diff --git a/src/cache/inmemory/__tests__/policies.ts b/src/cache/inmemory/__tests__/policies.ts
index 196e0d5abf9..e251f98cdfe 100644
--- a/src/cache/inmemory/__tests__/policies.ts
+++ b/src/cache/inmemory/__tests__/policies.ts
@@ -740,5 +740,175 @@ describe("type policies", function () {
         },
       });
     });
+
+    it("runs nested merge functions as well as ancestors", function () {
+      let eventMergeCount = 0;
+      let attendeeMergeCount = 0;
+
+      const cache = new InMemoryCache({
+        typePolicies: {
+          Event: {
+            fields: {
+              attendees: {
+                merge(existing: any[], incoming: any[]) {
+                  ++eventMergeCount;
+                  expect(Array.isArray(incoming)).toBe(true);
+                  return existing ? existing.concat(incoming) : incoming;
+                },
+              },
+            },
+          },
+
+          Attendee: {
+            fields: {
+              events: {
+                merge(existing: any[], incoming: any[]) {
+                  ++attendeeMergeCount;
+                  expect(Array.isArray(incoming)).toBe(true);
+                  return existing ? existing.concat(incoming) : incoming;
+                },
+              },
+            },
+          },
+        },
+      });
+
+      cache.writeQuery({
+        query: gql`
+          query {
+            eventsToday {
+              name
+              attendees {
+                name
+                events {
+                  time
+                }
+              }
+            }
+          }
+        `,
+        data: {
+          eventsToday: [{
+            __typename: "Event",
+            id: 123,
+            name: "One-person party",
+            time: "noonish",
+            attendees: [{
+              __typename: "Attendee",
+              id: 234,
+              name: "Ben Newman",
+              events: [
+                { __typename: "Event", id: 123 },
+              ],
+            }],
+          }],
+        },
+      });
+
+      expect(eventMergeCount).toBe(1);
+      expect(attendeeMergeCount).toBe(1);
+
+      expect(cache.extract()).toEqual({
+        ROOT_QUERY: {
+          __typename: "Query",
+          eventsToday: [
+            { __ref: "Event:123" },
+          ],
+        },
+        "Event:123": {
+          __typename: "Event",
+          name: "One-person party",
+          attendees: [
+            { __ref: "Attendee:234" },
+          ],
+        },
+        "Attendee:234": {
+          __typename: "Attendee",
+          name: "Ben Newman",
+          events: [
+            { __ref: "Event:123" },
+          ],
+        },
+      });
+
+      cache.writeQuery({
+        query: gql`
+          query {
+            people {
+              name
+              events {
+                time
+                attendees {
+                  name
+                }
+              }
+            }
+          }
+        `,
+        data: {
+          people: [{
+            __typename: "Attendee",
+            id: 234,
+            name: "Ben Newman",
+            events: [{
+              __typename: "Event",
+              id: 345,
+              name: "Rooftop dog party",
+              attendees: [{
+                __typename: "Attendee",
+                id: 456,
+                name: "Inspector Beckett",
+              }, {
+                __typename: "Attendee",
+                id: 234,
+              }],
+            }],
+          }],
+        },
+      });
+
+      expect(eventMergeCount).toBe(2);
+      expect(attendeeMergeCount).toBe(2);
+
+      expect(cache.extract()).toEqual({
+        ROOT_QUERY: {
+          __typename: "Query",
+          eventsToday: [
+            { __ref: "Event:123" },
+          ],
+          people: [
+            { __ref: "Attendee:234" },
+          ],
+        },
+        "Event:123": {
+          __typename: "Event",
+          name: "One-person party",
+          attendees: [
+            { __ref: "Attendee:234" },
+          ],
+        },
+        "Event:345": {
+          __typename: "Event",
+          attendees: [
+            { __ref: "Attendee:456" },
+            { __ref: "Attendee:234" },
+          ],
+        },
+        "Attendee:234": {
+          __typename: "Attendee",
+          name: "Ben Newman",
+          events: [
+            { __ref: "Event:123" },
+            { __ref: "Event:345" },
+          ],
+        },
+        "Attendee:456": {
+          __typename: "Attendee",
+          name: "Inspector Beckett",
+        },
+      });
+
+      expect(cache.gc()).toEqual([]);
+    });
   });
 });
diff --git a/src/cache/inmemory/writeToStore.ts b/src/cache/inmemory/writeToStore.ts
index eb6edce1636..437a060817a 100644
--- a/src/cache/inmemory/writeToStore.ts
+++ b/src/cache/inmemory/writeToStore.ts
@@ -35,8 +35,6 @@ import { NormalizedCache, StoreObject } from './types';
 import { getTypenameFromStoreObject } from './helpers';
 import { Policies, StoreValueMergeFunction } from './policies';
 
