diff --git a/kyo-kernel/shared/src/main/scala/kyo/kernel/ArrowEffect.scala b/kyo-kernel/shared/src/main/scala/kyo/kernel/ArrowEffect.scala
index f2894068c..d6ac17158 100644
--- a/kyo-kernel/shared/src/main/scala/kyo/kernel/ArrowEffect.scala
+++ b/kyo-kernel/shared/src/main/scala/kyo/kernel/ArrowEffect.scala
@@ -442,7 +442,7 @@ object ArrowEffect:
                                     handleLoopLoop(Loop.continue(kyo(v, context)), context)
                             end new
                         case kyo =>
-                            kyo.asInstanceOf[A]
+                            kyo.unsafeGet
                 case _ =>
                     v.asInstanceOf[A < (S & S2)]
         end handleLoopLoop
@@ -536,7 +536,7 @@ object ArrowEffect:
                                     handleLoopLoop(Loop.continue(state, kyo(v, context)), context)
                             end new
                         case kyo =>
-                            done(state, kyo.asInstanceOf[A])
+                            done(state, kyo.unsafeGet)
                     end match
                 case _ =>
                     v.asInstanceOf[B < (S & S2)] // Loop.done
diff --git a/kyo-kernel/shared/src/test/scala/kyo/kernel/ArrowEffectTest.scala b/kyo-kernel/shared/src/test/scala/kyo/kernel/ArrowEffectTest.scala
index 9900b3c38..98b39867d 100644
--- a/kyo-kernel/shared/src/test/scala/kyo/kernel/ArrowEffectTest.scala
+++ b/kyo-kernel/shared/src/test/scala/kyo/kernel/ArrowEffectTest.scala
@@ -337,6 +337,171 @@ class ArrowEffectTest extends Test:
         }
     }
 
+    "nested effects handling" - {
+
+        given [A, B]: CanEqual[A, B] = CanEqual.derived
+
+        sealed trait NestedTestEffect extends ArrowEffect[Const[Int], Const[Int]]
+
+        def suspendNested(i: Int): Int < NestedTestEffect =
+            ArrowEffect.suspend[Any](Tag[NestedTestEffect], i)
+
+        val nestedTag: Tag[NestedTestEffect] = Tag[NestedTestEffect]
+
+        def flatten[A, B, C](v: A < B < C): A < (B & C) = v.map(a => a)
+
+        "not handle Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < S =
+                ArrowEffect.handle(nestedTag, v):
+                    [C] => (input, cont) => cont(input * 10)
+
+            "unwraps Nested and returns inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+                val result: Int < NestedTestEffect < Any = handle(nested)
+
+                assert(result == nested, "handleSimple should return the nested computation")
+
+                val flattened   = flatten(result)
+                val finalResult = handle(flattened)
+
+                assert(finalResult.eval == 50)
+            }
+        }
+
+        "handleFirst on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < (S & NestedTestEffect) =
+                ArrowEffect.handleFirst(nestedTag, v)(
+                    [C] => (input, cont) => cont(input * 10),
+                    identity
+                )
+
+            "done callback receives unwrapped value" in {
+                val comp                                 = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+
+                assert(result == nested, "handleFirst should return the nested computation")
+
+                val flattened                           = flatten(result)
+                val finalResult: Int < NestedTestEffect = handle(flattened)
+                assert(finalResult.evalNow == Maybe(50))
+            }
+        }
+
+        "handleLoop (stateless) on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < S =
+                ArrowEffect.handleLoop(Tag[NestedTestEffect], v):
+                    [C] => (input, cont) => Loop.continue(cont(input * 10))
+
+            "unwraps Nested and handles inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+                assert(result == nested, "handleLoop should return the nested computation")
+
+                val flattened              = flatten(result)
+                val finalResult: Int < Any = handle(flattened)
+
+                assert(finalResult.eval == 50)
+            }
+        }
+
+        "handleLoop (stateful) on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < S =
+                ArrowEffect.handleLoop(nestedTag, 0, v)(
+                    [C] => (input, state, cont) => Loop.continue(state + 1, cont((input + state) * 10))
+                )
+
+            "unwraps Nested and handles inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+                assert(result == nested, "handleLoop should return the nested computation")
+
+                val flattened              = flatten(result)
+                val finalResult: Int < Any = handle(flattened)
+
+                assert(finalResult.eval == 50)
+            }
+
+        }
+
+        "handleLoop (stateful + done) on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < S =
+                ArrowEffect.handleLoop(nestedTag, 0, v)(
+                    [C] => (input, state, cont) => Loop.continue(state + 1, cont(input * 10)),
+                    (state, v) => v
+                )
+
+            "unwraps Nested and handles inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+                assert(result == nested, "handleLoop should return the nested computation")
+
+                val flattened              = flatten(result)
+                val finalResult: Int < Any = handle(flattened)
+
+                assert(finalResult.eval == 50)
+            }
+        }
+
+        "handleCatching on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < S =
+                ArrowEffect.handleCatching(nestedTag, v)(
+                    [C] => (input, cont) => cont(input * 10),
+                    recover = e => throw e
+                )
+
+            "unwraps Nested and handles inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+                assert(result == nested, "handleLoop should return the nested computation")
+
+                val flattened              = flatten(result)
+                val finalResult: Int < Any = handle(flattened)
+
+                assert(finalResult.eval == 50)
+            }
+        }
+
+        "handlePartial on Nested" - {
+
+            def handle[A, S](v: A < (S & NestedTestEffect)): A < (S & NestedTestEffect) =
+                ArrowEffect.handlePartial(nestedTag, nestedTag, v, Context.empty)(
+                    stop =
+                        false,
+                    [C] => (input, cont) => cont(input * 10),
+                    [C] => (input, cont) => cont(input * 10)
+                )
+
+            "unwraps Nested and handles inner suspension" in {
+                val comp: Int < NestedTestEffect         = suspendNested(5)
+                val nested: Int < NestedTestEffect < Any = Nested(comp)
+
+                val result = handle(nested)
+                assert(result == nested, "handlePartial should return the nested computation")
+
+                val flattened   = flatten(result)
+                val finalResult = handle(flattened)
+                assert(finalResult.evalNow == Maybe(50))
+            }
+        }
+    }
+
     "effects with variance" - {
 
         "delimited continuation" - {