diff --git a/changelog.d/207.bugfix.rst b/changelog.d/207.bugfix.rst
new file mode 100644
index 00000000..ecc2dac0
--- /dev/null
+++ b/changelog.d/207.bugfix.rst
@@ -0,0 +1 @@
+``has_properties`` now returns ``Matcher[Any]`` type, which addresses type checking errors when nested as a matcher.
diff --git a/setup.py b/setup.py
index b3ea6541..97057a9c 100755
--- a/setup.py
+++ b/setup.py
@@ -42,6 +42,8 @@ def read(fname):
     # Can't use 0.940: https://github.com/python/mypy/issues/12339
     "mypy!=0.940; platform_python_implementation != 'PyPy'",
     "types-mock",
+    "dataclasses; python_version<'3.7'",
+    "types-dataclasses; python_version<'3.7'",
 ]
 TESTS_NUMPY = ["numpy"]
 DEV_TOOLS = [
diff --git a/src/hamcrest/__init__.py b/src/hamcrest/__init__.py
index b307591c..90573fe3 100644
--- a/src/hamcrest/__init__.py
+++ b/src/hamcrest/__init__.py
@@ -2,7 +2,7 @@
 from hamcrest.library import *
 from hamcrest import core, library
 
-__version__ = "2.0.3"
+__version__ = "2.0.4"
 __author__ = "Chris Rose"
 __copyright__ = "Copyright 2020 hamcrest.org"
 __license__ = "BSD, see License.txt"
diff --git a/src/hamcrest/core/assert_that.py b/src/hamcrest/core/assert_that.py
index c8882bb5..a31cf3a1 100644
--- a/src/hamcrest/core/assert_that.py
+++ b/src/hamcrest/core/assert_that.py
@@ -16,16 +16,16 @@
 
 
 @overload
-def assert_that(actual: T, matcher: Matcher[T], reason: str = "") -> None:
+def assert_that(actual_or_assertion: T, matcher: Matcher[T], reason: str = "") -> None:
     ...
 
 
 @overload
-def assert_that(assertion: bool, reason: str = "") -> None:
+def assert_that(actual_or_assertion: bool, reason: str = "") -> None:
     ...
 
 
-def assert_that(actual, matcher=None, reason=""):
+def assert_that(actual_or_assertion, matcher=None, reason=""):
     """Asserts that actual value satisfies matcher. (Can also assert plain
     boolean condition.)
 
@@ -55,11 +55,11 @@ def assert_that(actual, matcher=None, reason=""):
 
     """
     if isinstance(matcher, Matcher):
-        _assert_match(actual=actual, matcher=matcher, reason=reason)
+        _assert_match(actual=actual_or_assertion, matcher=matcher, reason=reason)
     else:
-        if isinstance(actual, Matcher):
-            warnings.warn("arg1 should be boolean, but was {}".format(type(actual)))
-        _assert_bool(assertion=cast(bool, actual), reason=cast(str, matcher))
+        if isinstance(actual_or_assertion, Matcher):
+            warnings.warn("arg1 should be boolean, but was {}".format(type(actual_or_assertion)))
+        _assert_bool(assertion=cast(bool, actual_or_assertion), reason=cast(str, matcher))
 
 
 def _assert_match(actual: T, matcher: Matcher[T], reason: str) -> None:
diff --git a/src/hamcrest/library/object/hasproperty.py b/src/hamcrest/library/object/hasproperty.py
index b27036dc..ea2519f7 100644
--- a/src/hamcrest/library/object/hasproperty.py
+++ b/src/hamcrest/library/object/hasproperty.py
@@ -94,19 +94,19 @@ def has_property(name: str, match: Union[None, Matcher[V], V] = None) -> Matcher
 
 # Keyword argument form
 @overload
-def has_properties(**keys_valuematchers: Union[Matcher[V], V]) -> Matcher[object]:
+def has_properties(**keys_valuematchers: Union[Matcher[V], V]) -> Matcher[Any]:
     ...
 
 
 # Name to matcher dict form
 @overload
-def has_properties(keys_valuematchers: Mapping[str, Union[Matcher[V], V]]) -> Matcher[object]:
+def has_properties(keys_valuematchers: Mapping[str, Union[Matcher[V], V]]) -> Matcher[Any]:
     ...
 
 
 # Alternating name/matcher form
 @overload
-def has_properties(*keys_valuematchers: Any) -> Matcher[object]:
+def has_properties(*keys_valuematchers: Any) -> Matcher[Any]:
     ...
 
 
diff --git a/tests/type-hinting/library/collection/test_empty.yml b/tests/type-hinting/library/collection/test_empty.yml
index 5264802c..cf815c72 100644
--- a/tests/type-hinting/library/collection/test_empty.yml
+++ b/tests/type-hinting/library/collection/test_empty.yml
@@ -5,4 +5,4 @@
     from hamcrest import assert_that, is_, empty
 
     assert_that([], empty())
-    assert_that(99, empty())  # E: Cannot infer type argument 1 of "assert_that"
\ No newline at end of file
+    assert_that(99, empty())  # E: Cannot infer type argument 1 of "assert_that"
diff --git a/tests/type-hinting/library/collection/test_generics.yml b/tests/type-hinting/library/collection/test_generics.yml
new file mode 100644
index 00000000..4666d5f1
--- /dev/null
+++ b/tests/type-hinting/library/collection/test_generics.yml
@@ -0,0 +1,27 @@
+- case: valid_has_items_has_properties
+  skip: platform.python_implementation() == "PyPy"
+  main: |
+    from dataclasses import dataclass
+    from hamcrest import assert_that, has_items, has_properties
+
+    @dataclass
+    class Example:
+      name: str
+
+    items = [Example("dave"), Example("wave")]
+
+    a = assert_that(items, has_items(has_properties(name="dave")))
+
+- case: valid_has_item_has_properties
+  skip: platform.python_implementation() == "PyPy"
+  main: |
+    from dataclasses import dataclass
+    from hamcrest import assert_that, has_item, has_properties
+
+    @dataclass
+    class Example:
+      name: str
+
+    items = [Example("dave"), Example("wave")]
+    matcher = has_item(has_properties(name="dave"))
+    a = assert_that(items, matcher)