diff --git a/packages/react-router/tests/useNavigate.test.tsx b/packages/react-router/tests/useNavigate.test.tsx
index 918fa2b8e08..eca4f92a5cf 100644
--- a/packages/react-router/tests/useNavigate.test.tsx
+++ b/packages/react-router/tests/useNavigate.test.tsx
@@ -2795,3 +2795,59 @@ describe('encoded and unicode paths', () => {
     },
   )
 })
+
+test('when navigating to /auth/sign-in with literal path (no params)', async () => {
+  const rootRoute = createRootRoute()
+
+  const IndexComponent = () => {
+    const navigate = useNavigate()
+    return (
+      <>
+        <h1>Index</h1>
+        <button
+          data-testid="navigate-btn"
+          onClick={() => navigate({ to: '/auth/sign-in' })}
+        >
+          Navigate to Sign In
+        </button>
+      </>
+    )
+  }
+
+  const indexRoute = createRoute({
+    getParentRoute: () => rootRoute,
+    path: '/',
+    component: IndexComponent,
+  })
+
+  const authRoute = createRoute({
+    getParentRoute: () => rootRoute,
+    path: '/auth/$path',
+    component: () => {
+      const params = authRoute.useParams()
+      return (
+        <div>
+          <h1 data-testid="auth-heading">Auth Route</h1>
+          <span data-testid="path-param">{params.path}</span>
+        </div>
+      )
+    },
+  })
+
+  const router = createRouter({
+    routeTree: rootRoute.addChildren([indexRoute, authRoute]),
+    history,
+  })
+
+  render(<RouterProvider router={router} />)
+
+  const btn = await screen.findByTestId('navigate-btn')
+
+  // First click should navigate successfully
+  await act(() => fireEvent.click(btn))
+
+  // Should be at /auth/sign-in with correct params
+  expect(window.location.pathname).toBe('/auth/sign-in')
+  expect(await screen.findByTestId('auth-heading')).toBeInTheDocument()
+  expect((await screen.findByTestId('path-param')).textContent).toBe('sign-in')
+})
diff --git a/packages/router-core/src/router.ts b/packages/router-core/src/router.ts
index 6815bcdf322..f0c20f4170b 100644
--- a/packages/router-core/src/router.ts
+++ b/packages/router-core/src/router.ts
@@ -594,6 +594,12 @@ export interface MatchRoutesOpts {
   snapshot?: MatchSnapshot
 }
 
+export interface MatchRoutesResult {
+  matches: Array<AnyRouteMatch>
+  /** Raw string params extracted from path (before parsing) */
+  rawParams: Record<string, string>
+}
+
 export type InferRouterContext<TRouteTree extends AnyRoute> =
   TRouteTree['types']['routerContext']
 
@@ -1265,16 +1271,17 @@ export class RouterCore<
           search: locationSearchOrOpts,
         } as ParsedLocation,
         opts,
-      )
+      ).matches
     }
 
     return this.matchRoutesInternal(pathnameOrNext, locationSearchOrOpts)
+      .matches
   }
 
   private matchRoutesInternal(
     next: ParsedLocation,
     opts?: MatchRoutesOpts,
-  ): Array<AnyRouteMatch> {
+  ): MatchRoutesResult {
     // Fast-path: use snapshot hint if valid
     const snapshot = opts?.snapshot
     const snapshotValid =
@@ -1284,6 +1291,7 @@ export class RouterCore<
 
     let matchedRoutes: ReadonlyArray<AnyRoute>
     let routeParams: Record<string, string>
+    let rawParams: Record<string, string>
     let globalNotFoundRouteId: string | undefined
     let parsedParams: Record<string, unknown>
 
@@ -1291,6 +1299,7 @@ export class RouterCore<
       // Rebuild matched routes from snapshot
       matchedRoutes = snapshot.routeIds.map((id) => this.routesById[id]!)
       routeParams = { ...snapshot.params }
+      rawParams = { ...snapshot.params }
       globalNotFoundRouteId = snapshot.globalNotFoundRouteId
       parsedParams = snapshot.parsedParams
     } else {
@@ -1298,6 +1307,7 @@ export class RouterCore<
       const matchedRoutesResult = this.getMatchedRoutes(next.pathname)
       const { foundRoute, routeParams: rp } = matchedRoutesResult
       routeParams = rp
+      rawParams = { ...rp } // Capture before routeParams gets modified
       matchedRoutes = matchedRoutesResult.matchedRoutes
       parsedParams = matchedRoutesResult.parsedParams
 
@@ -1642,7 +1652,7 @@ export class RouterCore<
       }
     })
 
-    return matches
+    return { matches, rawParams }
   }
 
   getMatchedRoutes: GetMatchRoutesFn = (pathname) => {
@@ -1765,9 +1775,10 @@ export class RouterCore<
         params: nextParams,
       }).interpolatedPath
 
-      const destMatches = this.matchRoutes(interpolatedNextTo, undefined, {
-        _buildLocation: true,
-      })
+      const { matches: destMatches, rawParams } = this.matchRoutesInternal(
+        { pathname: interpolatedNextTo } as ParsedLocation,
+        { _buildLocation: true },
+      )
       const destRoutes = destMatches.map(
         (d) => this.looseRoutesById[d.routeId]!,
       )
@@ -1856,10 +1867,15 @@ export class RouterCore<
       nextState = replaceEqualDeep(currentLocation.state, nextState)
 
       // Build match snapshot for fast-path on back/forward navigation
-      // Use destRoutes and nextParams directly (after stringify)
+      // Use raw params captured during matchRoutesInternal (needed for literal path navigation
+      // where nextParams may be empty but path contains param values)
+      const snapshotParams = {
+        ...rawParams,
+        ...nextParams,
+      }
       const matchSnapshot = buildMatchSnapshotFromRoutes({
         routes: destRoutes,
-        params: nextParams,
+        params: snapshotParams,
         searchStr,
         globalNotFoundRouteId: globalNotFoundMatch?.routeId,
       })