diff --git a/.changeset/floppy-symbols-sing.md b/.changeset/floppy-symbols-sing.md
new file mode 100644
index 000000000..11aa7c646
--- /dev/null
+++ b/.changeset/floppy-symbols-sing.md
@@ -0,0 +1,5 @@
+---
+'eslint-plugin-svelte': patch
+---
+
+fix: stop reporting child properties in `no-unused-props` when the parent object itself is used
diff --git a/packages/eslint-plugin-svelte/src/rules/no-unused-props.ts b/packages/eslint-plugin-svelte/src/rules/no-unused-props.ts
index 84faa365e..5de3133c0 100644
--- a/packages/eslint-plugin-svelte/src/rules/no-unused-props.ts
+++ b/packages/eslint-plugin-svelte/src/rules/no-unused-props.ts
@@ -156,7 +156,12 @@ export default createRule('no-unused-props', {
 
 			const paths: PropertyPath[] = [];
 			for (const reference of variable.references) {
-				if ('identifier' in reference && reference.identifier.type === 'Identifier') {
+				if (
+					'identifier' in reference &&
+					reference.identifier.type === 'Identifier' &&
+					(reference.identifier.range[0] !== node.range[0] ||
+						reference.identifier.range[1] !== node.range[1])
+				) {
 					const referencePath = getPropertyPath(reference.identifier);
 					paths.push(referencePath);
 				}
@@ -265,11 +270,17 @@ export default createRule('no-unused-props', {
 				if (reportedProps.has(currentPathStr)) continue;
 
 				const propType = typeChecker.getTypeOfSymbol(prop);
-				const isUsedInPath = usedPaths.some((path) => {
-					const usedPath = path.join('.');
-					return usedPath === currentPathStr || usedPath.startsWith(`${currentPathStr}.`);
+
+				const joinedUsedPaths = usedPaths.map((path) => path.join('.'));
+				const isUsedThisInPath = joinedUsedPaths.includes(currentPathStr);
+				const isUsedInPath = joinedUsedPaths.some((path) => {
+					return path.startsWith(`${currentPathStr}.`);
 				});
 
+				if (isUsedThisInPath && !isUsedInPath) {
+					continue;
+				}
+
 				const isUsedInProps = usedProps.has(propName);
 
 				if (!isUsedInPath && !isUsedInProps) {
@@ -282,10 +293,11 @@ export default createRule('no-unused-props', {
 							parent: parentPath.join('.')
 						}
 					});
+					continue;
 				}
 
-				const isUsedNested = usedPaths.some((path) => {
-					return path.join('.').startsWith(`${currentPathStr}.`);
+				const isUsedNested = joinedUsedPaths.some((path) => {
+					return path.startsWith(`${currentPathStr}.`);
 				});
 
 				if (isUsedNested || isUsedInProps) {
@@ -324,6 +336,18 @@ export default createRule('no-unused-props', {
 			return usedProps.size === 0;
 		}
 
+		function normalizeUsedPaths(paths: PropertyPath[]): PropertyPath[] {
+			const normalized: PropertyPath[] = [];
+			for (const path of paths.sort((a, b) => a.length - b.length)) {
+				if (path.length === 0) continue;
+				if (normalized.some((p) => p.every((part, idx) => part === path[idx]))) {
+					continue;
+				}
+				normalized.push(path);
+			}
+			return normalized;
+		}
+
 		return {
 			'VariableDeclaration > VariableDeclarator': (node: TSESTree.VariableDeclarator) => {
 				// Only check $props declarations
@@ -359,7 +383,7 @@ export default createRule('no-unused-props', {
 
 				checkUnusedProperties(
 					propType,
-					usedPaths,
+					normalizeUsedPaths(usedPaths),
 					usedProps,
 					node.id,
 					[],
diff --git a/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props2-input.svelte b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props2-input.svelte
new file mode 100644
index 000000000..3fb8790fd
--- /dev/null
+++ b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props2-input.svelte
@@ -0,0 +1,14 @@
+<script lang="ts">
+	import GenericPopout from './GenericPopout.svelte';
+
+	let {
+		position
+	}: {
+		position: {
+			x: number;
+			y: number;
+		};
+	} = $props();
+</script>
+
+<GenericPopout {position}>Test</GenericPopout>
diff --git a/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props3-input.svelte b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props3-input.svelte
new file mode 100644
index 000000000..7090054f8
--- /dev/null
+++ b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props3-input.svelte
@@ -0,0 +1,16 @@
+<script lang="ts">
+	import GenericPopout from './GenericPopout.svelte';
+
+	let {
+		wrapper
+	}: {
+		wrapper: {
+			position: {
+				x: number;
+				y: number;
+			};
+		};
+	} = $props();
+</script>
+
+<GenericPopout position={wrapper.position}>Test</GenericPopout>
diff --git a/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props4-input.svelte b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props4-input.svelte
new file mode 100644
index 000000000..15bdb1277
--- /dev/null
+++ b/packages/eslint-plugin-svelte/tests/fixtures/rules/no-unused-props/valid/nested-props4-input.svelte
@@ -0,0 +1,17 @@
+<script lang="ts">
+	import GenericPopout from './GenericPopout.svelte';
+
+	let {
+		wrapper
+	}: {
+		wrapper: {
+			position: {
+				x: number;
+				y: number;
+			};
+		};
+	} = $props();
+</script>
+
+<GenericPopout x={wrapper.position.x}>Test</GenericPopout>
+<GenericPopout position={wrapper.position}>Test</GenericPopout>