diff --git a/runtime/syntax/python.vim b/runtime/syntax/python.vim
index 86aa6d3296..05c965ec64 100644
--- a/runtime/syntax/python.vim
+++ b/runtime/syntax/python.vim
@@ -2,6 +2,7 @@
 " Language:	Python
 " Maintainer:	Zvezdan Petkovic <zpetkovic@acm.org>
 " Last Change:	2025 Sep 08
+" 2025 Sep 25 by Vim Project: fix wrong type highlighting #18394
 " Credits:	Neil Schemenauer <nas@python.ca>
 "		Dmitry Vasiliev
 "		Rob B
@@ -308,7 +309,7 @@ if !exists("python_no_builtin_highlight")
   syn keyword pythonBuiltin	setattr slice sorted staticmethod str sum super
   syn keyword pythonBuiltin	tuple vars zip __import__
   " only match `type` as a builtin when it's not followed by an identifier
-  syn match   pythonBuiltin	"\<type\ze\(\s\+\h\w*\)\@!"
+  syn match   pythonBuiltin	"\<type\>\ze\(\s\+\h\w*\)\@!"
   " avoid highlighting attributes as builtins
   syn match   pythonAttribute	/\.\h\w*/hs=s+1
 	\ contains=ALLBUT,pythonBuiltin,pythonClass,pythonFunction,pythonType,pythonAsync
diff --git a/runtime/syntax/testdir/dumps/python_type_00.dump b/runtime/syntax/testdir/dumps/python_type_00.dump
new file mode 100644
index 0000000000..eeb735e1f6
--- /dev/null
+++ b/runtime/syntax/testdir/dumps/python_type_00.dump
@@ -0,0 +1,20 @@
+>#+0#0000e05#ffffff0| |B|u|i|l|t|i|n| +0#0000000&@65
+|t+0#00e0e07&|y|p|e|(+0#0000000&|)| @68
+@75
+|#+0#0000e05&| |S|t|a|t|e|m|e|n|t| +0#0000000&@63
+|t+0#af5f00255&|y|p|e| +0#0000000&|P+0#00e0003&|o|i|n|t| +0#0000000&|=| |t+0#00e0e07&|u|p|l|e|[+0#0000000&|f+0#00e0e07&|l|o|a|t|,+0#0000000&| |f+0#00e0e07&|l|o|a|t|]+0#0000000&| @42
+@75
+|#+0#0000e05&| |S|h|o|u|l|d| |n|o|t| |m|a|t|c|h| +0#0000000&@56
+|t|y|p|e|n|a|m|e| |=| |'+0#e000002&@1| +0#0000000&@61
+|~+0#4040ff13&| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+|~| @73
+| +0#0000000&@56|1|,|1| @10|A|l@1| 
diff --git a/runtime/syntax/testdir/input/python_type.py b/runtime/syntax/testdir/input/python_type.py
new file mode 100644
index 0000000000..513b97fbd8
--- /dev/null
+++ b/runtime/syntax/testdir/input/python_type.py
@@ -0,0 +1,8 @@
+# Builtin
+type()
+
+# Statement
+type Point = tuple[float, float]
+
+# Should not match
+typename = ''