diff --git a/packages/wouter/src/index.js b/packages/wouter/src/index.js
index 7c8f549..f460ea1 100644
--- a/packages/wouter/src/index.js
+++ b/packages/wouter/src/index.js
@@ -33,6 +33,8 @@ const defaultRouter = {
   searchHook: useBrowserSearch,
   parser: parsePattern,
   base: "",
+  // tracks only explicit Router base props (not nested route bases)
+  explicitBase: "",
   // this option is used to override the current location during SSR
   ssrPath: undefined,
   ssrSearch: undefined,
@@ -77,7 +79,11 @@ const useLocationFromRouter = (router) => {
   return [
     relativePath(router.base, location),
     useEvent((to, opts) =>
-      router.aroundNav(navigate, absolutePath(to, router.base), opts)
+      router.aroundNav(
+        navigate,
+        absolutePath(to, router.base, router.explicitBase),
+        opts
+      )
     ),
   ];
 };
@@ -170,7 +176,16 @@ export const Router = ({ children, ...props }) => {
       k === "base"
         ? /* base is special case, it is appended to the parent's base */
           parent[k] + (props[k] ?? "")
-        : props[k] ?? parent[k];
+        : k === "explicitBase"
+          ? /* explicitBase tracks the root explicit Router base and is inherited unchanged */
+            parent[k] === ""
+            ? /* if parent has no explicit base, use this Router's base (if not nested) */
+              props.base !== undefined && !props._nested
+              ? props.base
+              : ""
+            : /* otherwise inherit parent's explicit base unchanged */
+              parent[k]
+          : props[k] ?? parent[k];
 
     if (option !== next[k]) {
       if (prev === next) ref.current = next = { ...next };
@@ -246,7 +261,7 @@ export const Route = ({ path, nest, match, ...renderProps }) => {
   return h(
     ParamsCtx.Provider,
     { value: params },
-    base ? h(Router, { base }, children) : children
+    base ? h(Router, { base, _nested: true }, children) : children
   );
 };
 
@@ -291,7 +306,9 @@ export const Link = forwardRef((props, ref) => {
 
   // handle nested routers and absolute paths
   linkProps.href = router.hrefs(
-    targetPath[0] === "~" ? targetPath.slice(1) : router.base + targetPath,
+    targetPath[0] === "~"
+      ? (router.explicitBase || "") + targetPath.slice(1)
+      : router.base + targetPath,
     router // pass router as a second argument for convinience
   );
 
diff --git a/packages/wouter/src/paths.js b/packages/wouter/src/paths.js
index 5b10d7b..bd3dfa2 100644
--- a/packages/wouter/src/paths.js
+++ b/packages/wouter/src/paths.js
@@ -3,8 +3,10 @@
  */
 const baseDefaults = (base = "") => (base === "/" ? "" : base);
 
-export const absolutePath = (to, base) =>
-  to[0] === "~" ? to.slice(1) : baseDefaults(base) + to;
+export const absolutePath = (to, base, explicitBase) =>
+  to[0] === "~"
+    ? baseDefaults(explicitBase ?? base) + to.slice(1)
+    : baseDefaults(base) + to;
 
 /*
  * Transforms `path` into its relative `base` version
diff --git a/packages/wouter/test/link.test.tsx b/packages/wouter/test/link.test.tsx
index a8acfcb..443dfbf 100644
--- a/packages/wouter/test/link.test.tsx
+++ b/packages/wouter/test/link.test.tsx
@@ -140,7 +140,7 @@ describe("<Link />", () => {
     expect(link.getAttribute("href")).toBe("/app/dashboard");
   });
 
