diff --git a/.changeset/curly-buttons-perform.md b/.changeset/curly-buttons-perform.md
new file mode 100644
index 0000000000..23812dad85
--- /dev/null
+++ b/.changeset/curly-buttons-perform.md
@@ -0,0 +1,5 @@
+---
+'houdini': patch
+---
+
+Fix nested fragment fields getting masked out when using fragment arguments
diff --git a/e2e/_api/graphql.mjs b/e2e/_api/graphql.mjs
index 645bd8e4a8..9f61c87cb5 100644
--- a/e2e/_api/graphql.mjs
+++ b/e2e/_api/graphql.mjs
@@ -268,6 +268,13 @@ export const resolvers = {
 			)
 		},
 		enumValue: () => 'Value1',
+		testField: (user, args) => {
+			if (args.someParam) {
+				return "Hello world";
+			}
+
+			return null;
+		}
 	},
 
 	Mutation: {
diff --git a/e2e/_api/schema.graphql b/e2e/_api/schema.graphql
index 0fb7f47d17..f64389b868 100644
--- a/e2e/_api/schema.graphql
+++ b/e2e/_api/schema.graphql
@@ -112,6 +112,7 @@ type User implements Node {
 	name: String!
 	enumValue: MyEnum
 	types: [TypeOfUser!]!
+	testField(someParam: Boolean!): String
 }
 
 interface Animal implements Node {
diff --git a/e2e/kit/src/lib/utils/routes.ts b/e2e/kit/src/lib/utils/routes.ts
index 6794aca495..2d14678b9a 100644
--- a/e2e/kit/src/lib/utils/routes.ts
+++ b/e2e/kit/src/lib/utils/routes.ts
@@ -100,6 +100,7 @@ export const routes = {
   Pagination_fragment_offset: '/pagination/fragment/offset',
 
   nested_argument_fragments: '/nested-argument-fragments',
+  nested_argument_fragments_masking: '/nested-argument-fragments-masking',
 
