diff --git a/integration_tests/CMakeLists.txt b/integration_tests/CMakeLists.txt
index c3b8a68dbd..c265eec763 100644
--- a/integration_tests/CMakeLists.txt
+++ b/integration_tests/CMakeLists.txt
@@ -590,6 +590,7 @@ RUN(NAME structs_27          LABELS cpython llvm c)
 RUN(NAME structs_28          LABELS cpython llvm c)
 RUN(NAME structs_29          LABELS cpython llvm)
 RUN(NAME structs_30          LABELS cpython llvm c)
+RUN(NAME structs_31          LABELS cpython c)
 
 RUN(NAME symbolics_01        LABELS cpython_sym c_sym)
 RUN(NAME symbolics_02        LABELS cpython_sym c_sym)
diff --git a/integration_tests/structs_31.py b/integration_tests/structs_31.py
new file mode 100644
index 0000000000..197aed33d4
--- /dev/null
+++ b/integration_tests/structs_31.py
@@ -0,0 +1,45 @@
+from lpython import ccallback, ccall, packed, dataclass, i32, c_p_pointer, Pointer, CPtr, u16, pointer, InOut
+
+
+@packed
+@dataclass
+class inner_struct:
+    a: i32
+
+
+@packed
+@dataclass
+class outer_struct:
+    b: inner_struct = inner_struct(0)
+
+
+def update_my_inner_struct(my_inner_struct: InOut[inner_struct]) -> None:
+    my_inner_struct.a = 99999
+
+
+def update_my_outer_struct(my_outer_struct: InOut[outer_struct]) -> None:
+    my_outer_struct.b.a = 12345
+
+
+def main() -> None:
+    my_outer_struct: outer_struct = outer_struct()
+    my_inner_struct: inner_struct = my_outer_struct.b
+
+    assert my_outer_struct.b.a == 0
+
+    my_outer_struct.b.a = 12345
+    assert my_outer_struct.b.a == 12345
+
+    my_outer_struct.b.a = 0
+    assert my_outer_struct.b.a == 0
+
+    update_my_outer_struct(my_outer_struct)
+    assert my_outer_struct.b.a == 12345
+
+    my_inner_struct.a = 1111
+    assert my_inner_struct.a == 1111
+
+    update_my_inner_struct(my_inner_struct)
+    assert my_inner_struct.a == 99999
+
+main()