diff --git a/compiler/checker/checker.odin b/compiler/checker/checker.odin
index 460e7f3..5364605 100644
--- a/compiler/checker/checker.odin
+++ b/compiler/checker/checker.odin
@@ -2804,9 +2804,9 @@ infer_call_comptime_values :: proc(
 	for value_bound in bound {
 		all_bound = all_bound && value_bound
 	}
-	// Concrete arguments bind first. Numeric constants and `null` are contextual and
-	// therefore only contribute after stronger evidence has had a chance to bind the
-	// parameter type.
+	// Concrete arguments bind first. Numeric constants, string literals, and `null`
+	// are contextual and therefore only contribute after stronger evidence has had a
+	// chance to bind the parameter type.
 	weak_passes := [2]bool{false, true}
 	for weak in weak_passes {
 		for arg_id, source_index in args {
@@ -2819,7 +2819,8 @@ infer_call_comptime_values :: proc(
 			}
 			arg_expr := checker.ast_module.exprs[arg_id]
 			is_null := arg_expr.kind == .Null
-			is_weak := is_numeric_constant_expr(checker, arg_id) || is_null
+			is_weak := is_numeric_constant_expr(checker, arg_id) ||
+			           arg_expr.kind == .String || is_null
 			if is_weak != weak {
 				continue
 			}
diff --git a/compiler_tests.odin b/compiler_tests.odin
index 5f10c50..bde4c46 100644
--- a/compiler_tests.odin
+++ b/compiler_tests.odin
@@ -4686,6 +4686,55 @@ main func() void {
 	testing.expect(t, unrecoverable >= 3)
 }
 
+@(test)
+string_literals_are_contextual_comptime_type_inference_evidence :: proc(t: ^testing.T) {
+	text := `pair func($T type, expected, actual T) T {
+	_ = expected
+	return actual
+}
+identity func($T type, value T) T {
+	return value
+}
+main func() void {
+	actual []u8 :: "hello"
+	contextual :: pair("hello", actual)
+	exact :: identity("hello")
+	_ = contextual
+	_ = exact
+}
+`
+	source_file := source.Source{path="test.bro", text=text}
+	diagnostics := source.init_diagnostics(&source_file)
+	defer source.destroy_diagnostics(&diagnostics)
+	symbols := symbol.init_table()
+	defer symbol.destroy_table(&symbols)
+	stream := lexer.lex(&source_file, &diagnostics, &symbols)
+	defer delete(stream.items)
+	ast_module := parser.parse(&stream, &source_file, &diagnostics)
+	defer ast.destroy_module(&ast_module)
+	hir_module := checker.check(&ast_module, &diagnostics, &symbols)
+	defer hir.destroy_module(&hir_module)
+
+	pair_found := false
+	identity_found := false
+	for function in hir_module.functions {
+		name := symbol.resolve(&symbols, function.name)
+		if name == "pair" {
+			pair_found = true
+			testing.expect(t, types.is_slice(function.result, &hir_module.types))
+		} else if name == "identity" {
+			identity_found = true
+			_, array, ok := types.array_pointer(function.result, &hir_module.types)
+			testing.expect(t, ok && array.child == types.U8 && array.count == 5 &&
+			                  array.has_sentinel && array.sentinel == 0)
+		}
+	}
+
+	testing.expect_value(t, len(diagnostics.items), 0)
+	testing.expect(t, pair_found)
+	testing.expect(t, identity_found)
+}
+
 @(test)
 comptime_params_may_be_interleaved_and_are_erased_from_the_abi :: proc(t: ^testing.T) {
 	text := `valid func($T type, $N usize, value T) [N]T {