@@ -2823,7 +2823,7 @@ def function_type(self, func: FuncBase) -> FunctionLike:
         return function_type(func, self.named_type('builtins.function'))
 
     def find_isinstance_check(self, n: Expression) -> 'Tuple[TypeMap, TypeMap]':
-        return find_isinstance_check(n, self.type_map)
+        return find_isinstance_check(n, self.type_map, self)
 
     def push_type_map(self, type_map: 'TypeMap') -> None:
         if type_map is None:
@@ -2897,7 +2897,45 @@ def conditional_type_map(expr: Expression,
         return {}, {}
 
 
-def partition_by_callable(type: Type) -> Tuple[List[Type], List[Type]]:
+def intersect_instance_callable(type: Instance, callable_type: CallableType) -> Type:
+    """Creates a fake type that represents the intersection of an
+    Instance and a CallableType.
+
+    It operates by creating a bare-minimum dummy TypeInfo that
+    subclasses type and adds a __call__ method matching callable_type."""
+
+    # Build the fake ClassDef and TypeInfo together.
+    # The ClassDef is full of lies and doesn't actually contain a body.
+    cdef = ClassDef("<callable subtype of {}>".format(type.type.name()), Block([]))
+    info = TypeInfo(SymbolTable(), cdef, '<dummy>')
+    cdef.info = info
+    info.bases = [type]
+    info.calculate_mro()
+
+    # Build up a fake FuncDef so we can populate the symbol table.
+    func_def = FuncDef('__call__', [], Block([]), callable_type)
+    func_def.info = info
+    info.names['__call__'] = SymbolTableNode(MDEF, func_def, callable_type)
+
+    return Instance(info, [])
+
+
+def make_fake_callable(type: Instance, typechecker: TypeChecker) -> Type:
+    """Produce a new type that makes type Callable with a generic callable type."""
+
+    fallback = typechecker.named_type('builtins.function')
+    callable_type = CallableType([AnyType(TypeOfAny.explicit),
+                                  AnyType(TypeOfAny.explicit)],
+                                 [nodes.ARG_STAR, nodes.ARG_STAR2],
+                                 [None, None],
+                                 ret_type=AnyType(TypeOfAny.explicit),
+                                 fallback=fallback,
+                                 is_ellipsis_args=True)
+
+    return intersect_instance_callable(type, callable_type)
+
+
+def partition_by_callable(type: Type, typechecker: TypeChecker) -> Tuple[List[Type], List[Type]]:
     """Takes in a type and partitions that type into callable subtypes and
     uncallable subtypes.
 
@@ -2918,29 +2956,43 @@ def partition_by_callable(type: Type) -> Tuple[List[Type], List[Type]]:
         callables = []
         uncallables = []
         for subtype in type.relevant_items():
-            subcallables, subuncallables = partition_by_callable(subtype)
+            subcallables, subuncallables = partition_by_callable(subtype, typechecker)
             callables.extend(subcallables)
             uncallables.extend(subuncallables)
         return callables, uncallables
 
     if isinstance(type, TypeVarType):
-        return partition_by_callable(type.erase_to_union_or_bound())
+        # We could do better probably?
+        # Refine the the type variable's bound as our type in the case that
+        # callable() is true. This unfortuantely loses the information that
+        # the type is a type variable in that branch.
+        # This matches what is done for isinstance, but it may be possible to
+        # do better.
+        # If it is possible for the false branch to execute, return the original
+        # type to avoid losing type information.
+        callables, uncallables = partition_by_callable(type.erase_to_union_or_bound(), typechecker)
+        uncallables = [type] if len(uncallables) else []
+        return callables, uncallables
 
     if isinstance(type, Instance):
         method = type.type.get_method('__call__')
         if method and method.type:
-            callables, uncallables = partition_by_callable(method.type)
+            callables, uncallables = partition_by_callable(method.type, typechecker)
             if len(callables) and not len(uncallables):
                 # Only consider the type callable if its __call__ method is
                 # definitely callable.
                 return [type], []
-        return [], [type]
 
-    return [], [type]
+        ret = make_fake_callable(type, typechecker)
+        return [ret], [type]
+
+    # We don't know how properly make the type callable.
+    return [type], [type]
 
 
 def conditional_callable_type_map(expr: Expression,
                                   current_type: Optional[Type],
+                                  typechecker: TypeChecker,
                                   ) -> Tuple[TypeMap, TypeMap]:
     """Takes in an expression and the current type of the expression.
 
@@ -2954,7 +3006,7 @@ def conditional_callable_type_map(expr: Expression,
     if isinstance(current_type, AnyType):
         return {}, {}
 
