diff --git a/setup.py b/setup.py
index 45c9a63..e268501 100755
--- a/setup.py
+++ b/setup.py
@@ -180,7 +180,7 @@ def run(self):
     ],
     extras_require={
         "test": [
-            "solara[pytest]",
+            "solara[pytest] @ https://github.com/widgetti/solara/archive/refs/heads/11-01-feat_testing_support_passing_local_variable_to_kernels.zip",  # noqa: E501
         ],
         "dev": [
             "pre-commit",
diff --git a/tests/ui/test_nested.py b/tests/ui/test_nested.py
new file mode 100644
index 0000000..ea10ec5
--- /dev/null
+++ b/tests/ui/test_nested.py
@@ -0,0 +1,155 @@
+import pytest
+import sys
+import re
+
+if sys.version_info < (3, 7):
+    pytest.skip("requires python3.7 or higher", allow_module_level=True)
+
+import ipyvue as vue
+import playwright.sync_api
+from playwright.sync_api import expect
+
+from IPython.display import display
+from traitlets import default, Unicode, Instance
+import ipywidgets as widgets
+
+
+class MyTemplate(vue.VueTemplate):
+    class_ = Unicode("template-parent").tag(sync=True)
+    child = Instance(widgets.Widget, allow_none=True).tag(
+        sync=True, **widgets.widget_serialization
+    )
+    text = Unicode(None, allow_none=True).tag(sync=True)
+
+    @default("template")
+    def _default_vue_template(self):
+        return """
+        <template>
+            <div :class="class_">
+                <span v-if="text">{{text}}</span>
+                <jupyter-widget v-if="child" :widget="child"></jupyter-widget>
+            </div>
+        </template>
+        """
+
+
+@pytest.mark.parametrize("parent_is_template", [True, False])
+def test_vue_with_vue_widget_child(
+    ipywidgets_runner, page_session: playwright.sync_api.Page, parent_is_template
+):
+    def kernel_code():
+        from test_nested import MyTemplate
+        import ipyvue as vue
+
+        child = vue.Html(tag="div", children=["I am a widget sibling"])
+
+        if parent_is_template:
+            widget = MyTemplate(child=child)
+        else:
+            widget = vue.Html(
+                tag="div",
+                children=[child],
+                class_="test-parent",
+            )
+        display(widget)
+
+    ipywidgets_runner(kernel_code, {"parent_is_template": parent_is_template})
+    parent = page_session.locator(".test-parent")
+    parent.wait_for()
+    expect(parent.locator(":nth-child(1)")).to_contain_text("I am a widget sibling")
+
+
+@pytest.mark.parametrize("parent_is_template", [True, False])
+def test_vue_with_vue_template_child(
+    ipywidgets_runner, page_session: playwright.sync_api.Page, parent_is_template
+):
+    def kernel_code():
+        # this import is need so when this code executes in the kernel,
+        # the class is imported
+        from test_nested import MyTemplate
+        import ipyvue as vue
+
+        child = MyTemplate(class_="test-child", text="I am a child")
+
+        if parent_is_template:
+            widget = MyTemplate(
+                child=child,
+                class_="test-parent",
+            )
+        else:
+            widget = vue.Html(
+                tag="div",
+                children=[child],
+                class_="test-parent",
+            )
+        display(widget)
+
+    ipywidgets_runner(kernel_code, {"parent_is_template": parent_is_template})
+    parent = page_session.locator(".test-parent")
+    parent.wait_for()
+    expect(parent.locator(":nth-child(1) >> nth=0")).to_have_class("test-child")
+    expect(parent.locator(".test-child >> :nth-child(1)")).to_contain_text(
+        "I am a child"
+    )
+
+
+@pytest.mark.parametrize("parent_is_template", [True, False])
+def test_vue_with_ipywidgets_child(
+    ipywidgets_runner, page_session: playwright.sync_api.Page, parent_is_template
+):
+    def kernel_code():
+        from test_nested import MyTemplate
+        import ipyvue as vue
+        import ipywidgets as widgets
+
+        child = widgets.Label(value="I am a child")
+        child.add_class("widget-child")
+
+        if parent_is_template:
+            widget = MyTemplate(
+                child=child,
+                class_="test-parent",
+            )
+        else:
+            widget = vue.Html(
+                tag="div",
+                children=[child],
+                class_="test-parent",
+            )
+        display(widget)
+
+    ipywidgets_runner(kernel_code, {"parent_is_template": parent_is_template})
+    parent = page_session.locator(".test-parent")
+    parent.wait_for()
+    # extra div is created by ipyvue
+    expect(parent.locator(":nth-child(1) >> :nth-child(1)")).to_have_class(
+        re.compile(".*widget-child.*")
+    )
+    expect(parent.locator(".widget-child")).to_contain_text("I am a child")
+
+
+@pytest.mark.parametrize("parent_is_template", [True, False])
+def test_vue_ipywidgets_vue(
+    ipywidgets_runner, page_session: playwright.sync_api.Page, parent_is_template
+):
+    # tests an interrupted vue hierarchy
+    def kernel_code():
+        import ipywidgets as widgets
+        import ipyvue as vue
+
+        child = vue.Html(
+            tag="div", children=["I am a widget sibling"], class_="test-child"
+        )
+        parent = widgets.VBox(children=[child])
+        parent.add_class("ipywidgets-parent")
+        grant_parent = vue.Html(
+            tag="div",
+            children=[child],
+            class_="test-grandparent",
+        )
+        display(grant_parent)
+
+    ipywidgets_runner(kernel_code, {"parent_is_template": parent_is_template})
+    grand_parent = page_session.locator(".test-grandparent")
+    grand_parent.wait_for()
+    expect(grand_parent.locator(".test-child")).to_contain_text("I am a widget sibling")