diff --git a/core/shared/src/main/scala-2/zio/prelude/newtypes/package.scala b/core/shared/src/main/scala-2/zio/prelude/newtypes/package.scala
index 5ea00eec8..29a25aca3 100644
--- a/core/shared/src/main/scala-2/zio/prelude/newtypes/package.scala
+++ b/core/shared/src/main/scala-2/zio/prelude/newtypes/package.scala
@@ -132,4 +132,15 @@ package object newtypes {
   }
 
   type Natural = Natural.Type
+
+  /**
+   * A newtype representing Right-to-left composition of functors.
+   *
+   * If F[_] and G[_] are both Covariant, then Nested[F, G, *] is also a Covariant
+   * If F[_] and G[_] are both IdentityBoth, then Nested[F, G, *] is also an IdentityBoth
+   * If F[_] and G[_] are both ForEach, then Nested[F, G, *] is also a ForEach
+   */
+  object Nested extends NewtypeF
+
+  type Nested[F[+_], G[+_], +A] = Nested.Type[F[G[A]]]
 }
diff --git a/core/shared/src/main/scala-3/zio/prelude/newtypes/package.scala b/core/shared/src/main/scala-3/zio/prelude/newtypes/package.scala
index 47a83b7d3..3ad5549dc 100644
--- a/core/shared/src/main/scala-3/zio/prelude/newtypes/package.scala
+++ b/core/shared/src/main/scala-3/zio/prelude/newtypes/package.scala
@@ -97,6 +97,16 @@ package object newtypes {
 
   type FailureOut[+A] = FailureOut.Type[A]
 
+  /**
+   * A newtype representing Right-to-left composition of functors.
+   * If F[_] and G[_] are both Covariant, then Nested[F, G, *] is also a Covariant
+   * If F[_] and G[_] are both IdentityBoth, then Nested[F, G, *] is also an IdentityBoth
+   * If F[_] and G[_] are both Traversable, then Nested[F, G, *] is also a Traversable
+   */
+  object Nested extends NewtypeF
+
+  type Nested[F[+_], G[+_], +A] = Nested.Type[F[G[A]]]
+
   object Natural extends Subtype[Int] {
 
     override inline def assertion: Assertion[Int] =
diff --git a/core/shared/src/main/scala/zio/prelude/AssociativeBoth.scala b/core/shared/src/main/scala/zio/prelude/AssociativeBoth.scala
index 6e7a78482..43788b8b8 100644
--- a/core/shared/src/main/scala/zio/prelude/AssociativeBoth.scala
+++ b/core/shared/src/main/scala/zio/prelude/AssociativeBoth.scala
@@ -17,7 +17,7 @@
 package zio.prelude
 
 import zio._
-import zio.prelude.newtypes.{AndF, Failure, OrF}
+import zio.prelude.newtypes.{AndF, Failure, Nested, OrF}
 import zio.stm.ZSTM
 import zio.stream.{ZSink, ZStream}
 
@@ -1053,7 +1053,7 @@ object AssociativeBoth {
   /**
    * The `IdentityBoth` instance for `Chunk`.
    */
-  implicit val ChunkIdentityeBoth: IdentityBoth[Chunk] =
+  implicit val ChunkIdentityBoth: IdentityBoth[Chunk] =
     new IdentityBoth[Chunk] {
       def any: Chunk[Any]                                             = Chunk.unit
       def both[A, B](fa: => Chunk[A], fb: => Chunk[B]): Chunk[(A, B)] = fa.flatMap(a => fb.map(b => (a, b)))
@@ -1143,6 +1143,21 @@ object AssociativeBoth {
       def both[A, B](fa: => List[A], fb: => List[B]): List[(A, B)] = fa.flatMap(a => fb.map(b => (a, b)))
     }
 
