diff --git a/e2e/playwright/point-click-assemblies.spec.ts b/e2e/playwright/point-click-assemblies.spec.ts
index 0746cc110..b0e16958d 100644
--- a/e2e/playwright/point-click-assemblies.spec.ts
+++ b/e2e/playwright/point-click-assemblies.spec.ts
@@ -70,22 +70,28 @@ test.describe('Point-and-click assemblies tests', () => {
       await test.step('Setup parts and expect empty assembly scene', async () => {
         const projectName = 'assembly'
         await context.folderSetupFn(async (dir) => {
-          const bracketDir = path.join(dir, projectName)
-          await fsp.mkdir(bracketDir, { recursive: true })
+          const projDir = path.join(dir, projectName)
+          const nestedProjDir = path.join(dir, projectName, 'nested', 'twice')
+          await fsp.mkdir(projDir, { recursive: true })
+          await fsp.mkdir(nestedProjDir, { recursive: true })
           await Promise.all([
             fsp.copyFile(
               executorInputPath('cylinder.kcl'),
-              path.join(bracketDir, 'cylinder.kcl')
+              path.join(projDir, 'cylinder.kcl')
+            ),
+            fsp.copyFile(
+              executorInputPath('cylinder.kcl'),
+              path.join(nestedProjDir, 'main.kcl')
             ),
             fsp.copyFile(
               executorInputPath('e2e-can-sketch-on-chamfer.kcl'),
-              path.join(bracketDir, 'bracket.kcl')
+              path.join(projDir, 'bracket.kcl')
             ),
             fsp.copyFile(
               testsInputPath('cube.step'),
-              path.join(bracketDir, 'cube.step')
+              path.join(projDir, 'cube.step')
             ),
-            fsp.writeFile(path.join(bracketDir, 'main.kcl'), ''),
+            fsp.writeFile(path.join(projDir, 'main.kcl'), ''),
           ])
         })
         await page.setBodyDimensions({ width: 1000, height: 500 })
@@ -167,6 +173,25 @@ test.describe('Point-and-click assemblies tests', () => {
         await expect(
           page.getByText('This file is already imported')
         ).toBeVisible()
+        await cmdBar.closeCmdBar()
+      })
+
+      await test.step('Insert a nested kcl part', async () => {
+        await insertPartIntoAssembly(
+          'nested/twice/main.kcl',
+          'main',
+          toolbar,
+          cmdBar,
+          page
+        )
+        await toolbar.openPane('code')
+        await page.waitForTimeout(10000)
+        await editor.expectEditor.toContain(
+          `
+          import "nested/twice/main.kcl" as main 
+          `,
+          { shouldNormalise: true }
+        )
       })
     }
   )
diff --git a/src/components/FileMachineProvider.tsx b/src/components/FileMachineProvider.tsx
index d9c2be2f4..63a3e6252 100644
--- a/src/components/FileMachineProvider.tsx
+++ b/src/components/FileMachineProvider.tsx
@@ -441,39 +441,46 @@ export const FileMachineProvider = ({
   )
   useMenuListener(cb)
 
-  const kclCommandMemo = useMemo(
-    () =>
-      kclCommands({
-        authToken: token ?? '',
-        projectData,
-        settings: {
-          defaultUnit:
-            settings.modeling.defaultUnit.current ??
-            DEFAULT_DEFAULT_LENGTH_UNIT,
-        },
-        specialPropsForInsertCommand: {
-          providedOptions: (isDesktop() && project?.children
-            ? project.children
-            : []
-          ).flatMap((v) => {
-            // TODO: add support for full tree traversal when KCL support subdir imports
-            const relativeFilePath = v.path.replace(
-              project?.path + window.electron.sep,
-              ''
-            )
-            const isDirectory = v.children
-            const isCurrentFile = v.path === file?.path
-            return isDirectory || isCurrentFile
-              ? []
-              : {
-                  name: relativeFilePath,
-                  value: relativeFilePath,
-                }
-          }),
-        },
-      }),
-    [codeManager, kclManager, send, project, file]
-  )
+  const kclCommandMemo = useMemo(() => {
+    const providedOptions = []
+    if (isDesktop() && project?.children && file?.path) {
+      const projectPath = project.path
+      const filePath = file.path
+      let children = project.children
+      while (children.length > 0) {
+        const v = children.pop()
+        if (!v) {
+          continue
+        }
+
+        if (v.children) {
+          children.push(...v.children)
+          continue
+        }
+
+        const relativeFilePath = v.path.replace(
+          projectPath + window.electron.sep,
+          ''
+        )
+        const isCurrentFile = v.path === filePath
+        if (!isCurrentFile) {
+          providedOptions.push({
+            name: relativeFilePath.replaceAll(window.electron.sep, '/'),
+            value: relativeFilePath.replaceAll(window.electron.sep, '/'),
+          })
+        }
+      }
+    }
+    return kclCommands({
+      authToken: token ?? '',
+      projectData,
+      settings: {
+        defaultUnit:
+          settings.modeling.defaultUnit.current ?? DEFAULT_DEFAULT_LENGTH_UNIT,
+      },
+      specialPropsForInsertCommand: { providedOptions },
+    })
+  }, [codeManager, kclManager, send, project, file])
 
   useEffect(() => {
     commandBarActor.send({