diff --git a/independent-projects/qute/core/src/main/java/io/quarkus/qute/InsertSectionHelper.java b/independent-projects/qute/core/src/main/java/io/quarkus/qute/InsertSectionHelper.java
index b018033f111ea..4987be8e5a6ee 100644
--- a/independent-projects/qute/core/src/main/java/io/quarkus/qute/InsertSectionHelper.java
+++ b/independent-projects/qute/core/src/main/java/io/quarkus/qute/InsertSectionHelper.java
@@ -15,12 +15,39 @@ public InsertSectionHelper(String name, SectionBlock defaultBlock) {
 
     @Override
     public CompletionStage<ResultNode> resolve(SectionResolutionContext context) {
-        SectionBlock extending = context.resolutionContext().getExtendingBlock(name);
+        // Note that {#insert} is evaluated on the current resolution context
+        // Therefore, we need to try to find the "correct" parent context to avoid stack
+        // overflow errors when using the same block names
+        ResolutionContext rc = findParentResolutionContext(context.resolutionContext());
+        if (rc == null) {
+            // No parent context found - use the current
+            rc = context.resolutionContext();
+        }
+        SectionBlock extending = rc.getExtendingBlock(name);
         if (extending != null) {
-            return context.execute(extending, context.resolutionContext());
+            return context.execute(extending, rc);
         } else {
-            return context.execute(defaultBlock, context.resolutionContext());
+            return context.execute(defaultBlock, rc);
+        }
+    }
+
+    private ResolutionContext findParentResolutionContext(ResolutionContext context) {
+        if (context.getParent() == null) {
+            return null;
         }
+        // Let's iterate over all extending blocks and try to find the "correct" parent context
+        // The "correct" parent context is the parent of a context that contains this helper
+        // instance in any of its extending block
+        for (SectionBlock block : context.getExtendingBlocks()) {
+            if (block.findNode(this::containsThisHelperInstance) != null) {
+                return context.getParent();
+            }
+        }
+        return findParentResolutionContext(context.getParent());
+    }
+
+    private boolean containsThisHelperInstance(TemplateNode node) {
+        return node.isSection() && node.asSection().helper == this;
     }
 
     public static class Factory implements SectionHelperFactory<InsertSectionHelper> {
diff --git a/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContext.java b/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContext.java
index ea293a2ca9ad8..5d14ec0493622 100644
--- a/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContext.java
+++ b/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContext.java
@@ -4,7 +4,7 @@
 import java.util.concurrent.CompletionStage;
 
 /**
- *
+ * The resolution context holds the current context object.
  */
 public interface ResolutionContext {
 
@@ -52,6 +52,12 @@ public interface ResolutionContext {
      */
     SectionBlock getExtendingBlock(String name);
 
+    /**
+     *
+     * @return the extending blocks
+     */
+    Iterable<SectionBlock> getExtendingBlocks();
+
     /**
      *
      * @param key
diff --git a/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContextImpl.java b/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContextImpl.java
index b9eb6e794ecaf..69d45a4964bb9 100644
--- a/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContextImpl.java
+++ b/independent-projects/qute/core/src/main/java/io/quarkus/qute/ResolutionContextImpl.java
@@ -1,5 +1,6 @@
 package io.quarkus.qute;
 
+import java.util.Collections;
 import java.util.Map;
 import java.util.concurrent.CompletionStage;
 import java.util.function.Function;
@@ -52,6 +53,11 @@ public SectionBlock getExtendingBlock(String name) {
         return null;
     }
 
+    @Override
+    public Iterable<SectionBlock> getExtendingBlocks() {
+        return extendingBlocks != null ? extendingBlocks.values() : Collections.emptyList();
+    }
+
     @Override
     public Object getAttribute(String key) {
         return attributeFun.apply(key);
@@ -116,6 +122,11 @@ public SectionBlock getExtendingBlock(String name) {
             return null;
         }
 
