diff --git a/packages/client/readme.md b/packages/client/readme.md
index 27860819..cbd0a6da 100644
--- a/packages/client/readme.md
+++ b/packages/client/readme.md
@@ -44,6 +44,8 @@ Note that @pgkit/migra and @pgkit/schemainspect are pure ports of their Python e
    - [sql.unnest](#sqlunnest)
    - [sql.join](#sqljoin)
    - [sql.fragment](#sqlfragment)
+   - [nested `sql` tag](#nested-sql-tag)
+   - [sql.fragment](#sqlfragment-1)
    - [sql.interval](#sqlinterval)
    - [sql.binary](#sqlbinary)
    - [sql.json](#sqljson)
@@ -269,6 +271,38 @@ expect(result).toEqual({id: 100, name: 'one hundred'})
 
 ### sql.fragment
 
+Use `sql.fragment` to build reusable pieces which can be plugged into full queries.
+
+```typescript
+const idGreaterThan = (id: number) => sql.fragment`id >= ${id}`
+const result = await client.any(sql`
+  select * from usage_test where ${idGreaterThan(2)}
+`)
+
+expect(result).toEqual([
+  {id: 2, name: 'two'},
+  {id: 3, name: 'three'},
+])
+```
+
+### nested `sql` tag
+
+You can also use `` sql`...` `` to create a fragment of SQL, but it's recommended to use `sql.fragment` instead for explicitness. Support for [type-generation](https://npmjs.com/package/@pgkit/typegen) is better using `sql.fragment` too.
+
+```typescript
+const idGreaterThan = (id: number) => sql`id >= ${id}`
+const result = await client.any(sql`
+  select * from usage_test where ${idGreaterThan(2)}
+`)
+
+expect(result).toEqual([
+  {id: 2, name: 'two'},
+  {id: 3, name: 'three'},
+])
+```
+
+### sql.fragment
+
 Lets you create reusable SQL fragments, for example a where clause. Note that right now, fragments do not allow parameters.
 
 ```typescript
@@ -895,6 +929,7 @@ Generally, usage of a _client_ (or pool, to use the slonik term), should be iden
 - no `stream` support yet
 - See [future](#👽-future) for more details/which parity features are planned
 
+
 ### Added features/improvements
 
 #### `sql`
diff --git a/packages/client/src/sql.ts b/packages/client/src/sql.ts
index 024b4605..915d70be 100644
--- a/packages/client/src/sql.ts
+++ b/packages/client/src/sql.ts
@@ -10,6 +10,7 @@ const sqlMethodHelpers: SQLMethodHelpers = {
     name: nameQuery([query]),
     token: 'sql',
     values: [],
+    templateArgs: () => [[query]],
   }),
   type:
     type =>
@@ -31,6 +32,7 @@ const sqlMethodHelpers: SQLMethodHelpers = {
         sql: strings.join(''),
         token: 'sql',
         values: parameters,
+        templateArgs: () => [strings, ...parameters],
       }
     },
 }
@@ -99,14 +101,14 @@ const sqlFn: SQLTagFunction = (strings, ...inputParameters) => {
       }
 
       case 'sql': {
-        if (param.values?.length) {
-          throw new QueryError(`Can't handle nested SQL with parameters`, {
-            cause: {query: {name: nameQuery(strings), sql, values: inputParameters}},
-          })
+        const [parts, ...fragmentValues] = param.templateArgs()
+        for (let i = 0; i < parts.length; i++) {
+          sql += parts[i]
+          if (i < fragmentValues.length) {
+            values.push(fragmentValues[i])
+            sql += '$' + String(i + 1)
+          }
         }
-
-        sql += param.sql
-        // values.push(...param.values);
         break
       }
 
@@ -132,7 +134,14 @@ const sqlFn: SQLTagFunction = (strings, ...inputParameters) => {
       }
 
       case 'fragment': {
-        sql += param.args[0][0]
+        const [parts, ...fragmentValues] = param.args
+        for (let i = 0; i < parts.length; i++) {
+          sql += parts[i]
+          if (i < fragmentValues.length) {
+            values.push(fragmentValues[i])
+            sql += '$' + String(i + 1)
+          }
+        }
         break
       }
 
@@ -155,6 +164,7 @@ const sqlFn: SQLTagFunction = (strings, ...inputParameters) => {
     sql,
     token: 'sql',
     values,
+    templateArgs: () => [strings, ...inputParameters],
   }
 }
 
diff --git a/packages/client/src/types.ts b/packages/client/src/types.ts
index db3df96a..a48abf22 100644
--- a/packages/client/src/types.ts
+++ b/packages/client/src/types.ts
@@ -6,6 +6,8 @@ export interface SQLQuery<Result = Record<string, unknown>, Values extends unkno
   sql: string
   values: Values
   parse: (input: unknown) => Result
+  /** @internal */
+  templateArgs: () => [strings: readonly string[], ...inputParameters: readonly any[]]
 }
 
 export type TimeUnit = 'years' | 'months' | 'weeks' | 'days' | 'hours' | 'minutes' | 'seconds'
@@ -62,6 +64,8 @@ export type SqlFragment = {
   token: 'sql'
   sql: string
   values: unknown[]
+  /** @internal */
+  templateArgs: () => [strings: readonly string[], ...inputParameters: readonly any[]]
 }
 /**
  * "string" type covers all type name identifiers – the literal values are added only to assist developer
@@ -94,7 +98,7 @@ export type SQLTagHelperParameters = {
   array: [values: readonly PrimitiveValueExpression[], memberType: MemberType]
   binary: [data: Buffer]
   date: [date: Date]
-  fragment: [parts: TemplateStringsArray]
+  fragment: [parts: TemplateStringsArray, ...values: readonly ValueExpression[]]
   identifier: [names: readonly string[]]
   interval: [interval: IntervalInput]
   join: [members: readonly ValueExpression[], glue: SqlFragment]
diff --git a/packages/client/test/api-usage.test.ts b/packages/client/test/api-usage.test.ts
index d211f74e..9b8d3805 100644
--- a/packages/client/test/api-usage.test.ts
+++ b/packages/client/test/api-usage.test.ts
@@ -84,6 +84,37 @@ test('sql.join', async () => {
   expect(result).toEqual({id: 100, name: 'one hundred'})
 })
 
+/**
+ * Use `sql.fragment` to build reusable pieces which can be plugged into full queries.
+ */
+test('sql.fragment', async () => {
+  const idGreaterThan = (id: number) => sql.fragment`id >= ${id}`
+  const result = await client.any(sql`
+    select * from usage_test where ${idGreaterThan(2)}
+  `)
+
+  expect(result).toEqual([
+    {id: 2, name: 'two'},
+    {id: 3, name: 'three'},
+  ])
+})
+
+/**
+ * You can also use `` sql`...` `` to create a fragment of SQL, but it's recommended to use `sql.fragment` instead for explicitness.
+ * Support for [type-generation](https://npmjs.com/package/@pgkit/typegen) is better using `sql.fragment` too.
+ */
+test('nested `sql` tag', async () => {
+  const idGreaterThan = (id: number) => sql`id >= ${id}`
+  const result = await client.any(sql`
+    select * from usage_test where ${idGreaterThan(2)}
+  `)
+
+  expect(result).toEqual([
+    {id: 2, name: 'two'},
+    {id: 3, name: 'three'},
+  ])
+})
+
 /**
  * Lets you create reusable SQL fragments, for example a where clause. Note that right now, fragments do not allow parameters.
  */