diff --git a/dlt/common/destination/reference.py b/dlt/common/destination/reference.py
index b926f11dae..2ad5131e63 100644
--- a/dlt/common/destination/reference.py
+++ b/dlt/common/destination/reference.py
@@ -484,7 +484,10 @@ def should_truncate_table_before_load_on_staging_destination(self, table: TTable
         return True
 
 
-TDestinationReferenceArg = Union[str, "Destination", Callable[..., "Destination"], None]
+# TODO: type Destination properly
+TDestinationReferenceArg = Union[
+    str, "Destination[Any, Any]", Callable[..., "Destination[Any, Any]"], None
+]
 
 
 class Destination(ABC, Generic[TDestinationConfig, TDestinationClient]):
diff --git a/dlt/common/typing.py b/dlt/common/typing.py
index 99c2604cdf..d18d8000e7 100644
--- a/dlt/common/typing.py
+++ b/dlt/common/typing.py
@@ -55,11 +55,13 @@
     from typing import _TypedDict
 
     REPattern = _REPattern[str]
+    PathLike = os.PathLike[str]
 else:
     StrOrBytesPath = Any
     from typing import _TypedDictMeta as _TypedDict
 
     REPattern = _REPattern
+    PathLike = os.PathLike
 
 AnyType: TypeAlias = Any
 NoneType = type(None)
@@ -92,7 +94,7 @@
 TVariantBase = TypeVar("TVariantBase", covariant=True)
 TVariantRV = Tuple[str, Any]
 VARIANT_FIELD_FORMAT = "v_%s"
-TFileOrPath = Union[str, os.PathLike, IO[Any]]
+TFileOrPath = Union[str, PathLike, IO[Any]]
 TSortOrder = Literal["asc", "desc"]
 
 
diff --git a/dlt/destinations/impl/dremio/pydremio.py b/dlt/destinations/impl/dremio/pydremio.py
index b936278fbd..08ed2ed399 100644
--- a/dlt/destinations/impl/dremio/pydremio.py
+++ b/dlt/destinations/impl/dremio/pydremio.py
@@ -242,7 +242,7 @@ def __init__(self, factory: CookieMiddlewareFactory, *args: Any, **kwargs: Any):
     def received_headers(self, headers: Mapping[str, str]) -> None:
         for key in headers:
             if key.lower() == "set-cookie":
-                cookie = SimpleCookie()  # type: ignore
+                cookie = SimpleCookie()
                 for item in headers.get(key):
                     cookie.load(item)
 
diff --git a/dlt/extract/decorators.py b/dlt/extract/decorators.py
index 7230c48516..fac6391e01 100644
--- a/dlt/extract/decorators.py
+++ b/dlt/extract/decorators.py
@@ -52,6 +52,7 @@
 from dlt.extract.exceptions import (
     CurrentSourceNotAvailable,
     DynamicNameNotStandaloneResource,
+    InvalidResourceDataTypeFunctionNotAGenerator,
     InvalidTransformerDataTypeGeneratorFunctionRequired,
     ResourceFunctionExpected,
     ResourceInnerCallableConfigWrapDisallowed,
@@ -65,7 +66,7 @@
 
 from dlt.extract.items import TTableHintTemplate
 from dlt.extract.source import DltSource
-from dlt.extract.resource import DltResource, TUnboundDltResource
+from dlt.extract.resource import DltResource, TUnboundDltResource, TDltResourceImpl
 
 
 @configspec
@@ -103,7 +104,7 @@ def source(
     schema_contract: TSchemaContract = None,
     spec: Type[BaseConfiguration] = None,
     _impl_cls: Type[TDltSourceImpl] = DltSource,  # type: ignore[assignment]
-) -> Callable[TSourceFunParams, DltSource]: ...
+) -> Callable[TSourceFunParams, TDltSourceImpl]: ...
 
