diff --git a/packages/@headlessui-react/CHANGELOG.md b/packages/@headlessui-react/CHANGELOG.md
index 6ce4c25..85e823d 100644
--- a/packages/@headlessui-react/CHANGELOG.md
+++ b/packages/@headlessui-react/CHANGELOG.md
@@ -10,6 +10,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Fixed
 
 - Ensure the main tree and parent `Dialog` components are marked as `inert` ([#2290](https://github.com/tailwindlabs/headlessui/pull/2290))
+- Fix nested `Popover` components not opening ([#2293](https://github.com/tailwindlabs/headlessui/pull/2293))
 
 ## [1.7.11] - 2023-02-15
 
diff --git a/packages/@headlessui-react/src/components/popover/popover.test.tsx b/packages/@headlessui-react/src/components/popover/popover.test.tsx
index fb6d760..4f6c755 100644
--- a/packages/@headlessui-react/src/components/popover/popover.test.tsx
+++ b/packages/@headlessui-react/src/components/popover/popover.test.tsx
@@ -2481,3 +2481,64 @@ describe('Mouse interactions', () => {
     })
   )
 })
+
+describe('Nested popovers', () => {
+  it(
+    'should be possible to nest Popover components and control them individually',
+    suppressConsoleLogs(async () => {
+      render(
+        <Popover data-testid="popover-a">
+          <Popover.Button>Toggle A</Popover.Button>
+          <Popover.Panel>
+            <span>Contents A</span>
+            <Popover data-testid="popover-b">
+              <Popover.Button>Toggle B</Popover.Button>
+              <Popover.Panel>
+                <span>Contents B</span>
+              </Popover.Panel>
+            </Popover>
+          </Popover.Panel>
+        </Popover>
+      )
+
+      // Verify that Popover B is not there yet
+      expect(document.querySelector('[data-testid="popover-b"]')).toBeNull()
+
+      // Open Popover A
+      await click(getByText('Toggle A'))
+
+      // Ensure Popover A is visible
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-a"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+
+      // Ensure Popover B is visible
+      assertPopoverPanel(
+        { state: PopoverState.InvisibleUnmounted },
+        document.querySelector(
+          '[data-testid="popover-b"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+
+      // Open Popover B
+      await click(getByText('Toggle B'))
+
+      // Ensure both popovers are open
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-a"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-b"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+    })
+  )
+})
diff --git a/packages/@headlessui-react/src/components/popover/popover.tsx b/packages/@headlessui-react/src/components/popover/popover.tsx
index e14ae8a..96d9ad6 100644
--- a/packages/@headlessui-react/src/components/popover/popover.tsx
+++ b/packages/@headlessui-react/src/components/popover/popover.tsx
@@ -393,7 +393,12 @@ let Button = forwardRefWithAs(function Button<TTag extends ElementType = typeof
   let closeOthers = groupContext?.closeOthers
 
   let panelContext = usePopoverPanelContext()
-  let isWithinPanel = panelContext !== null
+
+  // A button inside a panel will just have "close" functionality, no "open" functionality. However,
+  // if a `Popover.Button` is rendered inside a `Popover` which in turn is rendered inside a
+  // `Popover.Panel` (aka nested popovers), then we need to make sure that the button is able to
+  // open the nested popover.
+  let isWithinPanel = panelContext === null ? false : panelContext === state.panelId
 
   useEffect(() => {
     if (isWithinPanel) return
diff --git a/packages/@headlessui-vue/CHANGELOG.md b/packages/@headlessui-vue/CHANGELOG.md
index 5deee34..f3fc70e 100644
--- a/packages/@headlessui-vue/CHANGELOG.md
+++ b/packages/@headlessui-vue/CHANGELOG.md
@@ -10,6 +10,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Fixed
 
 - Ensure the main tree and parent `Dialog` components are marked as `inert` ([#2290](https://github.com/tailwindlabs/headlessui/pull/2290))
+- Fix nested `Popover` components not opening ([#2293](https://github.com/tailwindlabs/headlessui/pull/2293))
 
 ## [1.7.10] - 2023-02-15
 
diff --git a/packages/@headlessui-vue/src/components/popover/popover.test.ts b/packages/@headlessui-vue/src/components/popover/popover.test.ts
index f048460..825f2b3 100644
--- a/packages/@headlessui-vue/src/components/popover/popover.test.ts
+++ b/packages/@headlessui-vue/src/components/popover/popover.test.ts
@@ -2574,3 +2574,64 @@ describe('Mouse interactions', () => {
     })
   )
 })
+
+describe('Nested popovers', () => {
+  it(
+    'should be possible to nest Popover components and control them individually',
+    suppressConsoleLogs(async () => {
+      renderTemplate(html`
+        <Popover data-testid="popover-a">
+          <PopoverButton>Toggle A</PopoverButton>
+          <PopoverPanel>
+            <span>Contents A</span>
+            <Popover data-testid="popover-b">
+              <PopoverButton>Toggle B</PopoverButton>
+              <PopoverPanel>
+                <span>Contents B</span>
+              </PopoverPanel>
+            </Popover>
+          </PopoverPanel>
+        </Popover>
+      `)
+
+      // Verify that Popover B is not there yet
+      expect(document.querySelector('[data-testid="popover-b"]')).toBeNull()
+
+      // Open Popover A
+      await click(getByText('Toggle A'))
+
+      // Ensure Popover A is visible
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-a"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+
+      // Ensure Popover B is visible
+      assertPopoverPanel(
+        { state: PopoverState.InvisibleUnmounted },
+        document.querySelector(
+          '[data-testid="popover-b"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+
+      // Open Popover B
+      await click(getByText('Toggle B'))
+
+      // Ensure both popovers are open
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-a"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+      assertPopoverPanel(
+        { state: PopoverState.Visible },
+        document.querySelector(
+          '[data-testid="popover-b"] [id^="headlessui-popover-panel-"]'
+        ) as HTMLElement
+      )
+    })
+  )
+})
diff --git a/packages/@headlessui-vue/src/components/popover/popover.ts b/packages/@headlessui-vue/src/components/popover/popover.ts
index ff7a470..eb7d948 100644
--- a/packages/@headlessui-vue/src/components/popover/popover.ts
+++ b/packages/@headlessui-vue/src/components/popover/popover.ts
@@ -288,6 +288,11 @@ export let PopoverButton = defineComponent({
     let closeOthers = groupContext?.closeOthers
 
     let panelContext = usePopoverPanelContext()
+
+    // A button inside a panel will just have "close" functionality, no "open" functionality.
+    // However, if a `Popover.Button` is rendered inside a `Popover` which in turn is rendered
+    // inside a `Popover.Panel` (aka nested popovers), then we need to make sure that the button is
+    // able to open the nested popover.
     let isWithinPanel = computed(() =>
       panelContext === null ? false : panelContext.value === api.panelId.value
     )