diff --git a/mypy/newsemanal/semanal.py b/mypy/newsemanal/semanal.py
index 4ef0fc44f8ddf..a8986c5444c8c 100644
--- a/mypy/newsemanal/semanal.py
+++ b/mypy/newsemanal/semanal.py
@@ -1628,10 +1628,20 @@ def visit_import_from(self, imp: ImportFrom) -> None:
         import_id = self.correct_relative_import(imp)
         module = self.modules.get(import_id)
         for id, as_id in imp.names:
-            node = module.names.get(id) if module else None
+            possible_module_id = import_id + '.' + id
+            if module is None:
+                node = None
+            elif import_id == self.cur_mod_id and possible_module_id in self.modules:
+                # Submodule takes precedence over definition in surround package, for
+                # compatibility with runtime semantics in typical use cases. This
+                # could more precisely model runtime semantics by taking into account
+                # the line number beyond which the local definition should take
+                # precedence, but doesn't seem to be important in most use cases.
+                node = SymbolTableNode(GDEF, self.modules[possible_module_id])
+            else:
+                node = module.names.get(id)
 
             missing = False
-            possible_module_id = import_id + '.' + id
             imported_id = as_id or id
 
             # If the module does not contain a symbol with the name 'id',
diff --git a/test-data/unit/check-newsemanal.test b/test-data/unit/check-newsemanal.test
index 528304cb3cb51..370b93d641c0a 100644
--- a/test-data/unit/check-newsemanal.test
+++ b/test-data/unit/check-newsemanal.test
@@ -2516,3 +2516,72 @@ def get() -> int: ...
 import typing
 t = typing.typevar('t') # E: Module has no attribute "typevar"
 [builtins fixtures/module.pyi]
+
+[case testNewAnalyzerImportFromTopLevelFunction]
+import a.b  # This works at runtime
+reveal_type(a.b)  # N
+[file a/__init__.py]
+from .b import B
+from . import b as c
+def b() -> None: pass
+reveal_type(b)  # N
+reveal_type(c.B())  # N
+x: Forward
+class Forward:
+    ...
+
+[file a/b.py]
+class B: ...
+[builtins fixtures/module.pyi]
+
+[out]
+tmp/a/__init__.py:4: note: Revealed type is 'def ()'
+tmp/a/__init__.py:5: note: Revealed type is 'a.b.B'
+main:2: note: Revealed type is 'def ()'
+
+[case testNewAnalyzerImportFromTopLevelAlias]
+import a.b  # This works at runtime
+reveal_type(a.b)  # N
+[file a/__init__.py]
+from .b import B
+from . import b as c
+b = int
+y: b
+reveal_type(y)  # N
+reveal_type(c.B)  # N
+x: Forward
+class Forward:
+    ...
+
+[file a/b.py]
+class B: ...
+[builtins fixtures/module.pyi]
+
+[out]
+tmp/a/__init__.py:5: note: Revealed type is 'builtins.int'
+tmp/a/__init__.py:6: note: Revealed type is 'def () -> a.b.B'
+main:2: note: Revealed type is 'def () -> builtins.int'
+
+[case testNewAnalyzerImportAmbiguousWithTopLevelFunction]
+import a.b  # This works at runtime
+x: a.b.B  # E
+reveal_type(a.b)  # N
+[file a/__init__.py]
+import a.b
+import a.b as c
+def b() -> None: pass
+reveal_type(b)  # N
+reveal_type(c.B())  # N
+x: Forward
+class Forward:
+    ...
+
+[file a/b.py]
+class B: ...
+[builtins fixtures/module.pyi]
+
+[out]
+tmp/a/__init__.py:4: note: Revealed type is 'def ()'
+tmp/a/__init__.py:5: note: Revealed type is 'a.b.B'
+main:2: error: Name 'a.b.B' is not defined
+main:3: note: Revealed type is 'def ()'