diff --git a/.changeset/tokens-resolve-alias-followthrough-566.md b/.changeset/tokens-resolve-alias-followthrough-566.md
new file mode 100644
index 000000000..1d33b8d2a
--- /dev/null
+++ b/.changeset/tokens-resolve-alias-followthrough-566.md
@@ -0,0 +1,7 @@
+---
+"@vuetify/v0": patch
+---
+
+fix(createTokens): resolve aliases reached through a segment path, return directly-passed TokenAlias literals, and cache chained resolutions (#566)
+
+`resolve()` now follows a `{alias}` that a dotted-segment lookup lands on — previously it returned the raw `'{alias}'` string (visible under `flat: true`, where nested objects are stored whole and addressed by segment). A `TokenAlias` object passed directly to `resolve()` now returns its `$value` (previously a non-alias `$value` was stringified and looked up as an id, yielding `undefined`), and aliased resolutions cache the outer key rather than only the terminal hop. `resolve<T = unknown>()` also accepts an optional return-type parameter.
diff --git a/packages/0/src/composables/createTokens/index.test.ts b/packages/0/src/composables/createTokens/index.test.ts
index 10afafc23..a74634db0 100644
--- a/packages/0/src/composables/createTokens/index.test.ts
+++ b/packages/0/src/composables/createTokens/index.test.ts
@@ -2217,25 +2217,24 @@ describe('createTokens', () => {
         expect(result).toBe('#007BFF')
       })
 
-      it('should handle TokenAlias with non-string $value (converts to string for lookup)', () => {
+      it('should return a non-string $value literal directly', () => {
         const aliasObj: TokenAlias = { $value: 42 }
 
         const context = createTokens({})
 
-        // When passing TokenAlias with non-string $value, it converts to string "42"
-        // and tries to look it up in registry, which returns undefined
+        // A directly-passed TokenAlias carries its own value; a non-alias $value
+        // is the resolved value, not a registry id to look up.
         const result = context.resolve(aliasObj)
-        expect(result).toBeUndefined()
+        expect(result).toBe(42)
       })
 
-      it('should handle TokenAlias with object $value (converts to string for lookup)', () => {
+      it('should return an object $value directly', () => {
         const aliasObj: TokenAlias = { $value: { a: 1, b: 2 } }
 
         const context = createTokens({})
 
-        // Object values get stringified, lookup fails, returns undefined
         const result = context.resolve(aliasObj)
-        expect(result).toBeUndefined()
+        expect(result).toEqual({ a: 1, b: 2 })
       })
 
       it('should handle TokenAlias with undefined $value', () => {
diff --git a/packages/0/src/composables/createTokens/index.ts b/packages/0/src/composables/createTokens/index.ts
index ce69500d0..7162a4499 100644
--- a/packages/0/src/composables/createTokens/index.ts
+++ b/packages/0/src/composables/createTokens/index.ts
@@ -110,7 +110,7 @@ export interface TokenContext<Z extends TokenTicket> extends RegistryContext<Z>
    * console.log(tokens.resolve('{colors.secondary}')) // '#3b82f6'
    * ```
    */
-  resolve: (token: string | TokenAlias) => unknown | undefined
+  resolve: <T = unknown>(token: string | TokenAlias) => T | undefined
 }
 
 export interface TokenOptions extends RegistryOptions {
@@ -188,6 +188,14 @@ export function createTokens<
 
     const reference: unknown = isTokenAlias(token) ? token.$value : token
     const isAliasReference = isString(reference) && isAlias(reference)
+
+    // A TokenAlias passed directly carries its own value: only a brace-alias
+    // $value needs further resolution — a literal or object $value is the value.
+    if (isTokenAlias(token) && !isAliasReference) {
+      cache.set(cacheKey, reference)
+      return reference
+    }
+
     const clean = isAliasReference ? reference.slice(1, -1) : String(reference)
 
     // Detect circular references
@@ -225,7 +233,6 @@ export function createTokens<
       return undefined
     }
 
-    let result: unknown | undefined
     let current: unknown = found.value
 
     if (segments.length > 0) {
@@ -247,20 +254,16 @@ export function createTokens<
         cache.set(cacheKey, undefined)
         return undefined
       }
-
-      result = current
-    } else {
-      if (isTokenAlias(current)) {
-        const inner = current.$value
-        if (isString(inner) && isAlias(inner)) return resolve(inner as string, visited)
-        result = inner
-      } else if (isString(current) && isAlias(current)) {
-        return resolve(current, visited)
-      } else {
-        result = current
-      }
+    } else if (isTokenAlias(current)) {
+      current = current.$value
     }
 
+    // A terminal string alias resolves one more hop, whether it came from a
+    // segment walk or a leaf value; anything else is the resolved result.
+    const result: unknown = isString(current) && isAlias(current)
+      ? resolve(current, visited)
+      : current
+
     cache.set(cacheKey, result)
 
     return result