diff --git a/nemo/utils/model_utils.py b/nemo/utils/model_utils.py
index 297132ed9c65..86d6aaded806 100644
--- a/nemo/utils/model_utils.py
+++ b/nemo/utils/model_utils.py
@@ -270,12 +270,21 @@ def resolve_validation_dataloaders(model: 'ModelPT'):
     if isinstance(ds_values, (list, tuple, ListConfig)):
 
         for ds_value in ds_values:
-            cfg.validation_ds[ds_key] = ds_value
+            if isinstance(ds_value, (dict, DictConfig)):
+                # this is a nested dataset
+                cfg.validation_ds = ds_value
+            else:
+                cfg.validation_ds[ds_key] = ds_value
+
             model.setup_validation_data(cfg.validation_ds)
             dataloaders.append(model._validation_dl)
 
         model._validation_dl = dataloaders
-        model._validation_names = [parse_dataset_as_name(ds) for ds in ds_values]
+        if isinstance(ds_values[0], (dict, DictConfig)):
+            # using the name of each of the nested dataset
+            model._validation_names = [ds.name for ds in ds_values]
+        else:
+            model._validation_names = [parse_dataset_as_name(ds) for ds in ds_values]
         unique_names_check(name_list=model._validation_names)
         return
 
@@ -340,12 +349,21 @@ def resolve_test_dataloaders(model: 'ModelPT'):
     if isinstance(ds_values, (list, tuple, ListConfig)):
 
         for ds_value in ds_values:
-            cfg.test_ds[ds_key] = ds_value
+            if isinstance(ds_value, (dict, DictConfig)):
+                # this is a nested dataset
+                cfg.test_ds = ds_value
+            else:
+                cfg.test_ds[ds_key] = ds_value
+
             model.setup_test_data(cfg.test_ds)
             dataloaders.append(model._test_dl)
 
         model._test_dl = dataloaders
-        model._test_names = [parse_dataset_as_name(ds) for ds in ds_values]
+        if isinstance(ds_values[0], (dict, DictConfig)):
+            # using the name of each of the nested dataset
+            model._test_names = [ds.name for ds in ds_values]
+        else:
+            model._test_names = [parse_dataset_as_name(ds) for ds in ds_values]
 
         unique_names_check(name_list=model._test_names)
         return