diff --git a/src/qweb/base_directives.ts b/src/qweb/base_directives.ts
index 463edcaa..b8b10a3c 100644
--- a/src/qweb/base_directives.ts
+++ b/src/qweb/base_directives.ts
@@ -28,9 +28,12 @@ QWeb.utils.getFragment = function(str: string): DocumentFragment {
 QWeb.utils.htmlToVDOM = htmlToVDOM;
 
 function compileValueNode(value: any, node: Element, qweb: QWeb, ctx: CompilationContext) {
-  if (value === "0" && ctx.caller) {
-    qweb._compileNode(ctx.caller, ctx);
-    return;
+  if (value === "0") {
+    const caller = ctx.getCaller();
+    if (caller) {
+      qweb._compileNode(caller, ctx.getInliningContext());
+      return;
+    }
   }
 
   if (value.xml instanceof NodeList && !value.id) {
diff --git a/src/qweb/compilation_context.ts b/src/qweb/compilation_context.ts
index 45189cc3..6fe8b319 100644
--- a/src/qweb/compilation_context.ts
+++ b/src/qweb/compilation_context.ts
@@ -32,6 +32,8 @@ export class CompilationContext {
   scopeVars: any[] = [];
   currentKey: string = "";
   templates: { [key: string]: boolean } = {};
+  callingLevel: number = 0;
+  inliningLevel: number = 0;
 
   constructor(name?: string) {
     this.rootContext = this;
@@ -129,6 +131,10 @@ export class CompilationContext {
   subContext(key: keyof CompilationContext, value: any): CompilationContext {
     const newContext = Object.create(this);
     newContext[key] = value;
+    if (key === 'caller') {
+      newContext.callingLevel++;
+      newContext.inliningLevel++;
+    }
     return newContext;
   }
 
@@ -166,6 +172,27 @@ export class CompilationContext {
     this.dedent();
     this.addLine("}");
   }
+  /**
+   * Recursively (inverse) fetches the `caller` of a context
+   * Useful to determine to which t-call a t-raw="0" refers
+   */
+  getCaller(targetLevel?: number): Element | null {
+    if (targetLevel === undefined) {
+      targetLevel = this.inliningLevel;
+    }
+    if (targetLevel === this.callingLevel) {
+      return this.caller || null;
+    }
+    const proto = (this as any).__proto__;
+    return proto ? proto.getCaller(targetLevel) : null;
+  }
+  /**
+   * Marks the context with the current recursive level
+   * in which we are for inlining archs (t-raw="0")
+   */
+  getInliningContext(): CompilationContext {
+    return this.subContext('inliningLevel', this.inliningLevel - 1);
+  }
 
   getValue(val: any): QWebVar | string {
     return val in this.variables ? this.getValue(this.variables[val]) : val;
diff --git a/tests/qweb/__snapshots__/qweb.test.ts.snap b/tests/qweb/__snapshots__/qweb.test.ts.snap
index 409cc823..14ac1876 100644
--- a/tests/qweb/__snapshots__/qweb.test.ts.snap
+++ b/tests/qweb/__snapshots__/qweb.test.ts.snap
@@ -910,6 +910,46 @@ exports[`t-call (template calling call with several sub nodes on same line 1`] =
 }"
 `;
 
+exports[`t-call (template calling cascading t-call t-raw='0' 1`] = `
+"function anonymous(context,extra
+) {
+    var h = this.h;
+    let c1 = [], p1 = {key:1};
+    var vn1 = h('div', p1, c1);
+    let c5 = [], p5 = {key:5};
+    var vn5 = h('div', p5, c5);
+    c1.push(vn5);
+    let c8 = [], p8 = {key:8};
+    var vn8 = h('div', p8, c8);
+    c5.push(vn8);
+    let c11 = [], p11 = {key:11};
+    var vn11 = h('div', p11, c11);
+    c8.push(vn11);
+    let c12 = [], p12 = {key:12};
+    var vn12 = h('span', p12, c12);
+    c11.push(vn12);
+    c12.push({text: \`cascade 2\`});
+    let c13 = [], p13 = {key:13};
+    var vn13 = h('span', p13, c13);
+    c11.push(vn13);
+    c13.push({text: \`cascade 1\`});
+    let c14 = [], p14 = {key:14};
+    var vn14 = h('span', p14, c14);
+    c11.push(vn14);
+    c14.push({text: \`cascade 0\`});
+    let c15 = [], p15 = {key:15};
+    var vn15 = h('span', p15, c15);
+    c11.push(vn15);
+    c15.push({text: \`hey\`});
+    c11.push({text: \` \`});
+    let c16 = [], p16 = {key:16};
+    var vn16 = h('span', p16, c16);
+    c11.push(vn16);
+    c16.push({text: \`yay\`});
+    return vn1;
+}"
+`;
+
 exports[`t-call (template calling inherit context 1`] = `
 "function anonymous(context,extra
 ) {
diff --git a/tests/qweb/qweb.test.ts b/tests/qweb/qweb.test.ts
index d1d85c4b..6a45f66d 100644
--- a/tests/qweb/qweb.test.ts
+++ b/tests/qweb/qweb.test.ts
@@ -673,6 +673,39 @@ describe("t-call (template calling", () => {
     expect(renderToString(qweb, "main")).toBe(expected);
   });
 
+  test("cascading t-call t-raw='0'", () => {
+    qweb.addTemplates(`
+        <templates>
+            <div t-name="finalTemplate">
+              <span>cascade 2</span>
+              <t t-raw="0"/>
+            </div>
+
+            <div t-name="subSubTemplate">
+              <t t-call="finalTemplate">
+                <span>cascade 1</span>
+                <t t-raw="0"/>
+              </t>
+            </div>
+
+            <div t-name="SubTemplate">
+              <t t-call="subSubTemplate">
+                <span>cascade 0</span>
+                <t t-raw="0"/>
+              </t>
+            </div>
+
+            <div t-name="main">
+              <t t-call="SubTemplate">
+                <span>hey</span> <span>yay</span>
+              </t>
+            </div>
+        </templates>
+    `);
+    const expected = "<div><div><div><div><span>cascade 2</span><span>cascade 1</span><span>cascade 0</span><span>hey</span> <span>yay</span></div></div></div></div>";
+    expect(renderToString(qweb, "main")).toBe(expected);
+  });
+
   test("recursive template, part 1", () => {
     qweb.addTemplates(`
         <templates>