diff --git a/mypy/stubgenc.py b/mypy/stubgenc.py
index d86818adf2a4..04bf84c99539 100755
--- a/mypy/stubgenc.py
+++ b/mypy/stubgenc.py
@@ -216,6 +216,18 @@ def __get__(self) -> None:  # noqa: PLE0302
 _Missing = enum.Enum("_Missing", "VALUE")
 
 
+def _is_sentinel_object(obj: object) -> bool:
+    """Is ``obj`` an instance of ``typing_extensions.sentinel()``/``Sentinel()``?"""
+    typ = type(obj)
+    return typ.__module__ in ("builtins", "typing_extensions") and typ.__name__ in (
+        "sentinel",
+        # typing_extensions 4.14.0-4.15.x named the class `Sentinel`, with no
+        # lowercase alias; the rename (and `Sentinel = sentinel` alias) landed
+        # in 4.16.0.
+        "Sentinel",
+    )
+
+
 class InspectionStubGenerator(BaseStubGenerator):
     """Stub generator that does not parse code.
 
@@ -323,6 +335,15 @@ def add_args(
                 if default_value is not _Missing.VALUE:
                     if arg in annotations:
                         argtype = get_annotation(arg)
+                    elif _is_sentinel_object(default_value):
+                        # The runtime type of a `sentinel()` marker object is not a
+                        # useful annotation for the parameter it defaults. Reference
+                        # the sentinel itself by name when possible, e.g.
+                        # `Incomplete | _MISSING`, importing it if it lives in
+                        # another module.
+                        incomplete = self.add_name("_typeshed.Incomplete")
+                        sentinel_ref = self._sentinel_type_ref(default_value)
+                        argtype = f"{incomplete} | {sentinel_ref}" if sentinel_ref else incomplete
                     else:
                         argtype = self.get_type_annotation(default_value)
                         if argtype == "None":
@@ -536,9 +557,38 @@ def get_type_annotation(self, obj: object) -> str:
             return self.add_name("typing.Callable")
         elif isinstance(obj, ModuleType):
             return self.add_name("types.ModuleType", require=False)
+        elif _is_sentinel_object(obj):
+            # On 3.15+, typing_extensions.sentinel is builtins.sentinel, so
+            # type(obj).__module__ is "builtins" there and "typing_extensions"
+            # otherwise. Always use the portable spelling instead of whichever
+            # one happens to match the interpreter running stubgen. Use the
+            # dotted form (not add_name) since a module constructing a
+            # sentinel will itself have already imported the bare `sentinel`
+            # name, which would otherwise force an alias here.
+            return "typing_extensions.sentinel"
         else:
             return self.get_type_fullname(type(obj))
 
+    def _sentinel_type_ref(self, sentinel_obj: object) -> str | None:
+        """Return a reference to the name a sentinel object is bound to.
+
+        ``sentinel()``/``Sentinel()`` objects record the module and name they
+        were assigned to (this is how they support pickling), so we can point
+        directly at them (importing from another module if needed), rather
+        than using their unhelpful runtime type. Returns None if we can't (e.g.
+        the name isn't a valid identifier).
+
+        A leading-underscore sentinel name is treated the same as a public
+        one: ``generate_variable_stub`` always emits sentinel declarations
+        regardless of privacy, since a sentinel used as a default is part of
+        the (typed) signature even when its name looks private.
+        """
+        name = getattr(sentinel_obj, "__name__", None)
+        module = getattr(sentinel_obj, "__module__", None)
+        if not isinstance(name, str) or not name.isidentifier() or not module:
+            return None
+        return f"{module}.{name}"
+
     def is_function(self, obj: object) -> bool:
         if self.is_c_module:
             return inspect.isbuiltin(obj)
@@ -913,7 +963,15 @@ def generate_variable_stub(self, name: str, obj: object, output: list[str]) -> N
         The result lines will be appended to 'output'. If necessary, any
         required names will be added to 'imports'.
         """
-        if self.is_private_name(name, f"{self.module_name}.{name}") or self.is_not_in_all(name):
+        if (
+            # A sentinel's name is emitted regardless of privacy/`__all__`, since it may
+            # be referenced from the type of a default value elsewhere in the stub.
+            not _is_sentinel_object(obj)
+            and (
+                self.is_private_name(name, f"{self.module_name}.{name}")
+                or self.is_not_in_all(name)
+            )
+        ):
             return
         self.record_name(name)
         type_str = self.strip_or_import(self.get_type_annotation(obj))
diff --git a/mypy/test/teststubgen.py b/mypy/test/teststubgen.py
index 605409f99523..8b581e1091bc 100644
--- a/mypy/test/teststubgen.py
+++ b/mypy/test/teststubgen.py
@@ -1040,6 +1040,46 @@ def test(self, arg0=1, arg1=None) -> None:  # type: ignore[no-untyped-def]
             output, ["def test(self, arg0: int = ..., arg1: Incomplete | None = ...) -> None: ..."]
         )
 
