diff --git a/sqlx-postgres/src/type_info.rs b/sqlx-postgres/src/type_info.rs
index 28c56758e9..50504c1174 100644
--- a/sqlx-postgres/src/type_info.rs
+++ b/sqlx-postgres/src/type_info.rs
@@ -1013,7 +1013,7 @@ impl PgType {
     /// If `soft_eq` is true and `self` or `other` is `DeclareWithOid` but not both, return `true`
     /// before checking names.
     fn eq_impl(&self, other: &Self, soft_eq: bool) -> bool {
-        if let (Some(a), Some(b)) = (self.try_oid(), other.try_oid()) {
+        if let (Some(a), Some(b)) = (self.try_base_oid(), other.try_base_oid()) {
             // If there are OIDs available, use OIDs to perform a direct match
             return a == b;
         }
@@ -1035,6 +1035,18 @@ impl PgType {
         // Otherwise, perform a match on the name
         name_eq(self.name(), other.name())
     }
+
+    // Tries to return the OID of the type, returns the OID of the base_type for domain types
+    #[inline(always)]
+    fn try_base_oid(&self) -> Option<Oid> {
+        match self {
+            PgType::Custom(custom) => match &custom.kind {
+                PgTypeKind::Domain(domain) => domain.try_oid(),
+                _ => Some(custom.oid),
+            },
+            ty => ty.try_oid(),
+        }
+    }
 }
 
 impl TypeInfo for PgTypeInfo {
diff --git a/sqlx-postgres/src/types/record.rs b/sqlx-postgres/src/types/record.rs
index 6e37182c40..a5410caadd 100644
--- a/sqlx-postgres/src/types/record.rs
+++ b/sqlx-postgres/src/types/record.rs
@@ -103,27 +103,7 @@ impl<'r> PgRecordDecoder<'r> {
         match self.fmt {
             PgValueFormat::Binary => {
                 let element_type_oid = Oid(self.buf.get_u32());
-                let element_type_opt = match self.typ.0.kind() {
-                    PgTypeKind::Simple if self.typ.0 == PgType::Record => {
-                        PgTypeInfo::try_from_oid(element_type_oid)
-                    }
-
-                    PgTypeKind::Composite(fields) => {
-                        let ty = fields[self.ind].1.clone();
-                        if ty.0.oid() != element_type_oid {
-                            return Err("unexpected mismatch of composite type information".into());
-                        }
-
-                        Some(ty)
-                    }
-
-                    _ => {
-                        return Err(
-                            "unexpected non-composite type being decoded as a composite type"
-                                .into(),
-                        );
-                    }
-                };
+                let element_type_opt = self.find_type_info(&self.typ, element_type_oid)?;
 
                 if let Some(ty) = &element_type_opt {
                     if !ty.is_null() && !T::compatible(ty) {
@@ -202,4 +182,24 @@ impl<'r> PgRecordDecoder<'r> {
             }
         }
     }
+
+    fn find_type_info(
+        &self,
+        typ: &PgTypeInfo,
+        oid: Oid,
+    ) -> Result<Option<PgTypeInfo>, BoxDynError> {
+        match typ.kind() {
+            PgTypeKind::Simple if typ.0 == PgType::Record => Ok(PgTypeInfo::try_from_oid(oid)),
+            PgTypeKind::Composite(fields) => {
+                let ty = fields[self.ind].1.clone();
+                if ty.0.oid() != oid {
+                    return Err("unexpected mismatch of composite type information".into());
+                }
+
+                Ok(Some(ty))
+            }
+            PgTypeKind::Domain(domain) => self.find_type_info(domain, oid),
+            _ => Err("unexpected custom type being decoded as a composite type".into()),
+        }
+    }
 }
diff --git a/tests/postgres/setup.sql b/tests/postgres/setup.sql
index 4d89062799..65487b8ae5 100644
--- a/tests/postgres/setup.sql
+++ b/tests/postgres/setup.sql
@@ -68,3 +68,16 @@ CREATE TABLE circles (
     c circle,
     EXCLUDE USING gist (c WITH &&)
 );
+
+CREATE DOMAIN positive_int AS integer CHECK (VALUE >= 0);
+CREATE DOMAIN percentage AS positive_int CHECK (VALUE <= 100);
+
+CREATE TYPE person as (
+    id int,
+    age positive_int,
+    percent percentage
+);
+
+CREATE TYPE leaf_composite AS (prim integer);
+CREATE DOMAIN domain AS leaf_composite;
+CREATE TYPE root_composite AS (domain domain);
diff --git a/tests/postgres/types.rs b/tests/postgres/types.rs
index 8a9288ba75..16a165278b 100644
--- a/tests/postgres/types.rs
+++ b/tests/postgres/types.rs
@@ -697,6 +697,45 @@ test_type!(ltree_vec<Vec<sqlx::postgres::types::PgLTree>>(Postgres,
         ]
 ));
 
+#[derive(sqlx::Type, Debug, PartialEq)]
+#[sqlx(type_name = "positive_int")]
+struct PositiveInt(i32);
+
+#[derive(sqlx::Type, Debug, PartialEq)]
+#[sqlx(type_name = "percentage")]
+struct Percentage(PositiveInt);
+
+#[derive(sqlx::Type, Debug, PartialEq)]
+struct Person {
+    id: i32,
+    age: PositiveInt,
+    percent: Percentage,
+}
+
+test_type!(nested_domain_types_1<Person>(Postgres,
+    "ROW(1, 21::positive_int, 50::percentage)::person" == Person { id: 1, age: PositiveInt(21), percent: Percentage(PositiveInt(50)) })
+);
+
+#[derive(sqlx::Type, Debug, PartialEq)]
+#[sqlx(type_name = "leaf_composite")]
+struct LeafComposite {
+    prim: i32,
+}
+
+#[derive(sqlx::Type, Debug, PartialEq)]
+#[sqlx(type_name = "domain")]
+struct Domain(LeafComposite);
+
+#[derive(sqlx::Type, Debug, PartialEq)]
+#[sqlx(type_name = "root_composite")]
+struct RootComposite {
+    domain: Domain,
+}
+
+test_type!(nested_domain_types_2<RootComposite>(Postgres,
+    "ROW(ROW(1))::root_composite" == RootComposite { domain: Domain(LeafComposite { prim: 1})})
+);
+
 test_type!(test_arc<Arc<i32>>(Postgres, "1::INT4" == Arc::new(1i32)));
 test_type!(test_cow<Cow<'_, i32>>(Postgres, "1::INT4" == Cow::<i32>::Owned(1i32)));
 test_type!(test_box<Box<i32>>(Postgres, "1::INT4" == Box::new(1i32)));