 
 @overload
@@ -264,7 +265,7 @@ async def _wrap_coro(*args: Any, **kwargs: Any) -> TDltSourceImpl:
         # get spec for wrapped function
         SPEC = get_fun_spec(conf_f)
         # get correct wrapper
-        wrapper = _wrap_coro if inspect.iscoroutinefunction(inspect.unwrap(f)) else _wrap
+        wrapper: AnyFun = _wrap_coro if inspect.iscoroutinefunction(inspect.unwrap(f)) else _wrap  # type: ignore[assignment]
         # store the source information
         _SOURCES[_wrap.__qualname__] = SourceInfo(SPEC, wrapper, func_module)
         if inspect.iscoroutinefunction(inspect.unwrap(f)):
@@ -296,7 +297,8 @@ def resource(
     selected: bool = True,
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
-) -> DltResource: ...
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
+) -> TDltResourceImpl: ...
 
 
 @overload
@@ -315,7 +317,8 @@ def resource(
     selected: bool = True,
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
-) -> Callable[[Callable[TResourceFunParams, Any]], DltResource]: ...
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
+) -> Callable[[Callable[TResourceFunParams, Any]], TDltResourceImpl]: ...
 
 
 @overload
@@ -334,8 +337,11 @@ def resource(
     selected: bool = True,
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
     standalone: Literal[True] = True,
-) -> Callable[[Callable[TResourceFunParams, Any]], Callable[TResourceFunParams, DltResource]]: ...
+) -> Callable[
+    [Callable[TResourceFunParams, Any]], Callable[TResourceFunParams, TDltResourceImpl]
+]: ...
 
 
 @overload
@@ -354,7 +360,8 @@ def resource(
     selected: bool = True,
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
-) -> DltResource: ...
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
+) -> TDltResourceImpl: ...
 
 
 def resource(
@@ -372,6 +379,7 @@ def resource(
     selected: bool = True,
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
     standalone: bool = False,
     data_from: TUnboundDltResource = None,
 ) -> Any:
@@ -435,17 +443,19 @@ def resource(
 
         parallelized (bool, optional): If `True`, the resource generator will be extracted in parallel with other resources. Defaults to `False`.
 
+        _impl_cls (Type[TDltResourceImpl], optional): A custom implementation of DltResource, may be also used to providing just a typing stub
+
     Raises:
         ResourceNameMissing: indicates that name of the resource cannot be inferred from the `data` being passed.
         InvalidResourceDataType: indicates that the `data` argument cannot be converted into `dlt resource`
 
     Returns:
-        DltResource instance which may be loaded, iterated or combined with other resources into a pipeline.
+        TDltResourceImpl instance which may be loaded, iterated or combined with other resources into a pipeline.
     """
 
     def make_resource(
         _name: str, _section: str, _data: Any, incremental: IncrementalResourceWrapper = None
-    ) -> DltResource:
+    ) -> TDltResourceImpl:
         table_template = make_hints(
             table_name,
             write_disposition=write_disposition or DEFAULT_WRITE_DISPOSITION,
@@ -464,7 +474,7 @@ def make_resource(
             table_template.setdefault("x-normalizer", {})  # type: ignore[typeddict-item]
             table_template["x-normalizer"]["max_nesting"] = max_table_nesting  # type: ignore[typeddict-item]
 
-        resource = DltResource.from_data(
+        resource = _impl_cls.from_data(
             _data,
             _name,
             _section,
@@ -479,7 +489,7 @@ def make_resource(
 
     def decorator(
         f: Callable[TResourceFunParams, Any]
-    ) -> Callable[TResourceFunParams, DltResource]:
+    ) -> Callable[TResourceFunParams, TDltResourceImpl]:
         if not callable(f):
             if data_from:
                 # raise more descriptive exception if we construct transformer
@@ -490,7 +500,6 @@ def decorator(
         if not standalone and callable(name):
             raise DynamicNameNotStandaloneResource(get_callable_name(f))
 
-        # resource_section = name if name and not callable(name) else get_callable_name(f)
         resource_name = name if name and not callable(name) else get_callable_name(f)
 
