diff --git a/.changeset/quiet-panthers-wink.md b/.changeset/quiet-panthers-wink.md
new file mode 100644
index 00000000..7a78578f
--- /dev/null
+++ b/.changeset/quiet-panthers-wink.md
@@ -0,0 +1,5 @@
+---
+"gql.tada": patch
+---
+
+Extend `readFragment` types to allow `| {}` optional fragments to be matched. When a fragment is annotated with a directive making it optional (such as `@include`, `@skip`, or `@defer`) then its typed as optional. `readFragment` previously didn't know how to match these types, but it will now match `T | {}` and infer the type as such.
diff --git a/src/__tests__/api.test-d.ts b/src/__tests__/api.test-d.ts
index c33bfe1f..23815ee4 100644
--- a/src/__tests__/api.test-d.ts
+++ b/src/__tests__/api.test-d.ts
@@ -543,6 +543,130 @@ describe('readFragment', () => {
     const result = readFragment({} as document, {} as FragmentOf<document>);
     expectTypeOf<typeof result>().toEqualTypeOf<ResultOf<document>>();
   });
+
+  it('should unmask nullable, undefined, and optional data', () => {
+    type fragment = parseDocument<`
+      fragment Fields on Todo @_unmask {
+        id
+      }
+    `>;
+
+    type document = getDocumentNode<fragment, schema>;
+
+    const inputA: FragmentOf<document> | null = {} as any;
+    const resultA = readFragment({} as document, inputA);
+    expectTypeOf<typeof resultA>().toEqualTypeOf<ResultOf<document> | null>();
+
+    const inputB: FragmentOf<document> | undefined = {} as any;
+    const resultB = readFragment({} as document, inputB);
+    expectTypeOf<typeof resultB>().toEqualTypeOf<ResultOf<document> | undefined>();
+
+    const inputC: FragmentOf<document> | undefined | null = {} as any;
+    const resultC = readFragment({} as document, inputC);
+    expectTypeOf<typeof resultC>().toEqualTypeOf<ResultOf<document> | undefined | null>();
+
+    const inputD: FragmentOf<document> | {} = {} as any;
+    const resultD = readFragment({} as document, inputD);
+    expectTypeOf<typeof resultD>().toEqualTypeOf<ResultOf<document> | {}>();
+
+    const inputE: FragmentOf<document> | {} | null = {} as any;
+    const resultE = readFragment({} as document, inputE);
+    expectTypeOf<typeof resultE>().toEqualTypeOf<ResultOf<document> | {} | null>();
+  });
+
+  it('should unmask arrays of nullable, undefined, and optional data', () => {
+    type fragment = parseDocument<`
+      fragment Fields on Todo @_unmask {
+        id
+      }
+    `>;
+
+    type document = getDocumentNode<fragment, schema>;
+
+    const inputA: (FragmentOf<document> | null)[] = [];
+    const resultA = readFragment({} as document, inputA);
+    expectTypeOf<typeof resultA>().toEqualTypeOf<readonly (ResultOf<document> | null)[]>();
+
+    const inputB: (FragmentOf<document> | undefined)[] = [];
+    const resultB = readFragment({} as document, inputB);
+    expectTypeOf<typeof resultB>().toEqualTypeOf<readonly (ResultOf<document> | undefined)[]>();
+
+    const inputC: (FragmentOf<document> | undefined | null)[] = [];
+    const resultC = readFragment({} as document, inputC);
+    expectTypeOf<typeof resultC>().toEqualTypeOf<
+      readonly (ResultOf<document> | undefined | null)[]
+    >();
+
+    const inputD: (FragmentOf<document> | {})[] = [];
