diff --git a/ll-merge.c b/ll-merge.c
index 3c8fb917e9..5b8d46aede 100644
--- a/ll-merge.c
+++ b/ll-merge.c
@@ -384,7 +384,9 @@ int ll_merge(mmbuffer_t *result_buf,
 	if (opts->virtual_ancestor) {
 		if (driver->recursive)
 			driver = find_ll_merge_driver(driver->recursive);
-		marker_size += 2;
+	}
+	if (opts->extra_marker_size) {
+		marker_size += opts->extra_marker_size;
 	}
 	return driver->fn(driver, result_buf, path, ancestor, ancestor_label,
 			  ours, our_label, theirs, their_label,
diff --git a/ll-merge.h b/ll-merge.h
index 6c6e22e40d..b9e2af1c88 100644
--- a/ll-merge.h
+++ b/ll-merge.h
@@ -13,6 +13,7 @@ struct ll_merge_options {
 	unsigned virtual_ancestor : 1;
 	unsigned variant : 2;	/* favor ours, favor theirs, or union merge */
 	unsigned renormalize : 1;
+	unsigned extra_marker_size;
 	long xdl_opts;
 };
 
diff --git a/merge-recursive.c b/merge-recursive.c
index acc2f64a4e..f35e3b5f95 100644
--- a/merge-recursive.c
+++ b/merge-recursive.c
@@ -1058,7 +1058,8 @@ static int merge_3way(struct merge_options *o,
 		      const struct diff_filespec *a,
 		      const struct diff_filespec *b,
 		      const char *branch1,
-		      const char *branch2)
+		      const char *branch2,
+		      const int extra_marker_size)
 {
 	mmfile_t orig, src1, src2;
 	struct ll_merge_options ll_opts = {0};
@@ -1066,6 +1067,7 @@ static int merge_3way(struct merge_options *o,
 	int merge_status;
 
 	ll_opts.renormalize = o->renormalize;
+	ll_opts.extra_marker_size = extra_marker_size;
 	ll_opts.xdl_opts = o->xdl_opts;
 
 	if (o->call_depth) {
@@ -1301,6 +1303,7 @@ static int merge_mode_and_contents(struct merge_options *o,
 				   const char *filename,
 				   const char *branch1,
 				   const char *branch2,
+				   const int extra_marker_size,
 				   struct merge_file_info *result)
 {
 	if (o->branch1 != branch1) {
@@ -1311,7 +1314,8 @@ static int merge_mode_and_contents(struct merge_options *o,
 		 */
 		return merge_mode_and_contents(o, one, b, a,
 					       filename,
-					       branch2, branch1, result);
+					       branch2, branch1,
+					       extra_marker_size, result);
 	}
 
 	result->merge = 0;
@@ -1352,7 +1356,8 @@ static int merge_mode_and_contents(struct merge_options *o,
 			int ret = 0, merge_status;
 
 			merge_status = merge_3way(o, &result_buf, one, a, b,
-						  branch1, branch2);
+						  branch1, branch2,
+						  extra_marker_size);
 
 			if ((merge_status < 0) || !result_buf.ptr)
 				ret = err(o, _("Failed to execute internal merge"));
@@ -1641,7 +1646,8 @@ static int handle_rename_rename_1to2(struct merge_options *o,
 		struct diff_filespec other;
 		struct diff_filespec *add;
 		if (merge_mode_and_contents(o, one, a, b, one->path,
-					    ci->branch1, ci->branch2, &mfi))
+					    ci->branch1, ci->branch2,
+					    o->call_depth * 2, &mfi))
 			return -1;
 
 		/*
@@ -1708,9 +1714,11 @@ static int handle_rename_rename_2to1(struct merge_options *o,
 	path_side_1_desc = xstrfmt("version of %s from %s", path, a->path);
 	path_side_2_desc = xstrfmt("version of %s from %s", path, b->path);
 	if (merge_mode_and_contents(o, a, c1, &ci->ren1_other, path_side_1_desc,
-				    o->branch1, o->branch2, &mfi_c1) ||
+				    o->branch1, o->branch2,
+				    o->call_depth * 2, &mfi_c1) ||
 	    merge_mode_and_contents(o, b, &ci->ren2_other, c2, path_side_2_desc,
-				    o->branch1, o->branch2, &mfi_c2))
+				    o->branch1, o->branch2,
+				    o->call_depth * 2, &mfi_c2))
 		return -1;
 	free(path_side_1_desc);
 	free(path_side_2_desc);
@@ -2756,7 +2764,7 @@ static int process_renames(struct merge_options *o,
 
 					if (merge_mode_and_contents(o, &one, &a, &b, ren1_dst,
 								    branch1, branch2,
-								    &mfi)) {
+								    o->call_depth * 2, &mfi)) {
 						clean_merge = -1;
 						goto cleanup_and_return;
 					}
@@ -3053,7 +3061,8 @@ static int handle_content_merge(struct merge_options *o,
 			df_conflict_remains = 1;
 	}
 	if (merge_mode_and_contents(o, &one, &a, &b, path,
-				    o->branch1, o->branch2, &mfi))
+				    o->branch1, o->branch2,
+				    o->call_depth * 2, &mfi))
 		return -1;
 
 	/*
diff --git a/t/t6036-recursive-corner-cases.sh b/t/t6036-recursive-corner-cases.sh
index f229d7e47b..3091cbc06a 100755
--- a/t/t6036-recursive-corner-cases.sh
+++ b/t/t6036-recursive-corner-cases.sh
@@ -1596,4 +1596,155 @@ test_expect_failure 'check nested conflicts' '
 	)
 '
 
