diff --git a/src/analysis.zig b/src/analysis.zig
index ae35af75b..5ba3a5dbb 100644
--- a/src/analysis.zig
+++ b/src/analysis.zig
@@ -143,6 +143,37 @@ pub fn getFunctionSignature(tree: Ast, func: Ast.full.FnProto) []const u8 {
     return offsets.tokensToSlice(tree, first_token, last_token);
 }
 
+/// Formats a function signature in markdown style with 4 space indent for cases where it's a nested
+/// decl and is more than a single line.
+///
+/// Otherwise it will write the signature as it's provided but in markdown style.
+pub fn formatFunctionSignatureMarkdown(signature: []const u8, writer: anytype) @TypeOf(writer).Error!void {
+    var iter = std.mem.tokenizeScalar(u8, signature, '\n');
+
+    try writer.writeAll("```zig\n");
+
+    const first = iter.next() orelse unreachable; // Expected at least one.
+    try writer.writeAll(first);
+
+    while (iter.next()) |slice| {
+        const trimmed = std.mem.trimLeft(u8, slice, " ");
+
+        switch (trimmed[0]) {
+            ')', '}' => {
+                try writer.writeAll("\n");
+                try writer.writeAll(trimmed);
+            },
+            else => {
+                try writer.writeAll("\n");
+                try writer.writeAll("    ");
+                try writer.writeAll(trimmed);
+            },
+        }
+    }
+
+    try writer.writeAll("\n```");
+}
+
 fn formatSnippetPlaceholder(
     data: []const u8,
     comptime fmt: []const u8,
diff --git a/src/features/hover.zig b/src/features/hover.zig
index cd207437c..9f5c7bf23 100644
--- a/src/features/hover.zig
+++ b/src/features/hover.zig
@@ -152,7 +152,7 @@ fn hoverSymbolRecursive(
         for (doc_strings.items) |doc|
             try writer.print("{s}\n\n", .{doc});
         if (is_fn) {
-            try writer.print("```zig\n{s}\n```", .{def_str});
+            try Analyser.formatFunctionSignatureMarkdown(def_str, writer);
         } else {
             try writer.print("```zig\n{s}\n```\n```zig\n({s})\n```", .{ def_str, resolved_type_str });
         }
diff --git a/tests/lsp_features/hover.zig b/tests/lsp_features/hover.zig
index 3b4787841..db4094e27 100644
--- a/tests/lsp_features/hover.zig
+++ b/tests/lsp_features/hover.zig
@@ -923,6 +923,33 @@ test "function parameter" {
     );
 }
 
+test "nested" {
+    try testHover(
+        \\const Error = error{InvalidBaz};
+        \\pub fn FooResponse(comptime T: type) type {
+        \\  return struct {baz: T};
+        \\}
+        \\
+        \\pub fn Foo(comptime T: type) type {
+        \\  return struct {
+        \\      pub fn fooAnd<cursor>Bar(self: *T, baz: u8) (Error || error{
+        \\          InvalidFoo,
+        \\          InvalidBar,
+        \\      })!FooResponse(T) {}
+        \\  };
+        \\}
+    ,
+        \\```zig
+        \\fn fooAndBar(self: *T, baz: u8) (Error || error{
+        \\    InvalidFoo,
+        \\    InvalidBar,
+        \\})!FooResponse(T)
+        \\```
+        \\
+        \\Go to [FooResponse](file:///test.zig#L2)
+    );
+}
+
 test "optional" {
     try testHover(
         \\const S = struct { a: i32 };