diff --git a/src/V3PreProc.cpp b/src/V3PreProc.cpp
index 342797a72..0395a61f6 100644
--- a/src/V3PreProc.cpp
+++ b/src/V3PreProc.cpp
@@ -1425,7 +1425,8 @@ int V3PreProcImp::getStateToken() {
                     else if (stateIsDefname()) {
                         unputDefrefString("__IF_OFF_IGNORED_DEFINE");
                     }
-                    m_lexp->m_parenLevel = 0;
+                    // Stringification may still be inside another macro's argument list.
+                    m_lexp->m_parenLevel = m_defRefs.empty() ? 0 : m_defRefs.top().parenLevel();
                 } else {  // Finished a defref inside a upper defref,
                           // and not under stringification or join.
                     // Can't subst now, or
diff --git a/test_regress/t/t_preproc_strify_join.out b/test_regress/t/t_preproc_strify_join.out
index b80acd35b..99f4c2702 100644
--- a/test_regress/t/t_preproc_strify_join.out
+++ b/test_regress/t/t_preproc_strify_join.out
@@ -1,3 +1,9 @@
 "foo-bar-qux"
 ""foo-bar-qux""
 ""
+begin if (!((a_size) <= 2)) ; else begin msg = {"id", " ", $sformatf("Check failed (%s) %s", "!((a_size) <= 2)", "")}; end end
+begin if (!((a_size) <= 2)) ; else begin msg = {"id", " ", $sformatf("Check failed (%s) %s", "!((a_size) <= 2)", "")}; end end
+begin if (!((a_size) <= 2)) ; else begin msg = {"tag", " ", $sformatf("Check failed (%s) %s", "!((a_size) <= 2)", "message, )")}; end end
+begin if (!((a_size) <= 2)) ; else begin msg = {"tag", " ", $sformatf("Check failed (%s) %s", "!((a_size) <= 2)", "nested")}; end end
+begin if (!((a_size) <= 2) && !((other_size) <= 2)) ; else begin msg = {"tag", " ", $sformatf("Check failed (%s) %s", "!((a_size) <= 2) && !((other_size) <= 2)", "two macros")}; end end
+received(($sformatf("%s", "value")), "tail", 7)
diff --git a/test_regress/t/t_preproc_strify_join.v b/test_regress/t/t_preproc_strify_join.v
index de49f3d8e..c58582509 100644
--- a/test_regress/t/t_preproc_strify_join.v
+++ b/test_regress/t/t_preproc_strify_join.v
@@ -17,3 +17,22 @@
 `STRIFY
 `NESTED_STRIFY
 `EMPTY_STRIFY
+
+// Preserve the outer argument nesting across parameterized macros in stringification.
+// verilog_format: off
+`define BELOW_MAX(s_) ((s_) <= 2)
+`define IDENTITY(x_) x_
+`define rpt_fatal(MSG_, ID_) msg = {ID_, " ", MSG_};
+`define CHECK(T_, MSG_="", SEV_=error, ID_="id") begin if (T_) ; else begin `rpt_``SEV_($sformatf("Check failed (%s) %s", `"T_`", MSG_), ID_) end end
+`define CHECK_FATAL(T_, MSG_="", ID_="id") `CHECK(T_, MSG_, fatal, ID_)
+
+`CHECK_FATAL(!((a_size) <= 2))
+`CHECK_FATAL(!`BELOW_MAX(a_size))
+`CHECK_FATAL(!`BELOW_MAX(a_size), "message, )", "tag")
+`CHECK_FATAL(!`BELOW_MAX(`IDENTITY(a_size)), "nested", "tag")
+`CHECK_FATAL(!`BELOW_MAX(a_size) && !`BELOW_MAX(other_size), "two macros", "tag")
+
+`define STRING_ARG(x_) `"`IDENTITY(x_)`"
+`define TAKE_ARGS(a_, b_, c_) received(a_, b_, c_)
+`TAKE_ARGS(($sformatf("%s", `STRING_ARG(value))), "tail", 7)
+// verilog_format: on