diff --git a/.github/workflows/run_tests.yml b/.github/workflows/run_tests.yml
index 1c09f76..489256c 100644
--- a/.github/workflows/run_tests.yml
+++ b/.github/workflows/run_tests.yml
@@ -7,7 +7,7 @@ jobs:
       fail-fast: false
       matrix:
         os: ["macos-latest"]
-        python-version: ["3.9", "3.10", "3.11"]
+        python-version: ["3.11"]
     runs-on: ${{ matrix.os }}
     steps:
       - name: Checkout code
diff --git a/cruft/_commands/create.py b/cruft/_commands/create.py
index 3d283c5..e7fe024 100644
--- a/cruft/_commands/create.py
+++ b/cruft/_commands/create.py
@@ -2,11 +2,14 @@
 from typing import Any, Dict, List, Optional
 
 from cookiecutter.generate import generate_files
+from cookiecutter.prompt import choose_nested_template
 
 from . import utils
 from .utils import example
 from .utils.clean import clean_context
 from .utils.iohelper import AltTemporaryDirectory
+from .utils.nested import get_relative_path, is_nested_template
+from .utils.validate import validate_cookiecutter
 
 
 @example("https://github.com/timothycrosley/cookiecutter-python/")
@@ -48,6 +51,25 @@ def create(
                 checkout,
             )
 
+        if is_nested_template(context):
+            nested_template = choose_nested_template(
+                context, cookiecutter_template_dir_str, no_input
+            )
+            return create(
+                template_git_url=template_git_url,
+                output_dir=output_dir,
+                config_file=config_file,
+                default_config=default_config,
+                extra_context=extra_context,
+                extra_context_file=extra_context_file,
+                no_input=no_input,
+                directory=get_relative_path(nested_template, cookiecutter_template_dir_str),
+                checkout=checkout,
+                skip=skip,
+            )
+
+        validate_cookiecutter(cookiecutter_template_dir)
+
         project_dir = Path(
             generate_files(
                 repo_dir=cookiecutter_template_dir,
diff --git a/cruft/_commands/link.py b/cruft/_commands/link.py
index 0628663..d1f94b5 100644
--- a/cruft/_commands/link.py
+++ b/cruft/_commands/link.py
@@ -7,6 +7,7 @@
 from .utils import example
 from .utils.clean import clean_context
 from .utils.iohelper import AltTemporaryDirectory
+from .utils.validate import validate_cookiecutter
 
 
 @example("https://github.com/timothycrosley/cookiecutter-python/")
@@ -43,6 +44,9 @@ def link(
             project_dir,
             checkout,
         )
+
+        validate_cookiecutter(cookiecutter_template_dir)
+
         if no_input:
             use_commit = last_commit
         else:
diff --git a/cruft/_commands/utils/cookiecutter.py b/cruft/_commands/utils/cookiecutter.py
index 909bbc6..e163073 100644
--- a/cruft/_commands/utils/cookiecutter.py
+++ b/cruft/_commands/utils/cookiecutter.py
@@ -9,7 +9,9 @@
 from cookiecutter.prompt import prompt_for_config
 from git import GitCommandError, Repo
 
-from cruft.exceptions import InvalidCookiecutterRepository, UnableToFindCookiecutterTemplate
+from cruft.exceptions import InvalidCookiecutterRepository
+
+from .nested import is_nested_template
 
 CookiecutterContext = Dict[str, Any]
 
@@ -62,18 +64,6 @@ def get_cookiecutter_repo(
     return repo
 
 
-def _validate_cookiecutter(cookiecutter_template_dir: Path):
-    main_cookiecutter_directory: Optional[Path] = None
-
-    for dir_item in cookiecutter_template_dir.glob("*cookiecutter.*"):
-        if dir_item.is_dir() and "{{" in dir_item.name and "}}" in dir_item.name:
-            main_cookiecutter_directory = dir_item
-            break
-
-    if not main_cookiecutter_directory:
-        raise UnableToFindCookiecutterTemplate(cookiecutter_template_dir)
-
-
 def generate_cookiecutter_context(
     template_git_url: str,
     cookiecutter_template_dir: Path,
@@ -84,8 +74,6 @@ def generate_cookiecutter_context(
     project_dir: Path = Path("."),
     checkout: Optional[str] = None,
 ) -> CookiecutterContext:
-    _validate_cookiecutter(cookiecutter_template_dir)
-
     context_file = cookiecutter_template_dir / "cookiecutter.json"
     config_dict = get_user_config(
         config_file=str(config_file) if config_file else None, default_config=default_config
@@ -97,6 +85,9 @@ def generate_cookiecutter_context(
         extra_context=extra_context,
     )
 
