diff --git a/compiler/sempass2.nim b/compiler/sempass2.nim
index 35102d9e6b..2d1a42cd86 100644
--- a/compiler/sempass2.nim
+++ b/compiler/sempass2.nim
@@ -1345,6 +1345,7 @@ type
   PragmaBlockContext = object
     oldLocked: int
     enforcedGcSafety, enforceNoSideEffects: bool
+    oldInEnforcedGcSafe, oldInEnforcedNoSideEffects: bool
     oldExc, oldTags, oldForbids: int
     exc, tags, forbids: PNode
     excSource, tagsSource, forbidsSource: PNode
@@ -1354,6 +1355,8 @@ proc createBlockContext(tracked: PEffects): PragmaBlockContext =
   if tracked.forbids != nil: oldForbidsLen = tracked.forbids.len
   result = PragmaBlockContext(oldLocked: tracked.locked.len,
     enforcedGcSafety: false, enforceNoSideEffects: false,
+    oldInEnforcedGcSafe: tracked.inEnforcedGcSafe,
+    oldInEnforcedNoSideEffects: tracked.inEnforcedNoSideEffects,
     oldExc: tracked.exc.len, oldTags: tracked.tags.len,
     oldForbids: oldForbidsLen)
 
@@ -1362,8 +1365,9 @@ proc applyBlockContext(tracked: PEffects, bc: PragmaBlockContext) =
   if bc.enforceNoSideEffects: tracked.inEnforcedNoSideEffects = true
 
 proc unapplyBlockContext(tracked: PEffects; bc: PragmaBlockContext) =
-  if bc.enforcedGcSafety: tracked.inEnforcedGcSafe = false
-  if bc.enforceNoSideEffects: tracked.inEnforcedNoSideEffects = false
+  if bc.enforcedGcSafety: tracked.inEnforcedGcSafe = bc.oldInEnforcedGcSafe
+  if bc.enforceNoSideEffects:
+    tracked.inEnforcedNoSideEffects = bc.oldInEnforcedNoSideEffects
   setLen(tracked.locked, bc.oldLocked)
   if bc.exc != nil:
     # beware that 'raises: []' is very different from not saying
diff --git a/tests/effects/tnestedcastblocks.nim b/tests/effects/tnestedcastblocks.nim
new file mode 100644
index 0000000000..67fd87b481
--- /dev/null
+++ b/tests/effects/tnestedcastblocks.nim
@@ -0,0 +1,33 @@
+discard """
+  output: '''4
+3'''
+"""
+# bug #26092: exiting a nested cast block used to cancel the enclosing
+# block's cast for the statements after it.
+
+type Obj = ref object
+  x: int
+let g: Obj = Obj(x: 1)
+var fp: proc(): int {.nimcall.} = proc(): int {.nimcall.} = 2
+
+proc consumer(): int {.gcsafe.} =
+  {.cast(gcsafe).}:
+    let a = g.x
+    var b: int
+    {.cast(gcsafe).}:
+      b = g.x
+    let c = fp()
+    a + b + c
+echo consumer()
+
+var counter = 0
+proc bump() = inc counter
+
+proc pure(): int {.noSideEffect.} =
+  {.cast(noSideEffect).}:
+    bump()
+    {.cast(noSideEffect).}:
+      bump()
+    bump()
+    counter
+echo pure()