   Stores_Nested_List: '/stores/nested-list',
 
diff --git a/e2e/kit/src/routes/bug/fragment-params-on-connection/+page.svelte b/e2e/kit/src/routes/bug/fragment-params-on-connection/+page.svelte
new file mode 100644
index 0000000000..d1af14c46c
--- /dev/null
+++ b/e2e/kit/src/routes/bug/fragment-params-on-connection/+page.svelte
@@ -0,0 +1,35 @@
+<script lang="ts">
+  import { graphql } from '$houdini';
+  import { onMount } from 'svelte';
+  import UsersList from './UsersList.svelte';
+  import UserItem from './UserItem.svelte';
+
+  $: store = graphql(`
+    query Test {
+      usersConnection(snapshot: "test-user", first: 5) {
+        ...UsersListFragment @with(someParam: true)
+        edges {
+          node {
+            ...UserItem @with(someParam: true)
+          }
+        }
+      }
+    }
+  `);
+
+  onMount(() => {
+    store.fetch();
+  });
+</script>
+
+{#if $store.data}
+  <h3>With fragment on the connection:</h3>
+  <UsersList usersList={$store.data.usersConnection} />
+
+  <h3>With fragment on the node:</h3>
+  <ul>
+    {#each $store.data.usersConnection.edges as userEdge}
+      <UserItem user={userEdge.node} />
+    {/each}
+  </ul>
+{/if}
diff --git a/e2e/kit/src/routes/bug/fragment-params-on-connection/UserItem.svelte b/e2e/kit/src/routes/bug/fragment-params-on-connection/UserItem.svelte
new file mode 100644
index 0000000000..4faff145a2
--- /dev/null
+++ b/e2e/kit/src/routes/bug/fragment-params-on-connection/UserItem.svelte
@@ -0,0 +1,21 @@
+<script lang="ts">
+  import { fragment, graphql, type UserItem } from '$houdini';
+
+  export let user: UserItem | null;
+
+  $: data = fragment(
+    user,
+    graphql(`
+      fragment UserItem on User @arguments(someParam: { type: "Boolean!" }) {
+        id
+        name
+        testField(someParam: $someParam)
+      }
+    `)
+  );
+</script>
+
+<li>
+  <p>{$data?.id} - {$data?.name}</p>
+  <p>Test field: {$data?.testField}</p>
+</li>
diff --git a/e2e/kit/src/routes/bug/fragment-params-on-connection/UsersList.svelte b/e2e/kit/src/routes/bug/fragment-params-on-connection/UsersList.svelte
new file mode 100644
index 0000000000..ef4f113e10
--- /dev/null
+++ b/e2e/kit/src/routes/bug/fragment-params-on-connection/UsersList.svelte
@@ -0,0 +1,25 @@
+<script lang="ts">
+  import { fragment, graphql, type UsersListFragment } from '$houdini';
+  import UserItem from './UserItem.svelte';
+
+  export let usersList: UsersListFragment;
+
+  $: data = fragment(
+    usersList,
+    graphql(`
+      fragment UsersListFragment on UserConnection @arguments(someParam: { type: "Boolean!" }) {
+        edges {
+          node {
+            ...UserItem @with(someParam: $someParam)
+          }
+        }
+      }
+    `)
+  );
+</script>
+
+<ul>
+  {#each $data.edges as userEdge}
+    <UserItem user={userEdge.node} />
+  {/each}
+</ul>
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/+page.gql b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.gql
new file mode 100644
index 0000000000..c3b5971204
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.gql
@@ -0,0 +1,9 @@
+query Bug_UsersList($someParam: Boolean!) {
+  usersConnection(snapshot: "test", first: 2) {
+    edges {
+      node {
+        ...UserDetails @with(someParam: $someParam)
+      }
+    }
+  }
+}
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/+page.svelte b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.svelte
new file mode 100644
index 0000000000..48400289a5
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.svelte
@@ -0,0 +1,19 @@
+<script lang="ts">
+  import type { PageData } from './$houdini';
+  import UserDetails from './UserDetails.svelte';
+
+  export let data: PageData;
+  $: ({ Bug_UsersList } = data);
+</script>
+
+<div id="result">
+  {#if $Bug_UsersList.data}
+    <ul>
+      {#each $Bug_UsersList.data.usersConnection.edges as userEdge}
+        {#if userEdge.node}
+          <UserDetails user={userEdge.node} />
+        {/if}
+      {/each}
+    </ul>
+  {/if}
+</div>
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/+page.ts b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.ts