+    if is_nested_template(context):
+        return context
+
     # prompt the user to manually configure at the command line.
     # except when 'no-input' flag is set
     context["cookiecutter"] = prompt_for_config(context, no_input)
diff --git a/cruft/_commands/utils/generate.py b/cruft/_commands/utils/generate.py
index 6f3fc84..7696e2b 100644
--- a/cruft/_commands/utils/generate.py
+++ b/cruft/_commands/utils/generate.py
@@ -12,6 +12,7 @@
 from .cookiecutter import CookiecutterContext, generate_cookiecutter_context
 from .cruft import CruftState
 from .iohelper import AltTemporaryDirectory
+from .validate import validate_cookiecutter
 
 if not sys.version_info >= (3, 11):
     try:
@@ -79,6 +80,8 @@ def _generate_output(
         no_input=not cookiecutter_input,
     )
 
+    validate_cookiecutter(inner_dir)
+
     # This generates the cookiecutter template.
     # Unfortunately, cookiecutter doesn't let us output the template in an
     # arbitrary directory. It insists on creating the initial project directory.
diff --git a/cruft/_commands/utils/nested.py b/cruft/_commands/utils/nested.py
new file mode 100644
index 0000000..57c9d8f
--- /dev/null
+++ b/cruft/_commands/utils/nested.py
@@ -0,0 +1,7 @@
+def is_nested_template(context):
+    return bool({"template", "templates"} & set(context["cookiecutter"].keys()))
+
+
+def get_relative_path(full_path_to_template, temporary_directory_root):
+    """Return the path of a nested template relative to the root of a given temporary directory."""
+    return full_path_to_template.split(temporary_directory_root + "/")[-1]
diff --git a/cruft/_commands/utils/validate.py b/cruft/_commands/utils/validate.py
new file mode 100644
index 0000000..03a2b76
--- /dev/null
+++ b/cruft/_commands/utils/validate.py
@@ -0,0 +1,16 @@
+from pathlib import Path
+from typing import Optional
+
+from cruft.exceptions import UnableToFindCookiecutterTemplate
+
+
+def validate_cookiecutter(cookiecutter_template_dir: Path):
+    main_cookiecutter_directory: Optional[Path] = None
+
+    for dir_item in cookiecutter_template_dir.glob("*cookiecutter.*"):
+        if dir_item.is_dir() and "{{" in dir_item.name and "}}" in dir_item.name:
+            main_cookiecutter_directory = dir_item
+            break
+
+    if not main_cookiecutter_directory:
+        raise UnableToFindCookiecutterTemplate(cookiecutter_template_dir)
diff --git a/poetry.lock b/poetry.lock
index 1b1473e..e91d8c7 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1,10 +1,9 @@
-# This file is automatically @generated by Poetry and should not be changed by hand.
+# This file is automatically @generated by Poetry 1.8.3 and should not be changed by hand.
 
 [[package]]
 name = "appnope"
 version = "0.1.3"
 description = "Disable App Nap on macOS >= 10.9"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -16,7 +15,6 @@ files = [
 name = "arrow"
 version = "1.2.3"
 description = "Better dates & times for Python"
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -32,7 +30,6 @@ typing-extensions = {version = "*", markers = "python_version < \"3.8\""}
 name = "attrs"
 version = "22.2.0"
 description = "Classes Without Boilerplate"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -51,7 +48,6 @@ tests-no-zope = ["cloudpickle", "cloudpickle", "hypothesis", "hypothesis", "mypy
 name = "backcall"
 version = "0.2.0"
 description = "Specifications for callback functions passed in to an API"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -63,7 +59,6 @@ files = [
 name = "bandit"
 version = "1.7.4"
 description = "Security oriented static analyser for python code."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -86,7 +81,6 @@ yaml = ["PyYAML"]
 name = "binaryornot"
 version = "0.4.4"
 description = "Ultra-lightweight pure Python package to check if a file is binary or text."
-category = "main"
 optional = false
 python-versions = "*"
 files = [
@@ -101,7 +95,6 @@ chardet = ">=3.0.2"
 name = "black"
 version = "22.12.0"
 description = "The uncompromising code formatter."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -138,7 +131,6 @@ uvloop = ["uvloop (>=0.15.2)"]
 name = "certifi"
 version = "2022.12.7"
 description = "Python package for providing Mozilla's CA Bundle."
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -150,7 +142,6 @@ files = [
 name = "chardet"
 version = "5.1.0"
 description = "Universal encoding detector for Python 3"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -162,7 +153,6 @@ files = [
 name = "charset-normalizer"
 version = "2.0.12"
 description = "The Real First Universal Charset Detector. Open, modern and actively maintained alternative to Chardet."
-category = "main"
 optional = false
 python-versions = ">=3.5.0"
 files = [
@@ -177,7 +167,6 @@ unicode-backport = ["unicodedata2"]
 name = "click"
 version = "8.1.3"
 description = "Composable command line interface toolkit"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -193,7 +182,6 @@ importlib-metadata = {version = "*", markers = "python_version < \"3.8\""}
 name = "colorama"
 version = "0.4.6"
 description = "Cross-platform colored terminal text."
-category = "main"
 optional = false
 python-versions = "!=3.0.*,!=3.1.*,!=3.2.*,!=3.3.*,!=3.4.*,!=3.5.*,!=3.6.*,>=2.7"
 files = [
@@ -203,30 +191,29 @@ files = [
 
