diff --git a/.changeset/itchy-seahorses-help.md b/.changeset/itchy-seahorses-help.md
new file mode 100644
index 0000000..6d81f24
--- /dev/null
+++ b/.changeset/itchy-seahorses-help.md
@@ -0,0 +1,5 @@
+---
+"windpipe": minor
+---
+
+allow different error types when existing stream has `never` error
diff --git a/src/index.ts b/src/index.ts
index a8b083a..c95b12a 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -15,6 +15,6 @@ export type {
 } from "./atom";
 
 // Re-export useful utility types
-export type { MaybePromise, Truthy, CallbackOrStream } from "./util";
+export type { MaybePromise, Truthy, CallbackOrStream, NodeCallback } from "./util";
 
 export default Stream;
diff --git a/src/stream/base.ts b/src/stream/base.ts
index c52f62d..1d6e88a 100644
--- a/src/stream/base.ts
+++ b/src/stream/base.ts
@@ -1,7 +1,7 @@
 import { normalise, type Atom, type MaybeAtom, error, exception } from "../atom";
 import { Stream } from ".";
 import { Readable, Writable } from "stream";
-import { createNodeCallback, newSignal } from "../util";
+import { createNodeCallback, newSignal, type NodeCallback } from "../util";
 
 /**
  * Unique type to represent the stream end marker.
@@ -47,7 +47,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static from<T, E>(
+    static from<T, E = never>(
         value:
             | Promise<MaybeAtom<T, E>>
             | Iterator<MaybeAtom<T, E>>
@@ -97,7 +97,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromCallback<T, E>(cb: (next: (error: E, value: T) => unknown) => void): Stream<T, E> {
+    static fromCallback<T, E = never>(cb: (next: NodeCallback<T, E>) => void): Stream<T, E> {
         // Set up a next function
         const [promise, next] = createNodeCallback<T, E>();
 
@@ -115,7 +115,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromPromise<T, E>(promise: Promise<MaybeAtom<T, E>>): Stream<T, E> {
+    static fromPromise<T, E = never>(promise: Promise<MaybeAtom<T, E>>): Stream<T, E> {
         let awaited = false;
 
         return Stream.fromNext(async () => {
@@ -136,7 +136,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromIterator<T, E>(
+    static fromIterator<T, E = never>(
         iterator: Iterator<MaybeAtom<T, E>> | AsyncIterator<MaybeAtom<T, E>>,
     ): Stream<T, E> {
         return Stream.fromNext(async () => {
@@ -159,7 +159,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromIterable<T, E>(
+    static fromIterable<T, E = never>(
         iterable: Iterable<MaybeAtom<T, E>> | AsyncIterable<MaybeAtom<T, E>>,
     ): Stream<T, E> {
         if (Symbol.iterator in iterable) {
@@ -179,7 +179,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromArray<T, E>(array: MaybeAtom<T, E>[]): Stream<T, E> {
+    static fromArray<T, E = never>(array: MaybeAtom<T, E>[]): Stream<T, E> {
         // Clone the array so that shifting elements doesn't impact the original array.
         array = [...array];
 
@@ -197,7 +197,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromNext<T, E>(next: () => Promise<MaybeAtom<T, E> | StreamEnd>): Stream<T, E> {
+    static fromNext<T, E = never>(next: () => Promise<MaybeAtom<T, E> | StreamEnd>): Stream<T, E> {
         return new Stream(
             new Readable({
                 objectMode: true,
@@ -232,7 +232,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static fromPusher<T, E>(): {
+    static fromPusher<T, E = never>(): {
         stream: Stream<T, E>;
         push: (value: MaybeAtom<T, E>) => void;
         done: () => void;
@@ -297,7 +297,7 @@ export class StreamBase {
      *
      * @group Creation
      */
-    static of<T, E>(value: MaybeAtom<T, E>): Stream<T, E> {
+    static of<T, E = never>(value: MaybeAtom<T, E>): Stream<T, E> {
         let consumed = false;
         return Stream.fromNext(async () => {
             if (!consumed) {
@@ -339,7 +339,7 @@ export class StreamBase {
      * Create a stream and corresponding writable Node stream, where any writes to the writable
      * Node stream will be emitted on the returned stream.
      */
-    static writable<T, E>(): { stream: Stream<T, E>; writable: Writable } {
+    static writable<T, E = never>(): { stream: Stream<T, E>; writable: Writable } {
         const buffer: (Atom<T, E> | StreamEnd)[] = [];
         const queue: ((value: Atom<T, E> | StreamEnd) => void)[] = [];
 
diff --git a/src/stream/higher-order.ts b/src/stream/higher-order.ts
index a2ff452..efabaab 100644
--- a/src/stream/higher-order.ts
+++ b/src/stream/higher-order.ts
@@ -14,6 +14,8 @@ function reject<T>(value: T): { reject: T } {
 
 type FilterResult<A, R> = { accept: A } | { reject: R };
 
