diff --git a/CHANGES b/CHANGES
index 7028c9e6860..30117663e2f 100644
--- a/CHANGES
+++ b/CHANGES
@@ -22,6 +22,8 @@ Features added
 Bugs fixed
 ----------
 
+* #8588: autodoc: autodoc_type_aliases does not support dotted name
+
 Testing
 --------
 
diff --git a/sphinx/util/inspect.py b/sphinx/util/inspect.py
index 7c9adb0bfa0..622acc8c0f9 100644
--- a/sphinx/util/inspect.py
+++ b/sphinx/util/inspect.py
@@ -18,8 +18,10 @@
 import typing
 import warnings
 from functools import partial, partialmethod
+from importlib import import_module
 from inspect import Parameter, isclass, ismethod, ismethoddescriptor, ismodule  # NOQA
 from io import StringIO
+from types import ModuleType
 from typing import Any, Callable, Dict, Mapping, Optional, Sequence, Tuple, Type, cast
 
 from sphinx.deprecation import RemovedInSphinx50Warning
@@ -501,6 +503,63 @@ def __repr__(self) -> str:
         return self.value
 
 
+class TypeAliasForwardRef:
+    """Pseudo typing class for autodoc_type_aliases.
+
+    This avoids the error on evaluating the type inside `get_type_hints()`.
+    """
+    def __init__(self, name: str) -> None:
+        self.name = name
+
+    def __call__(self) -> None:
+        # Dummy method to imitate special typing classes
+        pass
+
+    def __eq__(self, other: Any) -> bool:
+        return self.name == other
+
+
+class TypeAliasNamespace(Dict[str, Any]):
+    """Pseudo namespace class for autodoc_type_aliases.
+
+    This enables to look up nested modules and classes like `mod1.mod2.Class`.
+    """
+
+    def __init__(self, modname: Optional[str], mapping: Dict[str, str]) -> None:
+        self.__modname = modname
+        self.__mapping = mapping
+
+        self.__module: Optional[ModuleType] = None
+
+    def __getattr__(self, name: str) -> Any:
+        return self[name]
+
+    def __getitem__(self, key: str) -> Any:
+        fullname = '.'.join(filter(None, [self.__modname, key]))
+        if fullname in self.__mapping:
+            # exactly matched
+            return TypeAliasForwardRef(self.__mapping[fullname])
+        else:
+            prefix = fullname + '.'
+            nested = {k: v for k, v in self.__mapping.items() if k.startswith(prefix)}
+            if nested:
+                # sub modules or classes found
+                return TypeAliasNamespace(fullname, nested)
+            elif self.__modname:
+                # no sub modules or classes found.
+                try:
+                    # return the real submodule if exists
+                    return import_module(fullname)
+                except ImportError:
+                    # return the real class
+                    if self.__module is None:
+                        self.__module = import_module(self.__modname)
+
+                    return getattr(self.__module, key)
+            else:
+                raise KeyError
+
+
 def _should_unwrap(subject: Callable) -> bool:
     """Check the function should be unwrapped on getting signature."""
     __globals__ = getglobals(subject)
@@ -549,12 +608,19 @@ def signature(subject: Callable, bound_method: bool = False, follow_wrapped: boo
 
     try:
         # Resolve annotations using ``get_type_hints()`` and type_aliases.
-        annotations = typing.get_type_hints(subject, None, type_aliases)
+        localns = TypeAliasNamespace(None, type_aliases)
+        annotations = typing.get_type_hints(subject, None, localns)
         for i, param in enumerate(parameters):
             if param.name in annotations:
-                parameters[i] = param.replace(annotation=annotations[param.name])
+                annotation = annotations[param.name]
+                if isinstance(annotation, TypeAliasForwardRef):
+                    annotation = annotation.name
+                parameters[i] = param.replace(annotation=annotation)
         if 'return' in annotations:
-            return_annotation = annotations['return']
+            if isinstance(annotations['return'], TypeAliasForwardRef):
+                return_annotation = annotations['return'].name
+            else:
+                return_annotation = annotations['return']
     except Exception:
         # ``get_type_hints()`` does not support some kind of objects like partial,
         # ForwardRef and so on.
diff --git a/tests/roots/test-ext-autodoc/target/annotations.py b/tests/roots/test-ext-autodoc/target/autodoc_type_aliases.py
similarity index 88%
rename from tests/roots/test-ext-autodoc/target/annotations.py
rename to tests/roots/test-ext-autodoc/target/autodoc_type_aliases.py
index ef600e2af83..d8a2fecefce 100644
--- a/tests/roots/test-ext-autodoc/target/annotations.py
+++ b/tests/roots/test-ext-autodoc/target/autodoc_type_aliases.py
@@ -1,5 +1,6 @@
 from __future__ import annotations
 