 [[package]]
 name = "cookiecutter"
-version = "2.1.1"
+version = "2.6.0"
 description = "A command-line utility that creates projects from project templates, e.g. creating a Python package project from a Python package project template."
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
-    {file = "cookiecutter-2.1.1-py2.py3-none-any.whl", hash = "sha256:9f3ab027cec4f70916e28f03470bdb41e637a3ad354b4d65c765d93aad160022"},
-    {file = "cookiecutter-2.1.1.tar.gz", hash = "sha256:f3982be8d9c53dac1261864013fdec7f83afd2e42ede6f6dd069c5e149c540d5"},
+    {file = "cookiecutter-2.6.0-py3-none-any.whl", hash = "sha256:a54a8e37995e4ed963b3e82831072d1ad4b005af736bb17b99c2cbd9d41b6e2d"},
+    {file = "cookiecutter-2.6.0.tar.gz", hash = "sha256:db21f8169ea4f4fdc2408d48ca44859349de2647fbe494a9d6c3edfc0542c21c"},
 ]
 
 [package.dependencies]
+arrow = "*"
 binaryornot = ">=0.4.4"
 click = ">=7.0,<9.0.0"
 Jinja2 = ">=2.7,<4.0.0"
-jinja2-time = ">=0.2.0"
 python-slugify = ">=4.0.0"
 pyyaml = ">=5.3.1"
 requests = ">=2.23.0"
+rich = "*"
 
 [[package]]
 name = "coverage"
 version = "7.0.1"
 description = "Code coverage measurement for Python"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -293,7 +280,6 @@ toml = ["tomli"]
 name = "decorator"
 version = "5.1.1"
 description = "Decorators for Humans"
-category = "dev"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -305,7 +291,6 @@ files = [
 name = "docstring-parser"
 version = "0.15"
 description = "Parse Python docstrings in reST, Google and Numpydoc format"
-category = "dev"
 optional = false
 python-versions = ">=3.6,<4.0"
 files = [
@@ -317,7 +302,6 @@ files = [
 name = "dparse"
 version = "0.6.2"
 description = "A parser for Python dependency files"
-category = "dev"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -337,7 +321,6 @@ pipenv = ["pipenv"]
 name = "examples"
 version = "1.0.2"
 description = "Tests and Documentation Done by Example."
-category = "dev"
 optional = false
 python-versions = ">=3.6,<4.0"
 files = [
@@ -352,7 +335,6 @@ pydantic = ">=0.32.2"
 name = "exceptiongroup"
 version = "1.1.0"
 description = "Backport of PEP 654 (exception groups)"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -367,7 +349,6 @@ test = ["pytest (>=6)"]
 name = "execnet"
 version = "1.9.0"
 description = "execnet: rapid multi-Python deployment"
-category = "dev"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*"
 files = [
@@ -382,7 +363,6 @@ testing = ["pre-commit"]
 name = "falcon"
 version = "2.0.0"
 description = "An unladen web framework for building APIs and app backends."
-category = "dev"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*"
 files = [
@@ -406,7 +386,6 @@ files = [
 name = "flake8"
 version = "4.0.1"
 description = "the modular source code checker: pep8 pyflakes and co"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -424,7 +403,6 @@ pyflakes = ">=2.4.0,<2.5.0"
 name = "flake8-bugbear"
 version = "22.12.6"
 description = "A plugin for flake8 finding likely bugs and design problems in your program. Contains warnings that don't belong in pyflakes and pycodestyle."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -443,7 +421,6 @@ dev = ["coverage", "hypothesis", "hypothesmith (>=0.2)", "pre-commit", "tox"]
 name = "ghp-import"
 version = "2.1.0"
 description = "Copy your docs directly to the gh-pages branch."
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -461,7 +438,6 @@ dev = ["flake8", "markdown", "twine", "wheel"]
 name = "gitdb"
 version = "4.0.10"
 description = "Git Object Database"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -476,7 +452,6 @@ smmap = ">=3.0.1,<6"
 name = "gitpython"
 version = "3.1.29"
 description = "GitPython is a python library used to interact with Git repositories"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -492,7 +467,6 @@ typing-extensions = {version = ">=3.7.4.3", markers = "python_version < \"3.8\""
 name = "hug"
 version = "2.6.1"
 description = "A Python framework that makes developing APIs as simple as possible, but no simpler."
-category = "dev"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -508,7 +482,6 @@ requests = "*"
 name = "idna"
 version = "3.4"
 description = "Internationalized Domain Names in Applications (IDNA)"
-category = "main"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -520,7 +493,6 @@ files = [
 name = "importlib-metadata"
 version = "4.2.0"
 description = "Read metadata from Python packages"
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -540,7 +512,6 @@ testing = ["flufl.flake8", "importlib-resources (>=1.3)", "packaging", "pep517",
 name = "iniconfig"
 version = "1.1.1"
 description = "iniconfig: brain-dead simple config-ini parsing"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -552,7 +523,6 @@ files = [
 name = "ipython"
 version = "7.34.0"
 description = "IPython: Productive Interactive Computing"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -589,7 +559,6 @@ test = ["ipykernel", "nbformat", "nose (>=0.10.1)", "numpy (>=1.17)", "pygments"
 name = "isort"
 version = "5.11.4"
 description = "A Python utility / library to sort Python imports."
-category = "dev"
 optional = false
 python-versions = ">=3.7.0"
 files = [
@@ -607,7 +576,6 @@ requirements-deprecated-finder = ["pip-api", "pipreqs"]
 name = "jedi"
 version = "0.18.2"
 description = "An autocompletion tool for Python that can be used for text editors."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -627,7 +595,6 @@ testing = ["Django (<3.1)", "attrs", "colorama", "docopt", "pytest (<7.0.0)"]
 name = "jinja2"
 version = "3.1.2"
 description = "A very fast and expressive template engine."
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -641,27 +608,10 @@ MarkupSafe = ">=2.0"
 [package.extras]
 i18n = ["Babel (>=2.7)"]
 
