diff --git a/src/eval.c b/src/eval.c
index 7ab05be..2942d0f 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -4526,6 +4526,9 @@
     // "out_up" is no longer used, decrement refcount on partial that owns it.
     partial_unref(pt->pt_outer.out_up_partial);
 
+    // Using pt_outer from another partial.
+    partial_unref(pt->pt_outer_partial);
+
     // Decrease the reference count for the context of a closure.  If down
     // to the minimum it may be time to free it.
     if (pt->pt_funcstack != NULL)
diff --git a/src/evalfunc.c b/src/evalfunc.c
index eb12e75..b031369 100644
--- a/src/evalfunc.c
+++ b/src/evalfunc.c
@@ -4456,7 +4456,10 @@
 		}
 
 		if (arg_pt != NULL)
-		    pt->pt_outer = arg_pt->pt_outer;
+		{
+		    pt->pt_outer_partial = arg_pt;
+		    ++arg_pt->pt_refcount;
+		}
 	    }
 	    rettv->v_type = VAR_PARTIAL;
 	    rettv->vval.v_partial = pt;
diff --git a/src/structs.h b/src/structs.h
index ecab354..1e759f5 100644
--- a/src/structs.h
+++ b/src/structs.h
@@ -2051,6 +2051,9 @@
     // For a compiled closure: the arguments and local variables scope
     outer_T	pt_outer;
 
+    // For a partial of a partial: use pt_outer values of this partial.
+    partial_T	*pt_outer_partial;
+
     funcstack_T	*pt_funcstack;	// copy of stack, used after context
 				// function returns
 
diff --git a/src/testdir/test_vim9_func.vim b/src/testdir/test_vim9_func.vim
index 7ab15f7..4ac4643 100644
--- a/src/testdir/test_vim9_func.vim
+++ b/src/testdir/test_vim9_func.vim
@@ -3477,6 +3477,25 @@
   unlet g:result_one g:result_two
 enddef
 
+def Test_nested_closure_in_dict()
+  var lines =<< trim END
+      vim9script
+      def Func(): dict<any>
+        var n: number
+        def Inc(): number
+          ++n
+          return n
+        enddef
+        return {inc: function(Inc)}
+      enddef
+      disas Func
+      var d = Func()
+      assert_equal(1, d.inc())
+      assert_equal(2, d.inc())
+  END
+  v9.CheckScriptSuccess(lines)
+enddef
+
 def Test_check_func_arg_types()
   var lines =<< trim END
       vim9script
diff --git a/src/version.c b/src/version.c
index 97bcfde..c1f90cd 100644
--- a/src/version.c
+++ b/src/version.c
@@ -747,6 +747,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    4322,
+/**/
     4321,
 /**/
     4320,
diff --git a/src/vim9execute.c b/src/vim9execute.c
index 961e450..1412d08 100644
--- a/src/vim9execute.c
+++ b/src/vim9execute.c
@@ -235,6 +235,23 @@
 }
 
 /*
+ * Get a pointer to useful "pt_outer" of "pt".
+ */
+    static outer_T *
+get_pt_outer(partial_T *pt)
+{
+    partial_T *ptref = pt->pt_outer_partial;
+
+    if (ptref == NULL)
+	return &pt->pt_outer;
+
+    // partial using partial (recursively)
+    while (ptref->pt_outer_partial != NULL)
+	ptref = ptref->pt_outer_partial;
+    return &ptref->pt_outer;
+}
+
+/*
  * Call compiled function "cdf_idx" from compiled code.
  * This adds a stack frame and sets the instruction pointer to the start of the
  * called function.
@@ -421,13 +438,13 @@
 	    return FAIL;
 	if (pt != NULL)
 	{
-	    ref->or_outer = &pt->pt_outer;
+	    ref->or_outer = get_pt_outer(pt);
 	    ++pt->pt_refcount;
 	    ref->or_partial = pt;
 	}
 	else if (ufunc->uf_partial != NULL)
 	{
-	    ref->or_outer = &ufunc->uf_partial->pt_outer;
+	    ref->or_outer = get_pt_outer(ufunc->uf_partial);
 	    ++ufunc->uf_partial->pt_refcount;
 	    ref->or_partial = ufunc->uf_partial;
 	}
@@ -5086,7 +5103,9 @@
 		goto failed_early;
 	    if (partial != NULL)
 	    {
-		if (partial->pt_outer.out_stack == NULL)
+		outer_T *outer = get_pt_outer(partial);
+
+		if (outer->out_stack == NULL)
 		{
 		    if (current_ectx != NULL)
 		    {
@@ -5099,7 +5118,7 @@
 		}
 		else
 		{
-		    ectx.ec_outer_ref->or_outer = &partial->pt_outer;
+		    ectx.ec_outer_ref->or_outer = outer;
 		    ++partial->pt_refcount;
 		    ectx.ec_outer_ref->or_partial = partial;
 		}