+    const resultD = readFragment({} as document, inputD);
+    expectTypeOf<typeof resultD>().toEqualTypeOf<readonly (ResultOf<document> | {})[]>();
+
+    const inputE: (FragmentOf<document> | {} | null)[] = [];
+    const resultE = readFragment({} as document, inputE);
+    expectTypeOf<typeof resultE>().toEqualTypeOf<readonly (ResultOf<document> | {} | null)[]>();
+  });
+
+  it('should unmask nullable, undefined, and optional data (with passed generic)', () => {
+    type fragment = parseDocument<`
+      fragment Fields on Todo @_unmask {
+        id
+      }
+    `>;
+
+    type document = getDocumentNode<fragment, schema>;
+
+    const inputA: FragmentOf<document> | null = {} as any;
+    const resultA = readFragment<document>(inputA);
+    expectTypeOf<typeof resultA>().toEqualTypeOf<ResultOf<document> | null>();
+
+    const inputB: FragmentOf<document> | undefined = {} as any;
+    const resultB = readFragment<document>(inputB);
+    expectTypeOf<typeof resultB>().toEqualTypeOf<ResultOf<document> | undefined>();
+
+    const inputC: FragmentOf<document> | undefined | null = {} as any;
+    const resultC = readFragment<document>(inputC);
+    expectTypeOf<typeof resultC>().toEqualTypeOf<ResultOf<document> | undefined | null>();
+
+    const inputD: FragmentOf<document> | {} = {} as any;
+    const resultD = readFragment<document>(inputD);
+    expectTypeOf<typeof resultD>().toEqualTypeOf<ResultOf<document> | {}>();
+
+    const inputE: FragmentOf<document> | {} | null = {} as any;
+    const resultE = readFragment<document>(inputE);
+    expectTypeOf<typeof resultE>().toEqualTypeOf<ResultOf<document> | {} | null>();
+  });
+
+  it('should unmask arrays of nullable, undefined, and optional data (with passed generic)', () => {
+    type fragment = parseDocument<`
+      fragment Fields on Todo @_unmask {
+        id
+      }
+    `>;
+
+    type document = getDocumentNode<fragment, schema>;
+
+    const inputA: (FragmentOf<document> | null)[] = [];
+    const resultA = readFragment<document>(inputA);
+    expectTypeOf<typeof resultA>().toEqualTypeOf<readonly (ResultOf<document> | null)[]>();
+
+    const inputB: (FragmentOf<document> | undefined)[] = [];
+    const resultB = readFragment<document>(inputB);
+    expectTypeOf<typeof resultB>().toEqualTypeOf<readonly (ResultOf<document> | undefined)[]>();
+
+    const inputC: (FragmentOf<document> | undefined | null)[] = [];
+    const resultC = readFragment<document>(inputC);
+    expectTypeOf<typeof resultC>().toEqualTypeOf<
+      readonly (ResultOf<document> | undefined | null)[]
+    >();
+
+    const inputD: (FragmentOf<document> | {})[] = [];
+    const resultD = readFragment<document>(inputD);
+    expectTypeOf<typeof resultD>().toEqualTypeOf<readonly (ResultOf<document> | {})[]>();
+
+    const inputE: (FragmentOf<document> | {} | null)[] = [];
+    const resultE = readFragment<document>(inputE);
+    expectTypeOf<typeof resultE>().toEqualTypeOf<readonly (ResultOf<document> | {} | null)[]>();
+  });
 });
 
 describe('maskFragments', () => {
diff --git a/src/api.ts b/src/api.ts
index 2bbf1cbd..cee26623 100644
--- a/src/api.ts
+++ b/src/api.ts
@@ -512,17 +512,27 @@ type fragmentRefsOfFragmentsRec<
  * @see {@link readFragment} for how to read from fragment masks.