new file mode 100644
index 0000000000..d5a6aecd7b
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/+page.ts
@@ -0,0 +1,13 @@
+import { load_Bug_UsersList } from '$houdini';
+import type { PageLoad } from './$houdini';
+
+export const load: PageLoad = async (event) => {
+  return {
+    ...(await load_Bug_UsersList({
+      event,
+      variables: {
+        someParam: true
+      }
+    }))
+  };
+};
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/FriendInfo.svelte b/e2e/kit/src/routes/nested-argument-fragments-masking/FriendInfo.svelte
new file mode 100644
index 0000000000..ea0ebb5e9c
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/FriendInfo.svelte
@@ -0,0 +1,21 @@
+<script lang="ts">
+  import { fragment, graphql, type FriendInfo } from '$houdini';
+
+  export let user: FriendInfo;
+
+  $: friend = fragment(
+    user,
+    graphql(`
+      fragment FriendInfo on User @arguments(someParam: { type: "Boolean!" }) {
+        id
+        name
+        testField(someParam: $someParam)
+      }
+    `)
+  );
+</script>
+
+<li>
+  <p>{$friend.name}</p>
+  <p>Test field: {$friend.testField}</p>
+</li>
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/UserDetails.svelte b/e2e/kit/src/routes/nested-argument-fragments-masking/UserDetails.svelte
new file mode 100644
index 0000000000..f5a709fd0c
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/UserDetails.svelte
@@ -0,0 +1,36 @@
+<script lang="ts">
+  import { fragment, graphql, type UserDetails } from '$houdini';
+  import FriendInfo from './FriendInfo.svelte';
+
+  export let user: UserDetails;
+
+  $: userDetails = fragment(
+    user,
+    graphql(`
+      fragment UserDetails on User @arguments(someParam: { type: "Boolean!" }) {
+        id
+        name
+        friendsConnection(first: 2) {
+          edges {
+            node {
+              ...FriendInfo @with(someParam: $someParam)
+            }
+          }
+        }
+      }
+    `)
+  );
+</script>
+
+<li>
+  <p>{$userDetails.name}</p>
+  <p>friends:</p>
+
+  <ul>
+    {#each $userDetails.friendsConnection.edges as friendEdge}
+      {#if friendEdge.node}
+        <FriendInfo user={friendEdge.node} />
+      {/if}
+    {/each}
+  </ul>
+</li>
diff --git a/e2e/kit/src/routes/nested-argument-fragments-masking/spec.ts b/e2e/kit/src/routes/nested-argument-fragments-masking/spec.ts
new file mode 100644
index 0000000000..d14daded6d
--- /dev/null
+++ b/e2e/kit/src/routes/nested-argument-fragments-masking/spec.ts
@@ -0,0 +1,15 @@
+import { expect, test } from '@playwright/test';
+import { routes } from '../../lib/utils/routes.js';
+import { expect_1_gql, expect_to_be, goto } from '../../lib/utils/testsHelper.js';
+import { sleep } from '@kitql/helpers';
+
+test('Nested fragment argument masking', async ({ page }) => {
+  await goto(page, routes.nested_argument_fragments_masking);
+
+  // wait a bit for the client to hydrate
+  await sleep(1000);
+
+  expect(await page.locator('#result').textContent({ timeout: 2997 })).toEqual(
+    'Bruce Willis friends: Bruce Willis Test field: Hello worldSamuel Jackson Test field: Hello worldSamuel Jackson friends: Bruce Willis Test field: Hello worldSamuel Jackson Test field: Hello world'
+  );
+});
diff --git a/packages/houdini/src/codegen/generators/artifacts/index.ts b/packages/houdini/src/codegen/generators/artifacts/index.ts
index ee666846ec..331c4882b2 100644
--- a/packages/houdini/src/codegen/generators/artifacts/index.ts
+++ b/packages/houdini/src/codegen/generators/artifacts/index.ts
@@ -288,7 +288,7 @@ export default function artifactGenerator(stats: {
 							document: doc,
 							rootType,
 							globalLoading,
-							includeFragments: doc.kind !== ArtifactKind.Fragment,
+							includeFragments: true,
 							hasComponents: () => {
 								hasComponents = true
 							},
@@ -299,7 +299,7 @@ export default function artifactGenerator(stats: {
 								filepath: doc.filename,
 								selections: selectionSet.selections,
 								fragmentDefinitions,
-								applyFragments: doc.kind !== ArtifactKind.Fragment,
+								applyFragments: true,
 							}),
 
