diff --git a/classy-yaml-0.8.0.gem b/classy-yaml-0.8.0.gem
deleted file mode 100644
index 4c0840d..0000000
Binary files a/classy-yaml-0.8.0.gem and /dev/null differ
diff --git a/classy-yaml-0.8.5.gem b/classy-yaml-0.8.5.gem
new file mode 100644
index 0000000..0b57ed8
Binary files /dev/null and b/classy-yaml-0.8.5.gem differ
diff --git a/lib/classy/yaml/component_helpers.rb b/lib/classy/yaml/component_helpers.rb
index a478b43..9e221c8 100644
--- a/lib/classy/yaml/component_helpers.rb
+++ b/lib/classy/yaml/component_helpers.rb
@@ -2,10 +2,12 @@ module Classy
   module Yaml
     module ComponentHelpers
       def yass(*args)
-        component_name = self.class.source_location.split("/").last.split(".").first
         calling_path = self.class.source_location.split("/")[0...-1].join("/")
-        classy_file = if Dir.exist?("#{calling_path}/#{component_name}")
-                        "#{calling_path}/#{component_name}/#{component_name}.yml"
+        calling_file = self.class.source_location.split("/").last.split(".").first
+        component_name = self.class.name.underscore.split("/").last.split(".").first
+
+        classy_file = if Dir.exist?("#{calling_path}/#{calling_file}")
+                        "#{calling_path}/#{calling_file}/#{component_name}.yml"
                       else
                         "#{calling_path}/#{component_name}.yml"
                       end
diff --git a/lib/classy/yaml/version.rb b/lib/classy/yaml/version.rb
index 2d19a1d..920b486 100644
--- a/lib/classy/yaml/version.rb
+++ b/lib/classy/yaml/version.rb
@@ -1,5 +1,5 @@
 module Classy
   module Yaml
-    VERSION = '0.8.0'
+    VERSION = '0.8.5'
   end
 end
diff --git a/test/classy/yaml_component_test.rb b/test/classy/yaml_component_test.rb
index 0928ce0..c8ccbaa 100644
--- a/test/classy/yaml_component_test.rb
+++ b/test/classy/yaml_component_test.rb
@@ -56,4 +56,14 @@ class Classy::YamlComponentTest < ViewComponent::TestCase
     assert_text "inherited"
   end
 
+  test "can find nested component utility classes" do
+    render_inline(TestComponent::NestedComponent.new classy: :nested)
+    assert_text "nested"
+  end
+
+  test "can find nested component utility classes through inherited function call" do
+    render_inline(TestComponent::NestedComponent.new classy: :nested_inherited, inherited: true)
+    assert_text "nested-inherited"
+  end
+
 end
diff --git a/test/dummy/app/components/test_component.rb b/test/dummy/app/components/test_component.rb
index a2f16ac..dd8b464 100644
--- a/test/dummy/app/components/test_component.rb
+++ b/test/dummy/app/components/test_component.rb
@@ -2,4 +2,10 @@ class TestComponent < ApplicationComponent
   def call
     @inherited ? inherited_call : yass(@classy)
   end
+
+  class NestedComponent < TestComponent
+    def call
+      @inherited ? inherited_call : yass(@classy)
+    end
+  end
 end
diff --git a/test/dummy/app/components/test_component/nested_component.yml b/test/dummy/app/components/test_component/nested_component.yml
new file mode 100644
index 0000000..c489cd7
--- /dev/null
+++ b/test/dummy/app/components/test_component/nested_component.yml
@@ -0,0 +1,2 @@
+nested: "nested"
+nested_inherited: "nested-inherited"