+    def test_generate_c_type_sentinel_default(self) -> None:
+        from typing_extensions import sentinel
+
+        _MISSING = sentinel("_MISSING")
+
+        class TestClass:
+            def test(self, arg0=_MISSING) -> None:  # type: ignore[no-untyped-def]
+                pass
+
+        output: list[str] = []
+        mod = ModuleType(TestClass.__module__, "")
+        gen = InspectionStubGenerator(mod.__name__, known_modules=[mod.__name__], module=mod)
+        gen.is_c_module = False
+        gen.generate_function_stub(
+            "test",
+            TestClass.test,
+            output=output,
+            class_info=ClassInfo(
+                self_var="self",
+                cls=TestClass,
+                name="TestClass",
+                docstring=getattr(TestClass, "__doc__", None),
+            ),
+        )
+        assert_equal(output, ["def test(self, arg0: Incomplete | _MISSING = ...) -> None: ..."])
+
+    def test_generate_variable_stub_sentinel_ignores_privacy(self) -> None:
+        from typing_extensions import sentinel
+
+        _MISSING = sentinel("_MISSING")
+        mod = ModuleType(__name__, "")
+        gen = InspectionStubGenerator(mod.__name__, known_modules=[mod.__name__], module=mod)
+        gen.is_c_module = False
+        output: list[str] = []
+        gen.generate_variable_stub("_MISSING", _MISSING, output=output)
+        # A sentinel's declaration is always emitted, even for a private-looking
+        # name, since it may be referenced from a default value's type elsewhere.
+        assert len(output) == 1
+        assert output[0].startswith("_MISSING: ")
+
     def test_non_c_generate_signature_with_kw_only_args(self) -> None:
         class TestClass:
             def test(
diff --git a/test-data/unit/stubgen.test b/test-data/unit/stubgen.test
index 0407cf1bc798..acb222708956 100644
--- a/test-data/unit/stubgen.test
+++ b/test-data/unit/stubgen.test
@@ -72,6 +72,42 @@ def f(x=ord): ...
 [out]
 def f(x=...) -> None: ...
 
+[case testDefaultArgSentinel]
+from typing_extensions import sentinel
+
+_MISSING = sentinel('_MISSING')
+
+def f(x=_MISSING): ...
+[out]
+def f(x=...) -> None: ...
+
+[case testDefaultArgSentinel_inspect]
+from typing_extensions import sentinel
+
+_MISSING = sentinel('_MISSING')
+
+def f(x=_MISSING): ...
+[out]
+import typing_extensions
+from _typeshed import Incomplete
+
+_MISSING: typing_extensions.sentinel
+def f(x: Incomplete | _MISSING = ...): ...
+
+[case testDefaultArgSentinelCrossModule_inspect]
+from other import MISSING
+
+def f(x=MISSING): ...
+[file other.py]
+from typing_extensions import sentinel
+
+MISSING = sentinel('MISSING')
+[out]
+import other
+from _typeshed import Incomplete
+
+def f(x: Incomplete | other.MISSING = ...): ...
+
 [case testPreserveFunctionAnnotation]
 def f(x: Foo) -> Bar: ...
 def g(x: Foo = Foo()) -> Bar: ...