diff --git a/docs/rules/no-nested-pipe.md b/docs/rules/no-nested-pipe.md
new file mode 100644
index 00000000..a9b0ddff
--- /dev/null
+++ b/docs/rules/no-nested-pipe.md
@@ -0,0 +1,60 @@
+# Avoid nested `pipe` calls (`no-nested-pipe`)
+
+This rule effects failures if `pipe` is called within a `pipe` handler.
+
+## Rule details
+
+Examples of **incorrect** code for this rule:
+
+```ts
+import { switchMap, map, of } from 'rxjs';
+
+of('searchText1', 'searchText2')
+  .pipe(
+    switchMap(searchText => {
+      return callSearchAPI(searchText).pipe(
+        map(response => {
+          console.log(response);
+          return 'final ' + response;
+          // considering more lines here
+        })
+      );
+    })
+  )
+  .subscribe(value => console.log(value));
+
+function callSearchAPI(searchText) {
+  return of('new' + searchText);
+}
+
+
+```
+
+Examples of **correct** code for this rule:
+
+```ts
+import { switchMap, map, of } from 'rxjs';
+
+of('searchText1', 'searchText2')
+  .pipe(
+    switchMap(searchText => {
+      return callSearchAPI(searchText);
+    })
+  )
+  .subscribe(value => console.log(value));
+
+function callSearchAPI(searchText) {
+  return of('new' + searchText).pipe(
+    map(response => {
+      console.log(response);
+      return 'final ' + response;
+      // considering more lines here
+    })
+  );
+}
+
+```
+
+## Options
+
+This rule has no options.
diff --git a/source/rules/no-nested-pipe.ts b/source/rules/no-nested-pipe.ts
new file mode 100644
index 00000000..99ccc33b
--- /dev/null
+++ b/source/rules/no-nested-pipe.ts
@@ -0,0 +1,59 @@
+/**
+ * @license Use of this source code is governed by an MIT-style license that
+ * can be found in the LICENSE file at https://github.com/cartant/eslint-plugin-rxjs
+ */
+
+import { TSESTree as es } from "@typescript-eslint/experimental-utils";
+import { getParent, getTypeServices } from "eslint-etc";
+import { ruleCreator } from "../utils";
+
+const rule = ruleCreator({
+  defaultOptions: [],
+  meta: {
+    docs: {
+      description: "Forbids the calling of `pipe` within a `pipe` callback.",
+      recommended: "error",
+    },
+    fixable: undefined,
+    hasSuggestions: false,
+    messages: {
+      forbidden: "Nested pipe calls are forbidden.",
+    },
+    schema: [],
+    type: "problem",
+  },
+  name: "no-nested-pipe",
+  create: (context) => {
+    const { couldBeObservable, couldBeType } = getTypeServices(context);
+    const argumentsMap = new WeakMap<es.Node, void>();
+    return {
+      [`CallExpression > MemberExpression[property.name='pipe']`]: (
+        node: es.MemberExpression
+      ) => {
+        if (
+          !couldBeObservable(node.object) &&
+          !couldBeType(node.object, "Pipeable")
+        ) {
+          return;
+        }
+        const callExpression = getParent(node) as es.CallExpression;
+        let parent = getParent(callExpression);
+        while (parent) {
+          if (argumentsMap.has(parent)) {
+            context.report({
+              messageId: "forbidden",
+              node: node.property,
+            });
+            return;
+          }
+          parent = getParent(parent);
+        }
+        for (const arg of callExpression.arguments) {
+          argumentsMap.set(arg);
+        }
+      },
+    };
+  },
+});
+
+export = rule;
diff --git a/tests/rules/no-nested-pipe.ts b/tests/rules/no-nested-pipe.ts
new file mode 100644
index 00000000..21984d37
--- /dev/null
+++ b/tests/rules/no-nested-pipe.ts
@@ -0,0 +1,94 @@
+/**
+ * @license Use of this source code is governed by an MIT-style license that
+ * can be found in the LICENSE file at https://github.com/cartant/eslint-plugin-rxjs
+ */
+
+import { stripIndent } from "common-tags";
+import { fromFixture } from "eslint-etc";
+import rule = require("../../source/rules/no-nested-pipe");
+import { ruleTester } from "../utils";
+
+ruleTester({ types: true }).run("no-nested-pipe", rule, {
+  valid: [
+    stripIndent`
+      // not nested in pipe
+      import { Observable,of,switchMap } from "rxjs";
+      of(47).pipe(switchMap(value => {
+       console.log('new' ,value);
+      })).subscribe(value => {
+        console.log(value);
+      })
+    `,
+    stripIndent`
+    // not nested in pipe
+    import { Observable,switchMap } from "rxjs";
+    of(47).pipe(switchMap(value => {
+     return someFunction(value)
+    })).subscribe(value => {
+      console.log(value);
+    });
+    function someFunction(someParam: Observable<any>): Observable<any> { 
+    return of(43).pipe(
+      switchMap(value  =>  {value + someParam})
+      )
+     }
+  `,
+    stripIndent`
+  // not nested in pipe using function move to separate function 
+  import { Observable,switchMap } from "rxjs";
+  of(47).pipe(switchMap(value => {
+   return someFunction1(value)
+  }),
+  switchMap(value => {
+   return someFunction2(value)
+  })
+  ).subscribe(value => {
+    console.log(value);
+  });
+  function someFunction1(someParam: Observable<any>): Observable<any> { 
+  return of(43).pipe(
+    switchMap(value  =>  {value + someParam})
+    )
+   };
+    function someFunction2(someParam: Observable<any>): Observable<any> { 
+  return of(43).pipe(
+    switchMap(value  =>  {value + someParam})
+    )
+   }
+`,
+  ],
+  invalid: [
+    fromFixture(
+      stripIndent`
+        // nested in pipe
+        import { of,switchMap,tap } from "rxjs";
+        of("foo").pipe(
+        switchMap(value => { 
+        return of("bar").pipe(tap(value => { console.log(value)})
+                         ~~~~ [forbidden]
+        )})
+        ).subscribe(value => {
+        console.log(value);
+      });
+      `
+    ),
+    fromFixture(
+      stripIndent`
+        // nested in pipe with parallel pipes
+        import { of,switchMap,tap } from "rxjs";
+        of("foo").pipe(
+        switchMap(value => { 
+        return of("bar").pipe(tap(value => { console.log(value)})
+                         ~~~~ [forbidden]
+        )}),
+         switchMap(value => { 
+        return of("bar").pipe(tap(value => { console.log(value)})
+                         ~~~~ [forbidden]
+        )})
+        ).subscribe(value => {
+        console.log(value);
+      });
+      `
+    ),
+  ],
+});