diff --git a/tsc/internal/checker/checker.go b/tsc/internal/checker/checker.go
index 5a5a155797c24..98d7df0c17440 100644
--- a/tsc/internal/checker/checker.go
+++ b/tsc/internal/checker/checker.go
@@ -17231,15 +17231,19 @@ func (c *Checker) checkDeclarationInitializer(declaration *ast.Node, checkMode C
 			t = c.checkExpressionCachedEx(initializer, checkMode)
 		}
 	}
-	if ast.IsParameterDeclaration(ast.GetRootDeclaration(declaration)) {
+	root := ast.GetRootDeclaration(declaration)
+	if ast.IsParameterDeclaration(root) {
 		name := declaration.Name()
 		switch name.Kind {
 		case ast.KindObjectBindingPattern:
-			if isObjectLiteralType(t) {
+			// Padding invents any-typed missing properties and would override a
+			// contextual parameter type (#64974).
+			if isObjectLiteralType(t) && c.getContextualTypeForVariableLikeDeclaration(root, ContextFlagsNone) == nil {
 				return c.padObjectLiteralType(t, name)
 			}
 		case ast.KindArrayBindingPattern:
-			if isTupleType(t) {
+			// Same for tuple padding on `= []` defaults (#65069).
+			if isTupleType(t) && c.getContextualTypeForVariableLikeDeclaration(root, ContextFlagsNone) == nil {
 				return c.padTupleType(t, name)
 			}
 		}
diff --git a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.errors.txt b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.errors.txt
index 823bd410ef0cb..26e3a92881b53 100644
--- a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.errors.txt
+++ b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.errors.txt
@@ -3,6 +3,14 @@
 /main.ts(5,5): error TS7031: Binding element 'required' implicitly has an 'any' type.
 /main.ts(10,5): error TS7031: Binding element 'required' implicitly has an 'any' type.
 /main.ts(15,5): error TS7031: Binding element 'required' implicitly has an 'any' type.
+/main.ts(39,11): error TS2322: Type 'string | undefined' is not assignable to type 'number'.
+  Type 'undefined' is not assignable to type 'number'.
+/main.ts(40,11): error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+  Type 'undefined' is not assignable to type 'string'.
+/main.ts(45,11): error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+  Type 'undefined' is not assignable to type 'string'.
+/main.ts(49,11): error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+  Type 'undefined' is not assignable to type 'string'.
 
 
 ==== /unchecked.js (0 errors) ====
@@ -32,7 +40,7 @@
         optional = false,
     ] = []) => {};
     
-==== /main.ts (3 errors) ====
+==== /main.ts (7 errors) ====
     import { checkedArray, checkedObject } from "./checked";
     import { uncheckedArray, uncheckedObject } from "./unchecked";
     
@@ -65,4 +73,40 @@
     checkedArray(["value"]);
     typedObject({ required: "value" });
     typedArray(["value"]);
+    
+    // Contextual typing must win over padding for parameter defaults (#64974 / #65069).
+    type Obj = (input?: { a?: string; b?: number }) => number;
+    export const obj1: Obj = ({ a, b } = {}) => (a ? 1 : 0) + (b ?? 0);
+    
+    type Arr = (input?: [string?, number?]) => number;
+    export const arr1: Arr = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+    
+    export const arr2: (input: [string?, number?]) => number = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+    
+    declare function takeArr(callback: Arr): void;
+    takeArr(([a, b] = []) => {
+        const c: number = a;
+              ~
+!!! error TS2322: Type 'string | undefined' is not assignable to type 'number'.
+!!! error TS2322:   Type 'undefined' is not assignable to type 'number'.
+        const d: string = b;
+              ~
+!!! error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+!!! error TS2322:   Type 'undefined' is not assignable to type 'string'.
+        return 0;
+    });
+    
+    export const arr3: (input?: [{ a?: number }?]) => void = ([{ a } = {}] = []) => {
+        const b: string = a;
+              ~
+!!! error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+!!! error TS2322:   Type 'undefined' is not assignable to type 'string'.
+    };
+    
+    export const arr4: (input?: { a?: number }[]) => void = ([...[{ a } = {}]] = []) => {
+        const b: string = a;
+              ~
+!!! error TS2322: Type 'number | undefined' is not assignable to type 'string'.
+!!! error TS2322:   Type 'undefined' is not assignable to type 'string'.
+    };
     
\ No newline at end of file
diff --git a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.symbols b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.symbols
index 5542ea8d095bf..7ce3026f92b3c 100644
--- a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.symbols
+++ b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.symbols
@@ -114,3 +114,83 @@ typedObject({ required: "value" });
 typedArray(["value"]);
 >typedArray : Symbol(typedArray, Decl(main.ts, 8, 12))
 
