
 	var addSpans func([]string, []*Type) bool
 	addSpans = func(texts []string, types []*Type) bool {
 		for i, t := range types {
@@ -29527,15 +29537,24 @@ func (c *Checker) getTemplateLiteralType(texts []string, types []*Type) *Type {
 			case c.isGenericIndexType(t) || c.isPatternLiteralPlaceholderType(t):
 				newTypes = append(newTypes, t)
 				newTexts = append(newTexts, stringutil.CombineSurrogatePairs(sb.String()))
+				textLength += sb.Len()
 				sb.Reset()
 				sb.WriteString(texts[i+1])
 			default:
 				return false
 			}
+			if textLength+sb.Len() > maxTemplateLiteralTypeLength || len(newTypes) > maxTemplateLiteralTypeSpans {
+				tooLarge = true
+				return false
+			}
 		}
 		return true
 	}
 	if !addSpans(texts, types) {
+		if tooLarge {
+			c.error(c.currentNode, diagnostics.Type_instantiation_is_excessively_deep_and_possibly_infinite)
+			return c.errorType
+		}
 		return c.stringType
 	}
 	if len(newTypes) == 0 {
diff --git a/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.errors.txt b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.errors.txt
new file mode 100644
index 0000000000000..2c10283c820ef
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.errors.txt
@@ -0,0 +1,48 @@
+templateLiteralTypeExcessiveLength.ts(15,11): error TS2589: Type instantiation is excessively deep and possibly infinite.
+templateLiteralTypeExcessiveLength.ts(20,11): error TS2589: Type instantiation is excessively deep and possibly infinite.
+templateLiteralTypeExcessiveLength.ts(34,11): error TS2589: Type instantiation is excessively deep and possibly infinite.
+
+
+==== templateLiteralTypeExcessiveLength.ts (3 errors) ====
+    // Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+    // keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+    // template literal type.
+    
+    type Dec<N extends number> =
+        N extends 5 ? 4 : N extends 4 ? 3 : N extends 3 ? 2 :
+        N extends 2 ? any :
+        N extends 1 ? 0 : 0;
+    
+    type Recur<N extends number, S extends string> =
+        N extends 0 ? S : Recur<Dec<N>, `${S}_${S}`>;
+    
+    // The string literal doubles on every iteration.
+    type Explode = {
+        [P in Recur<5, "a"> as `${P}_key`]: any;
+              ~~~~~~~~~~~~~
+!!! error TS2589: Type instantiation is excessively deep and possibly infinite.
+    };
+    
+    // The number of placeholders doubles on every iteration.
+    type ExplodeSpans = {
+        [P in Recur<5, string> as `${P}_key`]: any;
+              ~~~~~~~~~~~~~~~~
+!!! error TS2589: Type instantiation is excessively deep and possibly infinite.
+    };
+    
+    // Every text segment stays small, but the number of segments doubles on every iteration,
+    // so the combined text length grows without bound.
+    type A16 = "aaaaaaaaaaaaaaaa";
+    type A64 = `${A16}${A16}${A16}${A16}`;
+    type A256 = `${A64}${A64}${A64}${A64}`;
+    type A1024 = `${A256}${A256}${A256}${A256}`;
+    
+    type RecurSegments<N extends number, S extends string> =
+        N extends 0 ? S : RecurSegments<Dec<N>, `${S}${string}${S}`>;
+    
+    type ExplodeSegments = {
+        [P in RecurSegments<5, A1024> as `${P}_key`]: any;
+              ~~~~~~~~~~~~~~~~~~~~~~~
+!!! error TS2589: Type instantiation is excessively deep and possibly infinite.
+    };
+    
\ No newline at end of file
diff --git a/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.js b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.js
new file mode 100644
index 0000000000000..36fa92d4a5035
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.js
@@ -0,0 +1,45 @@
+//// [tests/cases/compiler/templateLiteralTypeExcessiveLength.ts] ////
+
+//// [templateLiteralTypeExcessiveLength.ts]
+// Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+// keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+// template literal type.
