diff --git a/sphinx_needs/functions/functions.py b/sphinx_needs/functions/functions.py
index 10f8962c5..34c1cd3e7 100644
--- a/sphinx_needs/functions/functions.py
+++ b/sphinx_needs/functions/functions.py
@@ -22,6 +22,7 @@
 from sphinx_needs.data import NeedsInfoType, NeedsMutable, NeedsView, SphinxNeedsData
 from sphinx_needs.debug import measure_time_func
 from sphinx_needs.logging import get_logger, log_warning
+from sphinx_needs.nodes import Need
 from sphinx_needs.utils import NEEDS_FUNCTIONS, match_variants
 
 logger = get_logger(__name__)
@@ -203,6 +204,10 @@ def find_and_replace_node_content(
         return node
     else:
         for child in node.children:
+            if isinstance(child, (nodes.literal_block, nodes.literal, Need)):
+                # Do not parse literal blocks or nested needs
+                new_children.append(child)
+                continue
             new_child = find_and_replace_node_content(child, env, need)
             new_children.append(new_child)
         node.children = new_children
diff --git a/tests/doc_test/doc_df_user_functions/index.rst b/tests/doc_test/doc_df_user_functions/index.rst
index e9b4087cd..53cb210c1 100644
--- a/tests/doc_test/doc_df_user_functions/index.rst
+++ b/tests/doc_test/doc_df_user_functions/index.rst
@@ -16,3 +16,8 @@ DYNAMIC FUNCTIONS
     [[invalid]]
 
     [[unknown()]]
+
+    .. code-block:: toml
+
+        # this should not be a func 
+        [[something]]
diff --git a/tests/doc_test/doc_dynamic_functions/index.rst b/tests/doc_test/doc_dynamic_functions/index.rst
index d504dfdbd..71f3705ec 100644
--- a/tests/doc_test/doc_dynamic_functions/index.rst
+++ b/tests/doc_test/doc_dynamic_functions/index.rst
@@ -25,3 +25,8 @@ DYNAMIC FUNCTIONS
     :tags: [[copy('id')]]
 
     Test a `link <http://www.[[copy('id')]]>`_
+
+    .. spec:: TEST_6
+        :id: TEST_6
+
+        nested id [[copy('id')]]
diff --git a/tests/test_dynamic_functions.py b/tests/test_dynamic_functions.py
index fcc94c698..e4652c73b 100644
--- a/tests/test_dynamic_functions.py
+++ b/tests/test_dynamic_functions.py
@@ -9,12 +9,24 @@
 
 @pytest.mark.parametrize(
     "test_app",
-    [{"buildername": "html", "srcdir": "doc_test/doc_dynamic_functions"}],
+    [
+        {
+            "buildername": "html",
+            "srcdir": "doc_test/doc_dynamic_functions",
+            "no_plantuml": True,
+        }
+    ],
     indirect=True,
 )
 def test_doc_dynamic_functions(test_app):
     app = test_app
     app.build()
+
+    warnings = strip_colors(
+        app._warning.getvalue().replace(str(app.srcdir) + os.sep, "srcdir/")
+    ).splitlines()
+    assert warnings == []
+
     html = Path(app.outdir, "index.html").read_text()
     assert "This is id SP_TOO_001" in html
 
@@ -48,6 +60,8 @@ def test_doc_dynamic_functions(test_app):
 
     assert '<a class="reference external" href="http://www.TEST_5">link</a>' in html
 
+    assert "nested id TEST_6" in html
+
 
 @pytest.mark.parametrize(
     "test_app",