diff --git a/rule_expression.go b/rule_expression.go
index c09d729aa..52068c958 100644
--- a/rule_expression.go
+++ b/rule_expression.go
@@ -795,7 +795,7 @@ func (rule *RuleExpression) populateDependantNeedsTypes(out *ObjectType, job *Jo
 			"result":  StringType{},
 		})
 
-		rule.populateDependantNeedsTypes(out, j, root) // Add necessary needs props recursively
+		// Do not collect outputs type from parent of parent recursively. (#151)
 	}
 }
 
diff --git a/testdata/err/issue151_child_of_child_job.out b/testdata/err/issue151_child_of_child_job.out
new file mode 100644
index 000000000..5dbf5bc3a
--- /dev/null
+++ b/testdata/err/issue151_child_of_child_job.out
@@ -0,0 +1 @@
+/test\.yaml:26:31: property "first" is not defined in object type {second: {.*outputs: {second: string}.*}} \[expression\]/
diff --git a/testdata/err/issue151_child_of_child_job.yaml b/testdata/err/issue151_child_of_child_job.yaml
new file mode 100644
index 000000000..0bf446d80
--- /dev/null
+++ b/testdata/err/issue151_child_of_child_job.yaml
@@ -0,0 +1,26 @@
+name: Test
+
+on: push
+
+jobs:
+  first:
+    runs-on: ubuntu-latest
+    outputs:
+      first: 'output from parent'
+    steps:
+      - run: echo 'first'
+
+  second:
+    needs: [first]
+    runs-on: ubuntu-latest
+    outputs:
+      second: 'output from second'
+    steps:
+      - run: echo 'second'
+
+  third:
+    needs: [second]
+    runs-on: ubuntu-latest
+    steps:
+      - run: echo '${{ toJSON(needs.second.outputs) }}'
+      - run: echo '${{ toJSON(needs.first.outputs) }}'
diff --git a/testdata/ok/issue-151-child-of-child-job.yaml b/testdata/ok/issue-151-child-of-child-job.yaml
new file mode 100644
index 000000000..0567b5b90
--- /dev/null
+++ b/testdata/ok/issue-151-child-of-child-job.yaml
@@ -0,0 +1,26 @@
+name: Test
+
+on: push
+
+jobs:
+  first:
+    runs-on: ubuntu-latest
+    outputs:
+      first: 'output from parent'
+    steps:
+      - run: echo 'first'
+
+  second:
+    needs: [first]
+    runs-on: ubuntu-latest
+    outputs:
+      second: 'output from second'
+    steps:
+      - run: echo 'second'
+
+  third:
+    needs: [first, second]
+    runs-on: ubuntu-latest
+    steps:
+      - run: echo '${{ toJSON(needs.second.outputs) }}'
+      - run: echo '${{ toJSON(needs.first.outputs) }}'