+
+type Dec<N extends number> =
+    N extends 5 ? 4 : N extends 4 ? 3 : N extends 3 ? 2 :
+    N extends 2 ? any :
+    N extends 1 ? 0 : 0;
+
+type Recur<N extends number, S extends string> =
+    N extends 0 ? S : Recur<Dec<N>, `${S}_${S}`>;
+
+// The string literal doubles on every iteration.
+type Explode = {
+    [P in Recur<5, "a"> as `${P}_key`]: any;
+};
+
+// The number of placeholders doubles on every iteration.
+type ExplodeSpans = {
+    [P in Recur<5, string> as `${P}_key`]: any;
+};
+
+// Every text segment stays small, but the number of segments doubles on every iteration,
+// so the combined text length grows without bound.
+type A16 = "aaaaaaaaaaaaaaaa";
+type A64 = `${A16}${A16}${A16}${A16}`;
+type A256 = `${A64}${A64}${A64}${A64}`;
+type A1024 = `${A256}${A256}${A256}${A256}`;
+
+type RecurSegments<N extends number, S extends string> =
+    N extends 0 ? S : RecurSegments<Dec<N>, `${S}${string}${S}`>;
+
+type ExplodeSegments = {
+    [P in RecurSegments<5, A1024> as `${P}_key`]: any;
+};
+
+
+//// [templateLiteralTypeExcessiveLength.js]
+"use strict";
+// Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+// keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+// template literal type.
diff --git a/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.symbols b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.symbols
new file mode 100644
index 0000000000000..2e85049b74921
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.symbols
@@ -0,0 +1,109 @@
+//// [tests/cases/compiler/templateLiteralTypeExcessiveLength.ts] ////
+
+=== templateLiteralTypeExcessiveLength.ts ===
+// Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+// keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+// template literal type.
+
+type Dec<N extends number> =
+>Dec : Symbol(Dec, Decl(templateLiteralTypeExcessiveLength.ts, 0, 0))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+
+    N extends 5 ? 4 : N extends 4 ? 3 : N extends 3 ? 2 :
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+
+    N extends 2 ? any :
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+
+    N extends 1 ? 0 : 0;
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 4, 9))
+
+type Recur<N extends number, S extends string> =
+>Recur : Symbol(Recur, Decl(templateLiteralTypeExcessiveLength.ts, 7, 24))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 9, 11))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 9, 28))
+
+    N extends 0 ? S : Recur<Dec<N>, `${S}_${S}`>;
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 9, 11))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 9, 28))
+>Recur : Symbol(Recur, Decl(templateLiteralTypeExcessiveLength.ts, 7, 24))
+>Dec : Symbol(Dec, Decl(templateLiteralTypeExcessiveLength.ts, 0, 0))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 9, 11))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 9, 28))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 9, 28))
+
+// The string literal doubles on every iteration.
+type Explode = {
+>Explode : Symbol(Explode, Decl(templateLiteralTypeExcessiveLength.ts, 10, 49))
+
+    [P in Recur<5, "a"> as `${P}_key`]: any;
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 14, 5))
+>Recur : Symbol(Recur, Decl(templateLiteralTypeExcessiveLength.ts, 7, 24))
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 14, 5))
+
+};
+
+// The number of placeholders doubles on every iteration.
+type ExplodeSpans = {
+>ExplodeSpans : Symbol(ExplodeSpans, Decl(templateLiteralTypeExcessiveLength.ts, 15, 2))
+
+    [P in Recur<5, string> as `${P}_key`]: any;
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 19, 5))
+>Recur : Symbol(Recur, Decl(templateLiteralTypeExcessiveLength.ts, 7, 24))
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 19, 5))
+
+};
+
+// Every text segment stays small, but the number of segments doubles on every iteration,
+// so the combined text length grows without bound.
