diff --git a/crates/wasmtime/src/component/linker.rs b/crates/wasmtime/src/component/linker.rs
index cf2bbb302cca..c97308fa0685 100644
--- a/crates/wasmtime/src/component/linker.rs
+++ b/crates/wasmtime/src/component/linker.rs
@@ -4,9 +4,11 @@ use crate::component::matching::TypeChecker;
 use crate::component::{Component, ComponentNamedList, Instance, InstancePre, Lift, Lower, Val};
 use crate::{AsContextMut, Engine, Module, StoreContextMut};
 use anyhow::{anyhow, bail, Context, Result};
+use indexmap::IndexMap;
 use std::collections::hash_map::{Entry, HashMap};
 use std::future::Future;
 use std::marker;
+use std::ops::Deref;
 use std::pin::Pin;
 use std::sync::Arc;
 use wasmtime_environ::component::TypeDef;
@@ -22,6 +24,7 @@ pub struct Linker<T> {
     engine: Engine,
     strings: Strings,
     map: NameMap,
+    path: Vec<usize>,
     allow_shadowing: bool,
     _marker: marker::PhantomData<fn() -> T>,
 }
@@ -38,7 +41,9 @@ pub struct Strings {
 /// a "bag of named items", so each [`LinkerInstance`] can further define items
 /// internally.
 pub struct LinkerInstance<'a, T> {
-    engine: Engine,
+    engine: &'a Engine,
+    path: &'a mut Vec<usize>,
+    path_len: usize,
     strings: &'a mut Strings,
     map: &'a mut NameMap,
     allow_shadowing: bool,
@@ -63,6 +68,7 @@ impl<T> Linker<T> {
             strings: Strings::default(),
             map: NameMap::default(),
             allow_shadowing: false,
+            path: Vec::new(),
             _marker: marker::PhantomData,
         }
     }
@@ -85,7 +91,9 @@ impl<T> Linker<T> {
     /// the root namespace.
     pub fn root(&mut self) -> LinkerInstance<'_, T> {
         LinkerInstance {
-            engine: self.engine.clone(),
+            engine: &self.engine,
+            path: &mut self.path,
+            path_len: 0,
             strings: &mut self.strings,
             map: &mut self.map,
             allow_shadowing: self.allow_shadowing,
@@ -230,7 +238,9 @@ impl<T> Linker<T> {
 impl<T> LinkerInstance<'_, T> {
     fn as_mut(&mut self) -> LinkerInstance<'_, T> {
         LinkerInstance {
-            engine: self.engine.clone(),
+            engine: self.engine,
+            path: self.path,
+            path_len: self.path_len,
             strings: self.strings,
             map: self.map,
             allow_shadowing: self.allow_shadowing,
@@ -310,21 +320,39 @@ impl<T> LinkerInstance<'_, T> {
         name: &str,
         func: F,
     ) -> Result<()> {
-        for (import_name, ty) in component.env_component().import_types.values() {
-            if name == import_name {
-                if let TypeDef::ComponentFunc(index) = ty {
-                    let name = self.strings.intern(name);
-                    return self.insert(
-                        name,
-                        Definition::Func(HostFunc::new_dynamic(func, *index, component.types())),
-                    );
+        let mut map = &component
+            .env_component()
+            .import_types
+            .values()
+            .map(|(k, v)| (k.clone(), *v))
+            .collect::<IndexMap<_, _>>();
+
+        for name in self.path.iter().copied().take(self.path_len) {
+            let name = self.strings.strings[name].deref();
+            if let Some(ty) = map.get(name) {
+                if let TypeDef::ComponentInstance(index) = ty {
+                    map = &component.types()[*index].exports;
                 } else {
-                    bail!("import `{name}` has the wrong type (expected a function)");
+                    bail!("import `{name}` has the wrong type (expected a component instance)");
                 }
+            } else {
+                bail!("import `{name}` not found");
             }
         }
 
-        Err(anyhow!("import `{name}` not found"))
+        if let Some(ty) = map.get(name) {
+            if let TypeDef::ComponentFunc(index) = ty {
+                let name = self.strings.intern(name);
+                return self.insert(
+                    name,
+                    Definition::Func(HostFunc::new_dynamic(func, *index, component.types())),
+                );
+            } else {
+                bail!("import `{name}` has the wrong type (expected a function)");
+            }
+        } else {
+            Err(anyhow!("import `{name}` not found"))
+        }
     }
 
