diff --git a/tty.go b/tty.go
index c8af5dea..dd3dd62c 100644
--- a/tty.go
+++ b/tty.go
@@ -16,6 +16,12 @@ import (
 	"os/exec"
 )
 
+// recordingEnvVar is set in the environment of the shell that VHS drives so
+// that any `vhs` invocation typed into that shell (e.g. a tape that itself
+// runs `vhs`) can detect that it is nested inside an existing recording
+// session. See VHS.Start for where this is checked.
+const recordingEnvVar = "VHS_RECORDING"
+
 // randomPort returns a random port number that is not in use.
 func randomPort() int {
 	addr, _ := net.Listen("tcp", ":0") //nolint:gosec,noctx
@@ -39,8 +45,7 @@ func buildTtyCmd(port int, shell Shell) *exec.Cmd {
 	args = append(args, shell.Command...)
 
 	cmd := exec.Command("ttyd", args...)
-	if shell.Env != nil {
-		cmd.Env = append(shell.Env, os.Environ()...)
-	}
+	env := append(shell.Env, os.Environ()...)
+	cmd.Env = append(env, recordingEnvVar+"=1")
 	return cmd
 }
diff --git a/vhs.go b/vhs.go
index 235e7b42..2924bbef 100644
--- a/vhs.go
+++ b/vhs.go
@@ -130,6 +130,16 @@ func (vhs *VHS) Start() error {
 		return fmt.Errorf("vhs is already started")
 	}
 
+	// Refuse to start a nested recording session. Running `vhs` inside a
+	// tape that is itself being recorded (e.g. `Type "vhs other.tape"`)
+	// causes the inner instance to spin up its own ttyd and browser while
+	// sharing the outer process's environment, which leads to port and
+	// connection conflicts and, previously, a panic. Nested rendering is
+	// not supported, so fail fast with a clear error instead.
+	if os.Getenv(recordingEnvVar) != "" {
+		return errors.New("vhs is already recording; nested rendering is not supported")
+	}
+
 	port := randomPort()
 	vhs.tty = buildTtyCmd(port, vhs.Options.Shell)
 	if err := vhs.tty.Start(); err != nil {
diff --git a/vhs_test.go b/vhs_test.go
new file mode 100644
index 00000000..31aebf63
--- /dev/null
+++ b/vhs_test.go
@@ -0,0 +1,33 @@
+package main
+
+import (
+	"strings"
+	"sync"
+	"testing"
+)
+
+// TestStart_NestedRecordingRejected ensures that starting a VHS recording
+// while already inside a recording session (as signaled by recordingEnvVar,
+// which VHS exports into the shell it drives) fails fast with a clear error
+// instead of going on to spin up a second ttyd/browser pair, which is what
+// used to cause a panic. See charmbracelet/vhs#761.
+func TestStart_NestedRecordingRejected(t *testing.T) {
+	t.Setenv(recordingEnvVar, "1")
+
+	opts := DefaultVHSOptions()
+	vhs := VHS{
+		Options: &opts,
+		mutex:   &sync.Mutex{},
+	}
+
+	err := vhs.Start()
+	if err == nil {
+		t.Fatal("expected an error when starting a nested recording, got nil")
+	}
+	if !strings.Contains(err.Error(), "already recording") {
+		t.Fatalf("expected error to mention that vhs is already recording, got: %v", err)
+	}
+	if vhs.started {
+		t.Fatal("vhs.started should remain false when a nested recording is rejected")
+	}
+}