diff --git a/engine.go b/engine.go
index 392f239e..61ed73ae 100644
--- a/engine.go
+++ b/engine.go
@@ -94,7 +94,8 @@ func (w workflowEngine) Parse(
 		return nil, err
 	}
 
-	stepWorkflowFileCache, err := SubworkflowCache(wf, files.RootDir())
+	flowCaches := make([]loadfile.FileCache, 0)
+	stepWorkflowFileCache, err := SubworkflowCache(wf, files.RootDir(), yamlConverter, flowCaches)
 	if err != nil {
 		return nil, err
 	}
@@ -150,7 +151,7 @@ func StepWorkflowPaths(wf *workflow.Workflow) map[string]string {
 
 // SubworkflowCache creates a file cache of the sub-workflows referenced
 // in this workflow using rootDir as a context.
-func SubworkflowCache(wf *workflow.Workflow, rootDir string) (loadfile.FileCache, error) {
+func SubworkflowCache(wf *workflow.Workflow, rootDir string, converter workflow.YAMLConverter, flowCaches []loadfile.FileCache) (loadfile.FileCache, error) {
 	stepWorkflowPaths := StepWorkflowPaths(wf)
 	if len(stepWorkflowPaths) == 0 {
 		return nil, nil
@@ -163,6 +164,23 @@ func SubworkflowCache(wf *workflow.Workflow, rootDir string) (loadfile.FileCache
 	if err != nil {
 		return nil, err
 	}
+	for _, ctxFile := range subworkflowCache.Files() {
+		subwf, err := converter.FromYAML(ctxFile.Content)
+		if err != nil {
+			return nil, err
+		}
+		flowCache, err := SubworkflowCache(subwf, rootDir, converter, flowCaches)
+		if err != nil {
+			return nil, err
+		}
+		flowCaches = append(flowCaches, flowCache)
+	}
+
+	flowCaches = append(flowCaches, subworkflowCache)
+	subworkflowCache, err = loadfile.MergeFileCaches(flowCaches...)
+	if err != nil {
+		return nil, err
+	}
 	return subworkflowCache, nil
 }
 
diff --git a/fixtures/test-subworkflow/subworkflow-1.yaml b/fixtures/test-subworkflow/depth-1_workflow-1.yaml
similarity index 100%
rename from fixtures/test-subworkflow/subworkflow-1.yaml
rename to fixtures/test-subworkflow/depth-1_workflow-1.yaml
diff --git a/fixtures/test-subworkflow/depth-1_workflow-2.yaml b/fixtures/test-subworkflow/depth-1_workflow-2.yaml
new file mode 100644
index 00000000..fb304f8f
--- /dev/null
+++ b/fixtures/test-subworkflow/depth-1_workflow-2.yaml
@@ -0,0 +1,28 @@
+version: v0.2.0
+input:
+  root: RootObject
+  objects:
+    RootObject:
+      id: RootObject
+      properties:
+        seconds:
+          type:
+            type_id: float
+            min: 0
+steps:
+  wait_1:
+    plugin:
+      src: quay.io/arcalot/arcaflow-plugin-wait:atp-v3_cc3e02b
+      deployment_type: image
+    step: wait
+    input:
+      seconds: !expr $.input.seconds
+  wait_loop:
+    kind: foreach
+    items:
+      - seconds: .1
+    workflow: depth-2_workflow-1.yaml
+outputs:
+  success:
+    a: !expr $.steps.wait_1.outputs
+    b: !expr $.steps.wait_loop.outputs
diff --git a/fixtures/test-subworkflow/depth-2_workflow-1.yaml b/fixtures/test-subworkflow/depth-2_workflow-1.yaml
new file mode 100644
index 00000000..2a9de0e3
--- /dev/null
+++ b/fixtures/test-subworkflow/depth-2_workflow-1.yaml
@@ -0,0 +1,28 @@
+version: v0.2.0
+input:
+  root: RootObject
+  objects:
+    RootObject:
+      id: RootObject
+      properties:
+        seconds:
+          type:
+            type_id: float
+            min: 0
+steps:
+  wait_1:
+    plugin:
+      src: quay.io/arcalot/arcaflow-plugin-wait:atp-v3_cc3e02b
+      deployment_type: image
+    step: wait
+    input:
+      seconds: !expr $.input.seconds
+  wait_loop:
+    kind: foreach
+    items:
+      - seconds: .1
+    workflow: depth-3_workflow-1.yaml
+outputs:
+  success:
+    a: !expr $.steps.wait_1.outputs
+    b: !expr $.steps.wait_loop.outputs
diff --git a/fixtures/test-subworkflow/subworkflow-2.yaml b/fixtures/test-subworkflow/depth-3_workflow-1.yaml
similarity index 100%
rename from fixtures/test-subworkflow/subworkflow-2.yaml
rename to fixtures/test-subworkflow/depth-3_workflow-1.yaml
diff --git a/fixtures/test-subworkflow/workflow-happy.yaml b/fixtures/test-subworkflow/workflow-happy.yaml
index 3a559cbd..2d259925 100644
--- a/fixtures/test-subworkflow/workflow-happy.yaml
+++ b/fixtures/test-subworkflow/workflow-happy.yaml
@@ -10,17 +10,17 @@ steps:
     kind: foreach
     items:
       - seconds: .1
-    workflow: subworkflow-1.yaml
+    workflow: depth-1_workflow-1.yaml
   wait_wf_2:
     kind: foreach
     items:
       - seconds: .1
-    workflow: subworkflow-2.yaml
+    workflow: depth-1_workflow-2.yaml
   wait_wf_3:
     kind: foreach
     items:
       - seconds: .1
-    workflow: subworkflow-1.yaml
+    workflow: depth-1_workflow-1.yaml
 outputs:
   success:
     step_1: !expr $.steps.wait_wf_1.outputs
diff --git a/loadfile/loadfile.go b/loadfile/loadfile.go
index da725cfe..4aa3539a 100644
--- a/loadfile/loadfile.go
+++ b/loadfile/loadfile.go
@@ -158,6 +158,9 @@ func MergeFileCaches(fileCaches ...FileCache) (FileCache, error) {
 	rootDir := ""
 
 	for _, fc := range fileCaches {
+		if fc == nil {
+			continue
+		}
 		for key, contextFile := range fc.Files() {
 			cache[key] = contextFile
 		}
diff --git a/loadfile/loadfile_test.go b/loadfile/loadfile_test.go
index d36443c9..756776f3 100644
--- a/loadfile/loadfile_test.go
+++ b/loadfile/loadfile_test.go
@@ -172,6 +172,13 @@ func Test_MergeFileCaches(t *testing.T) {
 	fcMerged2, err := loadfile.MergeFileCaches(fcMerged, fc3)
 	assert.Error(t, err)
 	assert.Nil(t, fcMerged2)
+
+	// nil file caches should not be merged
+	var fcNil loadfile.FileCache
+	fcMerged3, err := loadfile.MergeFileCaches(fcMerged, fcNil, fcNil)
+	assert.NoError(t, err)
+	assert.Equals(t, fcMerged3.RootDir(), expRootDir)
+	assert.Equals(t, fcMerged3.Files(), expMergedFiles)
 }
 
 func FileCacheAbsPaths(fc loadfile.FileCache) map[string]string {