diff --git a/crates/oxc_angular_compiler/src/transform/html_to_r3.rs b/crates/oxc_angular_compiler/src/transform/html_to_r3.rs
index e6d2f9042..e4796d8dd 100644
--- a/crates/oxc_angular_compiler/src/transform/html_to_r3.rs
+++ b/crates/oxc_angular_compiler/src/transform/html_to_r3.rs
@@ -1377,6 +1377,14 @@ impl<'a> HtmlToR3Transform<'a> {
                         },
                     );
                 }
+                HtmlNode::Element(element) => {
+                    // Recurse into element children to extract interpolations inside HTML
+                    // elements like `<strong>{{ expr }}</strong>` within ICU branches.
+                    // Angular's i18n_parser.ts visitElement recursively visits children,
+                    // so interpolations inside elements are correctly registered as
+                    // placeholders. Without this recursion, these interpolations are lost.
+                    self.extract_placeholders_from_nodes(&element.children, placeholders, vars);
+                }
                 _ => {}
             }
         }
diff --git a/crates/oxc_angular_compiler/tests/integration_test.rs b/crates/oxc_angular_compiler/tests/integration_test.rs
index cdd1a0cb8..5f471321b 100644
--- a/crates/oxc_angular_compiler/tests/integration_test.rs
+++ b/crates/oxc_angular_compiler/tests/integration_test.rs
@@ -4565,3 +4565,57 @@ fn test_pipe_in_binary_with_safe_nav_chain() {
         "pipeBind1 should appear exactly once. Found {pipe_count}. Output:\n{js}"
     );
 }
+
+/// Tests that interpolations inside HTML elements within nested ICU plural branches
+/// are correctly extracted as i18n expression placeholders.
+///
+/// When ICU case text contains `<strong>{{ expr }}</strong>`, the interpolation is
+/// inside an HTML element node. `extract_placeholders_from_nodes` must recurse into
+/// element children to find these interpolations. Without this, they are silently
+/// dropped, leading to fewer i18nExp calls than expected.
+///
+/// This reproduces the undo-toast-items.component.ts mismatch where Angular emits 8
+/// i18nExp args but OXC only emitted 5 due to missing interpolations inside `<strong>`.
+#[test]
+fn test_i18n_nested_icu_with_interpolations_inside_elements() {
+    let js = compile_template_to_js(
+        r#"<span i18n>{count, plural, =1 {<strong>{{ name }}</strong> was deleted from {nestedCount, plural, =1 {<strong>{{ category }}</strong>} other {<strong>{{ category }}</strong> and {{ extra }} more}}} other {{{ count }} items deleted}}</span>"#,
+        "TestComponent",
+    );
+
+    eprintln!("OUTPUT:\n{js}");
+
+    // All interpolation expressions must appear in the i18nExp chain.
+    // The expressions inside <strong> elements MUST be extracted:
+    //   - name (inside <strong> in outer =1 branch)
+    //   - category (inside <strong> in nested =1 branch)
+    //   - category (inside <strong> in nested other branch)
+    //   - extra (plain text in nested other branch)
+    //   - count (plain text in outer other branch)
+    // Plus the ICU switch variables:
+    //   - count (outer plural VAR)
+    //   - nestedCount (inner plural VAR)
+
+    // Check that the expressions inside <strong> elements are present
+    assert!(
+        js.contains("ctx.name"),
+        "ctx.name (inside <strong> in ICU) must be in i18nExp chain. Output:\n{js}"
+    );
+    assert!(
+        js.contains("ctx.category"),
+        "ctx.category (inside <strong> in nested ICU) must be in i18nExp chain. Output:\n{js}"
+    );
+
+    // Count the total number of i18nExp arguments.
+    // There should be 7 expressions total:
+    //   VAR: extra (innermost ICU), nestedCount (middle), count (outer) = 3 ICU vars
+    //   INTERPOLATION: name, category, category, extra, count = varies
+    // The exact count depends on deduplication, but name and category must be present.
+    let i18n_exp_count = js.matches("i18nExp(").count();
+    assert!(
+        i18n_exp_count >= 1,
+        "Should have at least one i18nExp call. Found {i18n_exp_count}. Output:\n{js}"
+    );
+
+    insta::assert_snapshot!("i18n_nested_icu_with_interpolations_inside_elements", js);
+}
diff --git a/crates/oxc_angular_compiler/tests/snapshots/integration_test__i18n_nested_icu_with_interpolations_inside_elements.snap b/crates/oxc_angular_compiler/tests/snapshots/integration_test__i18n_nested_icu_with_interpolations_inside_elements.snap
new file mode 100644
index 000000000..4521efca7
--- /dev/null
+++ b/crates/oxc_angular_compiler/tests/snapshots/integration_test__i18n_nested_icu_with_interpolations_inside_elements.snap
@@ -0,0 +1,16 @@
+---
+source: crates/oxc_angular_compiler/tests/integration_test.rs
+expression: js
+---
+function TestComponent_Template(rf,ctx) {
+  if ((rf & 1)) {
+    i0.ɵɵelementStart(0,"span");
+    i0.ɵɵi18n(1,0);
+    i0.ɵɵelementEnd();
+  }
+  if ((rf & 2)) {
+    i0.ɵɵadvance();
+    i0.ɵɵi18nExp(ctx.nestedCount)(ctx.count)(ctx.name)(ctx.category)(ctx.extra)(ctx.count);
+    i0.ɵɵi18nApply(1);
+  }
+}