diff --git a/packages/router-core/src/new-process-route-tree.ts b/packages/router-core/src/new-process-route-tree.ts
index 2640961815..f49d097e5f 100644
--- a/packages/router-core/src/new-process-route-tree.ts
+++ b/packages/router-core/src/new-process-route-tree.ts
@@ -80,42 +80,44 @@ export function parseSegment(
 ): ParsedSegment {
   const next = path.indexOf('/', start)
   const end = next === -1 ? path.length : next
-  const part = path.substring(start, end)
+  const firstChar = path.charCodeAt(start)
+
+  if (firstChar === 36) {
+    // $ (wildcard)
+    if (end === start + 1) {
+      const total = path.length
+      output[0] = SEGMENT_TYPE_WILDCARD
+      output[1] = start
+      output[2] = start
+      output[3] = total
+      output[4] = total
+      output[5] = total
+      return output as ParsedSegment
+    }
 
-  if (!part || !part.includes('$')) {
-    // early escape for static pathname
-    output[0] = SEGMENT_TYPE_PATHNAME
+    // $paramName
+    output[0] = SEGMENT_TYPE_PARAM
     output[1] = start
-    output[2] = start
+    output[2] = start + 1 // skip '$'
     output[3] = end
     output[4] = end
     output[5] = end
     return output as ParsedSegment
   }
 
-  // $ (wildcard)
-  if (part === '$') {
-    const total = path.length
-    output[0] = SEGMENT_TYPE_WILDCARD
+  const dollar = path.indexOf('$', start)
+  if (start === end || dollar === -1 || dollar >= end) {
+    // early escape for static pathname
+    output[0] = SEGMENT_TYPE_PATHNAME
     output[1] = start
     output[2] = start
-    output[3] = total
-    output[4] = total
-    output[5] = total
-    return output as ParsedSegment
-  }
-
-  // $paramName
-  if (part.charCodeAt(0) === 36) {
-    output[0] = SEGMENT_TYPE_PARAM
-    output[1] = start
-    output[2] = start + 1 // skip '$'
     output[3] = end
     output[4] = end
     output[5] = end
     return output as ParsedSegment
   }
 
+  const part = path.substring(start, end)
   const braces = getOpenAndCloseBraces(part)
   if (braces) {
     const [openBrace, closeBrace] = braces
diff --git a/packages/router-core/tests/parseSegment.bench.ts b/packages/router-core/tests/parseSegment.bench.ts
new file mode 100644
index 0000000000..53eb31d7d6
--- /dev/null
+++ b/packages/router-core/tests/parseSegment.bench.ts
@@ -0,0 +1,94 @@
+import { bench, describe, expect } from 'vitest'
+import {
+  SEGMENT_TYPE_OPTIONAL_PARAM,
+  SEGMENT_TYPE_PARAM,
+  SEGMENT_TYPE_PATHNAME,
+  parseSegment,
+} from '../src/new-process-route-tree'
+
+const iterations = 10_000
+const mixedPath =
+  '/organizations/$organizationId/projects/$projectId/settings'
+const staticPath = '/organizations/projects/settings/members/activity'
+const deepStaticPath = `/${Array.from(
+  { length: 32 },
+  (_, index) => `segment-${index}`,
+).join('/')}`
+const bracedPath =
+  '/organizations/prefix{$organizationId}/projects/{-$projectId}/settings'
+let benchmarkSink = 0
+
+function segmentTypes(path: string) {
+  const types: Array<number> = []
+  const output = new Uint16Array(6)
+  let cursor = 0
+  while (cursor < path.length) {
+    const segment = parseSegment(path, cursor, output)
+    types.push(segment[0])
+    cursor = segment[5] + 1
+  }
+  return types
+}
+
+expect(segmentTypes(mixedPath)).toEqual([
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PARAM,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PARAM,
+  SEGMENT_TYPE_PATHNAME,
+])
+expect(segmentTypes(staticPath)).toEqual([
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+])
+expect(segmentTypes(deepStaticPath)).toHaveLength(33)
+expect(segmentTypes(deepStaticPath)).toEqual(
+  Array<number>(33).fill(SEGMENT_TYPE_PATHNAME),
+)
+expect(segmentTypes(bracedPath)).toEqual([
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_PARAM,
+  SEGMENT_TYPE_PATHNAME,
+  SEGMENT_TYPE_OPTIONAL_PARAM,
+  SEGMENT_TYPE_PATHNAME,
+])
+
+function parsePathBatch(path: string) {
+  const output = new Uint16Array(6)
+  let checksum = 0
+  for (let index = 0; index < iterations; index++) {
+    let cursor = 0
+    while (cursor < path.length) {
+      const segment = parseSegment(path, cursor, output)
+      checksum += segment[0] + segment[2] + segment[3]
+      cursor = segment[5] + 1
+    }
+  }
+  benchmarkSink = checksum
+}
+
+describe('parseSegment', () => {
+  bench('mixed static and parameter segments', () => {
+    parsePathBatch(mixedPath)
+  })
+
+  bench('all-static segments', () => {
+    parsePathBatch(staticPath)
+  })
+
+  bench('deep all-static segments', () => {
+    parsePathBatch(deepStaticPath)
+  })
+
+  bench('braced parameter segments', () => {
+    parsePathBatch(bracedPath)
+  })
+})
+
+void benchmarkSink