diff --git a/osu.Game.Tests/Mods/ModUtilsTest.cs b/osu.Game.Tests/Mods/ModUtilsTest.cs
index b602c082bf..7d3dea7ed5 100644
--- a/osu.Game.Tests/Mods/ModUtilsTest.cs
+++ b/osu.Game.Tests/Mods/ModUtilsTest.cs
@@ -32,7 +32,7 @@ namespace osu.Game.Tests.Mods
         }
 
         [Test]
-        public void TestIncompatibleThroughMultiMod()
+        public void TestMultiModIncompatibleWithTopLevel()
         {
             var mod1 = new Mock<Mod>();
 
@@ -47,6 +47,21 @@ namespace osu.Game.Tests.Mods
             Assert.That(ModUtils.CheckCompatibleSet(new[] { mod1.Object, multiMod }), Is.False);
         }
 
+        [Test]
+        public void TestTopLevelIncompatibleWithMultiMod()
+        {
+            // The nested mod.
+            var mod1 = new Mock<CustomMod1>();
+            var multiMod = new MultiMod(new MultiMod(mod1.Object));
+
+            var mod2 = new Mock<CustomMod2>();
+            mod2.Setup(m => m.IncompatibleMods).Returns(new[] { typeof(CustomMod1) });
+
+            // Test both orderings.
+            Assert.That(ModUtils.CheckCompatibleSet(new Mod[] { multiMod, mod2.Object }), Is.False);
+            Assert.That(ModUtils.CheckCompatibleSet(new Mod[] { mod2.Object, multiMod }), Is.False);
+        }
+
         [Test]
         public void TestCompatibleMods()
         {
@@ -83,5 +98,13 @@ namespace osu.Game.Tests.Mods
             var mod = new Mock<Mod>();
             Assert.That(ModUtils.CheckAllowed(new[] { mod.Object }, new[] { typeof(Mod) }), Is.False);
         }
+
+        public abstract class CustomMod1 : Mod
+        {
+        }
+
+        public abstract class CustomMod2 : Mod
+        {
+        }
     }
 }
diff --git a/osu.Game/Utils/ModUtils.cs b/osu.Game/Utils/ModUtils.cs
index a9271db1b5..41f7b1b45c 100644
--- a/osu.Game/Utils/ModUtils.cs
+++ b/osu.Game/Utils/ModUtils.cs
@@ -47,6 +47,7 @@ namespace osu.Game.Utils
         /// <returns>Whether all <see cref="Mod"/>s in the combination are compatible with each-other.</returns>
         public static bool CheckCompatibleSet(IEnumerable<Mod> combination, out List<Mod>? invalidMods)
         {
+            combination = FlattenMods(combination);
             invalidMods = null;
 
             foreach (var mod in combination)