         # do not inject config values for inner functions, we assume that they are part of the source
@@ -506,15 +515,18 @@ def decorator(
         incr_f = incremental.wrap(sig, f) if incremental else f
 
         resource_sections = (known_sections.SOURCES, source_section, resource_name)
+
         # standalone resource will prefer existing section context when resolving config values
         # this lets the source to override those values and provide common section for all config values for resources present in that source
         # for autogenerated spec do not include defaults
+        # NOTE: allow full config for standalone, currently some edge cases for incremental does not work
+        #       (removing it via apply hints or explicit call)
         conf_f = with_config(
             incr_f,
             spec=spec,
             sections=resource_sections,
             sections_merge_style=ConfigSectionContext.resource_merge_style,
-            include_defaults=spec is not None,
+            include_defaults=spec is not None,  # or standalone,
         )
         is_inner_resource = is_inner_callable(f)
         if conf_f != incr_f and is_inner_resource and not standalone:
@@ -526,33 +538,52 @@ def decorator(
         if not is_inner_resource:
             _SOURCES[f.__qualname__] = SourceInfo(SPEC, f, func_module)
 
-        if standalone:
-            if data_from:
-                compat_wrapper, skip_args = wrap_compat_transformer, 1
-            else:
-                compat_wrapper, skip_args = wrap_resource_gen, 0
-
-            @wraps(conf_f)
-            def _wrap(*args: Any, **kwargs: Any) -> DltResource:
-                _, mod_sig, bound_args = simulate_func_call(conf_f, skip_args, *args, **kwargs)
-                actual_resource_name = (
-                    name(bound_args.arguments) if callable(name) else resource_name
-                )
+        if not standalone:
+            # we return a DltResource that is callable and returns dlt resource when called
+            # so it should match the signature
+            return make_resource(resource_name, source_section, conf_f, incremental)  # type: ignore[return-value]
+
+        # wrap the standalone resource
+        if data_from:
+            compat_wrapper, skip_args = wrap_compat_transformer, 1
+        else:
+            compat_wrapper, skip_args = wrap_resource_gen, 0
+
+        @wraps(incr_f)
+        def _wrap(*args: Any, **kwargs: Any) -> TDltResourceImpl:
+            _, mod_sig, bound_args = simulate_func_call(incr_f, skip_args, *args, **kwargs)
+            actual_resource_name = name(bound_args.arguments) if callable(name) else resource_name
+            # wrap again with an actual resource name
+            conf_f = with_config(
+                incr_f,
+                spec=SPEC,
+                sections=resource_sections[:-1] + (actual_resource_name,),
+                sections_merge_style=ConfigSectionContext.resource_merge_style,
+            )
+            try:
                 r = make_resource(
                     actual_resource_name,
                     source_section,
                     compat_wrapper(actual_resource_name, conf_f, sig, *args, **kwargs),
                     incremental,
                 )
-                # consider transformer arguments bound
-                r._args_bound = True
-                # keep explicit args passed
-                r._set_explicit_args(conf_f, mod_sig, *args, **kwargs)
-                return r
-
-            return _wrap
-        else:
-            return make_resource(resource_name, source_section, conf_f, incremental)
+            except InvalidResourceDataTypeFunctionNotAGenerator as gen_ex:
+                # we allow an edge case: resource can return another resource
+                try:
+                    # actually call the function to see if it contains DltResource
+                    data_ = conf_f(*args, **kwargs)
+                    if not isinstance(data_, DltResource):
+                        raise
+                    r = data_  # type: ignore[assignment]
+                except Exception:
+                    raise gen_ex from None
+            # consider transformer arguments bound
+            r._args_bound = True
+            # keep explicit args passed
+            r._set_explicit_args(conf_f, mod_sig, *args, **kwargs)
+            return r
+
+        return _wrap
 
     # if data is callable or none use decorator
     if data is None:
@@ -659,6 +690,7 @@ def transformer(
     spec: Type[BaseConfiguration] = None,
     parallelized: bool = False,
     standalone: bool = False,
+    _impl_cls: Type[TDltResourceImpl] = DltResource,  # type: ignore[assignment]
 ) -> Any:
     """A form of `dlt resource` that takes input from other resources via `data_from` argument in order to enrich or transform the data.
 
