diff --git a/cli/release_package.php b/cli/release_package.php
index c5f83f4..665aaaf 100644
--- a/cli/release_package.php
+++ b/cli/release_package.php
@@ -270,12 +270,90 @@ class ReleasePackageCli extends CliFramework
                     }
                 }
 
+                // Check if sub-source is itself a Joomla package (nested package)
+                $nestedPkgManifests = glob("{$subSourceDir}/pkg_*.xml") ?: [];
+                $isNestedPackage = !empty($nestedPkgManifests) && is_dir("{$subSourceDir}/packages");
+
                 $subZip = new \ZipArchive();
                 if ($subZip->open($subZipPath, \ZipArchive::CREATE | \ZipArchive::OVERWRITE) !== true) {
                     $this->log('ERROR', "Failed to create sub-package ZIP: {$subZipPath}");
                     continue;
                 }
-                $this->addDirToZip($subZip, $subSourceDir, '', $this->excludePatterns);
+
+                if ($isNestedPackage) {
+                    // Build nested package: zip each sub-extension, then assemble
+                    echo "  Building nested package: {$subName}\n";
+                    $nestedPkgDirs = glob("{$subSourceDir}/packages/*", GLOB_ONLYDIR) ?: [];
+
+                    $nestedManifested = [];
+                    foreach ($nestedPkgManifests as $npmf) {
+                        $npmXml = @simplexml_load_file($npmf);
+                        if ($npmXml && isset($npmXml->files)) {
+                            foreach ($npmXml->files->file as $fn) {
+                                $nzn = pathinfo((string) $fn, PATHINFO_FILENAME);
+                                if (!empty($nzn)) {
+                                    $nestedManifested[$nzn] = true;
+                                }
+                            }
+                        }
+                    }
+
+                    // Use a subdirectory to avoid filename collisions with outer ZIPs
+                    $nestedOutputDir = "{$outputDir}/nested_{$subName}";
+                    @mkdir($nestedOutputDir, 0755, true);
+
+                    foreach ($nestedPkgDirs as $npd) {
+                        $nestedSubName = basename($npd);
+                        if (!empty($nestedManifested) && !isset($nestedManifested[$nestedSubName])) {
+                            continue;
+                        }
+                        $nestedSubZipPath = "{$nestedOutputDir}/{$nestedSubName}.zip";
+                        $nsZip = new \ZipArchive();
+                        if ($nsZip->open($nestedSubZipPath, \ZipArchive::CREATE | \ZipArchive::OVERWRITE) !== true) {
+                            continue;
+                        }
+                        $this->addDirToZip($nsZip, $npd, '', $this->excludePatterns);
+                        $nsZip->close();
+                        $subZip->addFile($nestedSubZipPath, "packages/{$nestedSubName}.zip");
+                        echo "    Nested sub: {$nestedSubName}.zip\n";
+                    }
+
+                    // Patch nested manifest: ensure folder="packages" so Joomla finds sub-ZIPs
+                    foreach ($nestedPkgManifests as $npmf) {
+                        $npmContent = file_get_contents($npmf);
+                        if ($npmContent !== false
+                            && strpos($npmContent, '<files>') !== false
+                            && strpos($npmContent, 'folder="packages"') === false
+                        ) {
+                            $npmContent = str_replace('<files>', '<files folder="packages">', $npmContent);
+                            file_put_contents($npmf, $npmContent);
+                            echo "    Fixed: added folder=\"packages\" to " . basename($npmf) . "\n";
+                        }
+                    }
+
+                    // Add top-level files (manifest, script, etc.) with exclude filter
+                    $nestedTopFiles = array_merge(
+                        glob("{$subSourceDir}/*.xml") ?: [],
+                        glob("{$subSourceDir}/*.php") ?: []
+                    );
+                    foreach ($nestedTopFiles as $ntf) {
+                        if (!$this->isExcluded(basename($ntf), $this->excludePatterns)) {
+                            $subZip->addFile($ntf, basename($ntf));
+                        }
+                    }
+
+                    // Add all top-level directories except packages/
+                    $nestedTopDirs = glob("{$subSourceDir}/*", GLOB_ONLYDIR) ?: [];
+                    foreach ($nestedTopDirs as $ntd) {
+                        $ndName = basename($ntd);
+                        if ($ndName === 'packages') {
+                            continue;
+                        }
+                        $this->addDirToZip($subZip, $ntd, $ndName, $this->excludePatterns);
+                    }
+                } else {
+                    $this->addDirToZip($subZip, $subSourceDir, '', $this->excludePatterns);
+                }
                 $subZip->close();
 
                 $zip->addFile($subZipPath, "packages/{$subName}.zip");