     // TODO: define func_new_async
@@ -367,6 +395,9 @@ impl<T> LinkerInstance<'_, T> {
             Definition::Instance(map) => map,
             _ => unreachable!(),
         };
+        self.path.truncate(self.path_len);
+        self.path.push(name);
+        self.path_len += 1;
         Ok(self)
     }
 
diff --git a/tests/all/component_model/import.rs b/tests/all/component_model/import.rs
index be5ba39bedf5..705348e9dfa7 100644
--- a/tests/all/component_model/import.rs
+++ b/tests/all/component_model/import.rs
@@ -169,6 +169,111 @@ fn simple() -> Result<()> {
     Ok(())
 }
 
+#[test]
+fn functions_in_instances() -> Result<()> {
+    let component = r#"
+        (component
+            (type $import-type (instance
+                (export "a" (func (param "a" string)))
+            ))
+            (import (interface "test:test/foo") (instance $import (type $import-type)))
+            (alias export $import "a" (func $log))
+
+            (core module $libc
+                (memory (export "memory") 1)
+
+                (func (export "realloc") (param i32 i32 i32 i32) (result i32)
+                    unreachable)
+            )
+            (core instance $libc (instantiate $libc))
+            (core func $log_lower
+                (canon lower (func $log) (memory $libc "memory") (realloc (func $libc "realloc")))
+            )
+            (core module $m
+                (import "libc" "memory" (memory 1))
+                (import "host" "log" (func $log (param i32 i32)))
+
+                (func (export "call")
+                    i32.const 5
+                    i32.const 11
+                    call $log)
+
+                (data (i32.const 5) "hello world")
+            )
+            (core instance $i (instantiate $m
+                (with "libc" (instance $libc))
+                (with "host" (instance (export "log" (func $log_lower))))
+            ))
+            (func $call
+                (canon lift (core func $i "call"))
+            )
+            (component $c
+                (import "import-call" (func $f))
+                (export "call" (func $f))
+            )
+            (instance $export (instantiate $c
+                (with "import-call" (func $call))
+            ))
+            (export (interface "test:test/foo") (instance $export))
+        )
+    "#;
+
+    let engine = super::engine();
+    let component = Component::new(&engine, component)?;
+    let mut store = Store::new(&engine, None);
+    assert!(store.data().is_none());
+
+    // First, test the static API
+
+    let mut linker = Linker::new(&engine);
+    linker.instance("test:test/foo")?.func_wrap(
+        "a",
+        |mut store: StoreContextMut<'_, Option<String>>, (arg,): (WasmStr,)| -> Result<_> {
+            let s = arg.to_str(&store)?.to_string();
+            assert!(store.data().is_none());
+            *store.data_mut() = Some(s);
+            Ok(())
+        },
+    )?;
+    let instance = linker.instantiate(&mut store, &component)?;
+    let func = instance
+        .exports(&mut store)
+        .instance("test:test/foo")
+        .unwrap()
+        .typed_func::<(), ()>("call")?;
+    func.call(&mut store, ())?;
+    assert_eq!(store.data().as_ref().unwrap(), "hello world");
+
+    // Next, test the dynamic API
+
+    *store.data_mut() = None;
+    let mut linker = Linker::new(&engine);
+    linker.instance("test:test/foo")?.func_new(
+        &component,
+        "a",
+        |mut store: StoreContextMut<'_, Option<String>>, args, _results| {
+            if let Val::String(s) = &args[0] {
+                assert!(store.data().is_none());
+                *store.data_mut() = Some(s.to_string());
+                Ok(())
+            } else {
+                panic!()
+            }
+        },
+    )?;
+    let instance = linker.instantiate(&mut store, &component)?;
+    let func = instance
+        .exports(&mut store)
+        .instance("test:test/foo")
+        .unwrap()
+        .func("call")
+        .unwrap();
+    func.call(&mut store, &[], &mut [])?;
+    assert_eq!(store.data().as_ref().unwrap(), "hello world");
+
+    Ok(())
+}
+
 #[test]
 fn attempt_to_leave_during_malloc() -> Result<()> {
     let component = r#"