diff --git a/mypy/subtypes.py b/mypy/subtypes.py
index 787d5cb89b0a..a63db93fd9cb 100644
--- a/mypy/subtypes.py
+++ b/mypy/subtypes.py
@@ -892,15 +892,20 @@ def visit_typeddict_type(self, left: TypedDictType) -> bool:
                 return False
             for name, l, r in left.zip(right):
                 # TODO: should we pass on the full subtype_context here and below?
-                if self.proper_subtype:
-                    check = is_same_type(l, r)
+                right_readonly = name in right.readonly_keys
+                if not right_readonly:
+                    if self.proper_subtype:
+                        check = is_same_type(l, r)
+                    else:
+                        check = is_equivalent(
+                            l,
+                            r,
+                            ignore_type_params=self.subtype_context.ignore_type_params,
+                            options=self.options,
+                        )
                 else:
-                    check = is_equivalent(
-                        l,
-                        r,
-                        ignore_type_params=self.subtype_context.ignore_type_params,
-                        options=self.options,
-                    )
+                    # Read-only items behave covariantly
+                    check = self._is_subtype(l, r)
                 if not check:
                     return False
                 # Non-required key is not compatible with a required key since
@@ -917,7 +922,7 @@ def visit_typeddict_type(self, left: TypedDictType) -> bool:
                 # Readonly fields check:
                 #
                 # A = TypedDict('A', {'x': ReadOnly[int]})
-                # B = TypedDict('A', {'x': int})
+                # B = TypedDict('B', {'x': int})
                 # def reset_x(b: B) -> None:
                 #     b['x'] = 0
                 #
diff --git a/test-data/unit/check-typeddict.test b/test-data/unit/check-typeddict.test
index e1797421636e..affa472bb640 100644
--- a/test-data/unit/check-typeddict.test
+++ b/test-data/unit/check-typeddict.test
@@ -3988,3 +3988,44 @@ class TP(TypedDict):
     k: ReadOnly  # E: "ReadOnly[]" must have exactly one type argument
 [builtins fixtures/dict.pyi]
 [typing fixtures/typing-typeddict.pyi]
+
+[case testTypedDictReadOnlyCovariant]
+from typing import ReadOnly, TypedDict, Union
+
+class A(TypedDict):
+    a: ReadOnly[Union[int, str]]
+
+class A2(TypedDict):
+    a: ReadOnly[int]
+
+class B(TypedDict):
+    a: int
+
+class B2(TypedDict):
+    a: Union[int, str]
+
+class B3(TypedDict):
+    a: int
+
+def fa(a: A) -> None: ...
+def fa2(a: A2) -> None: ...
+
+b: B = {"a": 1}
+fa(b)
+fa2(b)
+b2: B2 = {"a": 1}
+fa(b2)
+fa2(b2)  # E: Argument 1 to "fa2" has incompatible type "B2"; expected "A2"
+
+class C(TypedDict):
+    a: ReadOnly[Union[int, str]]
+    b: Union[str, bytes]
+
+class D(TypedDict):
+    a: int
+    b: str
+
+d: D = {"a": 1, "b": "x"}
+c: C = d  # E: Incompatible types in assignment (expression has type "D", variable has type "C")
+[builtins fixtures/dict.pyi]
+[typing fixtures/typing-typeddict.pyi]