diff --git a/README.md b/README.md
index a236d444..49e00c67 100644
--- a/README.md
+++ b/README.md
@@ -96,6 +96,7 @@ Happy coding with pyserde! 🚀
 - [PEP585 Type Hinting Generics In Standard Collections](https://github.com/yukinarit/pyserde/blob/main/docs/en/getting-started.md#pep585-and-pep604)
 - [PEP604 Allow writing union types as X | Y](https://github.com/yukinarit/pyserde/blob/main/docs/en/getting-started.md#pep585-and-pep604)
 - [PEP681 Data Class Transform](https://github.com/yukinarit/pyserde/blob/main/docs/en/decorators.md#serde)
+- [PEP695 Type Parameter Syntax](https://peps.python.org/pep-0695/)
 - [Case Conversion](https://github.com/yukinarit/pyserde/blob/main/docs/en/class-attributes.md#rename_all)
 - [Rename](https://github.com/yukinarit/pyserde/blob/main/docs/en/field-attributes.md#rename)
 - [Alias](https://github.com/yukinarit/pyserde/blob/main/docs/en/field-attributes.md#alias)
diff --git a/conftest.py b/conftest.py
index 1e318be6..95c776d0 100644
--- a/conftest.py
+++ b/conftest.py
@@ -3,6 +3,5 @@
 
 collect_ignore = ["setup.py"]
 
-if sys.version_info[:2] == (3, 6):
-    # skip these tests for python 3.6 because it does not support PEP 563
-    collect_ignore.append("tests/test_lazy_type_evaluation.py")
+if sys.version_info[:2] < (3, 12):
+    collect_ignore.append("tests/test_type_alias.py")
diff --git a/examples/runner.py b/examples/runner.py
index b56daa1c..99b89761 100644
--- a/examples/runner.py
+++ b/examples/runner.py
@@ -53,6 +53,7 @@ def run_all() -> None:
     import type_numpy
     import type_pathlib
     import type_uuid
+    import type_alias_pep695
     import union
     import union_tagging
     import union_directly
@@ -88,6 +89,7 @@ def run_all() -> None:
     run(union_tagging)
     run(union_directly)
     run(generics)
+    run(type_alias_pep695)
     run(generics_pep695)
     run(generics_nested)
     run(nested)
diff --git a/examples/type_alias_pep695.py b/examples/type_alias_pep695.py
new file mode 100644
index 00000000..a058088e
--- /dev/null
+++ b/examples/type_alias_pep695.py
@@ -0,0 +1,33 @@
+from serde import serde
+from serde.json import from_json, to_json
+
+
+@serde
+class Bar:
+    a: int
+
+
+@serde
+class Baz:
+    b: int
+
+
+# BarBaz = Bar | Baz
+type BarBaz = Bar | Baz
+
+
+@serde
+class Foo:
+    barbaz: BarBaz
+
+
+def main() -> None:
+    f = Foo(Baz(10))
+    s = to_json(f)
+    print(f"Into Json: {s}")
+    ff = from_json(Foo, s)
+    print(f"From Json: {ff}")
+
+
+if __name__ == "__main__":
+    main()
diff --git a/serde/compat.py b/serde/compat.py
index 44b2de10..951c8fd5 100644
--- a/serde/compat.py
+++ b/serde/compat.py
@@ -20,7 +20,7 @@
 from typing import TypeVar, Generic, Any, ClassVar, Optional, NewType, Union, Hashable, Callable
 
 import typing_inspect
-from typing_extensions import TypeGuard, ParamSpec
+from typing_extensions import TypeGuard, ParamSpec, TypeAliasType
 
 from .sqlalchemy import is_sqlalchemy_inspectable
 
@@ -351,6 +351,8 @@ def recursive(cls: Union[type[Any], Any]) -> None:
             if args and len(args) >= 2:
                 recursive(args[0])
                 recursive(args[1])
+        elif is_pep695_type_alias(cls):
+            recursive(cls.__value__)
         else:
             lst.add(cls)
 
@@ -373,6 +375,8 @@ def recursive(cls: TypeLike) -> None:
             lst.append(cls)
             for arg in type_args(cls):
                 recursive(arg)
+        elif is_pep695_type_alias(cls):
+            recursive(cls.__value__)
         if is_dataclass(cls):
             stack.append(cls)
             for f in dataclass_fields(cls):
@@ -864,6 +868,13 @@ def is_ellipsis(typ: Any) -> bool:
     return typ is Ellipsis
 
 
+def is_pep695_type_alias(typ: Any) -> bool:
+    """
+    Test if the type is of PEP695 type alias.
+    """
+    return isinstance(typ, TypeAliasType)
+
+
 @cache
 def get_type_var_names(cls: type[Any]) -> Optional[list[str]]:
     """
diff --git a/serde/de.py b/serde/de.py
index 5e3e4789..569148d8 100644
--- a/serde/de.py
+++ b/serde/de.py
@@ -52,6 +52,7 @@
     is_tuple,
     is_union,
     is_variable_tuple,
+    is_pep695_type_alias,
     iter_literals,
     iter_types,
     iter_unions,
@@ -772,6 +773,8 @@ def render(self, arg: DeField[Any]) -> str:
             res = "None"
         elif is_any(arg.type) or is_ellipsis(arg.type):
             res = arg.data
+        elif is_pep695_type_alias(arg.type):
+            res = self.render(DeField(name=arg.name, type=arg.type.__value__, datavar=arg.datavar))
         elif is_primitive(arg.type):
             # For subclasses for primitives e.g. class FooStr(str), coercing is always enabled
             res = self.primitive(arg, not is_primitive_subclass(arg.type))
diff --git a/serde/se.py b/serde/se.py
index 82ed0890..c1b82502 100644
--- a/serde/se.py
+++ b/serde/se.py
@@ -46,6 +46,7 @@
     is_tuple,
     is_union,
     is_variable_tuple,
+    is_pep695_type_alias,
     iter_types,
     iter_unions,
     type_args,
@@ -804,6 +805,12 @@ def render(self, arg: SeField[Any]) -> str:
         elif is_class_var(arg.type):
             arg.type = type_args(arg.type)[0]
             res = self.render(arg)
+        elif is_pep695_type_alias(arg.type):
+            res = self.render(
+                SeField(
+                    name=arg.name, type=arg.type.__value__, parent=SeField(None.__class__, "obj")
+                )
+            )
         else:
             res = f"raise_unsupported_type({arg.varname})"
 
diff --git a/tests/test_type_alias.py b/tests/test_type_alias.py
new file mode 100644
index 00000000..6e00fd96
--- /dev/null
+++ b/tests/test_type_alias.py
@@ -0,0 +1,36 @@
+from serde import serde, from_dict, to_dict
+
+
+type S = str
+
+
+def test_pep695_type_alias() -> None:
+
+    @serde
+    class Foo:
+        s: S
+
+    f = Foo("foo")
+    assert f == from_dict(Foo, to_dict(f))
+
+
+@serde
+class Bar:
+    a: int
+
+
+@serde
+class Baz:
+    b: int
+
+
+type BarBaz = Bar | Baz
+
+
+def test_pep695_type_alias_union() -> None:
+    @serde
+    class Foo:
+        barbaz: BarBaz
+
+    f = Foo(Baz(10))
+    assert f == from_dict(Foo, to_dict(f))