diff --git a/vlib/v/ast/table.v b/vlib/v/ast/table.v
index 011a2b31b3..20ec6b1515 100644
--- a/vlib/v/ast/table.v
+++ b/vlib/v/ast/table.v
@@ -1298,36 +1298,3 @@ pub fn (mut t Table) resolve_generic_to_concrete(generic_type Type, generic_name
 	}
 	return none
 }
-
-// generic struct instantiations to concrete types
-pub fn (mut t Table) generic_struct_insts_to_concrete() {
-	for mut typ in t.type_symbols {
-		if typ.kind == .generic_struct_inst {
-			info := typ.info as GenericStructInst
-			parent := t.type_symbols[info.parent_idx]
-			if parent.kind == .placeholder {
-				typ.kind = .placeholder
-				continue
-			}
-			mut parent_info := parent.info as Struct
-			mut fields := parent_info.fields.clone()
-			if parent_info.generic_types.len == info.concrete_types.len {
-				generic_names := parent_info.generic_types.map(t.get_type_symbol(it).name)
-				for i in 0 .. fields.len {
-					if t_typ := t.resolve_generic_to_concrete(fields[i].typ, generic_names,
-						info.concrete_types)
-					{
-						fields[i].typ = t_typ
-					}
-				}
-				parent_info.is_generic = false
-				parent_info.concrete_types = info.concrete_types.clone()
-				parent_info.fields = fields
-				parent_info.parent_type = new_type(info.parent_idx).set_flag(.generic)
-				typ.is_public = true
-				typ.kind = .struct_
-				typ.info = parent_info
-			}
-		}
-	}
-}
diff --git a/vlib/v/builder/builder.v b/vlib/v/builder/builder.v
index 53a4871d6a..096db1a0fd 100644
--- a/vlib/v/builder/builder.v
+++ b/vlib/v/builder/builder.v
@@ -80,7 +80,7 @@ pub fn (mut b Builder) front_stages(v_files []string) ? {
 
 pub fn (mut b Builder) middle_stages() ? {
 	util.timing_start('CHECK')
-	b.table.generic_struct_insts_to_concrete()
+	b.checker.generic_struct_insts_to_concrete()
 	b.checker.check_files(b.parsed_files)
 	util.timing_measure('CHECK')
 	b.print_warnings_and_errors()
diff --git a/vlib/v/checker/checker.v b/vlib/v/checker/checker.v
index c6f3c35045..d0eaa3e0f8 100644
--- a/vlib/v/checker/checker.v
+++ b/vlib/v/checker/checker.v
@@ -664,10 +664,18 @@ fn (mut c Checker) unwrap_generic_struct(struct_type ast.Type, generic_names []s
 				// fields type translate to concrete type
 				mut fields := ts.info.fields.clone()
 				for i in 0 .. fields.len {
-					if t_typ := c.table.resolve_generic_to_concrete(fields[i].typ, generic_names,
-						concrete_types)
-					{
-						fields[i].typ = t_typ
+					if fields[i].typ.has_flag(.generic) {
+						sym := c.table.get_type_symbol(fields[i].typ)
+						if sym.kind == .struct_ && fields[i].typ.idx() != struct_type.idx() {
+							fields[i].typ = c.unwrap_generic_struct(fields[i].typ, generic_names,
+								concrete_types)
+						} else {
+							if t_typ := c.table.resolve_generic_to_concrete(fields[i].typ,
+								generic_names, concrete_types)
+							{
+								fields[i].typ = t_typ
+							}
+						}
 					}
 				}
 				// update concrete types
@@ -698,6 +706,47 @@ fn (mut c Checker) unwrap_generic_struct(struct_type ast.Type, generic_names []s
 	return struct_type
 }
 
+// generic struct instantiations to concrete types
+pub fn (mut c Checker) generic_struct_insts_to_concrete() {
+	for mut typ in c.table.type_symbols {
+		if typ.kind == .generic_struct_inst {
+			info := typ.info as ast.GenericStructInst
+			parent := c.table.type_symbols[info.parent_idx]
+			if parent.kind == .placeholder {
+				typ.kind = .placeholder
+				continue
+			}
+			mut parent_info := parent.info as ast.Struct
+			mut fields := parent_info.fields.clone()
+			if parent_info.generic_types.len == info.concrete_types.len {
+				generic_names := parent_info.generic_types.map(c.table.get_type_symbol(it).name)
+				for i in 0 .. fields.len {
+					if fields[i].typ.has_flag(.generic) {
+						sym := c.table.get_type_symbol(fields[i].typ)
+						if sym.kind == .struct_ && fields[i].typ.idx() != info.parent_idx {
+							fields[i].typ = c.unwrap_generic_struct(fields[i].typ, generic_names,
+								info.concrete_types)
+						} else {
+							if t_typ := c.table.resolve_generic_to_concrete(fields[i].typ,
+								generic_names, info.concrete_types)
+							{
+								fields[i].typ = t_typ
+							}
+						}
+					}
+				}
+				parent_info.is_generic = false
+				parent_info.concrete_types = info.concrete_types.clone()
+				parent_info.fields = fields
+				parent_info.parent_type = ast.new_type(info.parent_idx).set_flag(.generic)
+				typ.is_public = true
+				typ.kind = .struct_
+				typ.info = parent_info
+			}
+		}
+	}
+}
+
 pub fn (mut c Checker) struct_init(mut node ast.StructInit) ast.Type {
 	if node.typ == ast.void_type {
 		// Short syntax `({foo: bar})`
diff --git a/vlib/v/tests/generics_with_nested_generic_struct_init_test.v b/vlib/v/tests/generics_with_nested_generic_struct_init_test.v
new file mode 100644
index 0000000000..b218a05b45
--- /dev/null
+++ b/vlib/v/tests/generics_with_nested_generic_struct_init_test.v
@@ -0,0 +1,24 @@
+fn test_nested_generic_struct_init() {
+	mut list1 := &List<int>{}
+	println(list1)
+	assert '$list1'.contains('head: &nil')
+
+	mut list2 := list_new<int>()
+	println(list2)
+	assert '$list2'.contains('head: &nil')
+}
+
+struct List<T> {
+pub mut:
+	head &ListNode<T> = 0
+}
+
+struct ListNode<T> {
+pub mut:
+	value T
+	next  &ListNode<T> = 0
+}
+
+pub fn list_new<T>() &List<T> {
+	return &List<T>{}
+}