+import io
 from typing import overload
 
 myint = int
@@ -11,6 +12,10 @@
 variable2 = None  # type: myint
 
 
+def read(r: io.BytesIO) -> io.StringIO:
+    """docstring"""
+
+
 def sum(x: myint, y: myint) -> myint:
     """docstring"""
     return x + y
diff --git a/tests/test_ext_autodoc_configs.py b/tests/test_ext_autodoc_configs.py
index bc8c01fbd97..04d35e3359a 100644
--- a/tests/test_ext_autodoc_configs.py
+++ b/tests/test_ext_autodoc_configs.py
@@ -792,27 +792,27 @@ def test_autodoc_typehints_description_for_invalid_node(app):
 def test_autodoc_type_aliases(app):
     # default
     options = {"members": None}
-    actual = do_autodoc(app, 'module', 'target.annotations', options)
+    actual = do_autodoc(app, 'module', 'target.autodoc_type_aliases', options)
     assert list(actual) == [
         '',
-        '.. py:module:: target.annotations',
+        '.. py:module:: target.autodoc_type_aliases',
         '',
         '',
         '.. py:class:: Foo()',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '   .. py:attribute:: Foo.attr1',
-        '      :module: target.annotations',
+        '      :module: target.autodoc_type_aliases',
         '      :type: int',
         '',
         '      docstring',
         '',
         '',
         '   .. py:attribute:: Foo.attr2',
-        '      :module: target.annotations',
+        '      :module: target.autodoc_type_aliases',
         '      :type: int',
         '',
         '      docstring',
@@ -820,26 +820,32 @@ def test_autodoc_type_aliases(app):
         '',
         '.. py:function:: mult(x: int, y: int) -> int',
         '                 mult(x: float, y: float) -> float',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
+        '',
+        '   docstring',
+        '',
+        '',
+        '.. py:function:: read(r: _io.BytesIO) -> _io.StringIO',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '.. py:function:: sum(x: int, y: int) -> int',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '.. py:data:: variable',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '   :type: int',
         '',
         '   docstring',
         '',
         '',
         '.. py:data:: variable2',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '   :type: int',
         '   :value: None',
         '',
@@ -848,28 +854,29 @@ def test_autodoc_type_aliases(app):
     ]
 
     # define aliases
-    app.config.autodoc_type_aliases = {'myint': 'myint'}
-    actual = do_autodoc(app, 'module', 'target.annotations', options)
+    app.config.autodoc_type_aliases = {'myint': 'myint',
+                                       'io.StringIO': 'my.module.StringIO'}
+    actual = do_autodoc(app, 'module', 'target.autodoc_type_aliases', options)
     assert list(actual) == [
         '',
-        '.. py:module:: target.annotations',
+        '.. py:module:: target.autodoc_type_aliases',
         '',
         '',
         '.. py:class:: Foo()',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '   .. py:attribute:: Foo.attr1',
-        '      :module: target.annotations',
+        '      :module: target.autodoc_type_aliases',
         '      :type: myint',
         '',
         '      docstring',
         '',
         '',
         '   .. py:attribute:: Foo.attr2',
-        '      :module: target.annotations',
+        '      :module: target.autodoc_type_aliases',
         '      :type: myint',
         '',
         '      docstring',
@@ -877,26 +884,32 @@ def test_autodoc_type_aliases(app):
         '',
         '.. py:function:: mult(x: myint, y: myint) -> myint',
         '                 mult(x: float, y: float) -> float',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
+        '',
+        '   docstring',
+        '',
+        '',
+        '.. py:function:: read(r: _io.BytesIO) -> my.module.StringIO',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '.. py:function:: sum(x: myint, y: myint) -> myint',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '',
         '   docstring',
         '',
         '',
         '.. py:data:: variable',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '   :type: myint',
         '',
         '   docstring',
         '',
         '',
         '.. py:data:: variable2',
-        '   :module: target.annotations',
+        '   :module: target.autodoc_type_aliases',
         '   :type: myint',
         '   :value: None',
         '',
@@ -911,10 +924,10 @@ def test_autodoc_type_aliases(app):
                     confoverrides={'autodoc_typehints': "description",
                                    'autodoc_type_aliases': {'myint': 'myint'}})
 def test_autodoc_typehints_description_and_type_aliases(app):
-    (app.srcdir / 'annotations.rst').write_text('.. autofunction:: target.annotations.sum')
+    (app.srcdir / 'autodoc_type_aliases.rst').write_text('.. autofunction:: target.autodoc_type_aliases.sum')
     app.build()
-    context = (app.outdir / 'annotations.txt').read_text()
-    assert ('target.annotations.sum(x, y)\n'
+    context = (app.outdir / 'autodoc_type_aliases.txt').read_text()
+    assert ('target.autodoc_type_aliases.sum(x, y)\n'
             '\n'
             '   docstring\n'
             '\n'
diff --git a/tests/test_util_inspect.py b/tests/test_util_inspect.py
index 7b86c6ade36..b0ac57bd4ee 100644
--- a/tests/test_util_inspect.py
+++ b/tests/test_util_inspect.py
@@ -19,7 +19,24 @@
 import pytest
 
 from sphinx.util import inspect
-from sphinx.util.inspect import stringify_signature
+from sphinx.util.inspect import TypeAliasNamespace, stringify_signature
+
+
+def test_TypeAliasNamespace():
+    import logging.config
+    type_alias = TypeAliasNamespace(None, {'logging.Filter': 'MyFilter',
+                                           'logging.Handler': 'MyHandler'})
+
+    assert type_alias['logging'].Filter == 'MyFilter'
+    assert type_alias['logging'].Handler == 'MyHandler'
+    assert type_alias['logging'].Logger == logging.Logger
+    assert type_alias['logging'].config == logging.config
+
+    with pytest.raises(KeyError):
+        assert type_alias['log']
+
+    with pytest.raises(KeyError):
+        assert type_alias['unknown']
 
 
 def test_signature():