  */
 function readFragment<const Document extends FragmentShape = never>(
+  _document: Document,
   fragment: resultOrFragmentOf<Document>
 ): ResultOf<Document>;
-function readFragment<const Document extends FragmentShape = never>(
-  fragment: resultOrFragmentOf<Document> | null
-): ResultOf<Document> | null;
-function readFragment<const Document extends FragmentShape = never>(
-  fragment: resultOrFragmentOf<Document> | undefined
-): ResultOf<Document> | undefined;
-function readFragment<const Document extends FragmentShape = never>(
-  fragment: resultOrFragmentOf<Document> | null | undefined
-): ResultOf<Document> | null | undefined;
+// Reading fragments where input data is an array and nullable
+function readFragment<
+  const Document extends FragmentShape,
+  const T extends resultOrFragmentOf<Document> | null | undefined | {},
+>(
+  _document: Document,
+  fragments: readonly T[]
+): readonly (T extends resultOrFragmentOf<Document> ? ResultOf<Document> : T)[];
+// Reading fragments where input data is nullable
+function readFragment<
+  const Document extends FragmentShape,
+  const T extends resultOrFragmentOf<Document> | null | undefined | {},
+>(
+  _document: Document,
+  fragment: T
+): T extends resultOrFragmentOf<Document> ? ResultOf<Document> : T;
+
+// Reading arrays of fragments with required generic
 function readFragment<const Document extends FragmentShape = never>(
   fragment: readonly resultOrFragmentOf<Document>[]
 ): readonly ResultOf<Document>[];
@@ -535,38 +545,46 @@ function readFragment<const Document extends FragmentShape = never>(
 function readFragment<const Document extends FragmentShape = never>(
   fragment: readonly (resultOrFragmentOf<Document> | null | undefined)[]
 ): readonly (ResultOf<Document> | null | undefined)[];
+// Reading arrays of fragments with required generic with optional `{}` type
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: readonly (resultOrFragmentOf<Document> | {})[]
+): readonly (ResultOf<Document> | {})[];
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: readonly (resultOrFragmentOf<Document> | null | {})[]
+): readonly (ResultOf<Document> | null | {})[];
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: readonly (resultOrFragmentOf<Document> | undefined | {})[]
+): readonly (ResultOf<Document> | undefined | {})[];
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: readonly (resultOrFragmentOf<Document> | null | undefined | {})[]
+): readonly (ResultOf<Document> | null | undefined | {})[];
+// Reading fragments with required generic
 function readFragment<const Document extends FragmentShape = never>(
-  _document: Document,
   fragment: resultOrFragmentOf<Document>
 ): ResultOf<Document>;
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
+function readFragment<const Document extends FragmentShape = never>(
   fragment: resultOrFragmentOf<Document> | null
 ): ResultOf<Document> | null;
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
+function readFragment<const Document extends FragmentShape = never>(
   fragment: resultOrFragmentOf<Document> | undefined
 ): ResultOf<Document> | undefined;
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
+function readFragment<const Document extends FragmentShape = never>(
   fragment: resultOrFragmentOf<Document> | null | undefined
 ): ResultOf<Document> | null | undefined;
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
-  fragment: readonly resultOrFragmentOf<Document>[]
-): readonly ResultOf<Document>[];
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
-  fragment: readonly (resultOrFragmentOf<Document> | null)[]
-): readonly (ResultOf<Document> | null)[];
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
-  fragment: readonly (resultOrFragmentOf<Document> | undefined)[]
-): readonly (ResultOf<Document> | undefined)[];
-function readFragment<const Document extends FragmentShape>(
-  _document: Document,
-  fragment: readonly (resultOrFragmentOf<Document> | null | undefined)[]
-): readonly (ResultOf<Document> | null | undefined)[];
+// Reading fragments with required generic with optional `{}` type
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: resultOrFragmentOf<Document> | {}
+): ResultOf<Document> | {};
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: resultOrFragmentOf<Document> | null | {}
+): ResultOf<Document> | null | {};
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: resultOrFragmentOf<Document> | undefined | {}
+): ResultOf<Document> | undefined | {};
+function readFragment<const Document extends FragmentShape = never>(
+  fragment: resultOrFragmentOf<Document> | null | undefined | {}
+): ResultOf<Document> | null | undefined | {};
+
 function readFragment(...args: [unknown] | [unknown, unknown]) {
   return args.length === 2 ? args[1] : args[0];
 }