diff --git a/packages/gazzodown/src/blocks/OrderedListBlock.tsx b/packages/gazzodown/src/blocks/OrderedListBlock.tsx
index 6c6fc2734e34b..8eb800ff2f0b7 100644
--- a/packages/gazzodown/src/blocks/OrderedListBlock.tsx
+++ b/packages/gazzodown/src/blocks/OrderedListBlock.tsx
@@ -7,11 +7,23 @@ type OrderedListBlockProps = {
 	items: MessageParser.ListItem[];
 };
 
+const renderChildren = (children: MessageParser.ListItem[]): ReactElement => (
+	<ol style={{ paddingInlineStart: '1.5rem' }}>
+		{children.map((item, index) => (
+			<li key={index} value={item.number}>
+				<InlineElements>{item.value}</InlineElements>
+				{item.children?.length ? renderChildren(item.children) : null}
+			</li>
+		))}
+	</ol>
+);
+
 const OrderedListBlock = ({ items }: OrderedListBlockProps): ReactElement => (
-	<ol>
-		{items.map(({ value, number }, index) => (
-			<li key={index} value={number}>
-				<InlineElements>{value}</InlineElements>
+	<ol style={{ paddingInlineStart: '1.5rem' }}>
+		{items.map((item, index) => (
+			<li key={index} value={item.number}>
+				<InlineElements>{item.value}</InlineElements>
+				{item.children?.length ? renderChildren(item.children) : null}
 			</li>
 		))}
 	</ol>
diff --git a/packages/gazzodown/src/blocks/UnorderedListBlock.tsx b/packages/gazzodown/src/blocks/UnorderedListBlock.tsx
index 500e525011107..f1f72ee0f035c 100644
--- a/packages/gazzodown/src/blocks/UnorderedListBlock.tsx
+++ b/packages/gazzodown/src/blocks/UnorderedListBlock.tsx
@@ -7,11 +7,23 @@ type UnorderedListBlockProps = {
 	items: MessageParser.ListItem[];
 };
 
+const renderChildren = (children: MessageParser.ListItem[]): ReactElement => (
+	<ul style={{ paddingInlineStart: '1.5rem' }}>
+		{children.map((item, index) => (
+			<li key={index}>
+				<InlineElements>{item.value}</InlineElements>
+				{item.children?.length ? renderChildren(item.children) : null}
+			</li>
+		))}
+	</ul>
+);
+
 const UnorderedListBlock = ({ items }: UnorderedListBlockProps): ReactElement => (
-	<ul>
+	<ul style={{ paddingInlineStart: '1.5rem' }}>
 		{items.map((item, index) => (
 			<li key={index}>
 				<InlineElements>{item.value}</InlineElements>
+				{item.children?.length ? renderChildren(item.children) : null}
 			</li>
 		))}
 	</ul>
diff --git a/packages/message-parser/src/definitions.ts b/packages/message-parser/src/definitions.ts
index fdc7179b7c6b7..de3fc4d961eeb 100644
--- a/packages/message-parser/src/definitions.ts
+++ b/packages/message-parser/src/definitions.ts
@@ -17,6 +17,8 @@ export type ListItem = {
 	type: 'LIST_ITEM';
 	value: Inlines[];
 	number?: number;
+	indent?: number;
+	children?: ListItem[];
 };
 
 export type Tasks = {
diff --git a/packages/message-parser/src/grammar.pegjs b/packages/message-parser/src/grammar.pegjs
index 871c661e51a48..489a918fe83b7 100644
--- a/packages/message-parser/src/grammar.pegjs
+++ b/packages/message-parser/src/grammar.pegjs
@@ -42,6 +42,26 @@ let skipBold = false;
 let skipItalic = false;
 let skipStrikethrough = false;
 let skipReferences = false;
+
+function buildNestedList(flatItems) {
+  const root = [];
+  const stack = [{ level: -1, children: root }];
+
+  for (const item of flatItems) {
+    const level = item.indent ?? 0;
+
+    // Pop stack until we find a parent whose level < current
+    while (stack.length > 1 && stack[stack.length - 1].level >= level) {
+      stack.pop();
+    }
+
+    const node = { ...item, children: [] };
+    stack[stack.length - 1].children.push(node);
+    stack.push({ level, children: node.children });
+  }
+
+  return root;
+}
 }}
 
 Start
@@ -174,30 +194,44 @@ TaskFlag = "x" { return true; } / " " { return false; }
  *  3. Item Three
  *
  */
-OrderedList = items:OrderedListItem+ { return orderedList(items); }
-
-OrderedListItem = number:Digits "." [ \t]+ text:Inline { return listItem(text, parseInt(number, 10)); }
 
