@@ -76,7 +76,7 @@ linter.rules.should_fix = [
 linter.per_file_ignores = {}
 linter.safety_table.forced_safe = []
 linter.safety_table.forced_unsafe = []
-linter.unresolved_target_version = 3.10
+linter.unresolved_target_version = 3.11
 linter.per_file_target_version = {}
 linter.preview = disabled
 linter.explicit_preview_rules = false
@@ -265,7 +265,7 @@ linter.ruff.strictly_empty_init_modules = false
 
 # Formatter Settings
 formatter.exclude = []
-formatter.unresolved_target_version = 3.10
+formatter.unresolved_target_version = 3.11
 formatter.per_file_target_version = {}
 formatter.preview = disabled
 formatter.line_width = 88
@@ -280,7 +280,7 @@ formatter.docstring_code_line_width = dynamic
 # Analyze Settings
 analyze.exclude = []
 analyze.preview = disabled
-analyze.target_version = 3.10
+analyze.target_version = 3.11
 analyze.string_imports = disabled
 analyze.extension = ExtensionMapping({})
 analyze.include_dependencies = {}
 
@@ -504,7 +504,7 @@ impl Default for LinterSettings {
 /// unset. In contrast, we want to default to `PythonVersion::default()` for lint rules. These
 /// correspond to the [`TargetVersion::parser_version`] and [`TargetVersion::linter_version`]
 /// methods, respectively.
-#[derive(Debug, Clone, Copy, CacheKey)]
+#[derive(Debug, Clone, Copy, CacheKey, PartialEq, Eq)]
 pub struct TargetVersion(pub Option<PythonVersion>);
 
 impl TargetVersion {
 
@@ -11,6 +11,7 @@ use std::path::{Path, PathBuf};
 use anyhow::{Context, Result, anyhow};
 use glob::{GlobError, Paths, PatternError, glob};
 use itertools::Itertools;
+use log::debug;
 use regex::Regex;
 use rustc_hash::{FxHashMap, FxHashSet};
 use shellexpand;
@@ -53,6 +54,8 @@ use crate::options::{
     PydoclintOptions, PydocstyleOptions, PyflakesOptions, PylintOptions, RuffOptions,
     validate_required_version,
 };
+use crate::pyproject;
+use crate::resolver::ConfigurationOrigin;
 use crate::settings::{
     EXCLUDE, FileResolverSettings, FormatterSettings, INCLUDE, INCLUDE_PREVIEW, LineEnding,
     Settings,
@@ -619,6 +622,33 @@ impl Configuration {
             analyze: self.analyze.combine(config.analyze),
         }
     }
+
+    #[must_use]
+    pub fn apply_fallbacks(
+        mut self,
+        origin: ConfigurationOrigin,
+        initial_config_path: &Path,
+    ) -> Self {
+        if matches!(origin, ConfigurationOrigin::Ancestor) {
+            self.target_version = self.target_version.or_else(|| {
+                let dir = initial_config_path.parent()?;
+                let fallback = pyproject::find_fallback_target_version(dir)?;
+                debug!("Derived `target-version` from `requires-python`: {fallback:?}");
+                Some(fallback.into())
+            });
+        }
+        // If the origin is UserSettings, we need more information
+        // to determine where to search for a fallback target version.
+        // - If Ruff is being invoked via the CLI, then we search in
+        // the cwd.
+        // - If Ruff is being invoked via the server, then we search
+        // in the editor's workspace root.
+        //
+        // This logic is implemented manually, at the time of this
+        // writing 2026-01-30, in `ruff::resolve::resolve` and
+        // `ruff_server::session::index::ruff_settings::RuffSettings::fallback`, respectively.
+        self
+    }
 }
 
 #[derive(Clone, Debug, Default)]
 
@@ -181,10 +181,7 @@ pub fn find_user_settings_toml() -> Option<PathBuf> {
 }
 
 /// Load `Options` from a `pyproject.toml` or `ruff.toml` file.
-pub(super) fn load_options<P: AsRef<Path>>(
-    path: P,
-    version_strategy: &TargetVersionStrategy,
-) -> Result<Options> {
+pub(super) fn load_options<P: AsRef<Path>>(path: P) -> Result<Options> {
     let path = path.as_ref();
     if path.ends_with("pyproject.toml") {
         let pyproject = parse_pyproject_toml(path)?;
@@ -201,31 +198,15 @@ pub(super) fn load_options<P: AsRef<Path>>(
         }
         Ok(ruff)
     } else {
-        let mut ruff = parse_ruff_toml(path);
-        if let Ok(ref mut ruff) = ruff {
+        let ruff = parse_ruff_toml(path);
+        if let Ok(ruff) = ruff {
             if ruff.target_version.is_none() {
-                debug!("No `target-version` found in `ruff.toml`");
-                match version_strategy {
-                    TargetVersionStrategy::UseDefault => {}
-                    TargetVersionStrategy::RequiresPythonFallback => {
-                        if let Some(dir) = path.parent() {
-                            let fallback = get_fallback_target_version(dir);
-                            if let Some(version) = fallback {
-                                debug!(
-                                    "Derived `target-version` from `requires-python` in `pyproject.toml`: {version:?}"
-                                );
-                            } else {
-                                debug!(
-                                    "No `pyproject.toml` with `requires-python` in same directory; `target-version` unspecified"
-                                );
-                            }
-                            ruff.target_version = fallback;
-                        }
-                    }
-                }
+                debug!("No `target-version` found in `{}`", path.display());
             }
+            Ok(ruff)
+        } else {
+            ruff
         }
-        ruff
     }
 }
 
