diff --git a/src/gt4py/next/ffront/foast_passes/type_alias_replacement.py b/src/gt4py/next/ffront/foast_passes/type_alias_replacement.py
new file mode 100644
index 0000000000..c5857999ee
--- /dev/null
+++ b/src/gt4py/next/ffront/foast_passes/type_alias_replacement.py
@@ -0,0 +1,105 @@
+# GT4Py - GridTools Framework
+#
+# Copyright (c) 2014-2023, ETH Zurich
+# All rights reserved.
+#
+# This file is part of the GT4Py project and the GridTools framework.
+# GT4Py is free software: you can redistribute it and/or modify it under
+# the terms of the GNU General Public License as published by the
+# Free Software Foundation, either version 3 of the License, or any later
+# version. See the LICENSE.txt file at the top-level directory of this
+# distribution for a copy of the license or check <https://www.gnu.org/licenses/>.
+#
+# SPDX-License-Identifier: GPL-3.0-or-later
+
+from dataclasses import dataclass
+from typing import Any, cast
+
+import gt4py.next.ffront.field_operator_ast as foast
+from gt4py.eve import NodeTranslator, traits
+from gt4py.eve.concepts import SourceLocation, SymbolName, SymbolRef
+from gt4py.next.ffront import dialect_ast_enums
+from gt4py.next.ffront.fbuiltins import TYPE_BUILTIN_NAMES
+from gt4py.next.type_system import type_specifications as ts
+from gt4py.next.type_system.type_translation import from_type_hint
+
+
+@dataclass
+class TypeAliasReplacement(NodeTranslator, traits.VisitorWithSymbolTableTrait):
+    """
+    Replace Type Aliases with their actual type.
+
+    After this pass, the type aliases used for explicit construction of literal
+    values and for casting field values are replaced by their actual types.
+    """
+
+    closure_vars: dict[str, Any]
+
+    @classmethod
+    def apply(
+        cls, node: foast.FunctionDefinition | foast.FieldOperator, closure_vars: dict[str, Any]
+    ) -> tuple[foast.FunctionDefinition, dict[str, Any]]:
+        foast_node = cls(closure_vars=closure_vars).visit(node)
+        new_closure_vars = closure_vars.copy()
+        for key, value in closure_vars.items():
+            if isinstance(value, type) and key not in TYPE_BUILTIN_NAMES:
+                new_closure_vars[value.__name__] = closure_vars[key]
+        return foast_node, new_closure_vars
+
+    def is_type_alias(self, node_id: SymbolName | SymbolRef) -> bool:
+        return (
+            node_id in self.closure_vars
+            and isinstance(self.closure_vars[node_id], type)
+            and node_id not in TYPE_BUILTIN_NAMES
+        )
+
+    def visit_Name(self, node: foast.Name, **kwargs) -> foast.Name:
+        if self.is_type_alias(node.id):
+            return foast.Name(
+                id=self.closure_vars[node.id].__name__, location=node.location, type=node.type
+            )
+        return node
+
+    def _update_closure_var_symbols(
+        self, closure_vars: list[foast.Symbol], location: SourceLocation
+    ) -> list[foast.Symbol]:
+        new_closure_vars: list[foast.Symbol] = []
+        existing_type_names: set[str] = set()
+
+        for var in closure_vars:
+            if self.is_type_alias(var.id):
+                actual_type_name = self.closure_vars[var.id].__name__
+                # Avoid multiple definitions of a type in closure_vars
+                if actual_type_name not in existing_type_names:
+                    new_closure_vars.append(
+                        foast.Symbol(
+                            id=actual_type_name,
+                            type=ts.FunctionType(
+                                pos_or_kw_args={},
+                                kw_only_args={},
+                                pos_only_args=[ts.DeferredType(constraint=ts.ScalarType)],
+                                returns=cast(
+                                    ts.DataType, from_type_hint(self.closure_vars[var.id])
+                                ),
+                            ),
+                            namespace=dialect_ast_enums.Namespace.CLOSURE,