+type A16 = "aaaaaaaaaaaaaaaa";
+>A16 : Symbol(A16, Decl(templateLiteralTypeExcessiveLength.ts, 20, 2))
+
+type A64 = `${A16}${A16}${A16}${A16}`;
+>A64 : Symbol(A64, Decl(templateLiteralTypeExcessiveLength.ts, 24, 30))
+>A16 : Symbol(A16, Decl(templateLiteralTypeExcessiveLength.ts, 20, 2))
+>A16 : Symbol(A16, Decl(templateLiteralTypeExcessiveLength.ts, 20, 2))
+>A16 : Symbol(A16, Decl(templateLiteralTypeExcessiveLength.ts, 20, 2))
+>A16 : Symbol(A16, Decl(templateLiteralTypeExcessiveLength.ts, 20, 2))
+
+type A256 = `${A64}${A64}${A64}${A64}`;
+>A256 : Symbol(A256, Decl(templateLiteralTypeExcessiveLength.ts, 25, 38))
+>A64 : Symbol(A64, Decl(templateLiteralTypeExcessiveLength.ts, 24, 30))
+>A64 : Symbol(A64, Decl(templateLiteralTypeExcessiveLength.ts, 24, 30))
+>A64 : Symbol(A64, Decl(templateLiteralTypeExcessiveLength.ts, 24, 30))
+>A64 : Symbol(A64, Decl(templateLiteralTypeExcessiveLength.ts, 24, 30))
+
+type A1024 = `${A256}${A256}${A256}${A256}`;
+>A1024 : Symbol(A1024, Decl(templateLiteralTypeExcessiveLength.ts, 26, 39))
+>A256 : Symbol(A256, Decl(templateLiteralTypeExcessiveLength.ts, 25, 38))
+>A256 : Symbol(A256, Decl(templateLiteralTypeExcessiveLength.ts, 25, 38))
+>A256 : Symbol(A256, Decl(templateLiteralTypeExcessiveLength.ts, 25, 38))
+>A256 : Symbol(A256, Decl(templateLiteralTypeExcessiveLength.ts, 25, 38))
+
+type RecurSegments<N extends number, S extends string> =
+>RecurSegments : Symbol(RecurSegments, Decl(templateLiteralTypeExcessiveLength.ts, 27, 44))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 29, 19))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 29, 36))
+
+    N extends 0 ? S : RecurSegments<Dec<N>, `${S}${string}${S}`>;
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 29, 19))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 29, 36))
+>RecurSegments : Symbol(RecurSegments, Decl(templateLiteralTypeExcessiveLength.ts, 27, 44))
+>Dec : Symbol(Dec, Decl(templateLiteralTypeExcessiveLength.ts, 0, 0))
+>N : Symbol(N, Decl(templateLiteralTypeExcessiveLength.ts, 29, 19))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 29, 36))
+>S : Symbol(S, Decl(templateLiteralTypeExcessiveLength.ts, 29, 36))
+
+type ExplodeSegments = {
+>ExplodeSegments : Symbol(ExplodeSegments, Decl(templateLiteralTypeExcessiveLength.ts, 30, 65))
+
+    [P in RecurSegments<5, A1024> as `${P}_key`]: any;
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 33, 5))
+>RecurSegments : Symbol(RecurSegments, Decl(templateLiteralTypeExcessiveLength.ts, 27, 44))
+>A1024 : Symbol(A1024, Decl(templateLiteralTypeExcessiveLength.ts, 26, 39))
+>P : Symbol(P, Decl(templateLiteralTypeExcessiveLength.ts, 33, 5))
+
+};
+
diff --git a/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.types b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.types
new file mode 100644
index 0000000000000..e882332afbf78
--- /dev/null
+++ b/tsc/testdata/baselines/reference/compiler/templateLiteralTypeExcessiveLength.types
@@ -0,0 +1,58 @@
+//// [tests/cases/compiler/templateLiteralTypeExcessiveLength.ts] ////
+
+=== templateLiteralTypeExcessiveLength.ts ===
+// Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+// keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+// template literal type.
