diff --git a/.chronus/changes/witemple-msft-alias-member-default-instance-2026-1-10-13-31-6.md b/.chronus/changes/witemple-msft-alias-member-default-instance-2026-1-10-13-31-6.md
new file mode 100644
index 00000000000..496f70842e4
--- /dev/null
+++ b/.chronus/changes/witemple-msft-alias-member-default-instance-2026-1-10-13-31-6.md
@@ -0,0 +1,7 @@
+---
+changeKind: fix
+packages:
+  - "@typespec/compiler"
+---
+
+Fixed an issue where referencing a member of a templated alias with defaultable parameters would fail to instantiate the alias, leaking template parameters.
\ No newline at end of file
diff --git a/packages/compiler/src/core/checker.ts b/packages/compiler/src/core/checker.ts
index 6bc130f0af5..412963497fb 100644
--- a/packages/compiler/src/core/checker.ts
+++ b/packages/compiler/src/core/checker.ts
@@ -3283,24 +3283,48 @@ export function createChecker(program: Program, resolver: NameResolver): Checker
 
       // when resolving a type reference based on an alias, unwrap the alias.
       if (base.flags & SymbolFlags.Alias) {
-        const aliasedSym = getAliasedSymbol(ctx, base);
-        if (!aliasedSym) {
-          reportCheckerDiagnostic(
-            createDiagnostic({
-              code: "invalid-ref",
-              messageId: "node",
-              format: {
-                id: node.id.sv,
-                nodeName: base.declarations[0]
-                  ? SyntaxKind[base.declarations[0].kind]
-                  : "Unknown node",
-              },
-              target: node,
-            }),
+        if (!options.resolveDeclarationOfTemplate && isTemplatedNode(getSymNode(base))) {
+          // This is a bare identifier reference to a templated alias, so we need to actually check this type.
+          const ty = checkTypeReferenceSymbol(
+            ctx.withMapper(undefined),
+            base,
+            node.base,
+            /* instantiateTemplates */ true,
           );
-          return undefined;
+          base = lateBindContainer(ty, base);
+
+          if (base?.members) {
+            switch (ty.kind) {
+              case "Model":
+              case "Union":
+              case "Interface":
+              case "Enum":
+              case "Scalar":
+                lateBindMembers(ty);
+            }
+          }
+
+          if (!base) return undefined;
+        } else {
+          const aliasedSym = getAliasedSymbol(ctx, base);
+          if (!aliasedSym) {
+            reportCheckerDiagnostic(
+              createDiagnostic({
+                code: "invalid-ref",
+                messageId: "node",
+                format: {
+                  id: node.id.sv,
+                  nodeName: base.declarations[0]
+                    ? SyntaxKind[base.declarations[0].kind]
+                    : "Unknown node",
+                },
+                target: node,
+              }),
+            );
+            return undefined;
+          }
+          base = aliasedSym;
         }
-        base = aliasedSym;
       } else if (!options.resolveDeclarationOfTemplate && isTemplatedNode(getSymNode(base))) {
         const baseSym = getContainerTemplateSymbol(ctx, base, node.base);
         if (!baseSym) {
diff --git a/packages/compiler/test/checker/references.test.ts b/packages/compiler/test/checker/references.test.ts
index 1d6a58b7950..b721394cb63 100644
--- a/packages/compiler/test/checker/references.test.ts
+++ b/packages/compiler/test/checker/references.test.ts
@@ -260,6 +260,97 @@ describe("compiler: references", () => {
         strictEqual(Foo.properties.get("a")!.type, Foo.properties.get("b"));
       });
     });
+
+    it("member reference via templated alias with default parameters", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+        model M<T = string> { prop: T; } 
+        alias A<T = string> = M<T>;
+
+        @test model X { y: A.prop; }
+        `,
+      );
+
+      const { X } = (await testHost.compile("./main.tsp")) as { X: Model };
+      const y = X.properties.get("y")!;
+      strictEqual(y.type.kind, "ModelProperty");
+      strictEqual(y.type.type.kind, "Scalar");
+      strictEqual(y.type.type.name, "string");
+    });
+
+    it("member reference via templated alias with different alias defaults", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+          model M<T = string> { prop: T; }
+          alias A<U = boolean> = M<U>;
+
+          @test model X { y: A.prop; }
+        `,
+      );
+
+      const { X } = (await testHost.compile("./main.tsp")) as { X: Model };
+      const y = X.properties.get("y")!;
+      strictEqual(y.type.kind, "ModelProperty");
+      strictEqual(y.type.type.kind, "Scalar");
+      strictEqual(y.type.type.name, "boolean");
+    });
+
+    it("member reference via alias-of-alias (templated, defaultable)", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+          model M<T> { prop: T; }
+
+          alias A<T> = M<T>;
+          alias B<T = boolean> = A<T>;
+
+          @test model X { y: B.prop; }
+        `,
+      );
+
+      const { X } = (await testHost.compile("./main.tsp")) as { X: Model };
+      const y = X.properties.get("y")!;
+      strictEqual(y.type.kind, "ModelProperty");
+      strictEqual(y.type.type.kind, "Scalar");
+      strictEqual(y.type.type.name, "boolean");
+    });
+
+    it("member reference via templated alias to model literal with default argument", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+        alias A<T = string> = { t: T; };
+        @test model Example { prop: A.t }
+        `,
+      );
+
+      const { Example } = (await testHost.compile("./main.tsp")) as { Example: Model };
+      const prop = Example.properties.get("prop")!;
+      strictEqual(prop.type.kind, "ModelProperty");
+      strictEqual(prop.type.type.kind, "Scalar");
+      strictEqual(prop.type.type.name, "string");
+    });
+
+    it("reports an error when referencing an uninstantiated alias", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+        alias A<T> = { t: T; };
+        @test model Example { prop: A.t }
+        `,
+      );
+
+      const diagnostics = await testHost.diagnose("./main.tsp");
+
+      expectDiagnostics(diagnostics, [
+        {
+          code: "invalid-template-args",
+          message: "Template argument 'T' is required and not specified.",
+        },
+      ]);
+    });
   });
 
