diff --git a/CHANGELOG.md b/CHANGELOG.md
index 29d1dcc956..de4d0dd104 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,10 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 
 ## [Unreleased](https://github.com/o1-labs/o1js/compare/6a1012162...HEAD)
 
+### Fixes
+
+- Fix type inference for `method.returns(Type)`, to require a matching return signature https://github.com/o1-labs/o1js/pull/1653
+
 ## [1.2.0](https://github.com/o1-labs/o1js/compare/4a17de857...6a1012162) - 2024-05-14
 
 ### Added
diff --git a/src/lib/mina/zkapp.ts b/src/lib/mina/zkapp.ts
index c4ecefb141..84e73cc286 100644
--- a/src/lib/mina/zkapp.ts
+++ b/src/lib/mina/zkapp.ts
@@ -19,6 +19,7 @@ import {
 import {
   cloneCircuitValue,
   FlexibleProvablePure,
+  InferProvable,
 } from '../provable/types/struct.js';
 import {
   Provable,
@@ -170,12 +171,14 @@ function method<K extends string, T extends SmartContract>(
  * }
  * ```
  */
-method.returns = function <K extends string, T extends SmartContract, R>(
-  returnType: Provable<R>
-) {
+method.returns = function <
+  K extends string,
+  T extends SmartContract,
+  R extends Provable<any>
+>(returnType: R) {
   return function decorateMethod(
     target: T & {
-      [k in K]: (...args: any) => Promise<R>;
+      [k in K]: (...args: any) => Promise<InferProvable<R>>;
     },
     methodName: K & string & keyof T,
     descriptor: PropertyDescriptor