diff --git a/lib/Sema/CSStep.cpp b/lib/Sema/CSStep.cpp
index 45c2e10d20bd3..a13787aa5227b 100644
--- a/lib/Sema/CSStep.cpp
+++ b/lib/Sema/CSStep.cpp
@@ -981,7 +981,15 @@ StepResult ConjunctionStep::resume(bool prevFailed) {
                 ++numHoles;
               }
             }
-            CS.increaseScore(SK_Hole, Conjunction->getLocator(), numHoles);
+            // Increase the score for each hole we bind. Avoid doing this for
+            // completion since it's entirely expected we'll end up with
+            // ambiguities in the body of a closure if we're completing e.g
+            // `someOverloadedFn(#^CC^#)`. As such we don't want to penalize the
+            // solution for unbound type variables outside of the body since
+            // that will prevent us from being able to eagerly prune e.g
+            // disfavored overloads in the outer scope.
+            if (!CS.isForCodeCompletion())
+              CS.increaseScore(SK_Hole, Conjunction->getLocator(), numHoles);
           }
 
           if (CS.worseThanBestSolution())
diff --git a/test/IDE/complete_closure_ambiguity.swift b/test/IDE/complete_closure_ambiguity.swift
new file mode 100644
index 0000000000000..a1daa7be26079
--- /dev/null
+++ b/test/IDE/complete_closure_ambiguity.swift
@@ -0,0 +1,31 @@
+// RUN: %empty-directory(%t)
+// RUN: %batch-code-completion -debug-constraints 2> %t/constraints.log
+// RUN: %FileCheck %s -check-prefix CONSTRAINTS < %t/constraints.log
+// RUN: %FileCheck %s -check-prefix CONSTRAINTS-NOT < %t/constraints.log
+
+protocol P1 {}
+protocol P2 {}
+
+func foo<T: P1>(_ fn: () -> T) {}
+
+@_disfavoredOverload
+func foo<T: P2>(_ fn: () -> T) {}
+
+func bar(_ x: Int) -> Int {}
+func bar(_ x: String) -> String {}
+
+// Make sure we eagerly prune the disfavored overload of 'foo', despite the
+// ambiguity in the closure body.
+foo {
+  let x = bar(#^COMPLETE^#)
+  // COMPLETE: Decl[FreeFunction]/CurrModule/Flair[ArgLabels]: ['(']{#(x): Int#}[')'][#Int#]; name=:
+  // COMPLETE: Decl[FreeFunction]/CurrModule/Flair[ArgLabels]: ['(']{#(x): String#}[')'][#String#]; name=:
+
+  return x
+}
+
+// CONSTRAINTS: attempting disjunction choice {{.*}}:12:6
+// CONSTRAINTS: increasing 'disfavored overload' score
+// CONSTRAINTS: solution is worse than the best solution
+
+// CONSTRAINTS-NOT-NOT: increasing 'hole'