diff --git a/crates/ruff_linter/resources/test/fixtures/control-flow-graph/try-finally-nested-if-while.py b/crates/ruff_linter/resources/test/fixtures/control-flow-graph/try-finally-nested-if-while.py
new file mode 100644
index 0000000000..2f0bca473a
--- /dev/null
+++ b/crates/ruff_linter/resources/test/fixtures/control-flow-graph/try-finally-nested-if-while.py
@@ -0,0 +1,9 @@
+def l():
+    while T:
+        try:
+            while ():
+                if 3:
+                    break
+        finally:
+            return
+
diff --git a/crates/ruff_linter/src/rules/pylint/rules/snapshots/ruff_linter__rules__pylint__rules__unreachable__tests__try-finally-nested-if-while.py.md.snap b/crates/ruff_linter/src/rules/pylint/rules/snapshots/ruff_linter__rules__pylint__rules__unreachable__tests__try-finally-nested-if-while.py.md.snap
new file mode 100644
index 0000000000..73ff72848b
--- /dev/null
+++ b/crates/ruff_linter/src/rules/pylint/rules/snapshots/ruff_linter__rules__pylint__rules__unreachable__tests__try-finally-nested-if-while.py.md.snap
@@ -0,0 +1,63 @@
+---
+source: crates/ruff_linter/src/rules/pylint/rules/unreachable.rs
+description: "This is a Mermaid graph. You can use https://mermaid.live to visualize it as a diagram."
+---
+## Function 0
+### Source
+```python
+def l():
+    while T:
+        try:
+            while ():
+                if 3:
+                    break
+        finally:
+            return
+```
+
+### Control Flow Graph
+```mermaid
+flowchart TD
+  start(("Start"))
+  return(("End"))
+  block0[["`*(empty)*`"]]
+  block1[["Loop continue"]]
+  block2["return\n"]
+  block3[["Loop continue"]]
+  block4["break\n"]
+  block5["if 3:
+                    break\n"]
+  block6["while ():
+                if 3:
+                    break\n"]
+  block7[["Exception raised"]]
+  block8["try:
+            while ():
+                if 3:
+                    break
+        finally:
+            return\n"]
+  block9["while T:
+        try:
+            while ():
+                if 3:
+                    break
+        finally:
+            return\n"]
+
+  start --> block9
+  block9 -- "T" --> block8
+  block9 -- "else" --> block0
+  block8 -- "Exception raised" --> block7
+  block8 -- "else" --> block6
+  block7 --> block2
+  block6 -- "()" --> block5
+  block6 -- "else" --> block2
+  block5 -- "3" --> block4
+  block5 -- "else" --> block3
+  block4 --> block2
+  block3 --> block6
+  block2 --> return
+  block1 --> block9
+  block0 --> return
+```
diff --git a/crates/ruff_linter/src/rules/pylint/rules/unreachable.rs b/crates/ruff_linter/src/rules/pylint/rules/unreachable.rs
index 4e489f4e22..7f6d498293 100644
--- a/crates/ruff_linter/src/rules/pylint/rules/unreachable.rs
+++ b/crates/ruff_linter/src/rules/pylint/rules/unreachable.rs
@@ -665,6 +665,10 @@ fn post_process_try(
             NextBlock::Terminate => {
                 match block.stmts.last() {
                     Some(Stmt::Return(_)) => {
+                        // if we are already in a `finally` block, terminate
+                        if Some(idx) == finally_index {
+                            return;
+                        }
                         // re-route to finally if present and not already re-routed
                         if let Some(finally_index) = finally_index {
                             blocks.blocks[idx].next = NextBlock::Always(finally_index);
@@ -1064,6 +1068,7 @@ mod tests {
     #[test_case("raise.py")]
     #[test_case("assert.py")]
     #[test_case("match.py")]
+    #[test_case("try-finally-nested-if-while.py")]
     fn control_flow_graph(filename: &str) {
         let path = PathBuf::from_iter(["resources/test/fixtures/control-flow-graph", filename]);
         let source = fs::read_to_string(path).expect("failed to read file");