diff --git a/extensions/vscode/syntaxes/vue.tmLanguage.json b/extensions/vscode/syntaxes/vue.tmLanguage.json
index b52259355a..70ba9f8321 100644
--- a/extensions/vscode/syntaxes/vue.tmLanguage.json
+++ b/extensions/vscode/syntaxes/vue.tmLanguage.json
@@ -368,6 +368,9 @@
 							"end": "(?=<\\/)",
 							"name": "source.ts",
 							"patterns": [
+								{
+									"include": "#type-alias-declaration"
+								},
 								{
 									"include": "source.ts"
 								}
@@ -432,6 +435,9 @@
 							"end": "(?=<\\/)",
 							"name": "source.tsx",
 							"patterns": [
+								{
+									"include": "#type-alias-declaration"
+								},
 								{
 									"include": "source.tsx"
 								}
@@ -1279,6 +1285,68 @@
 				}
 			]
 		},
+		"type-alias-declaration": {
+			"patterns": [
+				{
+					"name": "meta.type.declaration.ts",
+					"begin": "(?<![_$[:alnum:]])(?:(?<=\\.\\.\\.)|(?<!\\.))(?:(\\bexport)\\s+)?(?:(\\bdeclare)\\s+)?\\b(type)\\b\\s+([_$[:alpha:]][_$[:alnum:]]*)\\s*",
+					"beginCaptures": {
+						"1": {
+							"name": "keyword.control.export.ts"
+						},
+						"2": {
+							"name": "storage.modifier.ts"
+						},
+						"3": {
+							"name": "storage.type.type.ts"
+						},
+						"4": {
+							"name": "entity.name.type.alias.ts"
+						}
+					},
+					"end": "(?=\\}|<\\/|;|^\\s*$|(?:^\\s*(?:abstract|async|(?:\\bawait\\s+(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)\\b)|break|case|catch|class|const|continue|declare|do|else|enum|export|finally|function|for|goto|if|import|interface|let|module|namespace|switch|return|throw|try|type|(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)|var|while)\\b))",
+					"patterns": [
+						{
+							"include": "source.ts#comment"
+						},
+						{
+							"include": "source.ts#type-parameters"
+						},
+						{
+							"begin": "(=)\\s*(intrinsic)(?![_$[:alnum:]])(?:(?=\\.\\.\\.)|(?!\\.))",
+							"beginCaptures": {
+								"1": {
+									"name": "keyword.operator.assignment.ts"
+								},
+								"2": {
+									"name": "keyword.control.intrinsic.ts"
+								}
+							},
+							"end": "(?=\\}|<\\/|;|^\\s*$|(?:^\\s*(?:abstract|async|(?:\\bawait\\s+(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)\\b)|break|case|catch|class|const|continue|declare|do|else|enum|export|finally|function|for|goto|if|import|interface|let|module|namespace|switch|return|throw|try|type|(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)|var|while)\\b))",
+							"patterns": [
+								{
+									"include": "source.ts#type"
+								}
+							]
+						},
+						{
+							"begin": "(=)\\s*",
+							"beginCaptures": {
+								"1": {
+									"name": "keyword.operator.assignment.ts"
+								}
+							},
+							"end": "(?=\\}|<\\/|;|^\\s*$|(?:^\\s*(?:abstract|async|(?:\\bawait\\s+(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)\\b)|break|case|catch|class|const|continue|declare|do|else|enum|export|finally|function|for|goto|if|import|interface|let|module|namespace|switch|return|throw|try|type|(?:\\busing(?=\\s+(?!in\\b|of\\b(?!\\s*(?:of\\b|=)))[_$[:alpha:]])\\b)|var|while)\\b))",
+							"patterns": [
+								{
+									"include": "source.ts#type"
+								}
+							]
+						}
+					]
+				}
+			]
+		},
 		"vue-comments": {
 			"patterns": [
 				{
diff --git a/test-workspace/tsc/vue3/#2060/main.vue b/test-workspace/tsc/vue3/#2060/main.vue
new file mode 100644
index 0000000000..52c7a7071c
--- /dev/null
+++ b/test-workspace/tsc/vue3/#2060/main.vue
@@ -0,0 +1,10 @@
+<script setup lang="ts"> 
+type Foo = string
+defineProps<{
+	foo: Foo
+}>()
+</script>
+
+<template>
+	<div>{{ foo }}</div>
+</template>