-[[package]]
-name = "jinja2-time"
-version = "0.2.0"
-description = "Jinja2 Extension for Dates and Times"
-category = "main"
-optional = false
-python-versions = "*"
-files = [
-    {file = "jinja2-time-0.2.0.tar.gz", hash = "sha256:d14eaa4d315e7688daa4969f616f226614350c48730bfa1692d2caebd8c90d40"},
-    {file = "jinja2_time-0.2.0-py2.py3-none-any.whl", hash = "sha256:d3eab6605e3ec8b7a0863df09cc1d23714908fa61aa6986a845c20ba488b4efa"},
-]
-
-[package.dependencies]
-arrow = "*"
-jinja2 = "*"
-
 [[package]]
 name = "livereload"
 version = "2.6.3"
 description = "Python LiveReload is an awesome tool for web developers"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -677,7 +627,6 @@ tornado = {version = "*", markers = "python_version > \"2.7\""}
 name = "mako"
 version = "1.2.4"
 description = "A super-fast templating language that borrows the best ideas from the existing templating languages."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -698,7 +647,6 @@ testing = ["pytest"]
 name = "markdown"
 version = "3.3.4"
 description = "Python implementation of Markdown."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -712,11 +660,35 @@ importlib-metadata = {version = "*", markers = "python_version < \"3.8\""}
 [package.extras]
 testing = ["coverage", "pyyaml"]
 
+[[package]]
+name = "markdown-it-py"
+version = "2.2.0"
+description = "Python port of markdown-it. Markdown parsing, done right!"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "markdown-it-py-2.2.0.tar.gz", hash = "sha256:7c9a5e412688bc771c67432cbfebcdd686c93ce6484913dccf06cb5a0bea35a1"},
+    {file = "markdown_it_py-2.2.0-py3-none-any.whl", hash = "sha256:5a35f8d1870171d9acc47b99612dc146129b631baf04970128b568f190d0cc30"},
+]
+
+[package.dependencies]
+mdurl = ">=0.1,<1.0"
+typing_extensions = {version = ">=3.7.4", markers = "python_version < \"3.8\""}
+
+[package.extras]
+benchmarking = ["psutil", "pytest", "pytest-benchmark"]
+code-style = ["pre-commit (>=3.0,<4.0)"]
+compare = ["commonmark (>=0.9,<1.0)", "markdown (>=3.4,<4.0)", "mistletoe (>=1.0,<2.0)", "mistune (>=2.0,<3.0)", "panflute (>=2.3,<3.0)"]
+linkify = ["linkify-it-py (>=1,<3)"]
+plugins = ["mdit-py-plugins"]
+profiling = ["gprof2dot"]
+rtd = ["attrs", "myst-parser", "pyyaml", "sphinx", "sphinx-copybutton", "sphinx-design", "sphinx_book_theme"]
+testing = ["coverage", "pytest", "pytest-cov", "pytest-regressions"]
+
 [[package]]
 name = "markupsafe"
 version = "2.1.1"
 description = "Safely add untrusted strings to HTML/XML markup."
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -766,7 +738,6 @@ files = [
 name = "matplotlib-inline"
 version = "0.1.6"
 description = "Inline Matplotlib backend for Jupyter"
-category = "dev"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -781,7 +752,6 @@ traitlets = "*"
 name = "mccabe"
 version = "0.6.1"
 description = "McCabe checker, plugin for flake8"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -789,11 +759,21 @@ files = [
     {file = "mccabe-0.6.1.tar.gz", hash = "sha256:dd8d182285a0fe56bace7f45b5e7d1a6ebcbf524e8f3bd87eb0f125271b8831f"},
 ]
 