 							operations: operationsByPath(
diff --git a/packages/houdini/src/codegen/generators/artifacts/selection.ts b/packages/houdini/src/codegen/generators/artifacts/selection.ts
index e63b519ea6..9157afb634 100644
--- a/packages/houdini/src/codegen/generators/artifacts/selection.ts
+++ b/packages/houdini/src/codegen/generators/artifacts/selection.ts
@@ -8,6 +8,7 @@ import {
 	type SubscriptionSelection,
 	type LoadingSpec,
 } from '../../../runtime/lib/types'
+import { withArguments } from '../../transforms/fragmentVariables'
 import { connectionSelection } from '../../transforms/list'
 import fieldKey from './fieldKey'
 import { convertValue } from './utils'
@@ -412,7 +413,15 @@ function prepareSelection({
 			object.fragments = {
 				...object.fragments,
 				[fragment]: {
-					arguments: args ?? {},
+					arguments:
+						args && Object.keys(args ?? {}).length > 0
+							? args
+							: Object.fromEntries(
+									withArguments(config, field).map((arg) => [
+										arg.name.value,
+										arg.value,
+									])
+							  ),
 				},
 			}
 
diff --git a/packages/houdini/src/codegen/generators/artifacts/tests/artifacts.test.ts b/packages/houdini/src/codegen/generators/artifacts/tests/artifacts.test.ts
index 3d0ea001b9..3da79cc5df 100644
--- a/packages/houdini/src/codegen/generators/artifacts/tests/artifacts.test.ts
+++ b/packages/houdini/src/codegen/generators/artifacts/tests/artifacts.test.ts
@@ -6176,6 +6176,12 @@ test('nested abstract fragment on connection', async function () {
 		                                                            "type": "String",
 		                                                            "keyRaw": "__typename"
 		                                                        }
+		                                                    },
+
+		                                                    "fragments": {
+		                                                        "AnimalProps": {
+		                                                            "arguments": {}
+		                                                        }
 		                                                    }
 		                                                },
 
@@ -6267,6 +6273,12 @@ test('nested abstract fragment on connection', async function () {
 		                                                    "type": "String",
 		                                                    "keyRaw": "__typename"
 		                                                }
+		                                            },
+
+		                                            "fragments": {
+		                                                "AnimalProps": {
+		                                                    "arguments": {}
+		                                                }
 		                                            }
 		                                        },
 
@@ -6328,6 +6340,10 @@ test('nested abstract fragment on connection', async function () {
 		                    "fragments": {
 		                        "MonkeyList": {
 		                            "arguments": {}
+		                        },
+
+		                        "AnimalList": {
+		                            "arguments": {}
 		                        }
 		                    }
 		                },
@@ -6480,6 +6496,12 @@ test('nested abstract fragments', async function () {
 		                                                    "type": "String",
 		                                                    "keyRaw": "__typename"
 		                                                }
+		                                            },
+
+		                                            "fragments": {
+		                                                "MonkeyFragment": {
+		                                                    "arguments": {}
+		                                                }
 		                                            }
 		                                        },
 
@@ -6578,6 +6600,16 @@ test('nested abstract fragments', async function () {
 		                                                "visible": true
 		                                            },
 
+		                                            "name": {
+		                                                "type": "String",
+		                                                "keyRaw": "name"
+		                                            },
+
+		                                            "hasBanana": {
+		                                                "type": "Boolean",
+		                                                "keyRaw": "hasBanana"
+		                                            },
+
 		                                            "__typename": {
 		                                                "type": "String",
 		                                                "keyRaw": "__typename",
diff --git a/packages/houdini/src/codegen/generators/artifacts/tests/selection.test.ts b/packages/houdini/src/codegen/generators/artifacts/tests/selection.test.ts
index a3981f4dc9..4c01f17b2e 100644
--- a/packages/houdini/src/codegen/generators/artifacts/tests/selection.test.ts
+++ b/packages/houdini/src/codegen/generators/artifacts/tests/selection.test.ts
@@ -55,6 +55,7 @@ test('fragments of unions inject correctly', function () {
 				}
 			}
 		`),
+		hasComponents: () => {},
 	})
 
 	expect(artifactSelection).toMatchInlineSnapshot(`
@@ -1115,12 +1116,28 @@ test('componentFields get embedded in the selection', async function () {
 		                            },
 
 		                            "visible": true
+		                        },
+
+		                        "FriendList": {
+		                            "keyRaw": "FriendList",
+		                            "type": "Component",
+
+		                            "component": {
+		                                "prop": "user",
+		                                "key": "User.FriendList",
+		                                "fragment": "FriendList",
+		                                "variables": {}
+		                            }
 		                        }
 		                    },
 