@@ -286,15 +267,6 @@ fn get_minimum_supported_version(requires_version: &VersionSpecifiers) -> Option
     PythonVersion::iter().find(|version| Version::from(*version) == minimum_version)
 }
 
-/// Strategy for handling missing `target-version` in configuration.
-#[derive(Debug)]
-pub(super) enum TargetVersionStrategy {
-    /// Use default `target-version`
-    UseDefault,
-    /// Derive from `requires-python` if available
-    RequiresPythonFallback,
-}
-
 #[cfg(test)]
 mod tests {
     use std::fs;
 
@@ -23,7 +23,7 @@ use ruff_linter::package::PackageRoot;
 use ruff_linter::packaging::is_package;
 
 use crate::configuration::Configuration;
-use crate::pyproject::{TargetVersionStrategy, settings_toml};
+use crate::pyproject::settings_toml;
 use crate::settings::Settings;
 use crate::{FileResolverSettings, pyproject};
 
@@ -315,13 +315,13 @@ pub trait ConfigurationTransformer {
 // file at least twice (possibly more than twice, since we'll also parse it when
 // resolving the "default" configuration).
 pub fn resolve_configuration(
-    pyproject: &Path,
+    initial_config_path: &Path,
     transformer: &dyn ConfigurationTransformer,
     origin: ConfigurationOrigin,
 ) -> Result<Configuration> {
     let relativity = Relativity::from(origin);
     let mut configurations = indexmap::IndexMap::new();
-    let mut next = Some(fs::normalize_path(pyproject));
+    let mut next = Some(fs::normalize_path(initial_config_path));
     while let Some(path) = next {
         if configurations.contains_key(&path) {
             bail!(format!(
@@ -334,20 +334,7 @@ pub fn resolve_configuration(
             ));
         }
 
-        // Resolve the current path.
-        let version_strategy =
-            if configurations.is_empty() && matches!(origin, ConfigurationOrigin::Ancestor) {
-                // For configurations that are discovered by
-                // walking back from a file, we will attempt to
-                // infer the `target-version` if it is missing
-                TargetVersionStrategy::RequiresPythonFallback
-            } else {
-                // In all other cases (e.g. for configurations
-                // inherited via `extend`, or user-level settings)
-                // we do not attempt to infer a missing `target-version`
-                TargetVersionStrategy::UseDefault
-            };
-        let options = pyproject::load_options(&path, &version_strategy).with_context(|| {
+        let options = pyproject::load_options(&path).with_context(|| {
             if configurations.is_empty() {
                 format!(
                     "Failed to load configuration `{path}`",
@@ -389,6 +376,9 @@ pub fn resolve_configuration(
     for extend in configurations {
         configuration = configuration.combine(extend);
     }
+
+    let configuration = configuration.apply_fallbacks(origin, initial_config_path);
+
     Ok(transformer.transform(configuration))
 }
 
@@ -963,7 +953,10 @@ mod tests {
     use path_absolutize::Absolutize;
     use tempfile::TempDir;
 
-    use ruff_linter::settings::types::{FilePattern, GlobPath};
+    use ruff_linter::settings::{
+        TargetVersion,
+        types::{FilePattern, GlobPath, PythonVersion},
+    };
 
     use crate::configuration::Configuration;
     use crate::pyproject::find_settings_toml;
@@ -1150,4 +1143,47 @@ mod tests {
             &make_exclusion(exclude),
         ));
     }
+
+    #[test]
+    fn extend_respects_target_version() -> Result<()> {
+        let tmp_dir = TempDir::new()?;
+        let root = tmp_dir.path();
+
+        let ruff_toml = root.join("ruff.toml");
+        std::fs::write(&ruff_toml, "target-version = \"py310\"")?;
+
+        let dot_ruff_toml = root.join(".ruff.toml");
+        std::fs::write(&dot_ruff_toml, "extend = \"ruff.toml\"")?;
+
+        let pyproject_toml = root.join("pyproject.toml");
+        std::fs::write(
+            &pyproject_toml,
+            r#"[project]
+name = "repro-ruff"
+version = "0.1.0"
+requires-python = ">=3.13"
+"#,
+        )?;
+
+        let main_py = root.join("main.py");
+        std::fs::write(
+            &main_py,
+            r#"from typing import TypeAlias
+
+A: TypeAlias = str | int
+"#,
+        )?;
+
+        let settings = resolve_root_settings(
+            &dot_ruff_toml,
+            &NoOpTransformer,
+            ConfigurationOrigin::Ancestor,
+        )?;
+        assert_eq!(
+            settings.linter.unresolved_target_version,
+            TargetVersion(Some(PythonVersion::Py310.into()))
+        );
+
+        Ok(())
+    }
 }