 /**
- *
- * Unordered List
+ * Ordered List (with nesting support)
  * e.g:
- *  - Item One
- *  - Item Two
- *  * Item Three
- *  * Item Four
- *
+ *  1. Item One
+ *     1. Nested Item
  */
-UnorderedList = items:(UnorderedListHyphenItem+ / UnorderedListAsteriskItem+) { return unorderedList(items); }
-
-UnorderedListHyphenItem = "-" [ \t]+ text:Inline { return listItem(text); }
+OrderedList = items:OrderedListItem+ { return orderedList(buildNestedList(items)); }
 
-UnorderedListAsteriskItem = "*" [ \t]+ text:UnorderedListItemContent { return listItem(text); }
+OrderedListItem
+  = indent:$([ \t]*) number:Digits "." [ \t]+ text:Inline
+    { return listItem(text, parseInt(number, 10), indent.length); }
 
-UnorderedListItemContent = value:UnorderedListItemContentItem+ !"*" EndOfLine? { return reducePlainTexts(value); }
+/**
+ * Unordered List (with nesting support)
+ */
+UnorderedList = items:(UnorderedListHyphenItem / UnorderedListAsteriskItem)+
+  { return unorderedList(buildNestedList(items)); }
+
+UnorderedListHyphenItem
+  = indent:$([ \t]*) "-" [ \t]+ text:Inline
+    { return listItem(text, undefined, indent.length); }
+
+UnorderedListAsteriskItem
+  = indent:$([ \t]*) "*" [ \t]+ text:UnorderedListAsteriskItemContent
+    &{ 
+      const plainText = text.map((item) => item.value ?? '').join('');
+      return plainText !== '*' && !(plainText.endsWith('*') && !plainText.startsWith('*'));
+    }
+    { return listItem(text, undefined, indent.length); }
 
-UnorderedListItemContentItem = InlineItemPattern / !"*" @Any
+UnorderedListAsteriskItemContent
+  = value:UnorderedListAsteriskContentItem+ EndOfLine?
+    { return reducePlainTexts(value); }
 
+UnorderedListAsteriskContentItem
+  = !EndOfLine !("*" [ \t]) @InlineItemPattern
+  / !EndOfLine !("*" [ \t]) @Any
 /**
  *
  * KaTex
diff --git a/packages/message-parser/src/utils.ts b/packages/message-parser/src/utils.ts
index 9ac83ec8c9001..9fcb26919df2c 100644
--- a/packages/message-parser/src/utils.ts
+++ b/packages/message-parser/src/utils.ts
@@ -131,10 +131,12 @@ export const orderedList = generate('ORDERED_LIST');
 
 export const unorderedList = generate('UNORDERED_LIST');
 
-export const listItem = (text: Inlines[], number?: number): ListItem => ({
+export const listItem = (text: Inlines[], number?: number, indent = 0): ListItem => ({
 	type: 'LIST_ITEM',
 	value: text,
 	...(number !== undefined && { number }),
+	indent,
+	children: [],
 });
 
 export const mentionUser = (() => {
@@ -191,7 +193,7 @@ export const reducePlainTexts = (values: Paragraph['value']): Paragraph['value']
 	let needsSlowPath = false;
 	for (let i = 0; i < flattenableValues.length; i++) {
 		const v = flattenableValues[i];
-		if (Array.isArray(v) || (v as Inlines).type === 'EMOJI') {
+		if (Array.isArray(v) || v.type === 'EMOJI') {
 			needsSlowPath = true;
 			break;
 		}
diff --git a/packages/message-parser/tests/helpers.ts b/packages/message-parser/tests/helpers.ts
index 8c8bf448f08a5..29f20fb11b1d8 100644
--- a/packages/message-parser/tests/helpers.ts
+++ b/packages/message-parser/tests/helpers.ts
@@ -60,6 +60,8 @@ export const unorderedList = generate('UNORDERED_LIST');
 export const listItem = (value: unknown[], number?: number) => ({
 	type: 'LIST_ITEM' as const,
 	value,
+	children: [],
+	indent: 0,
 	...(number !== undefined ? { number } : {}),
 });
 
diff --git a/packages/message-parser/tests/unorderedList.test.ts b/packages/message-parser/tests/unorderedList.test.ts
index c7fbd1182767a..fadc32e870b83 100644
--- a/packages/message-parser/tests/unorderedList.test.ts
+++ b/packages/message-parser/tests/unorderedList.test.ts
@@ -45,10 +45,15 @@ test.each([
 * *Fourth item*
 `.trim(),
 		[
-			unorderedList([listItem([plain('First item')])]),
-			unorderedList([listItem([plain('Second item')]), listItem([plain('Third item')]), listItem([bold([plain('Fourth item')])])]),
+			unorderedList([
+				listItem([plain('First item')]),
+				listItem([plain('Second item')]),
+				listItem([plain('Third item')]),
+				listItem([bold([plain('Fourth item')])]),
+			]),
 		],
 	],
+	[`* A * B`, [unorderedList([listItem([plain('A ')]), listItem([plain('B')])])]],
 	//   [
 	//     `
 	// * First item