diff --git a/codegen-server/src/main/kotlin/software/amazon/smithy/rust/codegen/server/smithy/generators/UnconstrainedCollectionGenerator.kt b/codegen-server/src/main/kotlin/software/amazon/smithy/rust/codegen/server/smithy/generators/UnconstrainedCollectionGenerator.kt
index 041b5a1381..3c47ef2128 100644
--- a/codegen-server/src/main/kotlin/software/amazon/smithy/rust/codegen/server/smithy/generators/UnconstrainedCollectionGenerator.kt
+++ b/codegen-server/src/main/kotlin/software/amazon/smithy/rust/codegen/server/smithy/generators/UnconstrainedCollectionGenerator.kt
@@ -143,6 +143,43 @@ class UnconstrainedCollectionGenerator(
                         "InnerConstraintViolationSymbol" to innerConstraintViolationSymbol,
                         "ConstrainValueWritable" to constrainValueWritable,
                     )
+
+                    val constrainedValueTypeIsNotFinalType =
+                        resolvesToNonPublicConstrainedValueType && shape.isDirectlyConstrained(symbolProvider)
+                    if (constrainedValueTypeIsNotFinalType) {
+                        // Refer to the comments under `UnconstrainedMapGenerator` for a more in-depth explanation
+                        // of this process. Consider the following Smithy model where a constrained list contains
+                        // an indirectly constrained shape as a member:
+                        //
+                        // ```smithy
+                        // @length(min: 1, max: 100)
+                        // list ItemList {
+                        //     member: Item
+                        // }
+                        //
+                        // list Item {
+                        //     member: ItemName
+                        // }
+                        //
+                        // @length(min: 1, max: 100)
+                        // string ItemName
+                        // ```
+                        //
+                        // The final type exposed to the user is `ItemList<Vec<Vec<ItemName>>>`. However, the
+                        // intermediate representation generated is `Vec<ItemConstrained>`. This needs to be
+                        // transformed into `Vec<Vec<ItemName>>` to satisfy the `TryFrom` implementation and
+                        // successfully construct an `ItemList` instance.
+                        //
+                        // This transformation is necessary due to the nested nature of the constraints and
+                        // the difference between the internal constrained representation and the external
+                        // user-facing type.
+                        rustTemplate(
+                            """
+                            let inner: Vec<#{FinalType}> = inner.into_iter().map(|value| value.into()).collect();
+                            """,
+                            "FinalType" to symbolProvider.toSymbol(shape.member),
+                        )
+                    }
                 } else {
                     rust("let inner = value.0;")
                 }
diff --git a/codegen-server/src/test/kotlin/software/amazon/smithy/rust/codegen/server/smithy/ConstraintsTest.kt b/codegen-server/src/test/kotlin/software/amazon/smithy/rust/codegen/server/smithy/ConstraintsTest.kt
index 31123ef811..b0b4a01d28 100644
--- a/codegen-server/src/test/kotlin/software/amazon/smithy/rust/codegen/server/smithy/ConstraintsTest.kt
+++ b/codegen-server/src/test/kotlin/software/amazon/smithy/rust/codegen/server/smithy/ConstraintsTest.kt
@@ -25,8 +25,11 @@ import software.amazon.smithy.model.shapes.StructureShape
 import software.amazon.smithy.model.traits.AbstractTrait
 import software.amazon.smithy.model.transform.ModelTransformer
 import software.amazon.smithy.protocol.traits.Rpcv2CborTrait
+import software.amazon.smithy.rust.codegen.core.testutil.IntegrationTestParams
+import software.amazon.smithy.rust.codegen.core.testutil.ServerAdditionalSettings
 import software.amazon.smithy.rust.codegen.core.testutil.asSmithyModel
 import software.amazon.smithy.rust.codegen.core.util.lookup
+import software.amazon.smithy.rust.codegen.server.smithy.testutil.serverIntegrationTest
 import software.amazon.smithy.rust.codegen.server.smithy.testutil.serverTestSymbolProvider
 import java.io.File
 
@@ -219,4 +222,135 @@ class ConstraintsTest {
         structWithInnerDefault.canReachConstrainedShape(model, symbolProvider) shouldBe false
         primitiveBoolean.isDirectlyConstrained(symbolProvider) shouldBe false
     }
+
+    // TODO(#3895): Move tests that use `generateAndCompileServer` into `constraints.smithy` once issue is resolved
+    private fun generateAndCompileServer(
+        model: Model,
+        pubConstraints: Boolean = true,
+        dir: File? = null,
+    ) {
+        if (dir?.exists() == true) {
+            dir.deleteRecursively()
+        }
+
+        // Simply compiling the crate is sufficient as a test.
+        serverIntegrationTest(
+            model,
+            IntegrationTestParams(
+                service = "test#SampleService",
+                additionalSettings =
+                    ServerAdditionalSettings.builder()
+                        .publicConstrainedTypes(pubConstraints)
+                        .toObjectNode(),
+                overrideTestDir = dir,
+            ),
+        ) { _, _ ->
+        }
+    }
+
+    private fun createModel(
+        inputMemberShape: String,
+        additionalShapes: () -> String,
+    ) = """
+        namespace test
+        use aws.protocols#restJson1
+        use smithy.framework#ValidationException
+
+        @restJson1
+        service SampleService {
+            operations: [SampleOp]
+        }
+
+        @http(uri: "/sample", method: "POST")
+        operation SampleOp {
+            input := {
+                items : $inputMemberShape
+            }
+            errors: [ValidationException]
+        }
+        @length(min: 0 max: 65535)
+        string ItemName
+        string ItemDescription
+        ${additionalShapes()}
+        """.asSmithyModel(smithyVersion = "2")
+
+    @Test
+    fun `constrained map with an indirectly constrained nested list should compile`() {
+        val model =
+            createModel("ItemMap") {
+                """
+                @length(min: 1 max: 100)
+                map ItemMap {
+                    key: ItemName,
+                    value: ItemListA
+                }
+                list ItemListA { 
+                    member: ItemListB
+                }
+                list ItemListB {
+                    member: ItemDescription
+                }
+                """
+            }
+        generateAndCompileServer(model)
+    }
+
+    @Test
+    fun `constrained list with an indirectly constrained map should compile`() {
+        val model =
+            createModel("ItemList") {
+                """
+                @length(min: 1 max: 100)
+                list ItemList {
+                    member: Item
+                }
+                map Item {
+                    key: ItemName
+                    value: ItemDescription
+                }
+                """
+            }
+        generateAndCompileServer(model)
+    }
+
+    @Test
+    fun `constrained list with an indirectly constrained nested list should compile`() {
+        val model =
+            createModel("ItemList") {
+                """
+                @length(min: 1 max: 100)
+                list ItemList {
+                    member: ItemA
+                }
+                list ItemA {
+                    member: ItemB
+                }
+                list ItemB {
+                    member: ItemName
+                }
+                """
+            }
+        generateAndCompileServer(model)
+    }
+
+    @Test
+    fun `constrained list with an indirectly constrained list that has an indirectly constrained map should compile`() {
+        val model =
+            createModel("ItemList") {
+                """
+                @length(min: 1 max: 100)
+                list ItemList {
+                    member: NestedItemList
+                }
+                list NestedItemList {
+                    member: Item
+                }
+                map Item {
+                    key: ItemName
+                    value: ItemDescription
+                }
+                """
+            }
+        generateAndCompileServer(model)
+    }
 }