diff --git a/template/docs/_typehints.py b/template/docs/_typehints.py
new file mode 100644
index 0000000..490093d
--- /dev/null
+++ b/template/docs/_typehints.py
@@ -0,0 +1,82 @@
+import sphinx
+from typing import Optional, Any, NewType
+
+_typehint_aliases = {
+    'scipp._scipp.core.DataArray': 'scipp.DataArray',
+    'scipp._scipp.core.Dataset': 'scipp.Dataset',
+    'scipp._scipp.core.DType': 'scipp.DType',
+    'scipp._scipp.core.Unit': 'scipp.Unit',
+    'scipp._scipp.core.Variable': 'scipp.Variable',
+    'scipp.core.data_group.DataGroup': 'scipp.DataGroup',
+}
+
+
+def typehints_formatter_for(package: str) -> callable:
+    def typehints_formatter(annotation, config: sphinx.config.Config) -> Optional[str]:
+        """Format typehints with improved NewType handling."""
+        _ = config
+        if _is_new_type(annotation):
+            return _format_new_type(annotation, package)
+        if _is_type_alias_type(annotation):
+            return _format_type_alias_type(annotation, package)
+        return None
+
+    return typehints_formatter
+
+
+def _is_new_type(annotation: Any) -> bool:
+    # TODO Switch to isinstance(key, NewType) once our minimum is Python 3.10
+    # Note that we cannot pass mypy in Python<3.10 since NewType is not a type.
+    return hasattr(annotation, '__supertype__')
+
+
+def _format_new_type(annotation: NewType, package: str) -> str:
+    return (
+        f'{_internal_link(annotation, "class", package)}'
+        f' ({_link(annotation.__supertype__, "class")})'
+    )
+
+
+def _is_type_alias_type(annotation) -> bool:
+    try:
+        from typing import TypeAliasType
+
+        return isinstance(annotation, TypeAliasType)
+    except ImportError:
+        return False  # pre python 3.12
+
+
+def _format_type_alias_type(annotation: Any, package: str) -> str:
+    alias = _internal_link(annotation, "class", package, annotation.__type_params__)
+    value = _link(annotation.__value__, "class", _get_type_args(annotation.__value__))
+    return f'{alias} ({value})'
+
+
+def _get_type_args(ty: type) -> tuple[type, ...]:
+    if (args := getattr(ty, '__args__', None)) is not None:
+        return args  # e.g. list[int]
+    return ty.__type_params__
+
+
+def _internal_link(
+    annotation: Any,
+    kind: str,
+    package: str,
+    type_params: Optional[tuple[type, ...]] = None,
+) -> str:
+    target = f'{annotation.__module__}.{annotation.__name__}'
+    label = f'{annotation.__module__.removeprefix(package+".")}.{annotation.__name__}'
+    if type_params:
+        label += f'[{", ".join(ty.__name__ for ty in type_params)}]'
+    return f':{kind}:`{label} <{target}>`'
+
+
+def _link(ty: type, kind: str, type_params: Optional[tuple[type, ...]] = None) -> str:
+    if ty.__module__ == 'builtins':
+        target = ty.__name__
+    else:
+        target = f'{ty.__module__}.{ty.__name__}'
+    label = _typehint_aliases.get(target, target)
+    if type_params:
+        label += f'[{", ".join(ty.__name__ for ty in type_params)}]'
+    return f':{kind}:`{label} <{target}>`'
diff --git a/template/docs/conf.py.jinja b/template/docs/conf.py.jinja
index 4fa2d72..f00b0a0 100644
--- a/template/docs/conf.py.jinja
+++ b/template/docs/conf.py.jinja
@@ -8,6 +8,8 @@ import sys
 
 sys.path.insert(0, os.path.abspath('.'))
 
+from _typehints import typehints_formatter_for  # noqa: E402
+
 # General information about the project.
 project = u'{{prettyname}}'
 copyright = u'{{year}} Scipp contributors'
@@ -54,6 +56,7 @@ autodoc_type_aliases = {
 intersphinx_mapping = {
     'python': ('https://docs.python.org/3', None),
     'numpy': ('https://numpy.org/doc/stable/', None),
+    'scipp': ('https://scipp.github.io/', None),
 }
 
 # autodocs includes everything, even irrelevant API internals. autosummary
@@ -72,6 +75,7 @@ napoleon_type_aliases = {
 }
 typehints_defaults = 'comma'
 typehints_use_rtype = False
+typehints_formatter = typehints_formatter_for('{% if namespace_package %}{{namespace_package}}.{% endif %}{{ projectname.removeprefix(namespace_package) }}')
 
 # Add any paths that contain templates here, relative to this directory.
 templates_path = ['_templates']
@@ -134,7 +138,7 @@ html_theme_options = {
     "external_links": [
         {% for link in related_projects.replace(' ', '').split(',')|sort -%}
             {"name": "{{ link }}", "url": "https://scipp.github.io{% if link == 'Scipp' %}{% else %}/{{ link|lower }}{% endif %}"},
-        {% endfor %}],
+    {% endfor %}],
     "icon_links": [
         {
             "name": "GitHub",