+[[package]]
+name = "mdurl"
+version = "0.1.2"
+description = "Markdown URL utilities"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "mdurl-0.1.2-py3-none-any.whl", hash = "sha256:84008a41e51615a49fc9966191ff91509e3c40b939176e643fd50a5c2196b8f8"},
+    {file = "mdurl-0.1.2.tar.gz", hash = "sha256:bb413d29f5eea38f31dd4754dd7377d4465116fb207585f97bf925588687c1ba"},
+]
+
 [[package]]
 name = "mergedeep"
 version = "1.3.4"
 description = "A deep merge function for 🐍."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -805,7 +785,6 @@ files = [
 name = "mkdocs"
 version = "1.2.4"
 description = "Project documentation with Markdown."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -832,7 +811,6 @@ i18n = ["babel (>=2.9.0)"]
 name = "mkdocs-material"
 version = "7.3.0"
 description = "A Material Design theme for MkDocs"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -851,7 +829,6 @@ pymdown-extensions = ">=7.0"
 name = "mkdocs-material-extensions"
 version = "1.1.1"
 description = "Extension pack for Python Markdown and MkDocs Material."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -863,7 +840,6 @@ files = [
 name = "mypy"
 version = "0.991"
 description = "Optional static typing for Python"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -915,7 +891,6 @@ reports = ["lxml"]
 name = "mypy-extensions"
 version = "0.4.3"
 description = "Experimental type system extensions for programs checked with the mypy typechecker."
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -927,7 +902,6 @@ files = [
 name = "packaging"
 version = "21.3"
 description = "Core utilities for Python packages"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -942,7 +916,6 @@ pyparsing = ">=2.0.2,<3.0.5 || >3.0.5"
 name = "parso"
 version = "0.8.3"
 description = "A Python Parser"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -958,7 +931,6 @@ testing = ["docopt", "pytest (<6.0.0)"]
 name = "pathspec"
 version = "0.10.3"
 description = "Utility library for gitignore style pattern matching of file paths."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -970,7 +942,6 @@ files = [
 name = "pbr"
 version = "5.11.0"
 description = "Python Build Reasonableness"
-category = "dev"
 optional = false
 python-versions = ">=2.6"
 files = [
@@ -982,7 +953,6 @@ files = [
 name = "pdocs"
 version = "1.2.0"
 description = "A simple program and library to auto generate API documentation for Python modules."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1000,7 +970,6 @@ Markdown = ">=3.0.0"
 name = "pep8-naming"
 version = "0.13.2"
 description = "Check PEP-8 naming conventions, plugin for flake8"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1015,7 +984,6 @@ flake8 = ">=3.9.1"
 name = "pexpect"
 version = "4.8.0"
 description = "Pexpect allows easy control of interactive console applications."
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1030,7 +998,6 @@ ptyprocess = ">=0.5"
 name = "pickleshare"
 version = "0.7.5"
 description = "Tiny 'shelve'-like database with concurrency support"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1042,7 +1009,6 @@ files = [
 name = "platformdirs"
 version = "2.6.2"
 description = "A small Python package for determining appropriate platform-specific dirs, e.g. a \"user data dir\"."
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1061,7 +1027,6 @@ test = ["appdirs (==1.4.4)", "covdefaults (>=2.2.2)", "pytest (>=7.2)", "pytest-
 name = "pluggy"
 version = "1.0.0"
 description = "plugin and hook calling mechanisms for python"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1080,7 +1045,6 @@ testing = ["pytest", "pytest-benchmark"]
 name = "portray"
 version = "1.7.0"
 description = "Your Project with Great Documentation"
-category = "dev"
 optional = false
 python-versions = ">=3.6,<4.0"
 files = [
@@ -1103,7 +1067,6 @@ yaspin = ">=0.15.0,<0.16.0"
 name = "prompt-toolkit"
 version = "3.0.36"
 description = "Library for building powerful interactive command lines in Python"
-category = "dev"
 optional = false
 python-versions = ">=3.6.2"
 files = [
@@ -1118,7 +1081,6 @@ wcwidth = "*"
 name = "ptyprocess"
 version = "0.7.0"
 description = "Run a subprocess in a pseudo terminal"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1130,7 +1092,6 @@ files = [
 name = "pycodestyle"
 version = "2.8.0"
 description = "Python style guide checker"
-category = "dev"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*"
 files = [
@@ -1142,7 +1103,6 @@ files = [
 name = "pydantic"
 version = "1.10.2"
 description = "Data validation and settings management using python type hints"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1195,7 +1155,6 @@ email = ["email-validator (>=1.0.3)"]
 name = "pyflakes"
 version = "2.4.0"
 description = "passive checker of Python programs"
-category = "dev"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*"
 files = [
@@ -1207,7 +1166,6 @@ files = [
 name = "pygments"
 version = "2.13.0"
 description = "Pygments is a syntax highlighting package written in Python."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1222,7 +1180,6 @@ plugins = ["importlib-metadata"]
 name = "pymdown-extensions"
 version = "7.1"
 description = "Extension pack for Python Markdown."
-category = "dev"
 optional = false
 python-versions = ">=2.7,!=3.0.*,!=3.1.*,!=3.2.*,!=3.3.*,!=3.4.*"
 files = [
@@ -1237,7 +1194,6 @@ Markdown = ">=3.2"
 name = "pyparsing"
 version = "3.0.9"
 description = "pyparsing module - Classes and methods to define and execute parsing grammars"
-category = "dev"
 optional = false
 python-versions = ">=3.6.8"
 files = [
@@ -1252,7 +1208,6 @@ diagrams = ["jinja2", "railroad-diagrams"]
 name = "pytest"
 version = "7.2.0"
 description = "pytest: simple powerful testing with Python"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1277,7 +1232,6 @@ testing = ["argcomplete", "hypothesis (>=3.56)", "mock", "nose", "pygments (>=2.
 name = "pytest-cov"
 version = "4.0.0"
 description = "Pytest plugin for measuring coverage."
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1296,7 +1250,6 @@ testing = ["fields", "hunter", "process-tests", "pytest-xdist", "six", "virtuale
 name = "pytest-mock"
 version = "3.10.0"
 description = "Thin-wrapper around the mock package for easier use with pytest"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1314,7 +1267,6 @@ dev = ["pre-commit", "pytest-asyncio", "tox"]
 name = "pytest-repeat"
 version = "0.9.1"
 description = "pytest plugin for repeating tests"
-category = "dev"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*"
 files = [
@@ -1329,7 +1281,6 @@ pytest = ">=3.6"
 name = "pytest-xdist"
 version = "3.1.0"
 description = "pytest xdist plugin for distributed testing, most importantly across multiple CPUs"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1350,7 +1301,6 @@ testing = ["filelock"]
 name = "python-dateutil"
 version = "2.8.2"
 description = "Extensions to the standard Python datetime module"
-category = "main"
 optional = false
 python-versions = "!=3.0.*,!=3.1.*,!=3.2.*,>=2.7"
 files = [
@@ -1365,7 +1315,6 @@ six = ">=1.5"
 name = "python-slugify"
 version = "7.0.0"
 description = "A Python slugify application that also handles Unicode"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1383,7 +1332,6 @@ unidecode = ["Unidecode (>=1.1.1)"]
 name = "pyyaml"
 version = "6.0"
 description = "YAML parser and emitter for Python"
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1433,7 +1381,6 @@ files = [
 name = "pyyaml-env-tag"
 version = "0.1"
 description = "A custom YAML tag for referencing environment variables in YAML files. "
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1448,7 +1395,6 @@ pyyaml = "*"
 name = "requests"
 version = "2.27.1"
 description = "Python HTTP for Humans."
-category = "main"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*, !=3.5.*"
 files = [
@@ -1466,11 +1412,29 @@ urllib3 = ">=1.21.1,<1.27"
 socks = ["PySocks (>=1.5.6,!=1.5.7)", "win-inet-pton"]
 use-chardet-on-py3 = ["chardet (>=3.0.2,<5)"]
 
