diff --git a/lib/rules/valid-v-for.js b/lib/rules/valid-v-for.js
index 47d8f5029..8e20f9e66 100644
--- a/lib/rules/valid-v-for.js
+++ b/lib/rules/valid-v-for.js
@@ -27,7 +27,6 @@ function isUsingIterationVar (vFor, vBindKey) {
   }
   const references = vBindKey.value.references
   const variables = vFor.parent.parent.variables
-
   return references.some(reference =>
         variables.some(variable =>
             variable.id.name === reference.id.name &&
@@ -36,6 +35,34 @@ function isUsingIterationVar (vFor, vBindKey) {
     )
 }
 
+/**
+ * Check the child element in tempalte v-for about `v-bind:key` attributes.
+ * @param {RuleContext} context The rule context to report.
+ * @param {ASTNode} vFor The attribute node of `v-for` to check.
+ * @param {ASTNode} child The child node to check.
+ */
+function checkChildKey (context, vFor, child) {
+  const childFor = utils.getDirective(child, 'for')
+  // if child has v-for, check if parent iterator is used in v-for
+  if (childFor != null) {
+    const childForRefs = childFor.value.references
+    const variables = vFor.parent.parent.variables
+    const usedInFor = childForRefs.some(cref =>
+           variables.some(variable =>
+               cref.id.name === variable.id.name &&
+               variable.kind === 'v-for'
+           )
+      )
+    // if parent iterator is used, skip other checks
+    // iterator usage will be checked later by child v-for
+    if (usedInFor) {
+      return
+    }
+  }
+  // otherwise, check if parent iterator is directly used in child's key
+  checkKey(context, vFor, child)
+}
+
 /**
  * Check the given element about `v-bind:key` attributes.
  * @param {RuleContext} context The rule context to report.
@@ -46,7 +73,7 @@ function checkKey (context, vFor, element) {
   if (element.name === 'template') {
     for (const child of element.children) {
       if (child.type === 'VElement') {
-        checkKey(context, vFor, child)
+        checkChildKey(context, vFor, child)
       }
     }
     return
diff --git a/tests/lib/rules/valid-v-for.js b/tests/lib/rules/valid-v-for.js
index e3da7c5ed..6fe1f0f1c 100644
--- a/tests/lib/rules/valid-v-for.js
+++ b/tests/lib/rules/valid-v-for.js
@@ -82,6 +82,32 @@ tester.run('valid-v-for', rule, {
     {
       filename: 'test.vue',
       code: '<template v-for="x of list">foo<div></div></template>'
+    },
+    {
+      filename: 'test.vue',
+      code: '<template><div><template v-for="x of list"><div v-for="foo of x" :key="foo"></div></template></div></template>'
+    },
+    {
+      filename: 'test.vue',
+      code: `
+        <template v-for="x in xs">
+          <template v-for="y in x.ys">
+            <li v-for="z in y.zs" :key="z.id">
+              123
+            </li>
+          </template>
+        </template>`
+    },
+    {
+      filename: 'test.vue',
+      code: `
+        <template v-for="x in xs">
+          <template v-for="y in ys">
+            <li v-for="z in zs" :key="x.id + y.id + z.id">
+              123
+            </li>
+          </template>
+        </template>`
     }
   ],
   invalid: [
@@ -179,6 +205,48 @@ tester.run('valid-v-for', rule, {
       filename: 'test.vue',
       code: '<template><div><template v-for="xin list"><div></div></template></div></template>',
       errors: ["'v-for' directives require that attribute value."]
+    },
+    {
+      filename: 'test.vue',
+      code: '<template><div><template v-for="x of list"><div v-for="foo of y" :key="foo"></div></template></div></template>',
+      errors: ["Expected 'v-bind:key' directive to use the variables which are defined by the 'v-for' directive."]
+    },
+    {
+      filename: 'test.vue',
+      errors: ["Expected 'v-bind:key' directive to use the variables which are defined by the 'v-for' directive."],
+      code: `
+        <template v-for="x in xs">
+          <template v-for="y in a.ys">
+            <li v-for="z in y.zs" :key="z.id">
+              123
+            </li>
+          </template>
+        </template>`
+    },
+    {
+      filename: 'test.vue',
+      errors: ["Expected 'v-bind:key' directive to use the variables which are defined by the 'v-for' directive."],
+      code: `
+        <template v-for="x in xs">
+          <template v-for="y in x.ys">
+            <li v-for="z in a.zs" :key="z.id">
+              123
+            </li>
+          </template>
+        </template>`
+    },
+    {
+      filename: 'test.vue',
+      errors: ["Expected 'v-bind:key' directive to use the variables which are defined by the 'v-for' directive."],
+      code: `
+        <template v-for="x in xs">
+          <template v-for="y in x.ys">
+            <li v-for="z in x.zs" :key="z.id">
+              123
+            </li>
+          </template>
+        </template>`
     }
+
   ]
 })