diff --git a/.changeset/lucky-mice-lick.md b/.changeset/lucky-mice-lick.md
new file mode 100644
index 0000000000..0d7fc1d790
--- /dev/null
+++ b/.changeset/lucky-mice-lick.md
@@ -0,0 +1,5 @@
+---
+'xstate': patch
+---
+
+Fixed compatibility with the upcoming TypeScript 5.4
diff --git a/packages/core/src/stateUtils.ts b/packages/core/src/stateUtils.ts
index a97563d6f0..8704f66978 100644
--- a/packages/core/src/stateUtils.ts
+++ b/packages/core/src/stateUtils.ts
@@ -643,7 +643,7 @@ export function getStateNodes<
       }
       const subStateNodes = getStateNodes(
         subStateNode,
-        stateValue[subStateKey]
+        stateValue[subStateKey]!
       );
 
       return allSubStateNodes.concat(subStateNodes);
@@ -684,7 +684,7 @@ export function transitionCompoundNode<
   const childStateNode = getStateNode(stateNode, subStateKeys[0]);
   const next = transitionNode(
     childStateNode,
-    stateValue[subStateKeys[0]],
+    stateValue[subStateKeys[0]]!,
     snapshot,
     event
   );
diff --git a/packages/core/src/types.ts b/packages/core/src/types.ts
index b06a4e61f9..2e4dedfa2c 100644
--- a/packages/core/src/types.ts
+++ b/packages/core/src/types.ts
@@ -295,7 +295,7 @@ export type Actions<
 export type StateKey = string | AnyMachineSnapshot;
 
 export interface StateValueMap {
-  [key: string]: StateValue;
+  [key: string]: StateValue | undefined;
 }
 
 /**
@@ -2352,21 +2352,19 @@ export type ToChildren<TActor extends ProvidedActor> =
       // or maybe even `TActor["logic"]` since it's possible to configure `{ src: string; logic: SomeConcreteLogic }`
       // TODO: consider adding `| undefined` here
       Record<string, AnyActorRef>
-    : Compute<
-        ToConcreteChildren<TActor> &
-          {
-            include: {
-              [id: string]: TActor extends any
-                ? ActorRefFrom<TActor['logic']> | undefined
-                : never;
-            };
-            exclude: {};
-          }[undefined extends TActor['id'] // if not all actors have literal string IDs then we need to create an index signature containing all possible actor types
+    : ToConcreteChildren<TActor> &
+        {
+          include: {
+            [id: string]: TActor extends any
+              ? ActorRefFrom<TActor['logic']> | undefined
+              : never;
+          };
+          exclude: {};
+        }[undefined extends TActor['id'] // if not all actors have literal string IDs then we need to create an index signature containing all possible actor types
+          ? 'include'
+          : string extends TActor['id']
             ? 'include'
-            : string extends TActor['id']
-              ? 'include'
-              : 'exclude']
-      >;
+            : 'exclude'];
 
 export type StateSchema = {
   states?: Record<string, StateSchema>;
diff --git a/packages/core/src/utils.ts b/packages/core/src/utils.ts
index d30acabfd2..900e0e9265 100644
--- a/packages/core/src/utils.ts
+++ b/packages/core/src/utils.ts
@@ -47,7 +47,7 @@ export function matchesState(
       return false;
     }
 
-    return matchesState(parentStateValue[key], childStateValue[key]);
+    return matchesState(parentStateValue[key]!, childStateValue[key]!);
   });
 }