+        @Override
+        public Iterable<SectionBlock> getExtendingBlocks() {
+            return extendingBlocks != null ? extendingBlocks.values() : Collections.emptyList();
+        }
+
         @Override
         public Object getAttribute(String key) {
             return parent.getAttribute(key);
diff --git a/independent-projects/qute/core/src/test/java/io/quarkus/qute/IncludeTest.java b/independent-projects/qute/core/src/test/java/io/quarkus/qute/IncludeTest.java
index 316e046642fa9..0482275186af2 100644
--- a/independent-projects/qute/core/src/test/java/io/quarkus/qute/IncludeTest.java
+++ b/independent-projects/qute/core/src/test/java/io/quarkus/qute/IncludeTest.java
@@ -251,4 +251,100 @@ public void testIsolation() {
         assertEquals("NOT_FOUND", engine.parse("{#include foo _isolated /}").data("name", "Dorka").render());
     }
 
+    @Test
+    public void testNestedMainBlocks() {
+        Engine engine = Engine.builder()
+                .addDefaults()
+                .build();
+
+        engine.putTemplate("root", engine.parse("""
+                <html>
+                   <body>{#insert /}</body>
+                </html>
+                                """));
+        engine.putTemplate("auth", engine.parse("""
+                {#include root}
+                <div>
+                   {#insert /}
+                </div>
+                {/include}
+                                """));
+        assertEquals("<html><body><div><form>LoginForm</form></div></body>"
+                + "</html>", engine.parse("""
+                        {#include auth}
+                           <form>Login Form</form>
+                        {/include}
+                                    """).render().replaceAll("\\s+", ""));
+
+        engine.putTemplate("next", engine.parse("""
+                {#include auth}
+                <foo>
+                   {#insert /}
+                </foo>
+                {/include}
+                                """));
+
+        // 1. top -> push child rc#1 with extending block $default$
+        // 2. next -> push child rc#2 with extending block $default$
+        // 3. auth -> push child rc#3 with extending block $default$
+        // 4. root -> eval {#insert}, looks up $default$ in rc#3
+        // 5. auth -> eval {#insert}, looks up $default$ in rc#2
+        // 6. next -> eval {#insert}, looks up $default$ in rc#1
+        assertEquals("<html><body><div><foo><form>LoginForm</form></foo></div></body>"
+                + "</html>", engine.parse("""
+                        {#include next}
+                           <form>Login Form</form>
+                        {/include}
+                                    """).render().replaceAll("\\s+", ""));
+    }
+
+    @Test
+    public void testNestedBlocksWithSameName() {
+        Engine engine = Engine.builder()
+                .addDefaults()
+                .build();
+
+        engine.putTemplate("root", engine.parse("""
+                <html>
+                   <body>{#insert foo /}</body>
+                </html>
+                                """));
+        engine.putTemplate("auth", engine.parse("""
+                {#include root}
+                {#foo}
+                <div>
+                   {#insert foo /}
+                </div>
+                {/foo}
+                {/include}
+                                """));
+        assertEquals("<html><body><div><form>LoginForm</form></div></body>"
+                + "</html>", engine.parse("""
+                        {#include auth}
+                           {#foo}
+                           <form>Login Form</form>
+                           {/foo}
+                        {/include}
+                                    """).render().replaceAll("\\s+", ""));
+
+        engine.putTemplate("next", engine.parse("""
+                {#include auth}
+                {#foo}
+                <foo>
+                   {#insert foo /}
+                </foo>
+                {/foo}
+                {/include}
+                                """));
+
+        assertEquals("<html><body><div><foo><form>LoginForm</form></foo></div></body>"
+                + "</html>", engine.parse("""
+                        {#include next}
+                           {#foo}
+                           <form>Login Form</form>
+                           {/foo}
+                        {/include}
+                                    """).render().replaceAll("\\s+", ""));
+    }
+
 }