diff --git a/libs/FuManchu/Parser/HandlebarsParser.cs b/libs/FuManchu/Parser/HandlebarsParser.cs
index d571e46..1b78eb3 100644
--- a/libs/FuManchu/Parser/HandlebarsParser.cs
+++ b/libs/FuManchu/Parser/HandlebarsParser.cs
@@ -770,7 +770,7 @@ public void AtTag()
 			}
 			PutBack(current!);
 			NextToken();
-			if (Context!.CurrentBlock.IsPartialBlock)
+			if (Context!.CurrentBlock.IsPartialBlock && !Context.CurrentBlock.IsPartialBlockContent)
 			{
 				// This is a zone content element, which is actually a block, not a span
 				AtPartialBlockContentTag();
diff --git a/tests/FuManchu.Tests/Renderer/PartialBlockRendererFacts.cs b/tests/FuManchu.Tests/Renderer/PartialBlockRendererFacts.cs
index c26dc49..70b14fa 100644
--- a/tests/FuManchu.Tests/Renderer/PartialBlockRendererFacts.cs
+++ b/tests/FuManchu.Tests/Renderer/PartialBlockRendererFacts.cs
@@ -116,4 +116,16 @@ public void CanRenderPartialBlock_WithManyZones()
 
 		RenderTest(template, expected);
 	}
+
+	[Fact]
+	public void CanRenderPartialBlock_WithNestedPartial()
+	{
+		HandlebarsService.RegisterPartial("paragraph", "<p>{{text}}</p>");
+		HandlebarsService.RegisterPartial("layout", "{{<content}}");
+
+		string template = "{{#>layout}}{{>content}}{{>paragraph text=\"Hello World\"}}{{/content}}{{/layout}}";
+		string expected = "<p>Hello World</p>";
+
+		RenderTest(template, expected);
+	}
 }