+[[package]]
+name = "rich"
+version = "13.8.1"
+description = "Render rich text, tables, progress bars, syntax highlighting, markdown and more to the terminal"
+optional = false
+python-versions = ">=3.7.0"
+files = [
+    {file = "rich-13.8.1-py3-none-any.whl", hash = "sha256:1760a3c0848469b97b558fc61c85233e3dafb69c7a071b4d60c38099d3cd4c06"},
+    {file = "rich-13.8.1.tar.gz", hash = "sha256:8260cda28e3db6bf04d2d1ef4dbc03ba80a824c88b0e7668a0f23126a424844a"},
+]
+
+[package.dependencies]
+markdown-it-py = ">=2.2.0"
+pygments = ">=2.13.0,<3.0.0"
+typing-extensions = {version = ">=4.0.0,<5.0", markers = "python_version < \"3.9\""}
+
+[package.extras]
+jupyter = ["ipywidgets (>=7.5.1,<9)"]
+
 [[package]]
 name = "ruamel-yaml"
 version = "0.17.21"
 description = "ruamel.yaml is a YAML parser/emitter that supports roundtrip preservation of comments, seq/map flow style, and map key order"
-category = "dev"
 optional = false
 python-versions = ">=3"
 files = [
@@ -1489,7 +1453,6 @@ jinja2 = ["ruamel.yaml.jinja2 (>=0.2)"]
 name = "ruamel-yaml-clib"
 version = "0.2.7"
 description = "C version of reader, parser and emitter for ruamel.yaml derived from libyaml"
-category = "dev"
 optional = false
 python-versions = ">=3.5"
 files = [
@@ -1500,8 +1463,11 @@ files = [
     {file = "ruamel.yaml.clib-0.2.7-cp310-cp310-win32.whl", hash = "sha256:763d65baa3b952479c4e972669f679fe490eee058d5aa85da483ebae2009d231"},
     {file = "ruamel.yaml.clib-0.2.7-cp310-cp310-win_amd64.whl", hash = "sha256:d000f258cf42fec2b1bbf2863c61d7b8918d31ffee905da62dede869254d3b8a"},
     {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-macosx_10_9_universal2.whl", hash = "sha256:045e0626baf1c52e5527bd5db361bc83180faaba2ff586e763d3d5982a876a9e"},
-    {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-macosx_12_6_arm64.whl", hash = "sha256:721bc4ba4525f53f6a611ec0967bdcee61b31df5a56801281027a3a6d1c2daf5"},
+    {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-macosx_13_0_arm64.whl", hash = "sha256:1a6391a7cabb7641c32517539ca42cf84b87b667bad38b78d4d42dd23e957c81"},
+    {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-manylinux2014_aarch64.whl", hash = "sha256:9c7617df90c1365638916b98cdd9be833d31d337dbcd722485597b43c4a215bf"},
     {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-manylinux_2_17_x86_64.manylinux2014_x86_64.manylinux_2_24_x86_64.whl", hash = "sha256:41d0f1fa4c6830176eef5b276af04c89320ea616655d01327d5ce65e50575c94"},
+    {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-win32.whl", hash = "sha256:f6d3d39611ac2e4f62c3128a9eed45f19a6608670c5a2f4f07f24e8de3441d38"},
+    {file = "ruamel.yaml.clib-0.2.7-cp311-cp311-win_amd64.whl", hash = "sha256:da538167284de58a52109a9b89b8f6a53ff8437dd6dc26d33b57bf6699153122"},
     {file = "ruamel.yaml.clib-0.2.7-cp36-cp36m-macosx_10_9_x86_64.whl", hash = "sha256:4b3a93bb9bc662fc1f99c5c3ea8e623d8b23ad22f861eb6fce9377ac07ad6072"},
     {file = "ruamel.yaml.clib-0.2.7-cp36-cp36m-macosx_12_0_arm64.whl", hash = "sha256:a234a20ae07e8469da311e182e70ef6b199d0fbeb6c6cc2901204dd87fb867e8"},
     {file = "ruamel.yaml.clib-0.2.7-cp36-cp36m-manylinux2014_aarch64.whl", hash = "sha256:15910ef4f3e537eea7fe45f8a5d19997479940d9196f357152a09031c5be59f3"},
@@ -1533,7 +1499,6 @@ files = [
 name = "safety"
 version = "2.3.5"
 description = "Checks installed dependencies for known vulnerabilities and licenses."
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1557,7 +1522,6 @@ gitlab = ["python-gitlab (>=1.3.0)"]
 name = "setuptools"
 version = "65.6.3"
 description = "Easily download, build, install, upgrade, and uninstall Python packages"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1574,7 +1538,6 @@ testing-integration = ["build[virtualenv]", "filelock (>=3.4.0)", "jaraco.envs (
 name = "six"
 version = "1.16.0"
 description = "Python 2 and 3 compatibility utilities"
-category = "main"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*"
