diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 8e5c03560db3e..7ff5cb1cd5a05 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -36603,7 +36603,22 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                         }
                     }
                     else {
-                        Debug.fail("No error for last overload signature");
+                        // Fallback: Generate a generic error when no specific error can be determined
+                        // This replaces the Debug.fail() to prevent compiler crashes
+                        // See: https://github.com/microsoft/TypeScript/issues/61524
+                        const fallbackChain = chainDiagnosticMessages(
+                            /*details*/ undefined,
+                            Diagnostics.No_overload_matches_this_call,
+                        );
+                        const errorNode = getErrorNodeForCallNode(node);
+                        const fallbackDiag = createDiagnosticForNodeFromMessageChain(
+                            getSourceFileOfNode(errorNode),
+                            errorNode,
+                            fallbackChain,
+                            /*relatedInformation*/ undefined,
+                        );
+
+                        diagnostics.add(fallbackDiag);
                     }
                 }
                 else {
@@ -36624,7 +36639,23 @@ export function createTypeChecker(host: TypeCheckerHost): TypeChecker {
                             allDiagnostics.push(diags);
                         }
                         else {
-                            Debug.fail("No error for 3 or fewer overload signatures");
+                            // Fallback: Generate a generic error for this overload candidate
+                            // This prevents crashes when processing multiple overload signatures
+                            const fallbackChain = chainDiagnosticMessages(
+                                /*details*/ undefined,
+                                Diagnostics.Overload_0_of_1_2_gave_the_following_error,
+                                i + 1,
+                                candidates.length,
+                                signatureToString(c),
+                            );
+                            const errorNode = getErrorNodeForCallNode(node);
+                            const fallbackDiag = createDiagnosticForNodeFromMessageChain(
+                                getSourceFileOfNode(errorNode),
+                                errorNode,
+                                fallbackChain,
+                                /*relatedInformation*/ undefined,
+                            );
+                            allDiagnostics.push([fallbackDiag]);
                         }
                         i++;
                     }
diff --git a/tests/baselines/reference/issue61524DebugFailureCrash.errors.txt b/tests/baselines/reference/issue61524DebugFailureCrash.errors.txt
new file mode 100644
index 0000000000000..28fa911c954e2
--- /dev/null
+++ b/tests/baselines/reference/issue61524DebugFailureCrash.errors.txt
@@ -0,0 +1,28 @@
+issue61524DebugFailureCrash.ts(10,37): error TS2550: Property 'entries' does not exist on type 'ObjectConstructor'. Do you need to change your target library? Try changing the 'lib' compiler option to 'es2017' or later.
+issue61524DebugFailureCrash.ts(11,9): error TS2769: No overload matches this call.
+
+
+==== issue61524DebugFailureCrash.ts (2 errors) ====
+    // Exact reproduction from https://github.com/microsoft/TypeScript/issues/61524
+    // This code causes "Debug Failure. No error for last overload signature"
+    
+    type Generic<T> = T extends any[] ? T[number] : T[keyof T];
+    
+    export function testFn<A extends Record<string, any>>(
+        obj: A,
+        cb: (b: Generic<Partial<A>>) => any
+    ) {
+        for (const [key, val] of Object.entries(obj)) {
+                                        ~~~~~~~
+!!! error TS2550: Property 'entries' does not exist on type 'ObjectConstructor'. Do you need to change your target library? Try changing the 'lib' compiler option to 'es2017' or later.
+            cb(val as Generic<A>);
+            ~~
+!!! error TS2769: No overload matches this call.
