diff --git a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/ScalaReflection.scala b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/ScalaReflection.scala
index 7abc3498c54cd..565774a5561c3 100644
--- a/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/ScalaReflection.scala
+++ b/sql/catalyst/src/main/scala/org/apache/spark/sql/catalyst/ScalaReflection.scala
@@ -990,11 +990,7 @@ trait ScalaReflection extends Logging {
   }
 
   private def isValueClass(tpe: Type): Boolean = {
-    tpe.typeSymbol.asClass.isDerivedValueClass
-  }
-
-  private def isTypeParameter(tpe: Type): Boolean = {
-    tpe.typeSymbol.isParameter
+    tpe.typeSymbol.isClass && tpe.typeSymbol.asClass.isDerivedValueClass
   }
 
   /** Returns the name and type of the underlying parameter of value class `tpe`. */
@@ -1015,15 +1011,11 @@ trait ScalaReflection extends Logging {
     val params = constructParams(dealiasedTpe)
     params.map { p =>
       val paramTpe = p.typeSignature
-      if (isTypeParameter(paramTpe)) {
-        // if there are type variables to fill in, do the substitution
-        // (SomeClass[T] -> SomeClass[Int])
-        p.name.decodedName.toString -> paramTpe.substituteTypes(formalTypeArgs, actualTypeArgs)
-      } else if (isValueClass(paramTpe)) {
+      if (isValueClass(paramTpe)) {
         // Replace value class with underlying type
         p.name.decodedName.toString -> getUnderlyingTypeOfValueClass(paramTpe)
       } else {
-        p.name.decodedName.toString -> paramTpe
+        p.name.decodedName.toString -> paramTpe.substituteTypes(formalTypeArgs, actualTypeArgs)
       }
     }
   }
diff --git a/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/ScalaReflectionSuite.scala b/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/ScalaReflectionSuite.scala
index d63fbd8785a96..2c0cb7f640b2c 100644
--- a/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/ScalaReflectionSuite.scala
+++ b/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/ScalaReflectionSuite.scala
@@ -81,6 +81,13 @@ object GenericData {
   type IntData = GenericData[Int]
 }
 
+case class NestedGeneric[T](
+  generic: GenericData[T])
+
+case class SeqNestedGeneric[T](
+  generic: Seq[T])
+
+
 case class MultipleConstructorsData(a: Int, b: String, c: Double) {
   def this(b: String, a: Int) = this(a, b, c = 1.0)
 }
@@ -295,6 +302,40 @@ class ScalaReflectionSuite extends SparkFunSuite {
       nullable = true))
   }
 
+  test("SPARK-38681: Nested generic data") {
+    val schema = schemaFor[NestedGeneric[Int]]
+    assert(schema === Schema(
+      StructType(Seq(
+        StructField(
+          "generic",
+          StructType(Seq(
+            StructField("genericField", IntegerType, nullable = false))),
+          nullable = true))),
+      nullable = true))
+  }
+
+  test("SPARK-38681: List nested generic") {
+    val schema = schemaFor[SeqNestedGeneric[Int]]
+    assert(schema === Schema(
+      StructType(Seq(
+        StructField(
+          "generic",
+          ArrayType(IntegerType, false),
+          nullable = true))),
+      nullable = true))
+  }
+
+  test("SPARK-38681: List nested generic with value class") {
+    val schema = schemaFor[SeqNestedGeneric[IntWrapper]]
+    assert(schema === Schema(
+      StructType(Seq(
+        StructField(
+          "generic",
+          ArrayType(StructType(Seq(StructField("i", IntegerType, false))), true),
+          nullable = true))),
+      nullable = true))
+  }
+
   test("tuple data") {
     val schema = schemaFor[(Int, String)]
     assert(schema === Schema(
diff --git a/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/encoders/ExpressionEncoderSuite.scala b/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/encoders/ExpressionEncoderSuite.scala
index bb4b58dc28a8b..e2eafb7370d18 100644
--- a/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/encoders/ExpressionEncoderSuite.scala
+++ b/sql/catalyst/src/test/scala/org/apache/spark/sql/catalyst/encoders/ExpressionEncoderSuite.scala
@@ -131,6 +131,11 @@ case class MapOfValueClassKey(m: Map[IntWrapper, String])
 case class MapOfValueClassValue(m: Map[String, StringWrapper])
 case class OptionOfValueClassValue(o: Option[StringWrapper])
 case class CaseClassWithGeneric[T](generic: T, value: IntWrapper)
+case class NestedGeneric[T](generic: CaseClassWithGeneric[T])
+case class SeqNestedGeneric[T](list: Seq[T])
+case class OptionNestedGeneric[T](list: Option[T])
+case class MapNestedGenericKey[T](list: Map[T, Int])
+case class MapNestedGenericValue[T](list: Map[Int, T])
 
 class ExpressionEncoderSuite extends CodegenInterpretedPlanTest with AnalysisTest {
   OuterScopes.addOuterScope(this)
@@ -454,6 +459,18 @@ class ExpressionEncoderSuite extends CodegenInterpretedPlanTest with AnalysisTes
     "nested tuple._2 of class value")
   encodeDecodeTest(CaseClassWithGeneric(IntWrapper(1), IntWrapper(2)),
     "case class with value class in generic parameter")
+  encodeDecodeTest(NestedGeneric(CaseClassWithGeneric(IntWrapper(1), IntWrapper(2))),
+    "case class with nested generic parameter")
+  encodeDecodeTest(SeqNestedGeneric(List(2)),
+    "case class with nested generic parameter seq")
+  encodeDecodeTest(SeqNestedGeneric(List(IntWrapper(2))),
+    "case class with value class and nested generic parameter seq")
+  encodeDecodeTest(OptionNestedGeneric(Some(2)),
+    "case class with nested generic option")
+  encodeDecodeTest(MapNestedGenericKey(Map(1 -> 2)),
+    "case class with nested generic map key ")
+  encodeDecodeTest(MapNestedGenericValue(Map(1 -> 2)),
+    "case class with nested generic map value")
 
   encodeDecodeTest(Option(31), "option of int")
   encodeDecodeTest(Option.empty[Int], "empty option of int")