   describe("enum members", () => {
@@ -523,6 +614,57 @@ describe("compiler: references", () => {
         strictEqual(linkedValue, Foo.operations.get("a"));
       });
     });
+
+    it("operation reference via templated alias with default parameters", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+          interface I<T = string> { o(): T; }
+          alias A<T = string> = I<T>;
+
+          @test op example is A.o;
+        `,
+      );
+      const { example } = (await testHost.compile("./main.tsp")) as { example: Operation };
+      strictEqual(example.kind, "Operation");
+      strictEqual(example.returnType.kind, "Scalar");
+      strictEqual(example.returnType.name, "string");
+    });
+
+    it("operation reference via templated alias with different alias defaults", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+          interface I<T = string> { o(): T; }
+          alias A<U = boolean> = I<U>;
+
+          @test op example is A.o;
+        `,
+      );
+
+      const { example } = (await testHost.compile("./main.tsp")) as { example: Operation };
+      strictEqual(example.kind, "Operation");
+      strictEqual(example.returnType.kind, "Scalar");
+      strictEqual(example.returnType.name, "boolean");
+    });
+
+    it("operation reference via alias-of-alias (templated, defaultable)", async () => {
+      testHost.addTypeSpecFile(
+        "main.tsp",
+        `
+          interface I<T> { o(): T; }
+          alias A<T> = I<T>;
+          alias B<T = boolean> = A<T>;
+          
+          @test op example is B.o;
+        `,
+      );
+
+      const { example } = (await testHost.compile("./main.tsp")) as { example: Operation };
+      strictEqual(example.kind, "Operation");
+      strictEqual(example.returnType.kind, "Scalar");
+      strictEqual(example.returnType.name, "boolean");
+    });
   });
 
   it("throws proper diagnostics", async () => {