+type IfNever<T, A, B> = [T] extends [never] ? A : B;
+
 export class HigherOrderStream<T, E> extends StreamTransforms<T, E> {
     /**
      * Base implementation of `flat*` operations. In general, all of these methods will filter over
@@ -250,13 +252,13 @@ export class HigherOrderStream<T, E> extends StreamTransforms<T, E> {
      *
      * @group Higher Order
      */
-    otherwise(cbOrStream: CallbackOrStream<T, E>): Stream<T, E> {
+    otherwise<F extends IfNever<E, unknown, E>>(cbOrStream: CallbackOrStream<T, F>): Stream<T, F> {
         return this.consume(async function* (it) {
             // Count the items being emitted from the iterator
             let count = 0;
             for await (const atom of it) {
                 count += 1;
-                yield atom;
+                yield atom as Atom<T, F>;
             }
 
             // If nothing was emitted, then create the stream and emit it
diff --git a/src/util.ts b/src/util.ts
index c7b272a..62c471b 100644
--- a/src/util.ts
+++ b/src/util.ts
@@ -31,6 +31,8 @@ export async function exhaust(iterable: AsyncIterable<unknown>) {
     }
 }
 
+export type NodeCallback<T, E> = (err: E | null, value?: T) => void;
+
 /**
  * Creates a `next` function and associated promise to promise-ify a node style callback. The
  * `next` function must be passed as the callback to a function, and the resulting error or value
@@ -40,7 +42,7 @@ export async function exhaust(iterable: AsyncIterable<unknown>) {
  * promise, whilst the value of the callback (second parameter) will be emitted as an `Ok` atom on
  * the promise.
  */
-export function createNodeCallback<T, E>(): [Promise<Atom<T, E>>, (error: E, value: T) => void] {
+export function createNodeCallback<T, E>(): [Promise<Atom<T, E>>, NodeCallback<T, E>] {
     // Resolve function to be hoisted out of the promise
     let resolve: (atom: Atom<T, E>) => void;
 
@@ -50,10 +52,10 @@ export function createNodeCallback<T, E>(): [Promise<Atom<T, E>>, (error: E, val
     });
 
     // Create the next callback
-    const next = (err: E, value: T) => {
+    const next: NodeCallback<T, E> = (err, value) => {
         if (err) {
             resolve(Stream.error(err));
-        } else {
+        } else if (value) {
             resolve(Stream.ok(value));
         }
     };
diff --git a/test/benchmarks/index.bench.ts b/test/benchmarks/index.bench.ts
index 82a1d68..99a90dc 100644
--- a/test/benchmarks/index.bench.ts
+++ b/test/benchmarks/index.bench.ts
@@ -52,7 +52,15 @@ describe("simple transform operations", () => {
 
 describe("sample data operations", () => {
     bench("windpipe", async () => {
-        await Stream.from([
+        await Stream.from<
+            {
+                name: string;
+                id: number;
+                permissions: { read: boolean; write: boolean };
+                balance: number;
+            },
+            string
+        >([
             {
                 name: "test user 1",
                 id: 1,
diff --git a/test/creation.test.ts b/test/creation.test.ts
index d29ddd0..e685ec2 100644
--- a/test/creation.test.ts
+++ b/test/creation.test.ts
@@ -1,5 +1,5 @@
 import { afterEach, beforeEach, describe, test, vi } from "vitest";
-import $ from "../src";
+import $, { type NodeCallback } from "../src";
 import { Readable } from "stream";
 
 describe("stream creation", () => {
@@ -100,12 +100,9 @@ describe("stream creation", () => {
          * @param success - Whether the method should succeed or fail.
          * @param cb - Node-style callback to pass error or value to.
          */
-        function someNodeCallback(
-            success: boolean,
-            cb: (error: string | undefined, value?: number) => void,
-        ) {
+        function someNodeCallback(success: boolean, cb: NodeCallback<number, string>) {
             if (success) {
-                cb(undefined, 123);
+                cb(null, 123);
             } else {
                 cb("an error");
             }
@@ -114,7 +111,7 @@ describe("stream creation", () => {
         test("value returned from callback", async ({ expect }) => {
             expect.assertions(1);
 
-            const s = $.fromCallback((next) => {
+            const s = $.fromCallback<number, string>((next) => {
                 someNodeCallback(true, next);
             });
 
@@ -124,7 +121,7 @@ describe("stream creation", () => {
         test("error returned from callback", async ({ expect }) => {
             expect.assertions(1);
 
-            const s = $.fromCallback((next) => {
+            const s = $.fromCallback<number, string>((next) => {
                 someNodeCallback(false, next);
             });
 
diff --git a/test/higher-order.test.ts b/test/higher-order.test.ts
index d0e83e9..6b3a3dd 100644
--- a/test/higher-order.test.ts
+++ b/test/higher-order.test.ts
@@ -125,6 +125,13 @@ describe.concurrent("higher order streams", () => {
 
             expect(await s.toArray({ atoms: true })).toEqual([$.exception("some error", [])]);
         });
+
+        test("stream with never error", async ({ expect }) => {
+            expect.assertions(1);
+
+            const s = $.from<number, never>([]).otherwise($.ofError("some error"));
+            expect(await s.toArray({ atoms: true })).toEqual([$.error("some error")]);
+        });
     });
 
     describe.concurrent("cachedFlatMap", () => {