+
+type Dec<N extends number> =
+>Dec : Dec<N>
+
+    N extends 5 ? 4 : N extends 4 ? 3 : N extends 3 ? 2 :
+    N extends 2 ? any :
+    N extends 1 ? 0 : 0;
+
+type Recur<N extends number, S extends string> =
+>Recur : Recur<N, S>
+
+    N extends 0 ? S : Recur<Dec<N>, `${S}_${S}`>;
+
+// The string literal doubles on every iteration.
+type Explode = {
+>Explode : Explode
+
+    [P in Recur<5, "a"> as `${P}_key`]: any;
+};
+
+// The number of placeholders doubles on every iteration.
+type ExplodeSpans = {
+>ExplodeSpans : ExplodeSpans
+
+    [P in Recur<5, string> as `${P}_key`]: any;
+};
+
+// Every text segment stays small, but the number of segments doubles on every iteration,
+// so the combined text length grows without bound.
+type A16 = "aaaaaaaaaaaaaaaa";
+>A16 : "aaaaaaaaaaaaaaaa"
+
+type A64 = `${A16}${A16}${A16}${A16}`;
+>A64 : "aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa"
+
+type A256 = `${A64}${A64}${A64}${A64}`;
+>A256 : "aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa"
+
+type A1024 = `${A256}${A256}${A256}${A256}`;
+>A1024 : "aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa"
+
+type RecurSegments<N extends number, S extends string> =
+>RecurSegments : RecurSegments<N, S>
+
+    N extends 0 ? S : RecurSegments<Dec<N>, `${S}${string}${S}`>;
+
+type ExplodeSegments = {
+>ExplodeSegments : ExplodeSegments
+
+    [P in RecurSegments<5, A1024> as `${P}_key`]: any;
+};
+
diff --git a/tsc/testdata/tests/cases/compiler/templateLiteralTypeExcessiveLength.ts b/tsc/testdata/tests/cases/compiler/templateLiteralTypeExcessiveLength.ts
new file mode 100644
index 0000000000000..eeb573c01c164
--- /dev/null
+++ b/tsc/testdata/tests/cases/compiler/templateLiteralTypeExcessiveLength.ts
@@ -0,0 +1,37 @@
+// @strict: true
+
+// Regression test for #63271: `Dec<2>` is `any`, so `Recur` produces both conditional branches and
+// keeps tail-recursing forever. The checker must report an error instead of building an unbounded
+// template literal type.
+
+type Dec<N extends number> =
+    N extends 5 ? 4 : N extends 4 ? 3 : N extends 3 ? 2 :
+    N extends 2 ? any :
+    N extends 1 ? 0 : 0;
+
+type Recur<N extends number, S extends string> =
+    N extends 0 ? S : Recur<Dec<N>, `${S}_${S}`>;
+
+// The string literal doubles on every iteration.
+type Explode = {
+    [P in Recur<5, "a"> as `${P}_key`]: any;
+};
+
+// The number of placeholders doubles on every iteration.
+type ExplodeSpans = {
+    [P in Recur<5, string> as `${P}_key`]: any;
+};
+
+// Every text segment stays small, but the number of segments doubles on every iteration,
+// so the combined text length grows without bound.
+type A16 = "aaaaaaaaaaaaaaaa";
+type A64 = `${A16}${A16}${A16}${A16}`;
+type A256 = `${A64}${A64}${A64}${A64}`;
+type A1024 = `${A256}${A256}${A256}${A256}`;
+
+type RecurSegments<N extends number, S extends string> =
+    N extends 0 ? S : RecurSegments<Dec<N>, `${S}${string}${S}`>;
+
+type ExplodeSegments = {
+    [P in RecurSegments<5, A1024> as `${P}_key`]: any;
+};