diff --git a/src/FSharpLint.Core/Rules/Conventions/Naming/PublicValuesNames.fs b/src/FSharpLint.Core/Rules/Conventions/Naming/PublicValuesNames.fs
index 774dc3651..4633a8d35 100644
--- a/src/FSharpLint.Core/Rules/Conventions/Naming/PublicValuesNames.fs
+++ b/src/FSharpLint.Core/Rules/Conventions/Naming/PublicValuesNames.fs
@@ -36,7 +36,7 @@ let private getIdentifiers (args:AstNodeRuleParams) =
     | AstNode.Expression(SynExpr.ForEach(_, _, _, true, pattern, _, _, _)) ->
         getPatternIdents AccessControlLevel.Private (getValueOrFunctionIdents args.CheckInfo) false pattern
     | AstNode.Binding(SynBinding(_, _, _, _, attributes, _, valData, pattern, _, _, _, _, _)) ->
-        if not (isLiteral attributes || isExtern attributes) then
+        if not (isLiteral attributes || isExtern attributes || isNested args args.NodeIndex) then
             match identifierTypeFromValData valData with
             | Value | Function ->
                 let accessibility = getAccessControlLevel args.SyntaxArray args.NodeIndex
diff --git a/tests/FSharpLint.Core.Tests/Rules/Conventions/Naming/PublicValuesNames.fs b/tests/FSharpLint.Core.Tests/Rules/Conventions/Naming/PublicValuesNames.fs
index 0cbf5eb6b..f1bebf3a0 100644
--- a/tests/FSharpLint.Core.Tests/Rules/Conventions/Naming/PublicValuesNames.fs
+++ b/tests/FSharpLint.Core.Tests/Rules/Conventions/Naming/PublicValuesNames.fs
@@ -94,3 +94,23 @@ let (|Empty|_|) str =
 """
 
          this.AssertNoWarnings()
+
+let pascalCaseConfig = { config with Naming = Some NamingCase.PascalCase }
+
+[<TestFixture>]
+type TestConventionsPublicValuesNamesPascalCase() =
+    inherit TestAstNodeRuleBase.TestAstNodeRuleBase(PublicValuesNames.rule pascalCaseConfig)
+        
+    [<Test>]
+    member this.``Nested function should not generate warning``() =
+        this.Parse """
+module Program
+
+[ "one" ]
+|> Seq.iter (fun str ->
+    let someFunc bar = bar
+    someFunc str
+)
+"""
+
+        this.AssertNoWarnings()