diff --git a/fixtures/ast/declarationList/nesting.json b/fixtures/ast/declarationList/nesting.json
index a712d3c4..499ce209 100644
--- a/fixtures/ast/declarationList/nesting.json
+++ b/fixtures/ast/declarationList/nesting.json
@@ -249,24 +249,153 @@
             ]
         }
     },
-    "don't parse nested rule when it not started with &": {
+    "nested rules with various selectors": {
         "source": ".bar & { color: green; }; div:hover { color: red; }",
-        "generate": ".bar & { color: green; };div:hover { color: red; }",
+        "generate": ".bar &{color:green}div:hover{color:red}",
         "ast": {
-
             "type": "DeclarationList",
             "children": [
                 {
-                    "type": "Raw",
-                    "value": ".bar & { color: green; };"
+                    "type": "Rule",
+                    "prelude": {
+                        "type": "SelectorList",
+                        "children": [
+                            {
+                                "type": "Selector",
+                                "children": [
+                                    {
+                                        "type": "ClassSelector",
+                                        "name": "bar"
+                                    },
+                                    {
+                                        "type": "Combinator",
+                                        "name": " "
+                                    },
+                                    {
+                                        "type": "NestingSelector"
+                                    }
+                                ]
+                            }
+                        ]
+                    },
+                    "block": {
+                        "type": "Block",
+                        "children": [
+                            {
+                                "type": "Declaration",
+                                "important": false,
+                                "property": "color",
+                                "value": {
+                                    "type": "Value",
+                                    "children": [
+                                        {
+                                            "type": "Identifier",
+                                            "name": "green"
+                                        }
+                                    ]
+                                }
+                            }
+                        ]
+                    }
                 },
+                {
+                    "type": "Rule",
+                    "prelude": {
+                        "type": "SelectorList",
+                        "children": [
+                            {
+                                "type": "Selector",
+                                "children": [
+                                    {
+                                        "type": "TypeSelector",
+                                        "name": "div"
+                                    },
+                                    {
+                                        "type": "PseudoClassSelector",
+                                        "name": "hover",
+                                        "children": null
+                                    }
+                                ]
+                            }
+                        ]
+                    },
+                    "block": {
+                        "type": "Block",
+                        "children": [
+                            {
+                                "type": "Declaration",
+                                "important": false,
+                                "property": "color",
+                                "value": {
+                                    "type": "Value",
+                                    "children": [
+                                        {
+                                            "type": "Identifier",
+                                            "name": "red"
+                                        }
+                                    ]
+                                }
+                            }
+                        ]
+                    }
+                }
+            ]
+        }
+    },
+    "nested element selector": {
+        "source": "color: blue; p { margin: 0; }",
+        "generate": "color:blue;p{margin:0}",
+        "ast": {
+            "type": "DeclarationList",
+            "children": [
                 {
                     "type": "Declaration",
                     "important": false,
-                    "property": "div",
+                    "property": "color",
                     "value": {
-                        "type": "Raw",
-                        "value": "hover { color: red; }"
+                        "type": "Value",
+                        "children": [
+                            {
+                                "type": "Identifier",
+                                "name": "blue"
+                            }
+                        ]
+                    }
+                },
+                {
+                    "type": "Rule",
+                    "prelude": {
+                        "type": "SelectorList",
+                        "children": [
+                            {
+                                "type": "Selector",
+                                "children": [
+                                    {
+                                        "type": "TypeSelector",
+                                        "name": "p"
+                                    }
+                                ]
+                            }
+                        ]
+                    },
+                    "block": {
+                        "type": "Block",
+                        "children": [
+                            {
+                                "type": "Declaration",
+                                "important": false,
+                                "property": "margin",
+                                "value": {
+                                    "type": "Value",
+                                    "children": [
+                                        {
+                                            "type": "Number",
+                                            "value": "0"
+                                        }
+                                    ]
+                                }
+                            }
+                        ]
                     }
                 }
             ]
diff --git a/lib/syntax/node/DeclarationList.js b/lib/syntax/node/DeclarationList.js
index 2b40c994..8c0e1b07 100644
--- a/lib/syntax/node/DeclarationList.js
+++ b/lib/syntax/node/DeclarationList.js
@@ -2,15 +2,71 @@ import {
     WhiteSpace,
     Comment,
     Semicolon,
-    AtKeyword
+    AtKeyword,
+    Delim,
+    Hash,
+    LeftSquareBracket,
+    Colon,
+    Ident,
+    RightCurlyBracket
 } from '../../tokenizer/index.js';
 
 const AMPERSAND = 0x0026;       // U+0026 AMPERSAND (&)
+const DOT = 0x002E;             // U+002E FULL STOP (.)
+const STAR = 0x002A;            // U+002A ASTERISK (*);
+const PLUSSIGN = 0x002B;        // U+002B PLUS SIGN (+)
+const GREATERTHANSIGN = 0x003E; // U+003E GREATER-THAN SIGN (>)
+const TILDE = 0x007E;           // U+007E TILDE (~)
+
+const selectorStarts = new Set([
+    AMPERSAND,
+    DOT,
+    STAR,
+    PLUSSIGN,
+    GREATERTHANSIGN,
+    TILDE
+]);
 
 function consumeRaw() {
     return this.Raw(this.consumeUntilSemicolonIncluded, true);
 }
 
+function isElementSelectorStart() {
+    if (this.tokenType !== Ident) {
+        return false;
+    }
+
+    const nextTokenType = this.lookupTypeNonSC(1);
+
+    // Simple case: if next token is not colon, semicolon, or closing brace, it's likely a selector
+    if (nextTokenType !== Colon && nextTokenType !== Semicolon && nextTokenType !== RightCurlyBracket) {
+        return true;
+    }
+
+    // Special handling for colon case - could be pseudo-class/pseudo-element
+    if (nextTokenType === Colon) {
+        // Look ahead further to see what follows the colon
+        const afterColonType = this.lookupTypeNonSC(2);
+        
+        // If after colon there's an identifier (pseudo-class/pseudo-element name),
+        // check what comes after that
+        if (afterColonType === Ident) {
+            const afterPseudoType = this.lookupTypeNonSC(3);
+            // If it's followed by { or other selector tokens, it's a selector
+            // If it's followed by ; or } or EOF, it's not a selector (property)
+            return afterPseudoType !== Semicolon && afterPseudoType !== RightCurlyBracket && afterPseudoType !== 0; // 0 is EOF
+        }
+    }
+
+    return false;
+}
+
+function isSelectorStart() {
+    return this.tokenType === Delim && selectorStarts.has(this.source.charCodeAt(this.tokenStart)) ||
+        this.tokenType === Hash || this.tokenType === LeftSquareBracket ||
+        this.tokenType === Colon || isElementSelectorStart.call(this);
+}
+
 export const name = 'DeclarationList';
 export const structure = {
     children: [[
@@ -37,7 +93,7 @@ export function parse() {
                 break;
 
             default:
-                if (this.isDelim(AMPERSAND))  {
+                if (isSelectorStart.call(this))  {
                     children.push(this.parseWithFallback(this.Rule, consumeRaw));
                 } else {
                     children.push(this.parseWithFallback(this.Declaration, consumeRaw));