I think you may be needing the "Blade Support" plugin, just go the Preferences option in the PHPStorm menu (CMD + ,) if you are on a MAC > Plugins > Install JetBrains plugin and look for Blade.

Install it and restart, it should be working after that.

Thank you for your response but I do have Laravel plugin and Blade Support plugin installed and enabled on my PhpStorm. I always have used these plugins but I was just trying to use the variable type hinting in PhpStorm but I just can't figure out why the type hinting works in raw php block but not in blade block... :(

Does anyone know what the namespace path to Models folder is? Maybe I need to declare the hint variable with the namespace in order to be recognized within Blade?