diff --git a/src/toon_format/encoders.py b/src/toon_format/encoders.py
index 5d1022e..67b5056 100644
--- a/src/toon_format/encoders.py
+++ b/src/toon_format/encoders.py
@@ -447,9 +447,9 @@ def encode_object_as_list_item(
             # Now encode the array content at depth + 1
             encode_array_content(first_arr, options, writer, depth + 1)
     else:
-        # If first value is an object, put "-" alone then encode normally
-        writer.push(depth, LIST_ITEM_PREFIX.rstrip())
-        encode_key_value_pair(first_key, first_value, options, writer, depth + 1)
+        # If first value is an object, put "- key:" then content at depth + 2
+        writer.push(depth, f"{LIST_ITEM_PREFIX}{first_key}:")
+        encode_value(first_value, options, writer, depth + 2)
 
     # Rest of the keys go normally indented
     for key, value in keys[1:]:
diff --git a/tests/fixtures/encode/arrays-nested.json b/tests/fixtures/encode/arrays-nested.json
index c7c47a4..a3b6a75 100644
--- a/tests/fixtures/encode/arrays-nested.json
+++ b/tests/fixtures/encode/arrays-nested.json
@@ -94,6 +94,14 @@
       },
       "expected": "items[2]:\n  - a: 1\n  - [2]: 1,2",
       "specSection": "7.3"
+    },
+    {
+      "name": "encodes array of nested objects",
+      "input": {
+        "items": [{ "a": { "b": 1 }}, { "c": 2 }]
+      },
+      "expected": "items[2]:\n  - a:\n      b: 1\n  - c: 2",
+      "specSection": "10"
     }
   ]
 }