@@ -713,6 +745,8 @@ def transformer(
         spec (Type[BaseConfiguration], optional): A specification of configuration and secret values required by the source.
 
         standalone (bool, optional): Returns a wrapped decorated function that creates DltResource instance. Must be called before use. Cannot be part of a source.
+
+        _impl_cls (Type[TDltResourceImpl], optional): A custom implementation of DltResource, may be also used to providing just a typing stub
     """
     if isinstance(f, DltResource):
         raise ValueError(
@@ -733,6 +767,7 @@ def transformer(
         standalone=standalone,
         data_from=data_from,
         parallelized=parallelized,
+        _impl_cls=_impl_cls,
     )
 
 
diff --git a/dlt/extract/incremental/__init__.py b/dlt/extract/incremental/__init__.py
index ef7523b207..b6ecd2d3db 100644
--- a/dlt/extract/incremental/__init__.py
+++ b/dlt/extract/incremental/__init__.py
@@ -212,6 +212,9 @@ def merge(self, other: "Incremental[TCursorValue]") -> "Incremental[TCursorValue
         merged.resource_name = self.resource_name
         if other.resource_name:
             merged.resource_name = other.resource_name
+        # also pass if resolved
+        merged.__is_resolved__ = other.__is_resolved__
+        merged.__exception__ = other.__exception__
         return merged  # type: ignore
 
     def copy(self) -> "Incremental[TCursorValue]":
@@ -438,7 +441,8 @@ def can_close(self) -> bool:
     def __str__(self) -> str:
         return (
             f"Incremental at {id(self)} for resource {self.resource_name} with cursor path:"
-            f" {self.cursor_path} initial {self.initial_value} lv_func {self.last_value_func}"
+            f" {self.cursor_path} initial {self.initial_value} - {self.end_value} lv_func"
+            f" {self.last_value_func}"
         )
 
     def _get_transformer(self, items: TDataItems) -> IncrementalTransform:
@@ -569,10 +573,16 @@ def _wrap(*args: Any, **kwargs: Any) -> Any:
                 new_incremental.__orig_class__ = p.annotation  # type: ignore
 
             # set the incremental only if not yet set or if it was passed explicitly
+            # NOTE: if new incremental is resolved, it was passed via config injection
             # NOTE: the _incremental may be also set by applying hints to the resource see `set_template` in `DltResource`
-            if (new_incremental and p.name in bound_args.arguments) or not self._incremental:
+            if (
+                new_incremental
+                and p.name in bound_args.arguments
+                and not new_incremental.is_resolved()
+            ) or not self._incremental:
                 self._incremental = new_incremental
-            self._incremental.resolve()
+            if not self._incremental.is_resolved():
+                self._incremental.resolve()
             # in case of transformers the bind will be called before this wrapper is set: because transformer is called for a first time late in the pipe
             if self._resource_name:
                 # rebind internal _incremental from wrapper that already holds
diff --git a/dlt/extract/resource.py b/dlt/extract/resource.py
index 7f4eb05d6f..a64d5070b8 100644
--- a/dlt/extract/resource.py
+++ b/dlt/extract/resource.py
@@ -12,6 +12,7 @@
     Any,
     Optional,
 )
+from typing_extensions import TypeVar, Self
 
 from dlt.common.configuration.resolve import inject_section
 from dlt.common.configuration.specs import known_sections
@@ -76,6 +77,9 @@ def with_hints(
     return DataItemWithMeta(HintsMeta(hints, create_table_variant), item)
 
 
+TDltResourceImpl = TypeVar("TDltResourceImpl", bound="DltResource", default="DltResource")
+
+
 class DltResource(Iterable[TDataItem], DltResourceHints):
     """Implements dlt resource. Contains a data pipe that wraps a generating item and table schema that can be adjusted"""
 