+# Setup:
+#          L1---L2---L3
+#         /  \ /  \ /  \
+#   master    X1   X2   ?
+#         \  / \  / \  /
+#          R1---R2---R3
+#
+# Where:
+#   master has one file named 'content'
+#   branches L1 and R1 both modify each of the two files in conflicting ways
+#
+#   L<n> (n>1) is a merge of R<n-1> into L<n-1>
+#   R<n> (n>1) is a merge of L<n-1> into R<n-1>
+#   L<n> and R<n> resolve the conflicts differently.
+#
+#   X<n> is an auto-generated merge-base used when merging L<n+1> and R<n+1>.
+#   By construction, X1 has conflict markers due to conflicting versions.
+#   X2, due to using merge.conflictstyle=3, has nested conflict markers.
+#
+#   So, merging R3 into L3 using merge.conflictstyle=3 should show the
+#   nested conflict markers from X2 in the base version -- that means we
+#   have three levels of conflict markers.  Can we distinguish all three?
+
+test_expect_success 'setup virtual merge base with nested conflicts' '
+	test_create_repo virtual_merge_base_has_nested_conflicts &&
+	(
+		cd virtual_merge_base_has_nested_conflicts &&
+
+		# Create some related files now
+		for i in $(test_seq 1 10)
+		do
+			echo Random base content line $i
+		done >content &&
+
+		# Setup original commit
+		git add content &&
+		test_tick && git commit -m initial &&
+
+		git branch L &&
+		git branch R &&
+
+		# Create L1
+		git checkout L &&
+		echo left >>content &&
+		git add content &&
+		test_tick && git commit -m "version L1 of content" &&
+		git tag L1 &&
+
+		# Create R1
+		git checkout R &&
+		echo right >>content &&
+		git add content &&
+		test_tick && git commit -m "verson R1 of content" &&
+		git tag R1 &&
+
+		# Create L2
+		git checkout L &&
+		test_must_fail git -c merge.conflictstyle=diff3 merge R1 &&
+		git checkout L1 content &&
+		test_tick && git commit -m "version L2 of content" &&
+		git tag L2 &&
+
+		# Create R2
+		git checkout R &&
+		test_must_fail git -c merge.conflictstyle=diff3 merge L1 &&
+		git checkout R1 content &&
+		test_tick && git commit -m "version R2 of content" &&
+		git tag R2 &&
+
+		# Create L3
+		git checkout L &&
+		test_must_fail git -c merge.conflictstyle=diff3 merge R2 &&
+		git checkout L1 content &&
+		test_tick && git commit -m "version L3 of content" &&
+		git tag L3 &&
+
+		# Create R3
+		git checkout R &&
+		test_must_fail git -c merge.conflictstyle=diff3 merge L2 &&
+		git checkout R1 content &&
+		test_tick && git commit -m "version R3 of content" &&
+		git tag R3
+	)
+'
+
+test_expect_success 'check virtual merge base with nested conflicts' '
+	(
+		cd virtual_merge_base_has_nested_conflicts &&
+
+		git checkout L3^0 &&
+
+		# Merge must fail; there is a conflict
+		test_must_fail git -c merge.conflictstyle=diff3 merge -s recursive R3^0 &&
+
+		# Make sure the index has the right number of entries
+		git ls-files -s >out &&
+		test_line_count = 3 out &&
+		git ls-files -u >out &&
+		test_line_count = 3 out &&
+		# Ensure we have the correct number of untracked files
+		git ls-files -o >out &&
+		test_line_count = 1 out &&
+
+		# Compare :[23]:content to expected values
+		git rev-parse L1:content R1:content >expect &&
+		git rev-parse :2:content :3:content >actual &&
+		test_cmp expect actual &&
+
+		# Imitate X1 merge base, except without long enough conflict
+		# markers because a subsequent sed will modify them.  Put
+		# result into vmb.
+		git cat-file -p master:content >base &&
+		git cat-file -p L:content >left &&
+		git cat-file -p R:content >right &&
+		cp left merged-once &&
+		test_must_fail git merge-file --diff3 \
+			-L "Temporary merge branch 1" \
+			-L "merged common ancestors"  \
+			-L "Temporary merge branch 2" \
+			merged-once \
+			base        \
+			right       &&
+		sed -e "s/^\([<|=>]\)/\1\1\1/" merged-once >vmb &&
+
+		# Imitate X2 merge base, overwriting vmb.  Note that we
+		# extend both sets of conflict markers to make them longer
+		# with the sed command.
+		cp left merged-twice &&
+		test_must_fail git merge-file --diff3 \
+			-L "Temporary merge branch 1" \
+			-L "merged common ancestors"  \
+			-L "Temporary merge branch 2" \
+			merged-twice \
+			vmb          \
+			right        &&
+		sed -e "s/^\([<|=>]\)/\1\1\1/" merged-twice >vmb &&
+
+		# Compare :1:content to expected value
+		git cat-file -p :1:content >actual &&
+		test_cmp vmb actual &&
+
+		# Determine expected content in final outer merge, compare to
+		# what the merge generated.
+		cp -f left expect &&
+		test_must_fail git merge-file --diff3                      \
+			-L "HEAD"  -L "merged common ancestors"  -L "R3^0" \
+			expect     vmb                           right     &&
+		test_cmp expect content
+	)
+'
+
 test_done