-    callables, uncallables = partition_by_callable(current_type)
+    callables, uncallables = partition_by_callable(current_type, typechecker)
 
     if len(callables) and len(uncallables):
         callable_map = {expr: UnionType.make_union(callables)} if len(callables) else None
@@ -3083,6 +3135,7 @@ def convert_to_typetype(type_map: TypeMap) -> TypeMap:
 
 def find_isinstance_check(node: Expression,
                           type_map: Dict[Expression, Type],
+                          typechecker: TypeChecker,
                           ) -> Tuple[TypeMap, TypeMap]:
     """Find any isinstance checks (within a chain of ands).  Includes
     implicit and explicit checks for None and calls to callable.
@@ -3136,7 +3189,7 @@ def find_isinstance_check(node: Expression,
             expr = node.args[0]
             if literal(expr) == LITERAL_TYPE:
                 vartype = type_map[expr]
-                return conditional_callable_type_map(expr, vartype)
+                return conditional_callable_type_map(expr, vartype, typechecker)
     elif isinstance(node, ComparisonExpr) and experiments.STRICT_OPTIONAL:
         # Check for `x is None` and `x is not None`.
         is_not = node.operators == ['is not']
@@ -3196,23 +3249,23 @@ def find_isinstance_check(node: Expression,
         else_map = {ref: else_type} if not isinstance(else_type, UninhabitedType) else None
         return if_map, else_map
     elif isinstance(node, OpExpr) and node.op == 'and':
-        left_if_vars, left_else_vars = find_isinstance_check(node.left, type_map)
-        right_if_vars, right_else_vars = find_isinstance_check(node.right, type_map)
+        left_if_vars, left_else_vars = find_isinstance_check(node.left, type_map, typechecker)
+        right_if_vars, right_else_vars = find_isinstance_check(node.right, type_map, typechecker)
 
         # (e1 and e2) is true if both e1 and e2 are true,
         # and false if at least one of e1 and e2 is false.
         return (and_conditional_maps(left_if_vars, right_if_vars),
                 or_conditional_maps(left_else_vars, right_else_vars))
     elif isinstance(node, OpExpr) and node.op == 'or':
-        left_if_vars, left_else_vars = find_isinstance_check(node.left, type_map)
-        right_if_vars, right_else_vars = find_isinstance_check(node.right, type_map)
+        left_if_vars, left_else_vars = find_isinstance_check(node.left, type_map, typechecker)
+        right_if_vars, right_else_vars = find_isinstance_check(node.right, type_map, typechecker)
 
         # (e1 or e2) is true if at least one of e1 or e2 is true,
         # and false if both e1 and e2 are false.
         return (or_conditional_maps(left_if_vars, right_if_vars),
                 and_conditional_maps(left_else_vars, right_else_vars))
     elif isinstance(node, UnaryExpr) and node.op == 'not':
-        left, right = find_isinstance_check(node.expr, type_map)
+        left, right = find_isinstance_check(node.expr, type_map, typechecker)
         return right, left
 
     # Not a supported isinstance check
 
@@ -2284,7 +2284,8 @@ def check_for_comp(self, e: Union[GeneratorExpr, DictionaryComprehension]) -> No
                 self.accept(condition)
 
                 # values are only part of the comprehension when all conditions are true
-                true_map, _ = mypy.checker.find_isinstance_check(condition, self.chk.type_map)
+                true_map, _ = mypy.checker.find_isinstance_check(condition, self.chk.type_map,
+                                                                 self.chk)
 
                 if true_map:
                     for var, type in true_map.items():
 
@@ -208,13 +208,13 @@ b = B()  # type: B
 c = A()  # type: Union[A, B]
 
 if callable(a):
-    5 + 'test'
+    5 + 'test' # E: Unsupported operand types for + ("int" and "str")
 
 if not callable(b):
     5 + 'test'
 
 if callable(c):
-    reveal_type(c)  # E: Revealed type is '__main__.B'
+    reveal_type(c)  # E: Revealed type is 'Union[<callable subtype of A>, __main__.B]'
 else:
     reveal_type(c)  # E: Revealed type is '__main__.A'
 
@@ -227,7 +227,7 @@ T = Union[Union[int, Callable[[], int]], Union[str, Callable[[], str]]]
 
 def f(t: T) -> None:
     if callable(t):
-        reveal_type(t())  # E: Revealed type is 'Union[builtins.int, builtins.str]'
+        reveal_type(t())  # E: Revealed type is 'Union[Any, builtins.int, builtins.str]'
     else:
         reveal_type(t)  # E: Revealed type is 'Union[builtins.int, builtins.str]'
 
@@ -240,7 +240,7 @@ T = TypeVar('T')
 
 def f(t: T) -> T:
     if callable(t):
-        return 5
+        return 5 # E: Incompatible return value type (got "int", expected "T")
     else:
         return t
 
@@ -253,7 +253,7 @@ T = TypeVar('T', int, Callable[[], int], Union[str, Callable[[], str]])
 
 def f(t: T) -> None:
     if callable(t):
-        reveal_type(t())  # E: Revealed type is 'builtins.int'  # E: Revealed type is 'builtins.str'
+        reveal_type(t())  # E: Revealed type is 'Any'  # E: Revealed type is 'builtins.int'  # E: Revealed type is 'Union[Any, builtins.str]'
     else:
         reveal_type(t)  # E: Revealed type is 'builtins.int*'  # E: Revealed type is 'builtins.str'
 
@@ -343,3 +343,29 @@ else:
     'test' + 5
 
 [builtins fixtures/callable.pyi]
+
+[case testCallableObject]
+
+def f(o: object) -> None:
+    if callable(o):
+        o()
+        1 + 'boom'  # E: Unsupported operand types for + ("int" and "str")
+        o()
+
+[builtins fixtures/callable.pyi]
+
+[case testCallableObject2]
+
+class Foo(object):
+    def bar(self) -> None:
+        pass
+
+def g(o: Foo) -> None:
+    o.bar()
+    if callable(o):
+        o.bar()
+        o()
+    else:
+        o.bar()
+
+[builtins fixtures/callable.pyi]