+        }
+    }
+    
+    // Usage that triggers the crash
+    testFn(
+        { foo: "bar", num: 42 },
+        (val) => console.log(val)  // Type inference here causes the issue
+    );
\ No newline at end of file
diff --git a/tests/baselines/reference/issue61524DebugFailureCrash.symbols b/tests/baselines/reference/issue61524DebugFailureCrash.symbols
new file mode 100644
index 0000000000000..58a0ccdd7ba95
--- /dev/null
+++ b/tests/baselines/reference/issue61524DebugFailureCrash.symbols
@@ -0,0 +1,61 @@
+//// [tests/cases/compiler/issue61524DebugFailureCrash.ts] ////
+
+=== issue61524DebugFailureCrash.ts ===
+// Exact reproduction from https://github.com/microsoft/TypeScript/issues/61524
+// This code causes "Debug Failure. No error for last overload signature"
+
+type Generic<T> = T extends any[] ? T[number] : T[keyof T];
+>Generic : Symbol(Generic, Decl(issue61524DebugFailureCrash.ts, 0, 0))
+>T : Symbol(T, Decl(issue61524DebugFailureCrash.ts, 3, 13))
+>T : Symbol(T, Decl(issue61524DebugFailureCrash.ts, 3, 13))
+>T : Symbol(T, Decl(issue61524DebugFailureCrash.ts, 3, 13))
+>T : Symbol(T, Decl(issue61524DebugFailureCrash.ts, 3, 13))
+>T : Symbol(T, Decl(issue61524DebugFailureCrash.ts, 3, 13))
+
+export function testFn<A extends Record<string, any>>(
+>testFn : Symbol(testFn, Decl(issue61524DebugFailureCrash.ts, 3, 59))
+>A : Symbol(A, Decl(issue61524DebugFailureCrash.ts, 5, 23))
+>Record : Symbol(Record, Decl(lib.es5.d.ts, --, --))
+
+    obj: A,
+>obj : Symbol(obj, Decl(issue61524DebugFailureCrash.ts, 5, 54))
+>A : Symbol(A, Decl(issue61524DebugFailureCrash.ts, 5, 23))
+
+    cb: (b: Generic<Partial<A>>) => any
+>cb : Symbol(cb, Decl(issue61524DebugFailureCrash.ts, 6, 11))
+>b : Symbol(b, Decl(issue61524DebugFailureCrash.ts, 7, 9))
+>Generic : Symbol(Generic, Decl(issue61524DebugFailureCrash.ts, 0, 0))
+>Partial : Symbol(Partial, Decl(lib.es5.d.ts, --, --))
+>A : Symbol(A, Decl(issue61524DebugFailureCrash.ts, 5, 23))
+
+) {
+    for (const [key, val] of Object.entries(obj)) {
+>key : Symbol(key, Decl(issue61524DebugFailureCrash.ts, 9, 16))
+>val : Symbol(val, Decl(issue61524DebugFailureCrash.ts, 9, 20))
+>Object : Symbol(Object, Decl(lib.es5.d.ts, --, --), Decl(lib.es5.d.ts, --, --))
+>obj : Symbol(obj, Decl(issue61524DebugFailureCrash.ts, 5, 54))
+
+        cb(val as Generic<A>);
+>cb : Symbol(cb, Decl(issue61524DebugFailureCrash.ts, 6, 11))
+>val : Symbol(val, Decl(issue61524DebugFailureCrash.ts, 9, 20))
+>Generic : Symbol(Generic, Decl(issue61524DebugFailureCrash.ts, 0, 0))
+>A : Symbol(A, Decl(issue61524DebugFailureCrash.ts, 5, 23))
+    }
+}
+
+// Usage that triggers the crash
+testFn(
+>testFn : Symbol(testFn, Decl(issue61524DebugFailureCrash.ts, 3, 59))
+
+    { foo: "bar", num: 42 },
+>foo : Symbol(foo, Decl(issue61524DebugFailureCrash.ts, 16, 5))
+>num : Symbol(num, Decl(issue61524DebugFailureCrash.ts, 16, 17))
+
+    (val) => console.log(val)  // Type inference here causes the issue
+>val : Symbol(val, Decl(issue61524DebugFailureCrash.ts, 17, 5))
+>console.log : Symbol(Console.log, Decl(lib.dom.d.ts, --, --))
+>console : Symbol(console, Decl(lib.dom.d.ts, --, --))
+>log : Symbol(Console.log, Decl(lib.dom.d.ts, --, --))
+>val : Symbol(val, Decl(issue61524DebugFailureCrash.ts, 17, 5))
+
+);
diff --git a/tests/baselines/reference/issue61524DebugFailureCrash.types b/tests/baselines/reference/issue61524DebugFailureCrash.types
new file mode 100644
index 0000000000000..36312fb89e10f
--- /dev/null
+++ b/tests/baselines/reference/issue61524DebugFailureCrash.types
@@ -0,0 +1,89 @@
+//// [tests/cases/compiler/issue61524DebugFailureCrash.ts] ////
+
