diff --git a/toscaparser/tests/data/dsl_definitions/test_nested_dsl_def.yaml b/toscaparser/tests/data/dsl_definitions/test_nested_dsl_def.yaml
new file mode 100644
index 0000000..6155595
--- /dev/null
+++ b/toscaparser/tests/data/dsl_definitions/test_nested_dsl_def.yaml
@@ -0,0 +1,23 @@
+tosca_definitions_version: tosca_simple_yaml_1_0
+
+description: Test template demonstrating usage of nested dsl_definitions value.
+
+dsl_definitions:
+  caps: &caps
+    host:
+      properties:
+        disk_size: 10 GB
+        num_cpus: 2
+        mem_size: 4096 MB
+    os:
+      properties:
+        architecture: x86_64
+        type: Linux
+        distribution: Ubuntu
+        version: 14.04
+
+topology_template:
+  node_templates:
+    my_server:
+      type: tosca.nodes.Compute
+      capabilities: *caps
\ No newline at end of file
diff --git a/toscaparser/tests/test_toscatpl.py b/toscaparser/tests/test_toscatpl.py
index 84d746b..6bf5660 100644
--- a/toscaparser/tests/test_toscatpl.py
+++ b/toscaparser/tests/test_toscatpl.py
@@ -832,3 +832,9 @@ class ToscaTemplateTest(TestCase):
             os.path.dirname(os.path.abspath(__file__)),
             "data/test_endpoint_on_compute.yaml")
         ToscaTemplate(tosca_tpl)
+
+    def test_nested_dsl_def(self):
+        tosca_tpl = os.path.join(
+            os.path.dirname(os.path.abspath(__file__)),
+            "data/dsl_definitions/test_nested_dsl_def.yaml")
+        self.assertIsNotNone(ToscaTemplate(tosca_tpl))