diff --git a/autoapi/mappers/python/astroid_utils.py b/autoapi/mappers/python/astroid_utils.py
index b4018a05..e647cfc2 100644
--- a/autoapi/mappers/python/astroid_utils.py
+++ b/autoapi/mappers/python/astroid_utils.py
@@ -416,7 +416,20 @@ def _resolve_annotation(annotation):
         # astroid.Index was removed in astroid v3
         if hasattr(astroid, "Index") and isinstance(slice_node, astroid.Index):
             slice_node = slice_node.value
-        if isinstance(slice_node, astroid.Tuple):
+        if value == "Literal":
+            if isinstance(slice_node, astroid.Tuple):
+                elts = slice_node.elts
+            else:
+                elts = [slice_node]
+            slice_ = ", ".join(
+                (
+                    elt.as_string()
+                    if isinstance(elt, astroid.Const)
+                    else _resolve_annotation(elt)
+                )
+                for elt in elts
+            )
+        elif isinstance(slice_node, astroid.Tuple):
             slice_ = ", ".join(_resolve_annotation(elt) for elt in slice_node.elts)
         else:
             slice_ = _resolve_annotation(slice_node)
diff --git a/docs/changes/423.bugfix b/docs/changes/423.bugfix
new file mode 100644
index 00000000..0f45e837
--- /dev/null
+++ b/docs/changes/423.bugfix
@@ -0,0 +1 @@
+Preserve strings inside Literal type annotations
\ No newline at end of file
diff --git a/tests/test_astroid_utils.py b/tests/test_astroid_utils.py
index 1e0d7251..e2116385 100644
--- a/tests/test_astroid_utils.py
+++ b/tests/test_astroid_utils.py
@@ -209,6 +209,9 @@ def func(
             ),
             ("a: int, *args, b: str, **kwargs", "a: int, *args, b: str, **kwargs"),
             ("a: 'A'", "a: A"),
+            ("a: Literal[1]", "a: Literal[1]"),
+            ("a: Literal['x']", "a: Literal['x']"),
+            ("a: Literal['x', 'y', 'z']", "a: Literal['x', 'y', 'z']"),
         ],
     )
     def test_format_args(self, signature, expected):