+// Contextual typing must win over padding for parameter defaults (#64974 / #65069).
+type Obj = (input?: { a?: string; b?: number }) => number;
+>Obj : Symbol(Obj, Decl(main.ts, 25, 22))
+>input : Symbol(input, Decl(main.ts, 28, 12))
+>a : Symbol(a, Decl(main.ts, 28, 21))
+>b : Symbol(b, Decl(main.ts, 28, 33))
+
+export const obj1: Obj = ({ a, b } = {}) => (a ? 1 : 0) + (b ?? 0);
+>obj1 : Symbol(obj1, Decl(main.ts, 29, 12))
+>Obj : Symbol(Obj, Decl(main.ts, 25, 22))
+>a : Symbol(a, Decl(main.ts, 29, 27))
+>b : Symbol(b, Decl(main.ts, 29, 30))
+>a : Symbol(a, Decl(main.ts, 29, 27))
+>b : Symbol(b, Decl(main.ts, 29, 30))
+
+type Arr = (input?: [string?, number?]) => number;
+>Arr : Symbol(Arr, Decl(main.ts, 29, 67))
+>input : Symbol(input, Decl(main.ts, 31, 12))
+
+export const arr1: Arr = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+>arr1 : Symbol(arr1, Decl(main.ts, 32, 12))
+>Arr : Symbol(Arr, Decl(main.ts, 29, 67))
+>a : Symbol(a, Decl(main.ts, 32, 27))
+>b : Symbol(b, Decl(main.ts, 32, 29))
+>a : Symbol(a, Decl(main.ts, 32, 27))
+>b : Symbol(b, Decl(main.ts, 32, 29))
+
+export const arr2: (input: [string?, number?]) => number = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+>arr2 : Symbol(arr2, Decl(main.ts, 34, 12))
+>input : Symbol(input, Decl(main.ts, 34, 20))
+>a : Symbol(a, Decl(main.ts, 34, 61))
+>b : Symbol(b, Decl(main.ts, 34, 63))
+>a : Symbol(a, Decl(main.ts, 34, 61))
+>b : Symbol(b, Decl(main.ts, 34, 63))
+
+declare function takeArr(callback: Arr): void;
+>takeArr : Symbol(takeArr, Decl(main.ts, 34, 99))
+>callback : Symbol(callback, Decl(main.ts, 36, 25))
+>Arr : Symbol(Arr, Decl(main.ts, 29, 67))
+
+takeArr(([a, b] = []) => {
+>takeArr : Symbol(takeArr, Decl(main.ts, 34, 99))
+>a : Symbol(a, Decl(main.ts, 37, 10))
+>b : Symbol(b, Decl(main.ts, 37, 12))
+
+    const c: number = a;
+>c : Symbol(c, Decl(main.ts, 38, 9))
+>a : Symbol(a, Decl(main.ts, 37, 10))
+
+    const d: string = b;
+>d : Symbol(d, Decl(main.ts, 39, 9))
+>b : Symbol(b, Decl(main.ts, 37, 12))
+
+    return 0;
+});
+
+export const arr3: (input?: [{ a?: number }?]) => void = ([{ a } = {}] = []) => {
+>arr3 : Symbol(arr3, Decl(main.ts, 43, 12))
+>input : Symbol(input, Decl(main.ts, 43, 20))
+>a : Symbol(a, Decl(main.ts, 43, 30))
+>a : Symbol(a, Decl(main.ts, 43, 60))
+
+    const b: string = a;
+>b : Symbol(b, Decl(main.ts, 44, 9))
+>a : Symbol(a, Decl(main.ts, 43, 60))
+
+};
+
+export const arr4: (input?: { a?: number }[]) => void = ([...[{ a } = {}]] = []) => {
+>arr4 : Symbol(arr4, Decl(main.ts, 47, 12))
+>input : Symbol(input, Decl(main.ts, 47, 20))
+>a : Symbol(a, Decl(main.ts, 47, 29))
+>a : Symbol(a, Decl(main.ts, 47, 63))
+
+    const b: string = a;
+>b : Symbol(b, Decl(main.ts, 48, 9))
+>a : Symbol(a, Decl(main.ts, 47, 63))
+
+};
+
diff --git a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.types b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.types
index 1791cbfaebf14..c7d38dadddcfa 100644
--- a/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.types
+++ b/tsc/testdata/baselines/reference/compiler/objectBindingPatternDefaultMissingElements.types
@@ -153,3 +153,121 @@ typedArray(["value"]);
 >["value"] : [string]
 >"value" : "value"
 
