diff --git a/crates/ruff_linter/resources/test/fixtures/flake8_pyi/PYI053.pyi b/crates/ruff_linter/resources/test/fixtures/flake8_pyi/PYI053.pyi
index a711b7e9156d9..b25a02db20c7b 100644
--- a/crates/ruff_linter/resources/test/fixtures/flake8_pyi/PYI053.pyi
+++ b/crates/ruff_linter/resources/test/fixtures/flake8_pyi/PYI053.pyi
@@ -66,3 +66,6 @@ def not_warnings_dot_deprecated(
 def not_a_deprecated_function() -> None: ...
 
 fbaz: str = f"51 character {foo} stringgggggggggggggggggggggggggg"  # Error: PYI053
+
+# see https://github.com/astral-sh/ruff/issues/12995
+def foo(bar: typing.Literal["a", "bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb"]):...
\ No newline at end of file
diff --git a/crates/ruff_linter/src/rules/flake8_pyi/rules/string_or_bytes_too_long.rs b/crates/ruff_linter/src/rules/flake8_pyi/rules/string_or_bytes_too_long.rs
index 8f50173f25583..1d7a85b2470e2 100644
--- a/crates/ruff_linter/src/rules/flake8_pyi/rules/string_or_bytes_too_long.rs
+++ b/crates/ruff_linter/src/rules/flake8_pyi/rules/string_or_bytes_too_long.rs
@@ -59,6 +59,10 @@ pub(crate) fn string_or_bytes_too_long(checker: &mut Checker, string: StringLike
         return;
     }
 
+    if semantic.in_annotation() {
+        return;
+    }
+
     let length = match string {
         StringLike::String(ast::ExprStringLiteral { value, .. }) => value.chars().count(),
         StringLike::Bytes(ast::ExprBytesLiteral { value, .. }) => value.len(),
diff --git a/crates/ruff_linter/src/rules/flake8_pyi/snapshots/ruff_linter__rules__flake8_pyi__tests__PYI053_PYI053.pyi.snap b/crates/ruff_linter/src/rules/flake8_pyi/snapshots/ruff_linter__rules__flake8_pyi__tests__PYI053_PYI053.pyi.snap
index 19ca04f611b51..501c5a310067b 100644
--- a/crates/ruff_linter/src/rules/flake8_pyi/snapshots/ruff_linter__rules__flake8_pyi__tests__PYI053_PYI053.pyi.snap
+++ b/crates/ruff_linter/src/rules/flake8_pyi/snapshots/ruff_linter__rules__flake8_pyi__tests__PYI053_PYI053.pyi.snap
@@ -152,6 +152,8 @@ PYI053.pyi:68:13: PYI053 [*] String and bytes literals longer than 50 characters
 67 | 
 68 | fbaz: str = f"51 character {foo} stringgggggggggggggggggggggggggg"  # Error: PYI053
    |             ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ PYI053
+69 | 
+70 | # see https://github.com/astral-sh/ruff/issues/12995
    |
    = help: Replace with `...`
 
@@ -161,3 +163,6 @@ PYI053.pyi:68:13: PYI053 [*] String and bytes literals longer than 50 characters
 67 67 | 
 68    |-fbaz: str = f"51 character {foo} stringgggggggggggggggggggggggggg"  # Error: PYI053
    68 |+fbaz: str = ...  # Error: PYI053
+69 69 | 
+70 70 | # see https://github.com/astral-sh/ruff/issues/12995
+71 71 | def foo(bar: typing.Literal["a", "bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb"]):...