+                            location=location,
+                        )
+                    )
+                    existing_type_names.add(actual_type_name)
+            elif var.id not in existing_type_names:
+                new_closure_vars.append(var)
+                existing_type_names.add(var.id)
+
+        return new_closure_vars
+
+    def visit_FunctionDefinition(
+        self, node: foast.FunctionDefinition, **kwargs
+    ) -> foast.FunctionDefinition:
+        return foast.FunctionDefinition(
+            id=node.id,
+            params=node.params,
+            body=self.visit(node.body, **kwargs),
+            closure_vars=self._update_closure_var_symbols(node.closure_vars, node.location),
+            location=node.location,
+        )
diff --git a/src/gt4py/next/ffront/func_to_foast.py b/src/gt4py/next/ffront/func_to_foast.py
index 082939c938..c7c4c3a23f 100644
--- a/src/gt4py/next/ffront/func_to_foast.py
+++ b/src/gt4py/next/ffront/func_to_foast.py
@@ -33,6 +33,7 @@
 from gt4py.next.ffront.foast_passes.closure_var_type_deduction import ClosureVarTypeDeduction
 from gt4py.next.ffront.foast_passes.dead_closure_var_elimination import DeadClosureVarElimination
 from gt4py.next.ffront.foast_passes.iterable_unpack import UnpackedAssignPass
+from gt4py.next.ffront.foast_passes.type_alias_replacement import TypeAliasReplacement
 from gt4py.next.ffront.foast_passes.type_deduction import FieldOperatorTypeDeduction
 from gt4py.next.type_system import type_info, type_specifications as ts, type_translation
 
@@ -91,6 +92,7 @@ def _postprocess_dialect_ast(
         closure_vars: dict[str, Any],
         annotations: dict[str, Any],
     ) -> foast.FunctionDefinition:
+        foast_node, closure_vars = TypeAliasReplacement.apply(foast_node, closure_vars)
         foast_node = ClosureVarFolding.apply(foast_node, closure_vars)
         foast_node = DeadClosureVarElimination.apply(foast_node)
         foast_node = ClosureVarTypeDeduction.apply(foast_node, closure_vars)
diff --git a/tests/next_tests/unit_tests/ffront_tests/foast_passes_tests/test_type_alias_replacement.py b/tests/next_tests/unit_tests/ffront_tests/foast_passes_tests/test_type_alias_replacement.py
new file mode 100644
index 0000000000..e87f869352
--- /dev/null
+++ b/tests/next_tests/unit_tests/ffront_tests/foast_passes_tests/test_type_alias_replacement.py
@@ -0,0 +1,44 @@
+# GT4Py - GridTools Framework
+#
+# Copyright (c) 2014-2023, ETH Zurich
+# All rights reserved.
+#
+# This file is part of the GT4Py project and the GridTools framework.
+# GT4Py is free software: you can redistribute it and/or modify it under
+# the terms of the GNU General Public License as published by the
+# Free Software Foundation, either version 3 of the License, or any later
+# version. See the LICENSE.txt file at the top-level directory of this
+# distribution for a copy of the license or check <https://www.gnu.org/licenses/>.
+#
+# SPDX-License-Identifier: GPL-3.0-or-later
+
+import ast
+import typing
+from typing import TypeAlias
+
+import pytest
+
+import gt4py.next as gtx
+from gt4py.next import float32, float64
+from gt4py.next.ffront.fbuiltins import astype
+from gt4py.next.ffront.func_to_foast import FieldOperatorParser
+
+
+TDim = gtx.Dimension("TDim")  # Meaningless dimension, used for tests.
+vpfloat: TypeAlias = float32
+wpfloat: TypeAlias = float64
+
+
+@pytest.mark.parametrize("test_input,expected", [(vpfloat, "float32"), (wpfloat, "float64")])
+def test_type_alias_replacement(test_input, expected):
+    def fieldop_with_typealias(
+        a: gtx.Field[[TDim], test_input], b: gtx.Field[[TDim], float32]
+    ) -> gtx.Field[[TDim], test_input]:
+        return test_input("3.1418") + astype(a, test_input)
+
+    foast_tree = FieldOperatorParser.apply_to_function(fieldop_with_typealias)
+
+    assert (
+        foast_tree.body.stmts[0].value.left.func.id == expected
+        and foast_tree.body.stmts[0].value.right.args[1].id == expected
+    )