diff --git a/lib/openai/internal/type/base_model.rb b/lib/openai/internal/type/base_model.rb
index d1e25f0c7..10688bbf3 100644
--- a/lib/openai/internal/type/base_model.rb
+++ b/lib/openai/internal/type/base_model.rb
@@ -83,12 +83,15 @@ def fields
               target = type_fn.call
               state = OpenAI::Internal::Type::Converter.new_coerce_state(translate_names: false)
               coerced = OpenAI::Internal::Type::Converter.coerce(target, value, state: state)
-              error = @coerced.store(name_sym, state.fetch(:error) || true)
+              status = state.fetch(:error) || true
+              @coerced.store(name_sym, status)
               stored =
-                case [target, error]
-                in [OpenAI::Internal::Type::Converter | Symbol, nil]
+                case [target, status, value]
+                in [OpenAI::Internal::Type::Converter | Symbol, true, ^target]
+                  value
+                in [OpenAI::Internal::Type::Converter | Symbol, true, _]
                   coerced
-                else
+                else # rubocop:disable Lint/DuplicateBranch
                   value
                 end
               @data.store(name_sym, stored)
diff --git a/test/openai/internal/type/base_model_test.rb b/test/openai/internal/type/base_model_test.rb
index 475329444..20508f417 100644
--- a/test/openai/internal/type/base_model_test.rb
+++ b/test/openai/internal/type/base_model_test.rb
@@ -345,6 +345,15 @@ class M6 < M1
     optional :b, M6
   end
 
+  class M7 < OpenAI::Internal::Type::BaseModel
+    required :a, Integer
+  end
+
+  class M8 < OpenAI::Internal::Type::BaseModel
+    optional :item, M7
+    optional :items, OpenAI::Internal::Type::ArrayOf[M7]
+  end
+
   def test_coerce
     cases = {
       [M1, {}] => [{yes: 1, no: 1}, {}],
@@ -448,6 +457,23 @@ def test_accessors
     end
   end
 
+  def test_constructor_stores_coerced_nested_models
+    model = M8.new(item: {a: 1}, items: [{a: 2}])
+
+    assert_instance_of(M7, model.item)
+    assert_instance_of(M7, model.items.fetch(0))
+    assert_instance_of(M7, model.to_h.fetch(:item))
+    assert_instance_of(M7, model.to_h.fetch(:items).fetch(0))
+
+    model.item = {a: 3}
+    model.items = [{a: 4}]
+
+    assert_instance_of(M7, model.item)
+    assert_instance_of(M7, model.items.fetch(0))
+    assert_instance_of(M7, model.to_h.fetch(:item))
+    assert_instance_of(M7, model.to_h.fetch(:items).fetch(0))
+  end
+
   def test_inplace_modification
     m1 = M6.new(a: [])
     m1.a << M6.new(a: [])