diff --git a/Changes b/Changes
index 2af47256f..3f800fb2b 100644
--- a/Changes
+++ b/Changes
@@ -19,6 +19,8 @@ The contributors that suggested a given feature are shown in []. Thanks!
 
 ****  Fix constant propagation across DPI imports of inout strings. [Victor Besyakov]
 
+****  Fix resolving inline nested interface names, bug1250. [Arjen Roodselaar]
+
 
 * Verilator 3.916 2017-11-25
 
diff --git a/src/V3Inline.cpp b/src/V3Inline.cpp
index 720123c14..5440666e9 100644
--- a/src/V3Inline.cpp
+++ b/src/V3Inline.cpp
@@ -35,6 +35,7 @@
 #include <unistd.h>
 #include <algorithm>
 #include <vector>
+#include VL_INCLUDE_UNORDERED_SET
 
 #include "V3Global.h"
 #include "V3Inline.h"
@@ -269,7 +270,7 @@ public:
 
 class InlineRelinkVisitor : public AstNVisitor {
 private:
-    typedef std::set<string> RenamedInterfacesSet;
+    typedef vl_unordered_set<string> RenamedInterfacesSet;
 
     // NODE STATE
     //  Input:
@@ -412,9 +413,19 @@ private:
 	string newname = m_cellp->name();
 	if (nodep->inlinedDots() != "") { newname += "." + nodep->inlinedDots(); }
 	nodep->inlinedDots(newname);
-	if (m_renamedInterfaces.count(nodep->dotted())) {
-	    nodep->dotted(m_cellp->name() + "__DOT__" + nodep->dotted());
-	}
+        for (string tryname = nodep->dotted(); 1;) {
+            if (m_renamedInterfaces.count(tryname)) {
+                nodep->dotted(m_cellp->name() + "__DOT__" + nodep->dotted());
+                break;
+            }
+            // If foo.bar, and foo is an interface, then need to search again for foo
+            string::size_type pos = tryname.rfind(".");
+            if (pos == string::npos || pos==0) {
+                break;
+            } else {
+                tryname = tryname.substr(0, pos);
+            }
+        }
 	nodep->iterateChildren(*this);
     }
     virtual void visit(AstNodeFTaskRef* nodep) {
diff --git a/test_regress/t/t_interface_nest.pl b/test_regress/t/t_interface_nest.pl
new file mode 100755
index 000000000..f91289753
--- /dev/null
+++ b/test_regress/t/t_interface_nest.pl
@@ -0,0 +1,18 @@
+#!/usr/bin/perl
+if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); die; }
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2003 by Wilson Snyder. This program is free software; you can
+# redistribute it and/or modify it under the terms of either the GNU
+# Lesser General Public License Version 3 or the Perl Artistic License
+# Version 2.0.
+
+compile (
+    );
+
+execute (
+    check_finished=>1,
+    );
+
+ok(1);
+1;
diff --git a/test_regress/t/t_interface_nest.v b/test_regress/t/t_interface_nest.v
new file mode 100644
index 000000000..e0eeddf6a
--- /dev/null
+++ b/test_regress/t/t_interface_nest.v
@@ -0,0 +1,74 @@
+// DESCRIPTION: Verilator: Verilog Test module
+//
+// This file ONLY is placed into the Public Domain, for any use,
+// without warranty, 2017 by ____YOUR_NAME_HERE____.
+
+interface if1;
+   integer var1;
+endinterface
+
+interface if2;
+   if1 i1 ();
+   integer var2;
+endinterface
+
+module mod1
+  (
+   input clk,
+   input integer modnum,  // Don't use parameter, want same module twice for better checking
+   if2 foo
+   );
+
+   logic l1, l2;
+
+   always_ff @(posedge clk) begin
+      if (modnum==1) begin
+         if (foo.i1.var1 != 1) $stop;
+         if (foo.var2 != 2) $stop;
+      end
+      if (modnum==2) begin
+         if (foo.i1.var1 != 1) $stop;
+         if (foo.var2 != 2) $stop;
+      end
+   end
+
+endmodule
+
+module t (/*AUTOARG*/
+   // Inputs
+   clk
+   );
+   input clk;
+
+   if2 i2a ();
+   if2 i2b ();
+
+   assign i2a.i1.var1 = 1;
+   assign i2a.var2 = 2;
+   assign i2b.i1.var1 = 3;
+   assign i2b.var2 = 4;
+
+   mod1 mod1a
+     (
+      .modnum (1),
+      .clk (clk),
+      .foo (i2a)
+      );
+
+   mod1 mod1b
+     (
+      .modnum (2),
+      .clk (clk),
+      .foo (i2a)
+      );
+
+   integer cyc = 0;
+   always_ff @(posedge clk) begin
+      cyc <= cyc+1;
+      if (cyc==2) begin
+         $write("*-* All Finished *-*\n");
+         $finish;
+      end
+   end
+
+endmodule
diff --git a/test_regress/t/t_interface_nest_noinl.pl b/test_regress/t/t_interface_nest_noinl.pl
new file mode 100755
index 000000000..1f9a9b2fe
--- /dev/null
+++ b/test_regress/t/t_interface_nest_noinl.pl
@@ -0,0 +1,21 @@
+#!/usr/bin/perl
+if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); die; }
+# DESCRIPTION: Verilator: Verilog Test driver/expect definition
+#
+# Copyright 2003-2009 by Wilson Snyder. This program is free software; you can
+# redistribute it and/or modify it under the terms of either the GNU
+# Lesser General Public License Version 3 or the Perl Artistic License
+# Version 2.0.
+
+top_filename("t/t_interface_nest.v");
+
+compile (
+    v_flags2 => ["-Oi"],
+    );
+
+execute (
+    check_finished=>1,
+    );
+
+ok(1);
+1;