diff --git a/src/Convert/Package.hs b/src/Convert/Package.hs
index dde27e2..5b29005 100644
--- a/src/Convert/Package.hs
+++ b/src/Convert/Package.hs
@@ -304,7 +304,8 @@ processItems topName packageName moduleItems = do
         traverseTypeM :: Type -> Scope Type
         traverseTypeM (CSAlias p b x rs) = do
             scopeKeys <- bindingsScopeKeys b
-            x' <- lift $ resolveCSIdent p b scopeKeys x
+            b' <- mapM traverseParamBindingM b
+            x' <- lift $ resolveCSIdent p b' scopeKeys x
             return $ Alias x' rs
         traverseTypeM (PSAlias p x rs) = do
             x' <- resolvePSIdent' p x
@@ -321,7 +322,8 @@ processItems topName packageName moduleItems = do
         traverseExprM :: Expr -> Scope Expr
         traverseExprM (CSIdent p b x) = do
             scopeKeys <- bindingsScopeKeys b
-            x' <- lift $ resolveCSIdent p b scopeKeys x
+            b' <- mapM traverseParamBindingM b
+            x' <- lift $ resolveCSIdent p b' scopeKeys x
             return $ Ident x'
         traverseExprM (PSIdent p x) = do
             x' <- resolvePSIdent' p x
@@ -347,6 +349,12 @@ processItems topName packageName moduleItems = do
             traverseStmtExprsM traverseExprM >=>
             traverseStmtLHSsM  traverseLHSM
 
+        traverseParamBindingM :: ParamBinding -> Scope ParamBinding
+        traverseParamBindingM (x, Left t) =
+            traverseTypeM t >>= return . (x, ) . Left
+        traverseParamBindingM (x, Right e) =
+            traverseExprM e >>= return . (x, ) . Right
+
         -- wrapper allowing explicit reference to local package items
         resolvePSIdent' :: Identifier -> Identifier -> Scope Identifier
         resolvePSIdent' p x = do
@@ -481,7 +489,6 @@ resolveCSIdent className paramBindings scopeKeys itemName = do
             Decl $ Param Parameter t x $
                 case lookup x' bindings of
                     Just (Right e') -> e'
-                    Just (Left (Alias y [])) -> Ident y
                     Just (Left t') ->
                         error $ "cannot override parameter " ++ show x'
                             ++ " in class " ++ show className
@@ -497,7 +504,7 @@ resolveCSIdent className paramBindings scopeKeys itemName = do
             Decl $ ParamType Parameter x $
                 case lookup x' bindings of
                     Just (Left t') -> t'
-                    Just (Right (Ident t')) -> Alias t' []
+                    Just (Right (Ident y)) -> Alias y []
                     Just (Right e') ->
                         error $ "cannot override type parameter " ++ show x'
                             ++ " in class " ++ show className
diff --git a/test/basic/class_param_nest.sv b/test/basic/class_param_nest.sv
new file mode 100644
index 0000000..6c10aae
--- /dev/null
+++ b/test/basic/class_param_nest.sv
@@ -0,0 +1,24 @@
+class C #(
+    parameter X = 1
+);
+    localparam Y = X * 2;
+endclass
+
+package P;
+    localparam W = 5;
+endpackage
+
+`define DUMP(expr) $display(`"expr = %0d`", expr);
+`define DUMP_BOTH(prefix) `DUMP(prefix::X) `DUMP(prefix::Y)
+
+module top;
+    localparam Z = 3;
+    initial begin
+        `DUMP(Z)
+        `DUMP(P::W)
+        `DUMP_BOTH(C#())
+        `DUMP_BOTH(C#(Z))
+        `DUMP_BOTH(C#(P::W))
+        `DUMP_BOTH(C#(C#(Z)::Y))
+    end
+endmodule
diff --git a/test/basic/class_param_nest.v b/test/basic/class_param_nest.v
new file mode 100644
index 0000000..1b28125
--- /dev/null
+++ b/test/basic/class_param_nest.v
@@ -0,0 +1,14 @@
+`define DUMP(expr, value) $display(`"expr = %0d`", value);
+`define DUMP_BOTH(prefix, value) `DUMP(prefix::X, value) `DUMP(prefix::Y, (value) * 2)
+
+module top;
+    localparam Z = 3;
+    initial begin
+        `DUMP(Z, Z)
+        `DUMP(P::W, 5)
+        `DUMP_BOTH(C#(), 1)
+        `DUMP_BOTH(C#(Z), Z)
+        `DUMP_BOTH(C#(P::W), 5)
+        `DUMP_BOTH(C#(C#(Z)::Y), Z * 2)
+    end
+endmodule