 		                    "fragments": {
 		                        "UserAvatar": {
 		                            "arguments": {}
+		                        },
+
+		                        "FriendList": {
+		                            "arguments": {}
 		                        }
 		                    }
 		                },
diff --git a/packages/houdini/src/codegen/generators/typescript/typescript.test.ts b/packages/houdini/src/codegen/generators/typescript/typescript.test.ts
index c5ea4efd32..5d006cb808 100644
--- a/packages/houdini/src/codegen/generators/typescript/typescript.test.ts
+++ b/packages/houdini/src/codegen/generators/typescript/typescript.test.ts
@@ -3117,6 +3117,11 @@ describe('typescript', function () {
 			                                        "keyRaw": "__typename";
 			                                    };
 			                                };
+			                                "fragments": {
+			                                    "UserBase": {
+			                                        "arguments": {};
+			                                    };
+			                                };
 			                            };
 			                        };
 			                    };
@@ -3194,6 +3199,14 @@ describe('typescript', function () {
 			                            "keyRaw": "id";
 			                            "visible": true;
 			                        };
+			                        "firstName": {
+			                            "type": "String";
+			                            "keyRaw": "firstName";
+			                        };
+			                        "__typename": {
+			                            "type": "String";
+			                            "keyRaw": "__typename";
+			                        };
 			                    };
 			                    "fragments": {
 			                        "UserBase": {
diff --git a/packages/houdini/src/codegen/transforms/fragmentVariables.test.ts b/packages/houdini/src/codegen/transforms/fragmentVariables.test.ts
index cbde23cd4a..95d892b54c 100644
--- a/packages/houdini/src/codegen/transforms/fragmentVariables.test.ts
+++ b/packages/houdini/src/codegen/transforms/fragmentVariables.test.ts
@@ -494,6 +494,19 @@ test('thread query variables to inner fragments', async function () {
 		                        }
 		                    }
 		                }
+		            },
+
+		            "InnerFragment": {
+		                "arguments": {
+		                    "name": {
+		                        "kind": "Variable",
+
+		                        "name": {
+		                            "kind": "Name",
+		                            "value": "name"
+		                        }
+		                    }
+		                }
 		            }
 		        }
 		    },
@@ -527,16 +540,14 @@ test('inner fragment with intermediate default value', async function () {
 		),
 		mockCollectedDoc(
 			`
-				fragment QueryFragment on Query
-                @arguments(name: {type: "String", default: "Hello"}) {
+				fragment QueryFragment on Query@arguments(name: {type: "String", default: "Hello"}) {
                     ...InnerFragment @with(name: $name)
 				}
 			`
 		),
 		mockCollectedDoc(
 			`
-				fragment InnerFragment on Query
-                @arguments(name: {type: "String", default: "Goodbye"}, age: {type: "Int", default: 2}) {
+				fragment InnerFragment on Query @arguments(name: {type: "String", default: "Goodbye"}, age: {type: "Int", default: 2}) {
                     users(stringValue: $name, intValue: $age) {
                         id
                     }
@@ -607,6 +618,15 @@ test('inner fragment with intermediate default value', async function () {
 		        "fragments": {
 		            "QueryFragment": {
 		                "arguments": {}
+		            },
+
+		            "InnerFragment": {
+		                "arguments": {
+		                    "name": {
+		                        "kind": "StringValue",
+		                        "value": "Hello"
+		                    }
+		                }
 		            }
 		        }
 		    },
@@ -711,6 +731,15 @@ test("default values don't overwrite unless explicitly passed", async function (
 		        "fragments": {
 		            "QueryFragment": {
 		                "arguments": {}
+		            },
+
+		            "InnerFragment": {
+		                "arguments": {
+		                    "other": {
+		                        "kind": "IntValue",
+		                        "value": "10"
+		                    }
+		                }
 		            }
 		        }
 		    },
diff --git a/packages/houdini/src/codegen/utils/flattenSelection.test.ts b/packages/houdini/src/codegen/utils/flattenSelection.test.ts
index ad52ba664b..a1b2b7dbb8 100644
--- a/packages/houdini/src/codegen/utils/flattenSelection.test.ts
+++ b/packages/houdini/src/codegen/utils/flattenSelection.test.ts
@@ -11,6 +11,27 @@ const fragmentDefinitions = (
 	fragment Foo on User {
 		id
 	}
+
+	fragment UserDetails_2YMH5n on User @arguments(someParam: {type: "Boolean!"}) {
+		id
+		name
+		friendsConnection {
+			edges {
+				node {
+					...FriendInfo_2YMH5n @with(someParam: $someParam)
+					id
+				}
+			}
+		}
+		__typename
+	}
+
+	fragment FriendInfo_2YMH5n on User @arguments(someParam: {type: "Boolean!"}) {
+		id
+		name
+		testField(someParam: $someParam)
+		__typename
+	}
 `).definitions as graphql.FragmentDefinitionNode[]
 ).reduce(
 	(acc, defn) => ({
@@ -24,18 +45,13 @@ function getSelections(doc: string): readonly graphql.SelectionNode[] {
 	return (graphql.parse(doc).definitions[0] as graphql.OperationDefinitionNode).selectionSet
 		.selections
 }
-function testFlatten(
-	doc: string,
-	applyFragments: boolean = true,
-	hoistFragments: boolean = true
-): graphql.OperationDefinitionNode {
+function testFlatten(doc: string, applyFragments: boolean = true): graphql.OperationDefinitionNode {
 	const flat = flattenSelections({
 		config,
 		filepath: '',
 		fragmentDefinitions,
 		selections: getSelections(doc),
 		applyFragments,
-		hoistFragments,
 	})
 