 files = [
@@ -1586,7 +1549,6 @@ files = [
 name = "smmap"
 version = "5.0.0"
 description = "A pure Python implementation of a sliding window memory map manager"
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1598,7 +1560,6 @@ files = [
 name = "stevedore"
 version = "3.5.2"
 description = "Manage dynamic plugins for Python applications"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1614,7 +1575,6 @@ pbr = ">=2.0.0,<2.1.0 || >2.1.0"
 name = "text-unidecode"
 version = "1.3"
 description = "The most basic Text::Unidecode port"
-category = "main"
 optional = false
 python-versions = "*"
 files = [
@@ -1626,7 +1586,6 @@ files = [
 name = "toml"
 version = "0.10.2"
 description = "Python Library for Tom's Obvious, Minimal Language"
-category = "main"
 optional = false
 python-versions = ">=2.6, !=3.0.*, !=3.1.*, !=3.2.*"
 files = [
@@ -1638,7 +1597,6 @@ files = [
 name = "tomli"
 version = "2.0.1"
 description = "A lil' TOML parser"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1650,7 +1608,6 @@ files = [
 name = "tornado"
 version = "6.2"
 description = "Tornado is a Python web framework and asynchronous networking library, originally developed at FriendFeed."
-category = "dev"
 optional = false
 python-versions = ">= 3.7"
 files = [
@@ -1671,7 +1628,6 @@ files = [
 name = "traitlets"
 version = "5.8.0"
 description = "Traitlets Python configuration system"
-category = "dev"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1687,7 +1643,6 @@ test = ["argcomplete (>=2.0)", "pre-commit", "pytest", "pytest-mock"]
 name = "typed-ast"
 version = "1.5.4"
 description = "a fork of Python 2 and 3 ast modules with type comment support"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1721,7 +1676,6 @@ files = [
 name = "typer"
 version = "0.7.0"
 description = "Typer, build great CLIs. Easy to code. Based on Python type hints."
-category = "main"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1742,7 +1696,6 @@ test = ["black (>=22.3.0,<23.0.0)", "coverage (>=6.2,<7.0)", "isort (>=5.0.6,<6.
 name = "types-toml"
 version = "0.10.8.1"
 description = "Typing stubs for toml"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1754,7 +1707,6 @@ files = [
 name = "typing-extensions"
 version = "4.4.0"
 description = "Backported and Experimental Type Hints for Python 3.7+"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
@@ -1766,7 +1718,6 @@ files = [
 name = "urllib3"
 version = "1.26.13"
 description = "HTTP library with thread-safe connection pooling, file post, and more."
-category = "main"
 optional = false
 python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*, !=3.4.*, !=3.5.*"
 files = [
@@ -1783,7 +1734,6 @@ socks = ["PySocks (>=1.5.6,!=1.5.7,<2.0)"]
 name = "vulture"
 version = "2.6"
 description = "Find dead code"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1798,7 +1748,6 @@ toml = "*"
 name = "watchdog"
 version = "2.2.0"
 description = "Filesystem events monitoring"
-category = "dev"
 optional = false
 python-versions = ">=3.6"
 files = [
@@ -1839,7 +1788,6 @@ watchmedo = ["PyYAML (>=3.10)"]
 name = "wcwidth"
 version = "0.2.5"
 description = "Measures the displayed width of unicode strings in a terminal"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1851,7 +1799,6 @@ files = [
 name = "yaspin"
 version = "0.15.0"
 description = "Yet Another Terminal Spinner"
-category = "dev"
 optional = false
 python-versions = "*"
 files = [
@@ -1863,7 +1810,6 @@ files = [
 name = "zipp"
 version = "3.11.0"
 description = "Backport of pathlib-compatible object wrapper for zip files"
-category = "main"
 optional = false
 python-versions = ">=3.7"
 files = [
diff --git a/tests/test_api.py b/tests/test_api.py
index 5efc093..c2b6c09 100644
--- a/tests/test_api.py
+++ b/tests/test_api.py
@@ -4,6 +4,7 @@
 import sys
 from pathlib import Path
 from subprocess import run
+from unittest.mock import MagicMock
 