@@ -114,12 +118,12 @@ def from_data(
         selected: bool = True,
         data_from: Union["DltResource", Pipe] = None,
         incremental: IncrementalResourceWrapper = None,
-    ) -> "DltResource":
+    ) -> Self:
         if data is None:
-            raise InvalidResourceDataTypeIsNone(name, data, NoneType)  # type: ignore
+            raise InvalidResourceDataTypeIsNone(name, data, NoneType)
 
         if isinstance(data, DltResource):
-            return data
+            return data  # type: ignore[return-value]
 
         if isinstance(data, Pipe):
             return cls(data, hints, selected, incremental=incremental, section=section)
@@ -170,7 +174,7 @@ def name(self) -> str:
         """Resource name inherited from the pipe"""
         return self._pipe.name
 
-    def with_name(self, new_name: str) -> "DltResource":
+    def with_name(self: TDltResourceImpl, new_name: str) -> TDltResourceImpl:
         """Clones the resource with a new name. Such resource keeps separate state and loads data to `new_name` table by default."""
         return self._clone(new_name=new_name, with_parent=True)
 
@@ -226,7 +230,7 @@ def max_table_nesting(self, value: int) -> None:
         self._hints.setdefault("x-normalizer", {})  # type: ignore[typeddict-item]
         self._hints["x-normalizer"]["max_nesting"] = value  # type: ignore[typeddict-item]
 
-    def pipe_data_from(self, data_from: Union["DltResource", Pipe]) -> None:
+    def pipe_data_from(self: TDltResourceImpl, data_from: Union[TDltResourceImpl, Pipe]) -> None:
         """Replaces the parent in the transformer resource pipe from which the data is piped."""
         if self.is_transformer:
             DltResource._ensure_valid_transformer_resource(self.name, self._pipe.gen)
@@ -242,7 +246,7 @@ def add_pipe(self, data: Any) -> None:
         # TODO: (1) self resource cannot be a transformer (2) if data is resource both self must and it must be selected/unselected + cannot be tranformer
         raise InvalidResourceDataTypeMultiplePipes(self.name, data, type(data))
 
-    def select_tables(self, *table_names: Iterable[str]) -> "DltResource":
+    def select_tables(self: TDltResourceImpl, *table_names: Iterable[str]) -> TDltResourceImpl:
         """For resources that dynamically dispatch data to several tables allows to select tables that will receive data, effectively filtering out other data items.
 
         Both `with_table_name` marker and data-based (function) table name hints are supported.
@@ -258,8 +262,8 @@ def _filter(item: TDataItem, meta: Any = None) -> bool:
         return self
 
     def add_map(
-        self, item_map: ItemTransformFunc[TDataItem], insert_at: int = None
-    ) -> "DltResource":  # noqa: A003
+        self: TDltResourceImpl, item_map: ItemTransformFunc[TDataItem], insert_at: int = None
+    ) -> TDltResourceImpl:  # noqa: A003
         """Adds mapping function defined in `item_map` to the resource pipe at position `inserted_at`
 
         `item_map` receives single data items, `dlt` will enumerate any lists of data items automatically
@@ -278,8 +282,10 @@ def add_map(
         return self
 
     def add_yield_map(
-        self, item_map: ItemTransformFunc[Iterator[TDataItem]], insert_at: int = None
-    ) -> "DltResource":  # noqa: A003
+        self: TDltResourceImpl,
+        item_map: ItemTransformFunc[Iterator[TDataItem]],
+        insert_at: int = None,
+    ) -> TDltResourceImpl:  # noqa: A003
         """Adds generating function defined in `item_map` to the resource pipe at position `inserted_at`
 
         `item_map` receives single data items, `dlt` will enumerate any lists of data items automatically. It may yield 0 or more data items and be used to
@@ -299,8 +305,8 @@ def add_yield_map(
         return self
 
     def add_filter(
-        self, item_filter: ItemTransformFunc[bool], insert_at: int = None
-    ) -> "DltResource":  # noqa: A003
+        self: TDltResourceImpl, item_filter: ItemTransformFunc[bool], insert_at: int = None
+    ) -> TDltResourceImpl:  # noqa: A003
         """Adds filter defined in `item_filter` to the resource pipe at position `inserted_at`
 
         `item_filter` receives single data items, `dlt` will enumerate any lists of data items automatically
@@ -317,7 +323,7 @@ def add_filter(
             self._pipe.insert_step(FilterItem(item_filter), insert_at)
         return self
 
