diff --git a/CHANGES.md b/CHANGES.md
index 2c69a9daae0..1829e4a1257 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -7,6 +7,7 @@ Fixed Issues:
 
 * [#11983](http://dev.ckeditor.com/ticket/11983): Fixed: Clicking a nested widget does not focus it. Additionally, performance of the [`widget.repository.getByElement()`](http://docs.ckeditor.com/#!/api/CKEDITOR.plugins.widget.repository-method-getByElement) method has been improved.
 * [#12000](http://dev.ckeditor.com/ticket/12000): Fixed: Nested widgets should be initialized on [`editor.setData()`](http://docs.ckeditor.com/#!/api/CKEDITOR.editor-method-setData) and [`nestedEditable.setData()`](http://docs.ckeditor.com/#!/api/CKEDITOR.plugins.widget.nestedEditable-method-setData).
+* [#12022](http://dev.ckeditor.com/ticket/12022): Fixed: Outer widget's drag handler is not created at all if it has any nested widgets inside.
 * [#11960](http://dev.ckeditor.com/ticket/11960): [Blink/Webkit] Fixed: The caret should be scrolled into view on *Backspace* and *Delete* (covers only the merging blocks case).
 * [#11306](http://dev.ckeditor.com/ticket/11306): [OSX][Blink/Webkit] Fixed: No widget's entries in context menu on widget right-click.
 * [#11957](http://dev.ckeditor.com/ticket/11957): Fixed: Alignment labels in the [Enhanced Image](http://ckeditor.com/addon/image2) dialog are not translated.
diff --git a/plugins/widget/plugin.js b/plugins/widget/plugin.js
index 139184042db..76a8430fab2 100644
--- a/plugins/widget/plugin.js
+++ b/plugins/widget/plugin.js
@@ -2017,6 +2017,11 @@
 		return element.type == CKEDITOR.NODE_ELEMENT && element.hasAttribute( 'data-cke-widget-drag-handler' );
 	}
 
+	// @param {CKEDITOR.dom.element}
+	function isDomDragHandlerContainer( element ) {
+		return element.type == CKEDITOR.NODE_ELEMENT && element.hasClass( 'cke_widget_drag_handler_container' );
+	}
+
 	function finalizeNativeDrop( editor, sourceWidget, range ) {
 		// Save the snapshot with the state before moving widget.
 		// Focus widget, so when we'll undo the DnD, widget will be focused.
@@ -2852,7 +2857,8 @@
 			return;
 
 		var editor = widget.editor,
-			container = widget.wrapper.findOne( '.cke_widget_drag_handler_container' ),
+			// Use getLast to find wrapper's direct descendant (#12022).
+			container = widget.wrapper.getLast( isDomDragHandlerContainer ),
 			img;
 
 		// Reuse drag handler if already exists (#11281).