diff --git a/extensions/resteasy-reactive/rest-client-reactive-jackson/deployment/src/test/java/io/quarkus/rest/client/reactive/jackson/test/MultiSseTest.java b/extensions/resteasy-reactive/rest-client-reactive-jackson/deployment/src/test/java/io/quarkus/rest/client/reactive/jackson/test/MultiSseTest.java
index cecc8a6be8f97..df9f9b662d31b 100644
--- a/extensions/resteasy-reactive/rest-client-reactive-jackson/deployment/src/test/java/io/quarkus/rest/client/reactive/jackson/test/MultiSseTest.java
+++ b/extensions/resteasy-reactive/rest-client-reactive-jackson/deployment/src/test/java/io/quarkus/rest/client/reactive/jackson/test/MultiSseTest.java
@@ -16,6 +16,8 @@
 import jakarta.ws.rs.core.MediaType;
 
 import org.eclipse.microprofile.rest.client.RestClientBuilder;
+import org.eclipse.microprofile.rest.client.inject.RegisterRestClient;
+import org.jboss.resteasy.reactive.RestStreamElementType;
 import org.jboss.resteasy.reactive.server.jackson.JacksonBasicMessageBodyReader;
 import org.junit.jupiter.api.Test;
 import org.junit.jupiter.api.extension.RegisterExtension;
@@ -93,6 +95,23 @@ void shouldSendPayloadAndConsumeAsParametrizedType() {
                                 Map.of("name", "foo", "value", "test")));
     }
 
+    /**
+     * Test to reproduce the issue: https://github.com/quarkusio/quarkus/issues/32012.
+     */
+    @Test
+    void shouldRestStreamElementTypeOverwriteProducesAtClassLevel() {
+        var resultList = new CopyOnWriteArrayList<>();
+        RestClientBuilder.newBuilder().baseUri(uri)
+                .build(SeeWithRestStreamElementTypeClient.class)
+                .getJson()
+                .subscribe()
+                .with(resultList::add);
+        await().atMost(5, TimeUnit.SECONDS)
+                .untilAsserted(
+                        () -> assertThat(resultList)
+                                .containsExactly(new Dto("foo", "bar"), new Dto("chocolate", "bar")));
+    }
+
     private SseClient createClient() {
         return RestClientBuilder.newBuilder().baseUri(uri).register(new JacksonBasicMessageBodyReader(new ObjectMapper()))
                 .build(SseClient.class);
@@ -156,6 +175,29 @@ public Multi<Dto> postAndReadAsMap(String entity) {
         }
     }
 
+    @Path("/sse-rest-stream-element-type")
+    // The following annotation should be ignored because we're using `@RestStreamElementType(MediaType.APPLICATION_JSON)`.
+    @Produces(MediaType.APPLICATION_JSON)
+    public static class SseWithRestStreamElementTypeResource {
+        @GET
+        @RestStreamElementType(MediaType.APPLICATION_JSON)
+        @Path("/json")
+        public Multi<Dto> getJson() {
+            return Multi.createFrom().items(new Dto("foo", "bar"), new Dto("chocolate", "bar"));
+        }
+    }
+
+    @RegisterRestClient
+    @Path("/sse-rest-stream-element-type")
+    // The following annotation should be ignored because we're using `@RestStreamElementType(MediaType.APPLICATION_JSON)`.
+    @Produces(MediaType.APPLICATION_JSON)
+    public interface SeeWithRestStreamElementTypeClient {
+        @GET
+        @Path("/json")
+        @RestStreamElementType(MediaType.APPLICATION_JSON)
+        Multi<Dto> getJson();
+    }
+
     public static class Dto {
         public String name;
         public String value;
diff --git a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
index b60c6e611eb18..3ab31b3282411 100644
--- a/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
+++ b/independent-projects/resteasy-reactive/common/processor/src/main/java/org/jboss/resteasy/reactive/common/processor/EndpointIndexer.java
@@ -684,16 +684,17 @@ private ResourceMethod createResourceMethod(ClassInfo currentClassInfo, ClassInf
                 streamElementType = streamElementTypeInMethod;
             }
 
-            String[] produces = extractProducesConsumesValues(getAnnotationStore().getAnnotation(currentMethodInfo, PRODUCES),
-                    basicResourceClassInfo.getProduces());
+            String[] produces = extractProducesConsumesValues(getAnnotationStore().getAnnotation(currentMethodInfo, PRODUCES));
             if (((produces == null) || (produces.length == 0)) && (streamElementType != null)) {
                 // when @RestStreamElementType is used, we automatically determine SSE as the @Produces MediaType
-                produces = applyDefaultProducesAndAddCharsets(httpMethod, nonAsyncReturnType,
-                        new String[] { MediaType.SERVER_SENT_EVENTS });
-            } else {
-                produces = applyDefaultProducesAndAddCharsets(httpMethod, nonAsyncReturnType, produces);
+                produces = new String[] { MediaType.SERVER_SENT_EVENTS };
+            } else if (produces == null || produces.length == 0) {
+                // use the @Produces annotation at class level if exists
+                produces = basicResourceClassInfo.getProduces();
             }
 
+            produces = applyDefaultProducesAndAddCharsets(httpMethod, nonAsyncReturnType, produces);
+
             boolean returnsMultipart = false;
             if (produces != null && produces.length == 1) {
                 if (streamElementType == null && MediaType.SERVER_SENT_EVENTS.equals(produces[0])) {