diff --git a/pybind11_stubgen/parser/mixins/fix.py b/pybind11_stubgen/parser/mixins/fix.py
index 87898906..56d49688 100644
--- a/pybind11_stubgen/parser/mixins/fix.py
+++ b/pybind11_stubgen/parser/mixins/fix.py
@@ -469,9 +469,15 @@ def parse_annotation_str(
     ) -> ResolvedType | InvalidExpression | Value:
         result = super().parse_annotation_str(annotation_str)
         if isinstance(result, ResolvedType):
-            result.name = self._strip_current_module(result.name)
+            self._strip_current_module_recursive(result)
         return result
 
+    def _strip_current_module_recursive(self, result: ResolvedType):
+        result.name = self._strip_current_module(result.name)
+        for parameter in result.parameters or ():
+            if isinstance(parameter, ResolvedType):
+                self._strip_current_module_recursive(parameter)
+
     def _strip_current_module(self, name: QualifiedName) -> QualifiedName:
         if name[: len(self.__current_module)] == self.__current_module:
             return QualifiedName(name[len(self.__current_module) :])
diff --git a/tests/py-demo/bindings/src/modules/functions.cpp b/tests/py-demo/bindings/src/modules/functions.cpp
index 969a4fba..15488da6 100644
--- a/tests/py-demo/bindings/src/modules/functions.cpp
+++ b/tests/py-demo/bindings/src/modules/functions.cpp
@@ -9,6 +9,9 @@
 #include <pybind11/stl.h>
 #include <pybind11/functional.h>
 
+#include <variant>
+#include <list>
+
 #include <demo/sublibA/add.h>
 
 namespace {
@@ -97,4 +100,5 @@ void bind_functions_module(py::module &&m) {
     pyFoo.def(py::init<int>());
     m.def("default_custom_arg", [](Foo &foo) {}, py::arg_v("foo", Foo(5), "Foo(5)"));
     m.def("pass_callback", [](std::function<Foo(Foo &)> &callback) { return Foo(13); });
+    m.def("nested_types", [](std::variant<std::list<Foo>, Foo> arg){ return arg; });
 }
diff --git a/tests/stubs/python-3.12/pybind11-v2.11/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi b/tests/stubs/python-3.12/pybind11-v2.11/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
index f6e0d53b..316386c8 100644
--- a/tests/stubs/python-3.12/pybind11-v2.11/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.12/pybind11-v2.11/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
@@ -18,6 +18,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -51,6 +52,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...
diff --git a/tests/stubs/python-3.12/pybind11-v2.12/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi b/tests/stubs/python-3.12/pybind11-v2.12/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
index 79f666a0..72ab6498 100644
--- a/tests/stubs/python-3.12/pybind11-v2.12/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.12/pybind11-v2.12/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
@@ -19,6 +19,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -53,6 +54,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...
diff --git a/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-use-type-var/demo/_bindings/functions.pyi b/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-use-type-var/demo/_bindings/functions.pyi
index 79f666a0..72ab6498 100644
--- a/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-use-type-var/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-use-type-var/demo/_bindings/functions.pyi
@@ -19,6 +19,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -53,6 +54,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...
diff --git a/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi b/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
index 79f666a0..72ab6498 100644
--- a/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.12/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
@@ -19,6 +19,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -53,6 +54,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...
diff --git a/tests/stubs/python-3.12/pybind11-v2.9/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi b/tests/stubs/python-3.12/pybind11-v2.9/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
index d5d208be..2f467b68 100644
--- a/tests/stubs/python-3.12/pybind11-v2.9/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.12/pybind11-v2.9/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
@@ -17,6 +17,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -49,6 +50,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...
diff --git a/tests/stubs/python-3.8/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi b/tests/stubs/python-3.8/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
index 79f666a0..72ab6498 100644
--- a/tests/stubs/python-3.8/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
+++ b/tests/stubs/python-3.8/pybind11-v2.13/numpy-array-wrap-with-annotated/demo/_bindings/functions.pyi
@@ -19,6 +19,7 @@ __all__: list[str] = [
     "func_w_named_pos_args",
     "generic",
     "mul",
+    "nested_types",
     "pass_callback",
     "pos_kw_only_mix",
     "pos_kw_only_variadic_mix",
@@ -53,6 +54,7 @@ def mul(p: float, q: float) -> float:
     Multiply p and q (double)
     """
 
+def nested_types(arg0: list[Foo] | Foo) -> list[Foo] | Foo: ...
 def pass_callback(arg0: typing.Callable[[Foo], Foo]) -> Foo: ...
 def pos_kw_only_mix(i: int, /, j: int, *, k: int) -> tuple: ...
 def pos_kw_only_variadic_mix(i: int, /, j: int, *args, k: int, **kwargs) -> tuple: ...