diff --git a/ayon_api/graphql.py b/ayon_api/graphql.py
index af0662a97..c35b6c363 100644
--- a/ayon_api/graphql.py
+++ b/ayon_api/graphql.py
@@ -867,6 +867,9 @@ def reset_cursor(self) -> None:
         # Reset cursor only for edges
         self._cursor = None
         self._need_query = True
+        # Limit of a nested edge field is counted per parent item, so the
+        #   counter must be reset when parent item changes.
+        self._fetched_counter = 0
 
         super().reset_cursor()
 
@@ -974,7 +977,9 @@ def get_filters(self) -> dict[str, Any]:
             # overwritten by another parent from the same outer page.
             limit_amount = 1
 
-        filters[limit_key] = limit_amount
+        # Never ask for less than a single item, pagination is stopped
+        #   using 'need_query' when the limit is reached
+        filters[limit_key] = max(limit_amount, 1)
 
         if self._cursor:
             cursor_key = (
diff --git a/tests/test_graphql_nested_limit.py b/tests/test_graphql_nested_limit.py
new file mode 100644
index 000000000..afe60d81c
--- /dev/null
+++ b/tests/test_graphql_nested_limit.py
@@ -0,0 +1,26 @@
+"""Limit of nested edge field is applied per parent item.
+
+Does not require running AYON server.
+"""
+from ayon_api.graphql_queries import versions_graphql_query
+
+from .graphql_fake_server import FakeServer
+
+
+def test_nested_field_limit_is_per_parent():
+    data = {"project": {"name": "proj", "versions": [
+        {"id": f"v{idx}", "links": [{"id": f"v{idx}-l{n}"} for n in range(5)]}
+        for idx in range(3)
+    ]}}
+    query = versions_graphql_query({"id", "links.id"})
+    query.set_variable_value("projectName", "proj")
+    query.get_field_by_path("project/versions/links").set_limit(2)
+    server = FakeServer(data)
+
+    output = query.query(server)
+
+    for version in output["project"]["versions"]:
+        assert len(version["links"]) == 2
+    for query_str in server.queries:
+        assert "first: 0" not in query_str
+        assert "first: -" not in query_str