diff --git a/scripts/test/fuzzing.py b/scripts/test/fuzzing.py
index 8ddc4982563..96121d4649e 100644
--- a/scripts/test/fuzzing.py
+++ b/scripts/test/fuzzing.py
@@ -114,6 +114,7 @@
     'exact-references-lowering.wast',
     'exact-casts.wast',
     'exact-casts-trivial.wast',
+    'abstract-type-refining-exact.wast',
     'optimize-instructions-exact.wast',
     'optimize-instructions-all-casts.wast',
     'optimize-instructions-all-casts-exact.wast',
diff --git a/src/wasm-type.h b/src/wasm-type.h
index 4ecbf6ab379..579d65e727a 100644
--- a/src/wasm-type.h
+++ b/src/wasm-type.h
@@ -418,8 +418,12 @@ class Type {
   }
 
   // Return a new reference type with some part updated to the specified value.
+  // Always clear exactness when replacing the referenced type with a basic heap
+  // type to avoid creating an invalid type.
   Type with(HeapType heapType) const {
-    return Type(heapType, getNullability(), getExactness());
+    return Type(heapType,
+                getNullability(),
+                heapType.isBasic() ? Inexact : getExactness());
   }
   Type with(Nullability nullability) const {
     return Type(getHeapType(), nullability, getExactness());
diff --git a/test/lit/passes/abstract-type-refining-exact.wast b/test/lit/passes/abstract-type-refining-exact.wast
new file mode 100644
index 00000000000..dec05e0f328
--- /dev/null
+++ b/test/lit/passes/abstract-type-refining-exact.wast
@@ -0,0 +1,18 @@
+;; NOTE: Assertions have been generated by update_lit_checks.py and should not be edited.
+
+;; RUN: wasm-opt %s -all --closed-world --abstract-type-refining -S -o - | filecheck %s
+
+(module
+ ;; CHECK:      (rec
+ ;; CHECK-NEXT:  (type $foo (struct))
+ (type $foo (struct))
+
+ ;; CHECK:      (func $test (type $1)
+ ;; CHECK-NEXT:  (local $0 (ref none))
+ ;; CHECK-NEXT: )
+ (func $test
+  ;; $foo will be replaced with none` and the exactness should be dropped
+  ;; without errors.
+  (local (ref (exact $foo)))
+ )
+)