 	return {
@@ -161,4 +177,53 @@ describe('flattenSelection', function () {
 			}
 		`)
 	})
+
+	test('nested fragments', function () {
+		expect(
+			testFlatten(
+				`
+				{
+					usersConnection(snapshot: "test") {
+						edges {
+					       	node {
+								...UserDetails_2YMH5n @with(someParam: $someParam)
+								id
+					       	}
+						}
+					}
+				}
+			`
+			)
+		).toMatchInlineSnapshot(`
+			{
+			  usersConnection(snapshot: "test") {
+			    edges {
+			      node {
+			        ... on User {
+			          id
+			          name
+			          friendsConnection {
+			            edges {
+			              node {
+			                ... on User {
+			                  id
+			                  name
+			                  testField(someParam: $someParam)
+			                  __typename
+			                }
+			                id
+			                ...FriendInfo_2YMH5n @with(someParam: $someParam)
+			              }
+			            }
+			          }
+			          __typename
+			        }
+			        id
+			        ...UserDetails_2YMH5n @with(someParam: $someParam)
+			      }
+			    }
+			  }
+			}
+		`)
+	})
 })
diff --git a/packages/houdini/src/codegen/utils/flattenSelections.ts b/packages/houdini/src/codegen/utils/flattenSelections.ts
index 0325c36a01..dfd70ac1eb 100644
--- a/packages/houdini/src/codegen/utils/flattenSelections.ts
+++ b/packages/houdini/src/codegen/utils/flattenSelections.ts
@@ -74,7 +74,7 @@ class FieldCollection {
 		// the final result.
 
 		// the default behavior depends on wether masking is enabled or disabled
-		let include = this.config.defaultFragmentMasking === 'disable'
+		let include = this.applyFragments || this.config.defaultFragmentMasking === 'disable'
 
 		// Check if locally enable
 		const maskEnableDirective = selection.directives?.find(