-    def add_limit(self, max_items: int) -> "DltResource":  # noqa: A003
+    def add_limit(self: TDltResourceImpl, max_items: int) -> TDltResourceImpl:  # noqa: A003
         """Adds a limit `max_items` to the resource pipe
 
         This mutates the encapsulated generator to stop after `max_items` items are yielded. This is useful for testing and debugging. It is
@@ -376,7 +382,7 @@ def _gen_wrap(gen: TPipeStep) -> TPipeStep:
                 self._pipe.replace_gen(partial(_gen_wrap, gen))
         return self
 
-    def parallelize(self) -> "DltResource":
+    def parallelize(self: TDltResourceImpl) -> TDltResourceImpl:
         """Wraps the resource to execute each item in a threadpool to allow multiple resources to extract in parallel.
 
         The resource must be a generator or generator function or a transformer function.
@@ -395,8 +401,10 @@ def parallelize(self) -> "DltResource":
         return self
 
     def add_step(
-        self, item_transform: ItemTransformFunctionWithMeta[TDataItems], insert_at: int = None
-    ) -> "DltResource":  # noqa: A003
+        self: TDltResourceImpl,
+        item_transform: ItemTransformFunctionWithMeta[TDataItems],
+        insert_at: int = None,
+    ) -> TDltResourceImpl:  # noqa: A003
         if insert_at is None:
             self._pipe.append_step(item_transform)
         else:
@@ -427,7 +435,7 @@ def _set_hints(
             if table_schema_template.get("validator") is not None:
                 self.validator = table_schema_template["validator"]
 
-    def bind(self, *args: Any, **kwargs: Any) -> "DltResource":
+    def bind(self: TDltResourceImpl, *args: Any, **kwargs: Any) -> TDltResourceImpl:
         """Binds the parametrized resource to passed arguments. Modifies resource pipe in place. Does not evaluate generators or iterators."""
         if self._args_bound:
             raise TypeError(f"Parametrized resource {self.name} is not callable")
@@ -466,7 +474,7 @@ def state(self) -> StrAny:
         with inject_section(self._get_config_section_context()):
             return resource_state(self.name)
 
-    def __call__(self, *args: Any, **kwargs: Any) -> "DltResource":
+    def __call__(self: TDltResourceImpl, *args: Any, **kwargs: Any) -> TDltResourceImpl:
         """Binds the parametrized resources to passed arguments. Creates and returns a bound resource. Generators and iterators are not evaluated."""
         if self._args_bound:
             raise TypeError(f"Parametrized resource {self.name} is not callable")
@@ -489,7 +497,9 @@ def __or__(self, transform: Union["DltResource", AnyFun]) -> "DltResource":
             else:
                 return self.add_map(transform)
 
-    def __ror__(self, data: Union[Iterable[Any], Iterator[Any]]) -> "DltResource":
+    def __ror__(
+        self: TDltResourceImpl, data: Union[Iterable[Any], Iterator[Any]]
+    ) -> TDltResourceImpl:
         """Allows to pipe data from across resources and transform functions with | operator
         This is the RIGHT side OR so the self may not be a resource and the LEFT must be an object
         that does not implement | ie. a list
@@ -525,13 +535,15 @@ def _set_explicit_args(
         except Exception:
             pass
 
-    def _clone(self, new_name: str = None, with_parent: bool = False) -> "DltResource":
+    def _clone(
+        self: TDltResourceImpl, new_name: str = None, with_parent: bool = False
+    ) -> TDltResourceImpl:
         """Creates a deep copy of a current resource, optionally renaming the resource. The clone will not be part of the source"""
         pipe = self._pipe
         if self._pipe and not self._pipe.is_empty:
             pipe = pipe._clone(new_name=new_name, with_parent=with_parent)
         # incremental and parent are already in the pipe (if any)
-        return DltResource(
+        return self.__class__(
             pipe,
             deepcopy(self._hints),
             selected=self.selected,
diff --git a/dlt/extract/source.py b/dlt/extract/source.py
index 5d9799e29c..6e78f3c5ba 100644
--- a/dlt/extract/source.py
+++ b/dlt/extract/source.py
@@ -1,4 +1,3 @@
-import warnings
 import contextlib
 from copy import copy
 import makefun
diff --git a/dlt/extract/utils.py b/dlt/extract/utils.py
index 2024796972..55a8b0b8c4 100644
--- a/dlt/extract/utils.py
+++ b/dlt/extract/utils.py
@@ -251,7 +251,7 @@ def _parallel_gen() -> TDataItems:
 