-const { hasOwnProperty } = Object.prototype;
-
 export type WriteContext = {
   readonly store: NormalizedCache;
   readonly written: {
@@ -54,11 +52,10 @@ type StoreObjectMergeFunction = (
   overrides?: MergeOverrides,
 ) => StoreObject;
 
-type MergeOverrides = Record<string | number,
-  | StoreValueMergeFunction
-  // TODO This should be replaced with MergeOverrides when TypeScript 3.7+
-  // starts supporting recursive type aliases.
-  | Record<string | number, any>>;
+type MergeOverrides = Record<string, {
+  merge?: StoreValueMergeFunction;
+  child?: MergeOverrides;
+}>;
 
 export interface StoreWriterConfig {
   policies: Policies;
@@ -240,10 +237,12 @@ export class StoreWriter {
             context.variables,
           );
 
-          const override = merge || processed.mergeOverrides;
-          if (override) {
+          if (merge || processed.mergeOverrides) {
             mergeOverrides = mergeOverrides || Object.create(null);
-            mergeOverrides[storeFieldName] = override;
+            mergeOverrides[storeFieldName] = context.mergeFields(
+              mergeOverrides[storeFieldName],
+              { merge, child: processed.mergeOverrides },
+            ) as MergeOverrides[string];
           }
 
           mergedFields = context.mergeFields(mergedFields, {
@@ -364,15 +363,16 @@ function walkWithMergeOverrides(
   overrides: MergeOverrides,
 ): void {
   Object.keys(overrides).forEach(name => {
-    const override = overrides[name];
+    const { merge, child } = overrides[name];
     const existingValue: any = existingObject && existingObject[name];
     const incomingValue: any = incomingObject && incomingObject[name];
-    if (typeof override === "function") {
-      incomingObject[name] = override(existingValue, incomingValue, existingObject);
-    } else if (override && typeof override === "object") {
-      // StoreObjects can have multiple layers of nested objects/arrays,
-      // each layer with its own nested fields and override functions.
-      walkWithMergeOverrides(existingValue, incomingValue, override);
+    if (child) {
+      // StoreObjects can have multiple layers of child objects/arrays,
+      // each layer with its own child fields and override functions.
+      walkWithMergeOverrides(existingValue, incomingValue, child);
+    }
+    if (merge) {
+      incomingObject[name] = merge(existingValue, incomingValue, existingObject);
     }
   });
 }
@@ -394,7 +394,8 @@ const storeObjectReconciler: ReconcilerFunction<[
   const existing = existingObject[property];
   const incoming = incomingObject[property];
 
-  if (mergeOverrides && hasOwnProperty.call(mergeOverrides, property)) {
+  const mergeChildObj = mergeOverrides && mergeOverrides[property];
+  if (mergeChildObj && typeof mergeChildObj.merge === "function") {
     // If this property was overridden by a custom merge function, then
     // its merged value has already been determined, so we should return
     // incoming without recursively merging it into existing.
@@ -421,13 +422,7 @@ const storeObjectReconciler: ReconcilerFunction<[
       return incoming;
     }
 
-    let childMergeOverrides: MergeOverrides;
-    if (mergeOverrides) {
-      const child = mergeOverrides[property];
-      if (typeof child === "object") {
-        childMergeOverrides = child;
-      }
-    }
+    const childMergeOverrides = mergeChildObj && mergeChildObj.child;
 
     if (isReference(incoming)) {
       if (isReference(existing)) {