-  test("renders `href` with absolute links", () => {
+  test("renders `href` with absolute links respecting base", () => {
     const { getByTestId } = render(
       <Router base="/app">
         <Link href="~/home" data-testid="link" />
@@ -148,7 +148,20 @@ describe("<Link />", () => {
     );
 
     const element = getByTestId("link");
-    expect(element).toHaveAttribute("href", "/home");
+    expect(element).toHaveAttribute("href", "/app/home");
+  });
+
+  test("renders `href` with absolute links in nested routes", () => {
+    const { getByTestId } = render(
+      <Router base="/app">
+        <Router base="/schedule">
+          <Link href="~/home" data-testid="link" />
+        </Router>
+      </Router>
+    );
+
+    const element = getByTestId("link");
+    expect(element.getAttribute("href")).toBe("/app/home");
   });
 
   test("supports history state", () => {
@@ -180,9 +193,9 @@ describe("<Link />", () => {
       </>
     );
 
-    expect(getByTestId("root")).toHaveAttribute("href", "#/");
-    expect(getByTestId("home")).toHaveAttribute("href", "#/home");
-    expect(getByTestId("absolute")).toHaveAttribute("href", "#/home");
+    expect(getByTestId("root").getAttribute("href")).toBe("#/");
+    expect(getByTestId("home").getAttribute("href")).toBe("#/home");
+    expect(getByTestId("absolute").getAttribute("href")).toBe("#/app/home");
   });
 });
 
@@ -403,4 +416,47 @@ describe("<Link /> with `asChild` prop", () => {
     expect(link).toHaveAttribute("href", undefined);
     expect(link).toHaveTextContent("Click Me");
   });
+
+  test("issue #558: ~ paths respect base in nested routes", () => {
+    const memLoc = memoryLocation({
+      path: "/app/schedule/2026-02-11",
+    });
+
+    const ScheduleDetail = () => (
+      <div>
+        <h1>Schedule Detail</h1>
+        <Link href="~/schedule" data-testid="back-link">
+          Back to Overview
+        </Link>
+      </div>
+    );
+
+    const { getByTestId } = render(
+      <Router base="/app" hook={memLoc.hook}>
+        <Router base="/schedule">
+          <ScheduleDetail />
+        </Router>
+      </Router>
+    );
+
+    const backLink = getByTestId("back-link");
+    expect(backLink.getAttribute("href")).toBe("/app/schedule");
+
+    fireEvent.click(backLink);
+    
+    // The navigate function will trigger, and we can verify by rendering a component
+    // that uses the location hook
+    const LocationDisplay = () => {
+      const [location] = memLoc.hook();
+      return <div data-testid="location">{location}</div>;
+    };
+    
+    const { getByTestId: getByTestId2 } = render(
+      <Router hook={memLoc.hook}>
+        <LocationDisplay />
+      </Router>
+    );
+    
+    expect(getByTestId2("location").textContent).toBe("/app/schedule");
+  });
 });
diff --git a/packages/wouter/test/redirect.test.tsx b/packages/wouter/test/redirect.test.tsx
index b607ef9..d96dc72 100644
--- a/packages/wouter/test/redirect.test.tsx
+++ b/packages/wouter/test/redirect.test.tsx
@@ -31,7 +31,7 @@ test("supports `base` routers with absolute path", () => {
     </Router>
   );
 
-  expect(location.pathname).toBe("/absolute");
+  expect(location.pathname).toBe("/app/absolute");
 });
 
 test("supports replace navigation", () => {
diff --git a/packages/wouter/test/url-pattern.test.tsx b/packages/wouter/test/url-pattern.test.tsx
index 26c83e9..81850a2 100644
--- a/packages/wouter/test/url-pattern.test.tsx
+++ b/packages/wouter/test/url-pattern.test.tsx
@@ -175,7 +175,7 @@ test("Switch, inherited params and links work with nested URLPattern routes", ()
   );
   const [next, outside] = Array.from(container.querySelectorAll("a"));
   expect(next.getAttribute("href")).toBe("/app/users/42/posts/8");
-  expect(outside.getAttribute("href")).toBe("/outside");
+  expect(outside.getAttribute("href")).toBe("/app/outside");
   fireEvent.click(next);
   expect(container.querySelector("span")?.textContent).toBe(
     "42:8:/app/users/42:/posts/8"