diff --git a/test/misc/Makefile b/test/misc/Makefile
index b8c578405..06046af3c 100644
--- a/test/misc/Makefile
+++ b/test/misc/Makefile
@@ -100,6 +100,12 @@ $(WORKDIR)/bug1263.$1.$2.prg: bug1263.c | $(WORKDIR)
 	$(if $(QUIET),echo misc/bug1263.$1.$2.prg)
 	$(NOT) $(CC65) -t sim$2 -$1 -o $$@ $$< $(NULLERR)
 
+# should compile, but gives an error
+$(WORKDIR)/bug1094.$1.$2.prg: bug1094.c | $(WORKDIR)
+	@echo "FIXME: " $$@ "currently does not compile."
+	$(if $(QUIET),echo misc/bug1094.$1.$2.prg)
+	$(NOT) $(CC65) -t sim$2 -$1 -o $$@ $$< $(NULLERR)
+
 # this one requires --std=c89, it fails with --std=c99
 # it fails currently at runtime
 $(WORKDIR)/bug1265.$1.$2.prg: bug1265.c | $(WORKDIR)
diff --git a/test/misc/bug1094.c b/test/misc/bug1094.c
new file mode 100644
index 000000000..05e3e6430
--- /dev/null
+++ b/test/misc/bug1094.c
@@ -0,0 +1,99 @@
+
+/* bug #1094 - Nested struct/union initializers don't compile */
+
+#include <stdio.h>
+#include <stddef.h>
+#include <stdlib.h>
+#include <stdint.h>
+
+typedef uint16_t u16;
+typedef uint8_t u8;
+
+struct WW {
+    int a : 4;
+    struct {
+        unsigned int b : 4;
+        unsigned int c : 8;
+    } x[2];
+} wwqq = { 0, {2, 5, {3, 4}}, };
+
+typedef struct {
+    u16 quot;
+    u16 rem;
+} udiv_t;
+
+typedef struct {
+    u16 quot;
+    u16 rem;
+    char m[8];
+} big_t;
+
+union U {
+    struct {
+        signed int a : 3;
+        signed int b : 3;
+        signed int c : 3;
+    };
+    int u;
+};
+
+union U g = { 5, 3, 1 };
+
+struct S {
+    struct {
+        unsigned int a : 3;
+        unsigned int b : 3;
+        unsigned int c : 3;
+    };
+};
+
+struct S h = { 5, 3, 1 };
+
+union X {
+    struct {
+        uint16_t a : 3;
+        union {
+            struct {
+                uint16_t b : 3;
+                uint16_t c : 3;
+            };
+            uint16_t d;
+        };
+    };
+    uint16_t e;
+} x = { 4, {5, 6} };
+
+
+udiv_t div3(udiv_t u)
+{
+    udiv_t v = {};
+
+    u.quot = 341 + u.quot;
+    u.rem = 1 + u.rem;
+
+    v = u;
+
+    return v;
+}
+
+int main(void)
+{
+    udiv_t v = { 141, 32 };
+    big_t  b = { 141, 32 };
+
+    v = div3(*(udiv_t*)&b);
+
+    printf("%d %d %d\n", (int)wwqq.a, wwqq.x[0].b, wwqq.x[0].c);
+    printf("%d %d %d\n", (int)wwqq.a, wwqq.x[1].b, wwqq.x[1].c);
+    printf("quot = %u, rem = %u\n", div3(v).quot, div3(v).rem);
+    printf("quot = %u, rem = %u\n", v.quot, v.rem);
+    printf("quot = %u, rem = %u\n", b.quot, b.rem);
+    printf("g.a = %u, g.b = %u, g.c = %d\n", g.a, g.b, g.c);
+    x.e = 1467;
+    printf("x.a = %d, x.b = %d, x.c = %d\n", x.a, x.b, x.c);
+    printf("(long)x.b = %ld, sizeof(x) = %u, sizeof((long)x.a) = %u\n", (long)x.b, sizeof(x), sizeof((long)x.a));
+    printf("-x.d = %d, (long)(-x.c + 1) = %ld\n", -x.d, (long)(-x.c + 1));
+    printf("h.a = %u, h.b = %u, h.c = %u\n", h.a, h.b, h.c);
+
+    return 0;
+}