+  /**
+   * The `IdentityBoth` (and `AssociativeBoth`) instance for `Nested[F, G, A]`.
+   */
+  implicit def NestedIdentityBoth[F[+_]: IdentityBoth: Covariant, G[+_]](implicit
+    G: IdentityBoth[G]
+  ): IdentityBoth[({ type lambda[+A] = Nested[F, G, A] })#lambda] =
+    new IdentityBoth[({ type lambda[+A] = Nested[F, G, A] })#lambda] {
+      override def any: Nested[F, G, Any] = Nested(G.any.succeed[F])
+
+      override def both[A, B](fa: => Nested[F, G, A], fb: => Nested[F, G, B]): Nested[F, G, (A, B)] =
+        Nested {
+          Nested.unwrap[F[G[A]]](fa).zipWith(Nested.unwrap[F[G[B]]](fb))(_ zip _)
+        }
+    }
+
   /**
    * The `AssociativeBoth` instance for `NonEmptyChunk`.
    */
diff --git a/core/shared/src/main/scala/zio/prelude/Covariant.scala b/core/shared/src/main/scala/zio/prelude/Covariant.scala
index c13a7559e..94241dd93 100644
--- a/core/shared/src/main/scala/zio/prelude/Covariant.scala
+++ b/core/shared/src/main/scala/zio/prelude/Covariant.scala
@@ -16,6 +16,8 @@
 
 package zio.prelude
 
+import zio.prelude.newtypes.Nested
+
 trait CovariantSubset[F[+_], Subset[_]] {
   def mapSubset[A, B: Subset](f: A => B): F[A] => F[B]
 }
@@ -82,6 +84,22 @@ object Covariant {
   def apply[F[+_]](implicit covariant: Covariant[F]): Covariant[F] =
     covariant
 
+  /**
+   * Constructs the instance for `Covariant[({ type lambda[+A] = Nested[F, G, A] })#lambda]`
+   * given a pair of pre-existing `Covariant` instances for covariant, higher-kinded type
+   * parameters `F[+_]` and `G[+_]`.
+   */
+  implicit def NestedCovariant[F[+_], G[+_]](implicit
+    F: Covariant[F],
+    G: Covariant[G]
+  ): Covariant[({ type lambda[+A] = Nested[F, G, A] })#lambda] =
+    new Covariant[({ type lambda[+A] = Nested[F, G, A] })#lambda] {
+      private lazy val composedCovariant = F.compose(G)
+
+      override def map[A, B](f: A => B): Nested[F, G, A] => Nested[F, G, B] = { (x: Nested[F, G, A]) =>
+        Nested(composedCovariant.map(f)(Nested.unwrap[F[G[A]]](x)))
+      }
+    }
 }
 
 trait CovariantSyntax {
diff --git a/core/shared/src/main/scala/zio/prelude/Derive.scala b/core/shared/src/main/scala/zio/prelude/Derive.scala
index 2db626675..0120691c1 100644
--- a/core/shared/src/main/scala/zio/prelude/Derive.scala
+++ b/core/shared/src/main/scala/zio/prelude/Derive.scala
@@ -16,6 +16,7 @@
 
 package zio.prelude
 
+import zio.prelude.newtypes.Nested
 import zio.{Cause, Chunk, Exit, NonEmptyChunk}
 
 import scala.util.Try
@@ -56,15 +57,6 @@ object Derive {
         Equal.ChunkEqual
     }
 
-  /**
-   * The `DeriveEqual` instance for `List`.
-   */
-  implicit val ListDeriveEqual: Derive[List, Equal] =
-    new Derive[List, Equal] {
-      def derive[A: Equal]: Equal[List[A]] =
-        Equal.ListEqual
-    }
-
   /**
    * The `DeriveEqual` instance for `Either`.
    */
@@ -74,6 +66,23 @@ object Derive {
         Equal.EitherEqual
     }
 
+  /**
+   * The `DeriveEqual` instance for `Id`.
+   */
+  implicit val IdDeriveEqual: Derive[Id, Equal] =
+    new Derive[Id, Equal] {
+      override def derive[A: Equal]: Equal[Id[A]] = Id.wrapAll(Equal[A])
+    }
+
+  /**
+   * The `DeriveEqual` instance for `List`.
+   */
+  implicit val ListDeriveEqual: Derive[List, Equal] =
+    new Derive[List, Equal] {
+      def derive[A: Equal]: Equal[List[A]] =
+        Equal.ListEqual
+    }
+
   /**
    * The `DeriveEqual` instance for `Map`.
    */
@@ -83,6 +92,18 @@ object Derive {
         Equal.MapPartialOrd
     }
 