     if callable(f):
         if inspect.isgeneratorfunction(inspect.unwrap(f)):
-            return wraps(f)(_gen_wrapper)  # type: ignore[arg-type]
+            return wraps(f)(_gen_wrapper)  # type: ignore[return-value]
         else:
 
             def _fun_wrapper(*args: Any, **kwargs: Any) -> Any:
@@ -260,7 +260,7 @@ def _curry() -> Any:
 
                 return _curry
 
-            return wraps(f)(_fun_wrapper)  # type: ignore[arg-type]
+            return wraps(f)(_fun_wrapper)  # type: ignore[return-value]
     return _gen_wrapper()  # type: ignore[return-value]
 
 
diff --git a/poetry.lock b/poetry.lock
index 451a26cda9..dcab5e1730 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -5316,38 +5316,38 @@ files = [
 
 [[package]]
 name = "mypy"
-version = "1.6.1"
+version = "1.10.0"
 description = "Optional static typing for Python"
 optional = false
 python-versions = ">=3.8"
 files = [
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 ]
 
 [package.dependencies]
@@ -5358,6 +5358,7 @@ typing-extensions = ">=4.1.0"
 [package.extras]
 dmypy = ["psutil (>=4.0)"]
 install-types = ["pip"]
+mypyc = ["setuptools (>=50)"]
 reports = ["lxml"]
 
 [[package]]
@@ -9334,4 +9335,4 @@ weaviate = ["weaviate-client"]
 [metadata]
 lock-version = "2.0"
 python-versions = ">=3.8.1,<3.13"
-content-hash = "473a4e54434d3a71dbb8e5d6bb8bd901a48313b623bf1a2e138812e36517411f"
+content-hash = "c206bfd3eab8f0c9349398c3c0ed251490bab96254327cb800d45807f05d2997"
diff --git a/pyproject.toml b/pyproject.toml
index e58f119b6b..4c31cda736 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -122,7 +122,7 @@ sqlfluff = "^2.3.2"
 types-deprecated = "^1.2.9.2"
 pytest-console-scripts = "^1.4.1"
 pytest = "^7.0.0"
-mypy = "^1.6.1"
+mypy = "^1.10.0"
 flake8 = "^5.0.0"
 bandit = "^1.7.0"
 black = "^23.7.0"
diff --git a/tests/destinations/test_custom_destination.py b/tests/destinations/test_custom_destination.py
index c8445a94dc..6834006689 100644
--- a/tests/destinations/test_custom_destination.py
+++ b/tests/destinations/test_custom_destination.py
@@ -140,7 +140,7 @@ def local_sink_func(items: TDataItems, table: TTableSchema, my_val=dlt.config.va
 
     # test decorator
     calls = []
-    p = dlt.pipeline("sink_test", destination=dlt.destination()(local_sink_func), full_refresh=True)  # type: ignore
+    p = dlt.pipeline("sink_test", destination=dlt.destination()(local_sink_func), full_refresh=True)
     p.run([1, 2, 3], table_name="items")
     assert len(calls) == 1
     # local func does not create entry in destinations
diff --git a/tests/extract/test_decorators.py b/tests/extract/test_decorators.py
index dca4c0be6e..5e85552d73 100644
--- a/tests/extract/test_decorators.py
+++ b/tests/extract/test_decorators.py
@@ -700,6 +700,33 @@ def users(mode: str):
     assert list(s.users("group")) == ["group"]
 
