diff --git a/mesonbuild/interpreter.py b/mesonbuild/interpreter.py
index c2c4fe304..4bd7d7f3a 100644
--- a/mesonbuild/interpreter.py
+++ b/mesonbuild/interpreter.py
@@ -33,6 +33,7 @@ from .modules import ModuleReturnValue
 import os, sys, shutil, uuid
 import re, shlex
 from collections import namedtuple
+from pathlib import PurePath
 
 import importlib
 
@@ -1981,7 +1982,7 @@ to directly access options of other subprojects.''')
     @noKwargs
     def func_error(self, node, args, kwargs):
         self.validate_arguments(args, 1, [str])
-        raise InterpreterException('Error encountered: ' + args[0])
+        raise InterpreterException('Problem encountered: ' + args[0])
 
     def detect_compilers(self, lang, need_cross_compiler):
         cross_comp = None
@@ -2358,10 +2359,10 @@ root and issuing %s.
             raise
         # If the subproject execution failed in a non-fatal way, don't raise an
         # exception; let the caller handle things.
-        except:
+        except Exception as e:
             mlog.log('Also couldn\'t find a fallback subproject in',
                      mlog.bold(os.path.join(self.subproject_dir, dirname)),
-                     'for the dependency', mlog.bold(name))
+                     'for the dependency', mlog.bold(name), '\nReason:', str(e))
             return None
         dep = self.get_subproject_dep(name, dirname, varname, kwargs.get('required', True))
         if not dep:
@@ -2982,11 +2983,16 @@ different subdirectory.
     def evaluate_subproject_info(self, path_from_source_root, subproject_dirname):
         depth = 0
         subproj_name = ''
-        segs = path_from_source_root.split(os.path.sep)
-        while segs and segs[0] == subproject_dirname:
-            depth += 1
-            subproj_name = segs[1]
-            segs = segs[2:]
+        segs = PurePath(path_from_source_root).parts
+        segs_spd = PurePath(subproject_dirname).parts
+        while segs and segs[0] == segs_spd[0]:
+            if len(segs_spd) == 1:
+                subproj_name = segs[1]
+                segs = segs[2:]
+                depth += 1
+            else:
+                segs_spd = segs_spd[1:]
+                segs = segs[1:]
         return (depth, subproj_name)
 
     # Check that the indicated file is within the same subproject
diff --git a/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/a.c b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/a.c
new file mode 100644
index 000000000..7ac3e5e57
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/a.c	
@@ -0,0 +1,15 @@
+int func2();
+
+#if defined _WIN32 || defined __CYGWIN__
+  #define DLL_PUBLIC __declspec(dllexport)
+#else
+  #if defined __GNUC__
+    #define DLL_PUBLIC __attribute__ ((visibility("default")))
+  #else
+    #pragma message ("Compiler does not support symbol visibility.")
+    #define DLL_PUBLIC
+  #endif
+#endif
+
+int DLL_PUBLIC func() { return func2(); }
+
diff --git a/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/meson.build b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/meson.build
new file mode 100644
index 000000000..12f656427
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/meson.build	
@@ -0,0 +1,4 @@
+project('alpha project', 'c', subproject_dir: 'var/subprojects')
+
+b = subproject('beta')
+l = shared_library('a', 'a.c', link_with : b.get_variable('lb'))
diff --git a/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/var/subprojects/wrap_files_might_be_here b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/var/subprojects/wrap_files_might_be_here
new file mode 100644
index 000000000..8d1c8b69c
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/alpha/var/subprojects/wrap_files_might_be_here	
@@ -0,0 +1 @@
+ 
diff --git a/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/b.c b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/b.c
new file mode 100644
index 000000000..a95651bc0
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/b.c	
@@ -0,0 +1,14 @@
+#if defined _WIN32 || defined __CYGWIN__
+  #define DLL_PUBLIC __declspec(dllexport)
+#else
+  #if defined __GNUC__
+    #define DLL_PUBLIC __attribute__ ((visibility("default")))
+  #else
+    #pragma message ("Compiler does not support symbol visibility.")
+    #define DLL_PUBLIC
+  #endif
+#endif
+
+int DLL_PUBLIC func2() {
+    return 42;
+}
diff --git a/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/meson.build b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/meson.build
new file mode 100644
index 000000000..ea4cc9bdf
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/contrib/subprojects/beta/meson.build	
@@ -0,0 +1,3 @@
+project('beta project', 'c')
+
+lb = shared_library('b', 'b.c')
diff --git a/test cases/common/177 subproject nested subproject dirs/meson.build b/test cases/common/177 subproject nested subproject dirs/meson.build
new file mode 100644
index 000000000..a4d0a9716
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/meson.build	
@@ -0,0 +1,7 @@
+project('gamma project', 'c', subproject_dir: 'contrib/subprojects')
+
+a = subproject('alpha')
+lib = a.get_variable('l')
+
+exe = executable('prog', 'prog.c', link_with : lib)
+test('basic', exe)
diff --git a/test cases/common/177 subproject nested subproject dirs/prog.c b/test cases/common/177 subproject nested subproject dirs/prog.c
new file mode 100644
index 000000000..394f139eb
--- /dev/null
+++ b/test cases/common/177 subproject nested subproject dirs/prog.c	
@@ -0,0 +1,5 @@
+int func();
+
+int main(int argc, char **argv) {
+    return func() == 42 ? 0 : 1;
+}