diff --git a/pep-0560.rst b/pep-0560.rst
index a27f0a6a5..a17e3a1b6 100644
--- a/pep-0560.rst
+++ b/pep-0560.rst
@@ -1,5 +1,5 @@
 PEP: 560
-Title: Core support for generic types
+Title: Core support for typing module and generic types
 Author: Ivan Levkivskyi <levkivskyi@gmail.com>
 Status: Draft
 Type: Standards Track
@@ -18,7 +18,7 @@ the ``typing`` module are extensively used by the community, e.g. PEP 526
 and PEP 557 extend the usage of type hints, and the backport of ``typing``
 on PyPI has 1M downloads/month. Therefore, this restriction can be removed.
 It is proposed to add two special methods ``__class_getitem__`` and
-``__subclass_base__`` to the core CPython for better support of
+``__mro_entry__`` to the core CPython for better support of
 generic types.
 
 
@@ -134,31 +134,72 @@ For example::
 Note that this method is used as a fallback, so if a metaclass defines
 ``__getitem__``, then that will have the priority.
 
-``__subclass_base__``
----------------------
+
+``__mro_entry__``
+-----------------
 
 If an object that is not a class object appears in the bases of a class
-definition, then ``__subclass_base__`` is searched on it. If found,
+definition, then ``__mro_entry__`` is searched on it. If found,
 it is called with the original tuple of bases as an argument. If the result
 of the call is not ``None``, then it is substituted instead of this object.
 Otherwise (if the result is ``None``), the base is just removed. This is
 necessary to avoid inconsistent MRO errors, that are currently prevented by
 manipulations in ``GenericMeta.__new__``. After creating the class,
 the original bases are saved in ``__orig_bases__`` (currently this is also
-done by the metaclass).
+done by the metaclass). For example::
 
-NOTE: These two method names are reserved for exclusive use by
-the ``typing`` module and the generic types machinery, and any other use is
-strongly discouraged. The reference implementation (with tests) can be found
-in [4]_, and the proposal was originally posted and discussed on
-the ``typing`` tracker, see [5]_.
+  class GenericAlias:
+      def __init__(self, origin, item):
+          self.origin = origin
+          self.item = item
+      def __mro_entry__(self, bases):
+          return self.origin
+
+  class NewList:
+      def __class_getitem__(cls, item):
+          return GenericAlias(cls, item)
+
+  class Tokens(NewList[int]):
+      ...
+
+  assert Tokens.__bases__ == (NewList,)
+  assert Tokens.__orig_bases__ == (NewList[int],)
+  assert Tokens.__mro__ == (Tokens, NewList, object)
+
+NOTE: These two method names are reserved for use by the ``typing`` module
+and the generic types machinery, and any other use is discouraged.
+The reference implementation (with tests) can be found in [4]_, and
+the proposal was originally posted and discussed on the ``typing`` tracker,
+see [5]_.
+
+
+Dynamic class creation and ``types.resolve_bases``
+--------------------------------------------------
+
+``type.__new__`` will not perform any MRO entry resolution. So that a direct
+call ``type('Tokens', (List[int],), {})`` will fail. This is done for
+performance reasons and to minimize the number of implicit transformations.
+Instead, a helper function ``resolve_bases`` will be added to
+the ``types`` module to allow an explicit ``__mro_entry__`` resolution in
+the context of dynamic class creation. Correspondingly, ``types.new_class``
+will be updated to reflect the new class creation steps while maintaining
+the backwards compatibility::
+
+  def new_class(name, bases=(), kwds=None, exec_body=None):
+      resolved_bases = resolve_bases(bases)  # This step is added
+      meta, ns, kwds = prepare_class(name, resolved_bases, kwds)
+      if exec_body is not None:
+          exec_body(ns)
+      cls = meta(name, resolved_bases, ns, **kwds)
+      cls.__orig_bases__ = bases  # This step is added
+      return cls
 
 
 Backwards compatibility and impact on users who don't use ``typing``
 ====================================================================
 
 This proposal may break code that currently uses the names
-``__class_getitem__`` and ``__subclass_base__``.  (But the language
+``__class_getitem__`` and ``__mro_entry__``.  (But the language
 reference explicitly reserves *all* undocumented dunder names, and
 allows "breakage without warning"; see [6]_.)