 
+class TypedResource(DltResource):
+    def __call__(
+        self: "TypedResource", api_key: dlt.TSecretValue = dlt.secrets.value, limit: int = 10
+    ) -> "TypedResource":
+        """Pass api key and limit"""
+        return super().__call__(api_key, limit)
+
+
+@dlt.resource(_impl_cls=TypedResource)
+def inner_r(api_key: dlt.TSecretValue = dlt.secrets.value, limit: int = 10):
+    yield from ["A"] * limit
+
+
+def test_custom_resource_impl() -> None:
+    inn_r = inner_r(dlt.TSecretValue("key"), limit=3)
+    assert isinstance(inn_r, TypedResource)
+    assert list(inn_r) == ["A"] * 3
+
+    @dlt.resource(_impl_cls=TypedResource, standalone=True)
+    def inner_standalone(api_key: dlt.TSecretValue = dlt.secrets.value, limit: int = 10):
+        yield from range(1, limit + 1)
+
+    std_r = inner_standalone(dlt.TSecretValue("key"), limit=4)
+    assert isinstance(std_r, TypedResource)
+    assert list(std_r) == [1, 2, 3, 4]
+
+
 # wrapped flag will not create the resource but just simple function wrapper that must be called before use
 @dlt.resource(standalone=True)
 def standalone_signature(init: int, secret_end: int = dlt.secrets.value):
@@ -809,8 +836,8 @@ def test_standalone_resource_with_name() -> None:
     assert my_tx.section == "test_decorators"
     assert my_tx.name == "my_tx"
 
-    # still the config comes via the function name
-    os.environ["SOURCES__TEST_DECORATORS__STANDALONE_TX_WITH_NAME__INIT"] = "2"
+    # config uses the actual resource name (my_tx)
+    os.environ["SOURCES__TEST_DECORATORS__MY_TX__INIT"] = "2"
     assert list(dlt.resource([1, 2, 3], name="x") | my_tx) == [
         "my_txmy_tx",
         "my_txmy_txmy_txmy_tx",
@@ -833,6 +860,26 @@ def standalone_name_2(_name: str):
         standalone_name_2("_N")
 
 
+def test_standalone_resource_returns() -> None:
+    @dlt.resource(standalone=True)
+    def rv_data(name: str):
+        return [name] * 10
+
+    with pytest.raises(InvalidResourceDataTypeFunctionNotAGenerator):
+        rv_data("returned")
+
+
+def test_standalone_resource_returning_resource() -> None:
+    @dlt.resource(standalone=True)
+    def rv_resource(name: str):
+        return dlt.resource([1, 2, 3], name=name, primary_key="value")
+
+    r = rv_resource("returned")
+    assert r.name == "returned"
+    assert r.compute_table_schema()["columns"]["value"]["primary_key"] is True
+    assert list(r) == [1, 2, 3]
+
+
 def test_resource_rename_credentials_separation():
     os.environ["SOURCES__TEST_DECORATORS__STANDALONE_SIGNATURE__SECRET_END"] = "5"
     assert list(standalone_signature(1)) == [1, 2, 3, 4]
diff --git a/tests/sources/helpers/rest_client/conftest.py b/tests/sources/helpers/rest_client/conftest.py
index ef63c4526d..7453c63d14 100644
--- a/tests/sources/helpers/rest_client/conftest.py
+++ b/tests/sources/helpers/rest_client/conftest.py
@@ -1,5 +1,5 @@
 import re
-from typing import NamedTuple, Callable, Pattern, List, Union, TYPE_CHECKING
+from typing import NamedTuple, Callable, Pattern, List, Union, TYPE_CHECKING, Dict, List, Any
 import base64
 
 from urllib.parse import urlsplit, urlunsplit
@@ -11,7 +11,7 @@
 
 if TYPE_CHECKING:
     RequestCallback = Callable[
-        [requests_mock.Request, requests_mock.Context], Union[str, dict, list]
+        [requests_mock.Request, requests_mock.Context], Union[str, Dict[str, Any], List[Any]]
     ]
     ResponseSerializer = Callable[[requests_mock.Request, requests_mock.Context], str]
 else: