diff --git a/blackbox-test/src/test/java/org/example/customer/PrettyNestedTest.java b/blackbox-test/src/test/java/org/example/customer/PrettyNestedTest.java
new file mode 100644
index 00000000..43c772b6
--- /dev/null
+++ b/blackbox-test/src/test/java/org/example/customer/PrettyNestedTest.java
@@ -0,0 +1,53 @@
+package org.example.customer;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+import java.time.Instant;
+import java.util.List;
+
+import org.junit.jupiter.api.Test;
+
+import io.avaje.jsonb.Json;
+import io.avaje.jsonb.Jsonb;
+
+public class PrettyNestedTest {
+  @Json
+  public record DataContainer(String id, Instant createdAt, List<App> apps) {
+    public record App(
+        String id, Instant createdAt, Instant updatedAt, String name, List<String> roles) {}
+  }
+
+  @Test
+  void testNested() {
+    final String pretty =
+        """
+  	{
+  	  "id": "f11177d2-ec63-3995-bb4a-c628e0d782df",
+  	  "createdAt": "1970-01-01T00:00:01Z",
+  	  "apps": [
+  	    {
+  	      "id": "ea4959eb-64a1-309b-a580-d950964f3843",
+  	      "createdAt": "1970-01-01T00:00:01Z",
+  	      "updatedAt": "1970-01-01T00:00:01Z",
+  	      "name": "Name",
+  	      "roles": [
+  	        "admin"
+  	      ]
+  	    },
+  	    {
+  	      "id": "ea4959eb-64a1-309b-a580-d950964f3843",
+  	      "createdAt": "1970-01-01T00:00:01Z",
+  	      "updatedAt": "1970-01-01T00:00:01Z",
+  	      "name": "Name",
+  	      "roles": [
+  	        "admin"
+  	      ]
+  	    }
+  	  ]
+  	}""";
+
+    var type = Jsonb.instance().type(DataContainer.class);
+   String jsonPretty = type.toJsonPretty(type.fromJson(pretty));
+   assertThat(jsonPretty).isEqualTo(pretty);
+  }
+}
diff --git a/json-core/src/main/java/io/avaje/json/stream/core/JGenerator.java b/json-core/src/main/java/io/avaje/json/stream/core/JGenerator.java
index cda69a7b..0fa9fb09 100644
--- a/json-core/src/main/java/io/avaje/json/stream/core/JGenerator.java
+++ b/json-core/src/main/java/io/avaje/json/stream/core/JGenerator.java
@@ -64,6 +64,8 @@ class JGenerator implements JsonGenerator {
   private int position;
   private boolean pretty;
   private int depth;
+  private int arrayDepth;
+  private int objectDepth;
   private final Deque<JsonNames> nameStack = new ArrayDeque<>();
   private JsonNames currentNames;
   private boolean allNames;
@@ -484,7 +486,7 @@ private void prefixValue() {
     if (lastOp == OP_END) {
       writeByte(COMMA);
     }
-    if (pretty && (depth > 1)) {
+    if (pretty && depth > 1 && objectDepth <= arrayDepth) {
       prettyIndent();
     }
     lastOp = OP_END;
@@ -496,12 +498,16 @@ public void pretty(boolean pretty) {
   }
 
   private void writeStartObject() {
-    if (pretty) {
-      depth++;
-    }
     if (lastOp == OP_END) {
       writeByte(COMMA);
     }
+    if (pretty) {
+      if (arrayDepth > 0 && arrayDepth >= objectDepth) {
+        prettyIndent();
+      }
+      depth++;
+      objectDepth++;
+    }
     writeByte(OBJECT_START);
     lastOp = OP_START;
   }
@@ -531,6 +537,7 @@ public void endObject() {
     }
     if (pretty) {
       depth--;
+      objectDepth--;
       prettyIndent();
     }
     writeByte(OBJECT_END);
@@ -543,6 +550,7 @@ public void startArray() {
     lastOp = OP_START;
     if (pretty) {
       depth++;
+      arrayDepth++;
     }
   }
 
@@ -550,6 +558,7 @@ public void startArray() {
   public void endArray() {
     if (pretty) {
       depth--;
+      arrayDepth--;
       prettyIndent();
     }
     writeByte(ARRAY_END);
diff --git a/jsonb-generator/pom.xml b/jsonb-generator/pom.xml
index a2b74234..66053b8f 100644
--- a/jsonb-generator/pom.xml
+++ b/jsonb-generator/pom.xml
@@ -11,7 +11,7 @@
   <name>avaje jsonb generator</name>
   <description>annotation processor generating source code json adapters for avaje-jsonb</description>
   <properties>
-    <avaje.prisms.version>1.43</avaje.prisms.version>
+    <avaje.prisms.version>1.44-RC3</avaje.prisms.version>
   </properties>
 
   <licenses>