diff --git a/.changeset/nine-falcons-swim.md b/.changeset/nine-falcons-swim.md
new file mode 100644
index 00000000000..4b065a07620
--- /dev/null
+++ b/.changeset/nine-falcons-swim.md
@@ -0,0 +1,5 @@
+---
+"effect": patch
+---
+
+fix `Tag.Proxy` type
diff --git a/packages/effect/dtslint/Effect.ts b/packages/effect/dtslint/Effect.ts
index bdd8c50119e..672f97434db 100644
--- a/packages/effect/dtslint/Effect.ts
+++ b/packages/effect/dtslint/Effect.ts
@@ -1333,7 +1333,7 @@ hole<
   >
 >()
 
-// $ExpectType { a: Effect<[1, "no"], never, "R">; }
+// $ExpectType { a: Effect<1, never, "R">; }
 hole<
   Simplify<
     Effect.Tag.Proxy<"R", {
diff --git a/packages/effect/src/Effect.ts b/packages/effect/src/Effect.ts
index 443b7a5e4f5..a4a8b22e7a7 100644
--- a/packages/effect/src/Effect.ts
+++ b/packages/effect/src/Effect.ts
@@ -6505,11 +6505,7 @@ export declare namespace Tag {
       : Type[k] extends (...args: infer Args extends ReadonlyArray<any>) => infer A ?
         (...args: Readonly<Args>) => Effect<A, never, Self>
       : Type[k] extends Effect<infer A, infer E, infer R> ? Effect<A, E, Self | R>
-      : Effect<
-        Type[k] extends (...args: infer Args extends ReadonlyArray<any>) => any ? [Type[k], Args] : [Type[k], "no"],
-        never,
-        Self
-      >
+      : Effect<Type[k], never, Self>
   }
 }