Note: you don't need to add /* part for directories in this case

/* craco.config.js */

const CracoAlias = require("craco-alias");

module.exports = {
  plugins: [
    {
      plugin: CracoAlias,
      options: {
        source: "options",
        baseUrl: "./",
        aliases: {
          "@file": "./src/file.js",
          "@dir": "./src/some/dir",
          // you can alias packages too
          "@material-ui": "./node_modules/@material-ui-ie10"
        }
      }
    }
  ]
};

/* craco.config.js */

const CracoAlias = require("craco-alias");

module.exports = {
  plugins: [
    {
      plugin: CracoAlias,
      options: {
        source: "jsconfig",
        // baseUrl SHOULD be specified
        // plugin does not take it from jsconfig
        baseUrl: "./src"
      }
    }
  ]
};

Note: your jsconfig should always have compilerOptions.paths property. baseUrl is optional for plugin, but some IDEs and editors require it for intellisense.

/* jsconfig.json */

{
  "compilerOptions": {
    "baseUrl": "./src",
    "paths": {
      // file aliases
      "@baz": ["./baz.js"],
      "@boo": ["./boo.jsx"],

      // folder aliases
      "@root": ["./"],
      "@root/*": ["./*"],
      "@lib": ["./lib"],
      "@lib/*": ["./lib/*"],

      // package aliases (types is optional without ts)
      "@my-react-select": [
        "../node_modules/react-select",
        "../node_modules/@types/react-select"
      ],
      "@my-react-select/*": [
        "../node_modules/react-select/*",
        "../node_modules/@types/react-select"
      ]
    }
  }
}

1. Go to project's root directory.

2. Create tsconfig.extend.json.

3. Edit it as follows:

   {
     "compilerOptions": {
       "baseUrl": "./src",
       "paths": {
         // file aliases
         "@baz": ["./baz.ts"],
         "@boo": ["./boo.tsx"],
   
         // folder aliases
         "@root": ["./"],
         "@root/*": ["./*"],
         "@lib": ["./lib"],
         "@lib/*": ["./lib/*"],
   
         // package aliases
         "@my-react-select": [
           "../node_modules/react-select",
           "../node_modules/@types/react-select"
         ],
         "@my-react-select/*": [
           "../node_modules/react-select/*",
           "../node_modules/@types/react-select"
         ]
       }
     }
   }
   

4. Go to tsconfig.json.

5. Extend tsconfig.json from tsconfig.extend.json:

   {
   + "extends": "./tsconfig.extend.json",
     "compilerOptions": {
       ...
     },
     ...
   }
   

6. Edit craco.config.js:

   const CracoAlias = require("craco-alias");
   
   module.exports = {
     plugins: [
       {
         plugin: CracoAlias,
         options: {
           source: "tsconfig",
           // baseUrl SHOULD be specified
           // plugin does not take it from tsconfig
           baseUrl: "./src",
           // tsConfigPath should point to the file where "baseUrl" and "paths" are specified
           tsConfigPath: "./tsconfig.extend.json"
         }
       }
     ]
   };