diff --git a/src/collection.ts b/src/collection.ts
index b265d57..9866c76 100644
--- a/src/collection.ts
+++ b/src/collection.ts
@@ -586,6 +586,9 @@ export class Collection<Schema extends StandardSchemaV1> {
     }
 
     const sanitizedInitialValues = sanitize(initialValues)
+
+    console.log({ sanitizedInitialValues })
+
     return {
       sanitizedInitialValues,
       /**
diff --git a/tests/regressions/348-nested-relations.test.ts b/tests/regressions/348-nested-relations.test.ts
new file mode 100644
index 0000000..7f4c910
--- /dev/null
+++ b/tests/regressions/348-nested-relations.test.ts
@@ -0,0 +1,44 @@
+import { Collection } from '#/src/collection.js'
+import z from 'zod'
+
+it('creates a record with a nested relation through another model', async () => {
+  const contactSchema = z.object({ email: z.email() })
+  const userSchema = z.object({ id: z.number(), contact: contactSchema })
+  const postSchema = z.object({
+    title: z.string(),
+    author: userSchema,
+  })
+
+  const contacts = new Collection({ schema: contactSchema })
+  const users = new Collection({ schema: userSchema })
+  const posts = new Collection({ schema: postSchema })
+
+  users.defineRelations(({ one }) => ({
+    contact: one(contacts),
+  }))
+  posts.defineRelations(({ one }) => ({
+    author: one(users),
+  }))
+
+  const contact = await contacts.create({ email: 'john@example.com' })
+  expect(contact).toEqual({ email: 'john@example.com' })
+
+  const user = await users.create({ id: 1, contact })
+  expect(user).toEqual({ id: 1, contact: { email: 'john@example.com' } })
+
+  /**
+   * Creating a post introduces this relation chain:
+   * post.author -> user.contact -> contact
+   *
+   * Due to our sanitization logic, `author.contact` will be reset to
+   * the default value based on its relation (`undefined` here).
+   */
+  const post = await posts.create({ title: 'First', author: user })
+  expect(post).toEqual({
+    title: 'First',
+    author: {
+      id: 1,
+      contact: { email: 'john@example.com' },
+    },
+  })
+})