diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 7a90113b..351664f3 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -114,9 +114,6 @@ jobs:
       - name: Run repository checks
         if: always()
         run: pre-commit run --all-files --show-diff-on-failure
-      - name: Check with mypy
-        if: always()
-        run: hatch run types:check
 
   package:
     runs-on: ubuntu-latest
diff --git a/mkdocs/commands/build.py b/mkdocs/commands/build.py
index 0df8e90e..1c93c498 100644
--- a/mkdocs/commands/build.py
+++ b/mkdocs/commands/build.py
@@ -20,7 +20,11 @@
     get_files,
     set_exclusions,
 )
-from mkdocs.structure.nav import Navigation, get_navigation
+from mkdocs.structure.nav import (
+    Navigation,
+    _set_section_titles_from_index_pages,
+    get_navigation,
+)
 from mkdocs.structure.pages import Page
 from mkdocs.utils import DuplicateFilter  # noqa: F401 - legacy re-export
 from mkdocs.utils import templates
@@ -351,6 +355,9 @@ def build(
                 + "\n  - ".join(excluded)
             )
 
+        # Update auto-generated section titles from index page titles.
+        _set_section_titles_from_index_pages(nav.items)
+
         # Run `env` plugin events.
         env = config.plugins.on_env(env, config=config, files=files)
 
diff --git a/mkdocs/structure/nav.py b/mkdocs/structure/nav.py
index 3ebe0f47..a10b8b3b 100644
--- a/mkdocs/structure/nav.py
+++ b/mkdocs/structure/nav.py
@@ -254,7 +254,7 @@ def _get_by_type(nav, t: type[T]) -> list[T]:
 
 def _add_parent_links(nav) -> None:
     for item in nav:
-        if item.is_section:
+        if isinstance(item, Section):
             for child in item.children:
                 child.parent = item
             _add_parent_links(item.children)
@@ -265,3 +265,26 @@ def _add_previous_and_next_links(pages: list[Page]) -> None:
     zipped = zip(bookended[:-2], pages, bookended[2:])
     for page0, page1, page2 in zipped:
         page1.previous_page, page1.next_page = page0, page2
+
+
+def _set_section_titles_from_index_pages(items: list[StructureItem]) -> None:
+    """
+    For auto-generated navigation, update section titles to use the index
+    page's title instead of the directory name.
+
+    When `nav` is not explicitly configured, MkDocs generates section names
+    from directory names (e.g. "about" for an "about/" directory). If the
+    section contains an index page (e.g. "about/index.md"), this function
+    uses that page's title as the section title instead.
+
+    This only applies when `page.title` is not None (i.e. the page has
+    been read/rendered, so its title is known from metadata or headings).
+    """
+    for item in items:
+        if not isinstance(item, Section):
+            continue
+        for child in item.children:
+            if isinstance(child, Page) and child.is_index and child.title is not None:
+                item.title = child.title
+                break
+        _set_section_titles_from_index_pages(item.children)
diff --git a/mkdocs/tests/structure/nav_tests.py b/mkdocs/tests/structure/nav_tests.py
index 4f020ded..6b4530c5 100644
--- a/mkdocs/tests/structure/nav_tests.py
+++ b/mkdocs/tests/structure/nav_tests.py
@@ -4,7 +4,12 @@
 import unittest
 
 from mkdocs.structure.files import File, Files, set_exclusions
-from mkdocs.structure.nav import Section, _get_by_type, get_navigation
+from mkdocs.structure.nav import (
+    Section,
+    _get_by_type,
+    _set_section_titles_from_index_pages,
+    get_navigation,
+)
 from mkdocs.structure.pages import Page
 from mkdocs.tests.base import dedent, load_config
 
@@ -608,3 +613,33 @@ def test_get_by_type_nested_sections(self):
         files = Files(fs)
         site_navigation = get_navigation(files, cfg)
         self.assertEqual(len(_get_by_type(site_navigation, Section)), 2)
+
+    def test_smart_section_titles_from_index_pages(self):
+        """Section titles use index page titles instead of directory names."""
+        cfg = load_config(site_url="http://example.com/")
+        fs = [
+            "index.md",
+            "about/index.md",
+            "about/license.md",
+            "api-guide/index.md",
+            "api-guide/running.md",
+        ]
+        files = Files(
+            [File(s, cfg.docs_dir, cfg.site_dir, cfg.use_directory_urls) for s in fs]
+        )
+        site_navigation = get_navigation(files, cfg)
+
+        # Before update: sections use directory names
+        about_section = site_navigation.items[1]
+        api_section = site_navigation.items[2]
+        self.assertEqual(about_section.title, "About")
+        self.assertEqual(api_section.title, "Api guide")
+
+        # Set titles on index pages (as if they were read/rendered)
+        about_section.children[0].title = "About This Project"
+        api_section.children[0].title = "API Reference"
+
+        _set_section_titles_from_index_pages(site_navigation.items)
+
+        self.assertEqual(about_section.title, "About This Project")
+        self.assertEqual(api_section.title, "API Reference")