On June 23, a tropical depression developed to the east of the Philippines. It entered nearly ideal conditions as it moved to the west-northwest, and, just 42 hours after forming, reached peak intensity of . Due to lack of inflow from the archipelago to its west, Olive weakened to a typhoon at the time of its eastern Philippine landfall. It rapidly weakened while crossing to a tropical storm, but restrengthened into a typhoon in the South China Sea. It turned to the west, and struck southern China on June 29 as a typhoon. Olive rapidly weakened over land and the northern Gulf of Tonkin and dissipated on July 1.