 import pytest
 from examples import verify_and_test_examples
@@ -24,8 +25,20 @@ def test_invalid_cookiecutter_reference(tmpdir):
         cruft.create("https://github.com/cruft/cookiecutter-test", Path(tmpdir), checkout="DNE")
 
 
-def test_no_cookiecutter_dir(tmpdir):
+def test_no_cookiecutter_dir(tmpdir, mocker):
     with pytest.raises(exceptions.UnableToFindCookiecutterTemplate):
+        mock_repo_context_manager = MagicMock()
+        mock_repo_context_manager.__enter__.return_value.head.object.hexsha = "abc123"
+        mocker.patch(
+            "cruft._commands.utils.cookiecutter.get_cookiecutter_repo",
+            return_value=mock_repo_context_manager,
+        )
+
+        mocker.patch(
+            "cruft._commands.utils.cookiecutter.generate_cookiecutter_context",
+            return_value={"cookiecutter": {}},
+        )
+
         cruft.create("https://github.com/cruft/cookiecutter-test", Path(tmpdir))
 
 
@@ -322,3 +335,30 @@ def test_diff_git_subdir(capfd, tmpdir):
     )
 
     assert cruft.update(project_dir, checkout="updated")
+
+
+def test_nested_template(mocker, tmpdir):
+    tmpdir.chdir()
+
+    test_file_directory = os.path.dirname(__file__)
+    main_dir = f"{test_file_directory}/testdata/nested-templates"
+
+    mocker.patch("cruft._commands.utils.cookiecutter.resolve_template_url", return_value="foo")
+
+    mock_temp_dir_context_manager = MagicMock()
+    mock_temp_dir_context_manager.__enter__.return_value = main_dir
+    mocker.patch(
+        "cruft._commands.create.AltTemporaryDirectory", return_value=mock_temp_dir_context_manager
+    )
+
+    mock_repo_context_manager = MagicMock()
+    mock_repo_context_manager.__enter__.return_value.head.object.hexsha = "abc123"
+    mocker.patch(
+        "cruft._commands.utils.cookiecutter.get_cookiecutter_repo",
+        return_value=mock_repo_context_manager,
+    )
+
+    cruft.create("foo", tmpdir, no_input=True)
+
+    with open(f"{tmpdir}/nested-app/.cruft.json", "r") as cruft_file:
+        assert json.load(cruft_file)["directory"] == "fake-project"
diff --git a/tests/testdata/nested-templates/cookiecutter.json b/tests/testdata/nested-templates/cookiecutter.json
new file mode 100644
index 0000000..2bb7cb9
--- /dev/null
+++ b/tests/testdata/nested-templates/cookiecutter.json
@@ -0,0 +1,9 @@
+{
+    "templates": {
+      "fake-project": {
+        "path": "./fake-project",
+        "title": "A Fake Project",
+        "description": "A cookiecutter template for a project"
+      }
+    }
+  }
\ No newline at end of file
diff --git a/tests/testdata/nested-templates/fake-project/cookiecutter.json b/tests/testdata/nested-templates/fake-project/cookiecutter.json
new file mode 100644
index 0000000..acfce9c
--- /dev/null
+++ b/tests/testdata/nested-templates/fake-project/cookiecutter.json
@@ -0,0 +1,3 @@
+{
+    "project_name": "nested-app"
+}
diff --git a/tests/testdata/nested-templates/fake-project/{{cookiecutter.project_name}}/_ b/tests/testdata/nested-templates/fake-project/{{cookiecutter.project_name}}/_
new file mode 100644
index 0000000..c9cdc63
--- /dev/null
+++ b/tests/testdata/nested-templates/fake-project/{{cookiecutter.project_name}}/_
@@ -0,0 +1 @@
+_
\ No newline at end of file