+// Contextual typing must win over padding for parameter defaults (#64974 / #65069).
+type Obj = (input?: { a?: string; b?: number }) => number;
+>Obj : Obj
+>input : { a?: string; b?: number; } | undefined
+>a : string | undefined
+>b : number | undefined
+
+export const obj1: Obj = ({ a, b } = {}) => (a ? 1 : 0) + (b ?? 0);
+>obj1 : Obj
+>({ a, b } = {}) => (a ? 1 : 0) + (b ?? 0) : ({ a, b }?: { a?: string; b?: number; } | undefined) => number
+>a : string | undefined
+>b : number | undefined
+>{} : {}
+>(a ? 1 : 0) + (b ?? 0) : number
+>(a ? 1 : 0) : 0 | 1
+>a ? 1 : 0 : 0 | 1
+>a : string | undefined
+>1 : 1
+>0 : 0
+>(b ?? 0) : number
+>b ?? 0 : number
+>b : number | undefined
+>0 : 0
+
+type Arr = (input?: [string?, number?]) => number;
+>Arr : Arr
+>input : [(string | undefined)?, (number | undefined)?] | undefined
+
+export const arr1: Arr = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+>arr1 : Arr
+>([a, b] = []) => (a ? 1 : 0) + (b ?? 0) : ([a, b]?: [(string | undefined)?, (number | undefined)?] | undefined) => number
+>a : string | undefined
+>b : number | undefined
+>[] : []
+>(a ? 1 : 0) + (b ?? 0) : number
+>(a ? 1 : 0) : 0 | 1
+>a ? 1 : 0 : 0 | 1
+>a : string | undefined
+>1 : 1
+>0 : 0
+>(b ?? 0) : number
+>b ?? 0 : number
+>b : number | undefined
+>0 : 0
+
+export const arr2: (input: [string?, number?]) => number = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+>arr2 : (input: [string?, number?]) => number
+>input : [(string | undefined)?, (number | undefined)?]
+>([a, b] = []) => (a ? 1 : 0) + (b ?? 0) : ([a, b]?: [(string | undefined)?, (number | undefined)?]) => number
+>a : string | undefined
+>b : number | undefined
+>[] : []
+>(a ? 1 : 0) + (b ?? 0) : number
+>(a ? 1 : 0) : 0 | 1
+>a ? 1 : 0 : 0 | 1
+>a : string | undefined
+>1 : 1
+>0 : 0
+>(b ?? 0) : number
+>b ?? 0 : number
+>b : number | undefined
+>0 : 0
+
+declare function takeArr(callback: Arr): void;
+>takeArr : (callback: Arr) => void
+>callback : Arr
+
+takeArr(([a, b] = []) => {
+>takeArr(([a, b] = []) => {    const c: number = a;    const d: string = b;    return 0;}) : void
+>takeArr : (callback: Arr) => void
+>([a, b] = []) => {    const c: number = a;    const d: string = b;    return 0;} : ([a, b]?: [(string | undefined)?, (number | undefined)?] | undefined) => number
+>a : string | undefined
+>b : number | undefined
+>[] : []
+
+    const c: number = a;
+>c : number
+>a : string | undefined
+
+    const d: string = b;
+>d : string
+>b : number | undefined
+
+    return 0;
+>0 : 0
+
+});
+
+export const arr3: (input?: [{ a?: number }?]) => void = ([{ a } = {}] = []) => {
+>arr3 : (input?: [{ a?: number; }?]) => void
+>input : [({ a?: number; } | undefined)?] | undefined
+>a : number | undefined
+>([{ a } = {}] = []) => {    const b: string = a;} : ([{ a }]?: [({ a?: number; } | undefined)?] | undefined) => void
+>a : number | undefined
+>{} : {}
+>[] : []
+
+    const b: string = a;
+>b : string
+>a : number | undefined
+
+};
+
+export const arr4: (input?: { a?: number }[]) => void = ([...[{ a } = {}]] = []) => {
+>arr4 : (input?: { a?: number; }[]) => void
+>input : { a?: number; }[] | undefined
+>a : number | undefined
+>([...[{ a } = {}]] = []) => {    const b: string = a;} : ([...[{ a }]]?: { a?: number; }[] | undefined) => void
+>a : number | undefined
+>{} : {}
+>[] : never[]
+
+    const b: string = a;
+>b : string
+>a : number | undefined
+
+};
+
diff --git a/tsc/testdata/tests/cases/compiler/objectBindingPatternDefaultMissingElements.ts b/tsc/testdata/tests/cases/compiler/objectBindingPatternDefaultMissingElements.ts
index e0ea93281bfc9..95a30bd8f754c 100644
--- a/tsc/testdata/tests/cases/compiler/objectBindingPatternDefaultMissingElements.ts
+++ b/tsc/testdata/tests/cases/compiler/objectBindingPatternDefaultMissingElements.ts
@@ -53,3 +53,27 @@ checkedObject({ required: "value" });
 checkedArray(["value"]);
 typedObject({ required: "value" });
 typedArray(["value"]);
+
+// Contextual typing must win over padding for parameter defaults (#64974 / #65069).
+type Obj = (input?: { a?: string; b?: number }) => number;
+export const obj1: Obj = ({ a, b } = {}) => (a ? 1 : 0) + (b ?? 0);
+
+type Arr = (input?: [string?, number?]) => number;
+export const arr1: Arr = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+
+export const arr2: (input: [string?, number?]) => number = ([a, b] = []) => (a ? 1 : 0) + (b ?? 0);
+
+declare function takeArr(callback: Arr): void;
+takeArr(([a, b] = []) => {
+    const c: number = a;
+    const d: string = b;
+    return 0;
+});
+
+export const arr3: (input?: [{ a?: number }?]) => void = ([{ a } = {}] = []) => {
+    const b: string = a;
+};
+
+export const arr4: (input?: { a?: number }[]) => void = ([...[{ a } = {}]] = []) => {
+    const b: string = a;
+};