+  /**
+   * The `DeriveEqual` instance for `Nested`.
+   */
+  implicit def NestedDeriveEqual[F[+_], G[+_]](implicit
+    F: Derive[F, Equal],
+    G: Derive[G, Equal]
+  ): Derive[({ type lambda[A] = Nested[F, G, A] })#lambda, Equal] =
+    new Derive[({ type lambda[A] = Nested[F, G, A] })#lambda, Equal] {
+      override def derive[A: Equal]: Equal[Nested[F, G, A]] =
+        Equal.NestedEqual(F.derive(G.derive[A]))
+    }
+
   /**
    * The `DeriveEqual` instance for  `NonEmptyChunk`.
    */
diff --git a/core/shared/src/main/scala/zio/prelude/Equal.scala b/core/shared/src/main/scala/zio/prelude/Equal.scala
index 32a72be81..984ba9921 100644
--- a/core/shared/src/main/scala/zio/prelude/Equal.scala
+++ b/core/shared/src/main/scala/zio/prelude/Equal.scala
@@ -19,6 +19,7 @@ package zio.prelude
 import zio.Exit.{Failure, Success}
 import zio.duration.{Duration => ZIODuration}
 import zio.prelude.coherent.{HashOrd, HashPartialOrd}
+import zio.prelude.newtypes.Nested
 import zio.{Cause, Chunk, Exit, Fiber, NonEmptyChunk, ZTrace}
 
 import scala.annotation.implicitNotFound
@@ -306,6 +307,11 @@ object Equal {
   implicit lazy val FiberIdHashOrd: Hash[Fiber.Id] with Ord[Fiber.Id] =
     HashOrd.derive[(Long, Long)].contramap[Fiber.Id](fid => (fid.startTimeMillis, fid.seqNumber))
 
+  implicit def IdEqual[A: Equal]: Equal[Id[A]] = new Equal[Id[A]] {
+    override protected def checkEqual(l: Id[A], r: Id[A]): Boolean =
+      Id.unwrap[A](l) === Id.unwrap[A](r)
+  }
+
   /**
    * `Hash` and `Ord` (and thus also `Equal`) instance for `Int` values.
    */
@@ -338,6 +344,12 @@ object Equal {
         l.forall { case (key, value) => r.get(key).fold(false)(_ === value) }
   }
 
+  implicit def NestedEqual[F[+_], G[+_], A](implicit eqFGA: Equal[F[G[A]]]): Equal[Nested[F, G, A]] =
+    new Equal[Nested[F, G, A]] {
+      override protected def checkEqual(l: Nested[F, G, A], r: Nested[F, G, A]): Boolean =
+        eqFGA.checkEqual(Nested.unwrap[F[G[A]]](l), Nested.unwrap[F[G[A]]](r))
+    }
+
   /**
    * Derives an `Equal[NonEmptyChunk[A]]` given an `Equal[A]`.
    */
diff --git a/laws/shared/src/main/scala/zio/prelude/laws/ForEachLaws.scala b/laws/shared/src/main/scala/zio/prelude/laws/ForEachLaws.scala
index f0719fcd0..ad70ff79c 100644
--- a/laws/shared/src/main/scala/zio/prelude/laws/ForEachLaws.scala
+++ b/laws/shared/src/main/scala/zio/prelude/laws/ForEachLaws.scala
@@ -18,10 +18,17 @@ package zio.prelude.laws
 
 import zio.prelude._
 import zio.prelude.coherent.DeriveEqualForEach
+import zio.test.TestResult
 import zio.test.laws._
 
 object ForEachLaws extends LawfulF.Covariant[DeriveEqualForEach, Equal] {
 
+  lazy val forEachIdentityLaw: LawsF.Covariant[DeriveEqualForEach, Equal] =
+    new LawsF.Covariant.Law1[DeriveEqualForEach, Equal]("forEachIdentityLaw") {
+      def apply[F[+_]: DeriveEqualForEach, A: Equal](fa: F[A]): TestResult =
+        fa.forEach(Id(_)) <-> Id(fa)
+    }
+
   /**
    * The set of all laws that instances of `ForEach` must satisfy.
    */