diff --git a/src/codegen/sdk/python/import_resolution.py b/src/codegen/sdk/python/import_resolution.py
index a80bb2ada..62574c410 100644
--- a/src/codegen/sdk/python/import_resolution.py
+++ b/src/codegen/sdk/python/import_resolution.py
@@ -133,6 +133,11 @@ def resolve_import(self, base_path: str | None = None, *, add_module_name: str |
         if base_path == "src":
             # Try "test" next
             return self.resolve_import(base_path="test", add_module_name=add_module_name)
+        if base_path == "test" and module_source:
+            # Try to resolve assuming package nested in repo
+            possible_package_base_path = module_source.split(".")[0]
+            if possible_package_base_path not in ("test", "src"):
+                return self.resolve_import(base_path=possible_package_base_path, add_module_name=add_module_name)
 
         # if not G_override:
         #     for resolver in ctx.import_resolvers:
diff --git a/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py b/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
index 6fd9cbe7b..f7cb87bd4 100644
--- a/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
+++ b/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
@@ -368,3 +368,23 @@ def test_import_wildcard_preserves_import_resolution(tmpdir: str) -> None:
         mainfile: SourceFile = codebase.get_file("file.py")
 
         assert len(mainfile.ctx.edges) == 5
+
+
+def test_import_nested_installable_resolution(tmpdir: str) -> None:
+    """Tests that a nested installable resolves internally instead of as external"""
+    # language=python
+    content1 = """
+        TEST_CONST=5
+    """
+    content2 = """from test_pack.test import TEST_CONST
+    test=TEST_CONST"""
+    with get_codebase_session(tmpdir=tmpdir, files={"test_pack/test_pack/test.py": content1, "test1.py": content2}) as codebase:
+        file1: SourceFile = codebase.get_file("test_pack/test_pack/test.py")
+        file2: SourceFile = codebase.get_file("test1.py")
+
+        symb = file1.get_symbol("TEST_CONST")
+        test = file2.get_symbol("test")
+        test_import = file2.get_import("TEST_CONST")
+
+        assert len(symb.usages) == 2
+        assert symb.symbol_usages == [test, test_import]