diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index 5c50865e3..eecd87f9b 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 – `Fix` – Fix the display of ‘Convert To’ near blocks that do not have the ‘conversionConfig.export’ rule specified
 – `Fix` – The Plus button does not appear when the editor is loaded in an iframe in Chrome
+- `Fix` - Prevent inline toolbar from closing in nested instance of editor
 
 ### 2.30.5
 
diff --git a/src/components/modules/ui.ts b/src/components/modules/ui.ts
index f9c3cbef6..6bbcdb8ce 100644
--- a/src/components/modules/ui.ts
+++ b/src/components/modules/ui.ts
@@ -847,9 +847,11 @@ export default class UI extends Module<UINodes> {
 
     /**
      * Event can be fired on clicks at non-block-content elements,
-     * for example, at the Inline Toolbar or some Block Tune element
+     * for example, at the Inline Toolbar or some Block Tune element.
+     * We also make sure that the closest block belongs to the current editor and not a parent
      */
-    const clickedOutsideBlockContent = focusedElement.closest(`.${Block.CSS.content}`) === null;
+    const closestBlock = focusedElement.closest(`.${Block.CSS.content}`);
+    const clickedOutsideBlockContent = closestBlock === null || (closestBlock.closest(`.${Selection.CSS.editorWrapper}`) !== this.nodes.wrapper);
 
     if (clickedOutsideBlockContent) {
       /**
diff --git a/test/cypress/support/utils/nestedEditorInstance.ts b/test/cypress/support/utils/nestedEditorInstance.ts
new file mode 100644
index 000000000..f335cbcee
--- /dev/null
+++ b/test/cypress/support/utils/nestedEditorInstance.ts
@@ -0,0 +1,31 @@
+import type { BlockTool, BlockToolConstructorOptions } from '../../../../types';
+import { createEditorWithTextBlocks } from './createEditorWithTextBlocks';
+
+export const NESTED_EDITOR_ID = 'nested-editor';
+
+/**
+ * Creates nested Editor instance with paragraph block
+ */
+export default class NestedEditor implements BlockTool {
+  private data: { text: string };
+
+  constructor(value: BlockToolConstructorOptions) {
+    this.data = value.data;
+  }
+
+  public render(): HTMLDivElement {
+    const editorEl = Object.assign(document.createElement('div'), {
+      id: NESTED_EDITOR_ID,
+    });
+
+    editorEl.setAttribute('data-cy', NESTED_EDITOR_ID);
+
+    createEditorWithTextBlocks([ this.data.text ], { holder: NESTED_EDITOR_ID });
+
+    return editorEl;
+  }
+
+  public save(): string {
+    return this.data.text;
+  }
+}
diff --git a/test/cypress/tests/modules/InlineToolbar.cy.ts b/test/cypress/tests/modules/InlineToolbar.cy.ts
index bc8990bda..ebdb71d67 100644
--- a/test/cypress/tests/modules/InlineToolbar.cy.ts
+++ b/test/cypress/tests/modules/InlineToolbar.cy.ts
@@ -1,4 +1,5 @@
 import Header from '@editorjs/header';
+import NestedEditor, { NESTED_EDITOR_ID } from '../../support/utils/nestedEditorInstance';
 
 describe('Inline Toolbar', () => {
   it('should appear aligned with left coord of selection rect', () => {
@@ -164,4 +165,56 @@ describe('Inline Toolbar', () => {
         });
     });
   });
+
+  describe('Nested Editor instance inline toolbar', () => {
+    it('should not close inline toolbar of the nested Editor instance when clicking within that toolbar', () => {
+      cy.createEditor({
+        tools: {
+          nestedEditor: {
+            class: NestedEditor,
+          },
+        },
+        data: {
+          blocks: [
+            {
+              type: 'paragraph',
+              data: {
+                text: 'Lorem ipsum dolor sit amet, consectetur adipiscing elit.',
+              },
+            },
+            {
+              type: 'nestedEditor',
+              data: {
+                text: 'Nunc pellentesque, tortor nec luctus venenatis',
+              },
+            },
+          ],
+        },
+      });
+
+      cy.get(`[data-cy=${NESTED_EDITOR_ID}]`)
+        .find('.ce-paragraph')
+        .selectText('tortor nec luctus');
+
+      cy.get(`[data-cy=${NESTED_EDITOR_ID}]`)
+        .find('[data-item-name=link]')
+        .click();
+
+      // `wait()` function below is required. without it the test will always pass
+      // because cypress types the text in the field without delay, while we need some delay (just like user)
+      // to test the actual case that nested editor inline toolbar is still visible and not closed
+
+      cy.get(`[data-cy=${NESTED_EDITOR_ID}]`)
+        .find('.ce-inline-tool-input')
+        .click()
+        .wait(100)
+        .type('https://editorjs.io');
+
+      cy.get(`[data-cy=${NESTED_EDITOR_ID}]`)
+        .find('.ce-popover__container')
+        .then(($toolbar) => {
+          expect($toolbar).to.be.visible;
+        });
+    });
+  });
 });