diff --git a/CHANGELOG.md b/CHANGELOG.md
index 645a8873bc3..721f2f9b5f5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,10 @@
 
     This fixes a regression in version 0.18.4 where combining `--minify-syntax` with `--keep-names` could cause expressions with side effects after a function declaration to be considered side-effect free for tree shaking purposes. The reason was because `--keep-names` generates an expression statement containing a call to a helper function after the function declaration with a special flag that makes the function call able to be tree shaken, and then `--minify-syntax` could potentially merge that expression statement with following expressions without clearing the flag. This release fixes the bug by clearing the flag when merging expression statements together.
 
+* Fix an incorrect warning about CSS nesting ([#3197](https://github.com/evanw/esbuild/issues/3197))
+
+    A warning is currently generated when transforming nested CSS to a browser that doesn't support `:is()` because transformed nested CSS may need to use that feature to represent nesting. This was previously always triggered when an at-rule was encountered in a declaration context. Typically the only case you would encounter this is when using CSS nesting within a selector rule. However, there is a case where that's not true: when using a margin at-rule such as `@top-left` within `@page`. This release avoids incorrectly generating a warning in this case by checking that the at-rule is within a selector rule before generating a warning.
+
 ## 0.18.9
 
 * Fix `await using` declarations inside `async` generator functions
diff --git a/internal/bundler_tests/bundler_css_test.go b/internal/bundler_tests/bundler_css_test.go
index 65597e0e1a8..49a439bbb30 100644
--- a/internal/bundler_tests/bundler_css_test.go
+++ b/internal/bundler_tests/bundler_css_test.go
@@ -733,6 +733,9 @@ func TestCSSNestingOldBrowser(t *testing.T) {
 			"/media-hash.css":             `@media screen { #id { color: red; } }`,
 			"/media-plus.css":             `@media screen { + b { color: red; } }`,
 			"/media-tilde.css":            `@media screen { ~ b { color: red; } }`,
+
+			// See: https://github.com/evanw/esbuild/issues/3197
+			"/page-no-warning.css": `@page { @top-left { background: red } }`,
 		},
 		entryPaths: []string{
 			"/nested-@layer.css",
@@ -768,6 +771,8 @@ func TestCSSNestingOldBrowser(t *testing.T) {
 			"/media-hash.css",
 			"/media-plus.css",
 			"/media-tilde.css",
+
+			"/page-no-warning.css",
 		},
 		options: config.Options{
 			Mode:                   config.ModeBundle,
diff --git a/internal/bundler_tests/snapshots/snapshots_css.txt b/internal/bundler_tests/snapshots/snapshots_css.txt
index d45980bc47c..a75c0a1b261 100644
--- a/internal/bundler_tests/snapshots/snapshots_css.txt
+++ b/internal/bundler_tests/snapshots/snapshots_css.txt
@@ -398,6 +398,14 @@ a,
   }
 }
 
+---------- /out/page-no-warning.css ----------
+/* page-no-warning.css */
+@page {
+  @top-left {
+    background: red;
+  }
+}
+
 ================================================================================
 TestDataURLImportURLInCSS
 ---------- /out/entry.css ----------
diff --git a/internal/css_parser/css_parser.go b/internal/css_parser/css_parser.go
index 3f211571be2..49fa64b4181 100644
--- a/internal/css_parser/css_parser.go
+++ b/internal/css_parser/css_parser.go
@@ -26,6 +26,7 @@ type parser struct {
 	index              int
 	end                int
 	legalCommentIndex  int
+	inSelectorSubtree  int
 	prevError          logger.Loc
 	options            Options
 	shouldLowerNesting bool
@@ -405,7 +406,9 @@ func (p *parser) parseListOfDeclarations(opts listOfDeclarationsOpts) (list []cs
 			return
 
 		case css_lexer.TAtKeyword:
-			p.reportUseOfNesting(p.current().Range, false)
+			if p.inSelectorSubtree > 0 {
+				p.reportUseOfNesting(p.current().Range, false)
+			}
 			list = append(list, p.parseAtRule(atRuleContext{
 				isDeclarationList:    true,
 				canInlineNoOpNesting: opts.canInlineNoOpNesting,
@@ -1725,9 +1728,11 @@ func (p *parser) parseSelectorRuleFrom(preludeStart int, isTopLevel bool, opts p
 		selector := css_ast.RSelector{Selectors: list}
 		matchingLoc := p.current().Range.Loc
 		if p.expect(css_lexer.TOpenBrace) {
+			p.inSelectorSubtree++
 			selector.Rules = p.parseListOfDeclarations(listOfDeclarationsOpts{
 				canInlineNoOpNesting: canInlineNoOpNesting,
 			})
+			p.inSelectorSubtree--
 			p.expectWithMatchingLoc(css_lexer.TCloseBrace, matchingLoc)
 			return css_ast.Rule{Loc: p.tokens[preludeStart].Range.Loc, Data: &selector}
 		}