diff --git a/src/module.c b/src/module.c
index 3fc6a5499..59b432d7d 100644
--- a/src/module.c
+++ b/src/module.c
@@ -2079,6 +2079,12 @@ int RM_BlockedClientMeasureTimeEnd(RedisModuleBlockedClient *bc) {
  * the -LOADING error)
  */
 void RM_Yield(RedisModuleCtx *ctx, int flags, const char *busy_reply) {
+    static int yield_nesting = 0;
+    /* Avoid nested calls to RM_Yield */
+    if (yield_nesting)
+        return;
+    yield_nesting++;
+
     long long now = getMonotonicUs();
     if (now >= ctx->next_yield_time) {
         /* In loading mode, there's no need to handle busy_module_yield_reply,
@@ -2092,10 +2098,11 @@ void RM_Yield(RedisModuleCtx *ctx, int flags, const char *busy_reply) {
             server.busy_module_yield_reply = busy_reply;
             /* start the blocking operation if not already started. */
             if (!server.busy_module_yield_flags) {
-                server.busy_module_yield_flags = flags & REDISMODULE_YIELD_FLAG_CLIENTS ?
-                    BUSY_MODULE_YIELD_CLIENTS : BUSY_MODULE_YIELD_EVENTS;
+                server.busy_module_yield_flags = BUSY_MODULE_YIELD_EVENTS;
                 blockingOperationStarts();
             }
+            if (flags & REDISMODULE_YIELD_FLAG_CLIENTS)
+                server.busy_module_yield_flags |= BUSY_MODULE_YIELD_CLIENTS;
 
             /* Let redis process events */
             processEventsWhileBlocked();
@@ -2110,6 +2117,7 @@ void RM_Yield(RedisModuleCtx *ctx, int flags, const char *busy_reply) {
         /* decide when the next event should fire. */
         ctx->next_yield_time = now + 1000000 / server.hz;
     }
+    yield_nesting --;
 }
 
 /* Set flags defining capabilities or behavior bit flags.
diff --git a/tests/unit/moduleapi/blockedclient.tcl b/tests/unit/moduleapi/blockedclient.tcl
index de3cf5946..d1692ed34 100644
--- a/tests/unit/moduleapi/blockedclient.tcl
+++ b/tests/unit/moduleapi/blockedclient.tcl
@@ -90,7 +90,8 @@ start_server {tags {"modules"}} {
         }
     }
 
-    test {Busy module command} {
+foreach call_type {nested normal} {
+    test "Busy module command - $call_type" {
         set busy_time_limit 50
         set old_time_limit [lindex [r config get busy-reply-threshold] 1]
         r config set busy-reply-threshold $busy_time_limit
@@ -98,7 +99,11 @@ start_server {tags {"modules"}} {
 
         # run command that blocks until released
         set start [clock clicks -milliseconds]
-        $rd slow_fg_command 0
+        if {$call_type == "nested"} {
+            $rd do_rm_call slow_fg_command 0
+        } else {
+            $rd slow_fg_command 0
+        }
         $rd flush
 
         # make sure we get BUSY error, and that we didn't get it too early
@@ -114,9 +119,13 @@ start_server {tags {"modules"}} {
         }
         $rd read
 
-        #run command that blocks for 200ms
+        # run command that blocks for 200ms
         set start [clock clicks -milliseconds]
-        $rd slow_fg_command 200000
+        if {$call_type == "nested"} {
+            $rd do_rm_call slow_fg_command 200000
+        } else {
+            $rd slow_fg_command 200000
+        }
         $rd flush
         after 10 ;# try to make sure redis started running the command before we proceed
 
@@ -128,6 +137,7 @@ start_server {tags {"modules"}} {
         $rd close
         r config set busy-reply-threshold $old_time_limit
     }
+}
 
     test {RM_Call from blocked client} {
         set busy_time_limit 50