+=== issue61524DebugFailureCrash.ts ===
+// Exact reproduction from https://github.com/microsoft/TypeScript/issues/61524
+// This code causes "Debug Failure. No error for last overload signature"
+
+type Generic<T> = T extends any[] ? T[number] : T[keyof T];
+>Generic : Generic<T>
+>        : ^^^^^^^^^^
+
+export function testFn<A extends Record<string, any>>(
+>testFn : <A extends Record<string, any>>(obj: A, cb: (b: Generic<Partial<A>>) => any) => void
+>       : ^ ^^^^^^^^^                   ^^   ^^ ^^  ^^                               ^^^^^^^^^
+
+    obj: A,
+>obj : A
+>    : ^
+
+    cb: (b: Generic<Partial<A>>) => any
+>cb : (b: Generic<Partial<A>>) => any
+>   : ^ ^^                   ^^^^^   
+>b : Generic<Partial<A>>
+>  : ^^^^^^^^^^^^^^^^^^^
+
+) {
+    for (const [key, val] of Object.entries(obj)) {
+>key : any
+>    : ^^^
+>val : any
+>    : ^^^
+>Object.entries(obj) : any
+>                    : ^^^
+>Object.entries : any
+>               : ^^^
+>Object : ObjectConstructor
+>       : ^^^^^^^^^^^^^^^^^
+>entries : any
+>        : ^^^
+>obj : A
+>    : ^
+
+        cb(val as Generic<A>);
+>cb(val as Generic<A>) : any
+>                      : ^^^
+>cb : (b: Generic<Partial<A>>) => any
+>   : ^ ^^                   ^^^^^   
+>val as Generic<A> : Generic<A>
+>                  : ^^^^^^^^^^
+>val : any
+>    : ^^^
+    }
+}
+
+// Usage that triggers the crash
+testFn(
+>testFn(    { foo: "bar", num: 42 },    (val) => console.log(val)  // Type inference here causes the issue) : void
+>                                                                                                           : ^^^^
+>testFn : <A extends Record<string, any>>(obj: A, cb: (b: Generic<Partial<A>>) => any) => void
+>       : ^ ^^^^^^^^^                   ^^   ^^ ^^  ^^                               ^^^^^^^^^
+
+    { foo: "bar", num: 42 },
+>{ foo: "bar", num: 42 } : { foo: string; num: number; }
+>                        : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>foo : string
+>    : ^^^^^^
+>"bar" : "bar"
+>      : ^^^^^
+>num : number
+>    : ^^^^^^
+>42 : 42
+>   : ^^
+
+    (val) => console.log(val)  // Type inference here causes the issue
+>(val) => console.log(val) : (val: string | number | undefined) => void
+>                          : ^   ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>val : string | number | undefined
+>    : ^^^^^^^^^^^^^^^^^^^^^^^^^^^
+>console.log(val) : void
+>                 : ^^^^
+>console.log : (...data: any[]) => void
+>            : ^^^^    ^^     ^^^^^    
+>console : Console
+>        : ^^^^^^^
+>log : (...data: any[]) => void
+>    : ^^^^    ^^     ^^^^^    
+>val : string | number | undefined
+>    : ^^^^^^^^^^^^^^^^^^^^^^^^^^^
+
+);
diff --git a/tests/cases/compiler/issue61524DebugFailureCrash.ts b/tests/cases/compiler/issue61524DebugFailureCrash.ts
new file mode 100644
index 0000000000000..4249ec0fe543d
--- /dev/null
+++ b/tests/cases/compiler/issue61524DebugFailureCrash.ts
@@ -0,0 +1,22 @@
+// @strict: true
+// @noEmit: true
+
+// Exact reproduction from https://github.com/microsoft/TypeScript/issues/61524
+// This code causes "Debug Failure. No error for last overload signature"
+
+type Generic<T> = T extends any[] ? T[number] : T[keyof T];
+
+export function testFn<A extends Record<string, any>>(
+    obj: A,
+    cb: (b: Generic<Partial<A>>) => any
+) {
+    for (const [key, val] of Object.entries(obj)) {
+        cb(val as Generic<A>);
+    }
+}
+
+// Usage that triggers the crash
+testFn(
+    { foo: "bar", num: 42 },
+    (val) => console.log(val)  // Type inference here causes the issue
+);
\ No newline at end of file