diff --git a/src/compile.zig b/src/compile.zig
index ea70b73..e57d975 100644
--- a/src/compile.zig
+++ b/src/compile.zig
@@ -184,7 +184,7 @@ pub const Module = struct {
     };
 
     pub const Stitch = struct {
-        knot_index: Knot.Index,
+        knot_index: ?Knot.Index,
         code_index: CodeChunk.Index,
         name_index: InternPool.Constant.Index,
 
@@ -252,6 +252,7 @@ pub const Module = struct {
         }
         while (mod.work_queue.pop()) |work_unit| {
             const chunk_index = mod.intern_pool.code_chunks.items.len;
+            var knot_index: ?Knot.Index = null;
             var chunk: Sema.Chunk = .{
                 .sema = &sema,
                 .code = try mod.createCodeChunk(),
@@ -266,6 +267,7 @@ pub const Module = struct {
                     try sema.analyzeKnot(&chunk, work_unit.inst_index);
                     try chunk.finalize();
 
+                    knot_index = @enumFromInt(mod.knots.items.len);
                     try mod.intern_pool.code_chunks.append(gpa, chunk.code);
                     try mod.knots.append(gpa, .{
                         .name_index = work_unit.decl_name,
@@ -273,13 +275,12 @@ pub const Module = struct {
                     });
                 },
                 .stitch => {
-                    const knot_index = mod.knots.items.len - 1;
                     try sema.analyzeStitch(&chunk, work_unit.inst_index);
                     try chunk.finalize();
 
                     try mod.intern_pool.code_chunks.append(gpa, chunk.code);
                     try mod.stitches.append(gpa, .{
-                        .knot_index = @enumFromInt(knot_index),
+                        .knot_index = knot_index,
                         .name_index = work_unit.decl_name,
                         .code_index = @enumFromInt(chunk_index),
                     });
@@ -406,11 +407,12 @@ pub const Module = struct {
                     .code_bytes = try code_chunk.bytecode.toOwnedSlice(gpa),
                 }),
             });
-
-            const parent_knot = mod.knots.items[@intFromEnum(stitch.knot_index)];
-            const parent_knot_name = mod.intern_pool.getStrBytes(mod.ir, parent_knot.name_index);
-            const parent_knot_obj: *Object.Knot = @ptrCast(story.globals.get(parent_knot_name).?);
-            try parent_knot_obj.members.put(story.allocator, name_bytes, &stitch_obj.base);
+            if (stitch.knot_index) |index| {
+                const parent_knot = mod.knots.items[@intFromEnum(index)];
+                const parent_knot_name = mod.intern_pool.getStrBytes(mod.ir, parent_knot.name_index);
+                const parent_knot_obj: *Object.Knot = @ptrCast(story.globals.get(parent_knot_name).?);
+                try parent_knot_obj.members.put(story.allocator, name_bytes, &stitch_obj.base);
+            }
         }
         story.string_bytes = mod.ir.string_bytes;
         mod.ir.string_bytes = &.{};
diff --git a/src/parser_tests.zig b/src/parser_tests.zig
index aeecf45..40c209a 100644
--- a/src/parser_tests.zig
+++ b/src/parser_tests.zig
@@ -225,6 +225,46 @@ test "parser: empty knot declarations" {
     );
 }
 
+test "parser: stitch declarations, inside knot" {
+    try testEqual(
+        \\=== knot ===
+        \\= stitch
+        \\Hello, world!
+    ,
+        \\File "<STDIN>"
+        \\`--KnotDecl <line:1, line:3>
+        \\   |--KnotProto <col:1, col:13>
+        \\   |  `--Identifier `knot` <col:5, col:9>
+        \\   `--StitchDecl <line:2, line:3>
+        \\      |--StitchProto <col:1, col:9>
+        \\      |  `--Identifier `stitch` <col:3, col:9>
+        \\      `--BlockStmt <line:3, line:3>
+        \\         `--ContentStmt <line:3, col:1:14>
+        \\            `--Content <col:1, col:14>
+        \\               `--StringLiteral `Hello, world!` <col:1, col:14>
+        \\
+        ,
+    );
+}
+
+test "parser: stitch declarations, simple" {
+    try testEqual(
+        \\= stitch
+        \\Hello, world!
+    ,
+        \\File "<STDIN>"
+        \\`--StitchDecl <line:1, line:2>
+        \\   |--StitchProto <col:1, col:9>
+        \\   |  `--Identifier `stitch` <col:3, col:9>
+        \\   `--BlockStmt <line:2, line:2>
+        \\      `--ContentStmt <line:2, col:1:14>
+        \\         `--Content <col:1, col:14>
+        \\            `--StringLiteral `Hello, world!` <col:1, col:14>
+        \\
+        ,
+    );
+}
+
 fn testEqual(source_bytes: [:0]const u8, expected_ast: []const u8) !void {
     const gpa = std.testing.allocator;
     var arena_allocator = std.heap.ArenaAllocator.init(gpa);
diff --git a/testing/regression/syntax/nested-stitch.ink b/testing/regression/syntax/nested-stitch.ink
deleted file mode 100644
index d57f3ec..0000000
--- a/testing/regression/syntax/nested-stitch.ink
+++ /dev/null
@@ -1,17 +0,0 @@
-// RUN: %ink-compiler --stdin --compile-only --dump-ast < %s | FileCheck %s
-
-// CHECK: File "<STDIN>"
-// CHECK-NEXT: `--KnotDecl <line:15, line:17>
-// CHECK-NEXT:    |--KnotProto <col:1, col:13>
-// CHECK-NEXT:    |  `--Identifier `knot` <col:5, col:9>
-// CHECK-NEXT:    `--StitchDecl <line:16, line:17>
-// CHECK-NEXT:       |--StitchProto <col:1, col:9>
-// CHECK-NEXT:       |  `--Identifier `stitch` <col:3, col:9>
-// CHECK-NEXT:       `--BlockStmt <line:17, line:17>
-// CHECK-NEXT:          `--ContentStmt <line:17, col:1:14>
-// CHECK-NEXT:             `--Content <col:1, col:14>
-// CHECK-NEXT:                `--StringLiteral `Hello, world!` <col:1, col:14>
-
-=== knot ===
-= stitch
-Hello, world!
diff --git a/testing/regression/syntax/simple-stitch.ink b/testing/regression/syntax/simple-stitch.ink
deleted file mode 100644
index 099844f..0000000
--- a/testing/regression/syntax/simple-stitch.ink
+++ /dev/null
@@ -1,13 +0,0 @@
-// RUN: %ink-compiler --stdin --compile-only --dump-ast < %s | FileCheck %s
-
-// CHECK: File "<STDIN>"
-// CHECK-NEXT: `--StitchDecl <line:12, line:13>
-// CHECK-NEXT:    |--StitchProto <col:1, col:9>
-// CHECK-NEXT:    |  `--Identifier `stitch` <col:3, col:9>
-// CHECK-NEXT:    `--BlockStmt <line:13, line:13>
-// CHECK-NEXT:       `--ContentStmt <line:13, col:1:14>
-// CHECK-NEXT:          `--Content <col:1, col:14>
-// CHECK-NEXT:             `--StringLiteral `Hello, world!` <col:1, col:14>
-
-= stitch
-Hello, world!