diff --git a/changelog/fix_format_string_token_nested_ignored_methods.md b/changelog/fix_format_string_token_nested_ignored_methods.md
new file mode 100644
index 000000000000..f0a041b02378
--- /dev/null
+++ b/changelog/fix_format_string_token_nested_ignored_methods.md
@@ -0,0 +1 @@
+* [#10203](https://github.com/rubocop/rubocop/issues/10203): Fix `Style/FormatStringToken` to respect `IgnoredMethods` with nested structures. ([@tejasbubane][])
diff --git a/lib/rubocop/cop/style/format_string_token.rb b/lib/rubocop/cop/style/format_string_token.rb
index 1d1fce891794..5d2256ed6443 100644
--- a/lib/rubocop/cop/style/format_string_token.rb
+++ b/lib/rubocop/cop/style/format_string_token.rb
@@ -102,7 +102,8 @@ def format_string_token?(node)
         end
 
         def use_ignored_method?(node)
-          (parent = node.parent) && parent.send_type? && ignored_method?(parent.method_name)
+          send_parent = node.each_ancestor(:send).first
+          send_parent && ignored_method?(send_parent.method_name)
         end
 
         def unannotated_format?(node, detected_style)
diff --git a/spec/rubocop/cop/style/format_string_token_spec.rb b/spec/rubocop/cop/style/format_string_token_spec.rb
index 99ce2c7ffa1e..2e1fe1d036a5 100644
--- a/spec/rubocop/cop/style/format_string_token_spec.rb
+++ b/spec/rubocop/cop/style/format_string_token_spec.rb
@@ -261,6 +261,19 @@
           redirect("%{foo}")
         RUBY
       end
+
+      it 'does not register an offense for value in nested structure' do
+        expect_no_offenses(<<~RUBY)
+          redirect("%{foo}", bye: "%{foo}")
+        RUBY
+      end
+
+      it 'registers an offense for different method call within ignored method' do
+        expect_offense(<<~RUBY)
+          redirect("%{foo}", bye: foo("%{foo}"))
+                                       ^^^^^^ Prefer annotated tokens (like `%<foo>s`) over template tokens (like `%{foo}`).
+        RUBY
+      end
     end
 
     context 'when `IgnoredMethods: []`' do