diff --git a/packages/orm/src/client/crud/dialects/lateral-join-dialect-base.ts b/packages/orm/src/client/crud/dialects/lateral-join-dialect-base.ts
index e4c13fe58..cb5035d40 100644
--- a/packages/orm/src/client/crud/dialects/lateral-join-dialect-base.ts
+++ b/packages/orm/src/client/crud/dialects/lateral-join-dialect-base.ts
@@ -301,9 +301,19 @@ export abstract class LateralJoinDialectBase<Schema extends SchemaDef> extends B
                 objArgs,
                 ...Object.entries<any>((payload as any).include)
                     .filter(([, value]) => value)
-                    .map(([field]) => ({
-                        [field]: eb.ref(`${parentResultName}$${field}.$data`),
-                    })),
+                    .map(([field, value]) => {
+                        if (field === '_count') {
+                            return {
+                                [field]: this.buildCountJson(
+                                    relationModel as GetModels<Schema>,
+                                    eb,
+                                    relationModelAlias,
+                                    value,
+                                ),
+                            };
+                        }
+                        return { [field]: eb.ref(`${parentResultName}$${field}.$data`) };
+                    }),
             );
         }
 
diff --git a/packages/orm/src/client/crud/dialects/sqlite.ts b/packages/orm/src/client/crud/dialects/sqlite.ts
index 48418072c..52a0a315d 100644
--- a/packages/orm/src/client/crud/dialects/sqlite.ts
+++ b/packages/orm/src/client/crud/dialects/sqlite.ts
@@ -317,6 +317,15 @@ export class SqliteCrudDialect<Schema extends SchemaDef> extends BaseCrudDialect
                     ...Object.entries<any>((payload as any).include)
                         .filter(([, value]) => value)
                         .map(([field, value]) => {
+                            if (field === '_count') {
+                                const subJson = this.buildCountJson(
+                                    relationModel,
+                                    eb,
+                                    tmpAlias(`${parentAlias}$${relationField}`),
+                                    value,
+                                );
+                                return [sql.lit(field), subJson];
+                            }
                             const subJson = this.buildRelationJSON(
                                 relationModel,
                                 eb,
diff --git a/tests/e2e/orm/client-api/find.test.ts b/tests/e2e/orm/client-api/find.test.ts
index 2f52eb1fa..69d9b1c0d 100644
--- a/tests/e2e/orm/client-api/find.test.ts
+++ b/tests/e2e/orm/client-api/find.test.ts
@@ -1189,6 +1189,57 @@ describe('Client find tests ', () => {
         expect(result3?._count.posts).toBe(1);
     });
 
+    it('supports _count nested inside an include', async () => {
+        // regression for https://github.com/zenstackhq/zenstack/issues/2669
+        const user = await createUser(client, 'u1@test.com');
+        const [post1] = await createPosts(client, user.id);
+        await client.comment.createMany({
+            data: [
+                { content: 'c1', postId: post1.id },
+                { content: 'c2', postId: post1.id },
+            ],
+        });
+
+        // _count nested inside a relation's `include` (not `select`)
+        const result = await client.user.findFirst({
+            include: {
+                posts: {
+                    include: {
+                        _count: { select: { comments: true } },
+                    },
+                },
+            },
+        });
+
+        expect(result?.posts).toHaveLength(2);
+        const p1 = result?.posts.find((p) => p.id === post1.id);
+        const p2 = result?.posts.find((p) => p.id !== post1.id);
+        expect(p1?._count).toEqual({ comments: 2 });
+        expect(p2?._count).toEqual({ comments: 0 });
+
+        // `_count: true` nested inside an include
+        const result2 = await client.user.findFirst({
+            include: {
+                posts: {
+                    include: { _count: true },
+                },
+            },
+        });
+        expect(result2?.posts.find((p) => p.id === post1.id)?._count).toEqual({ comments: 2 });
+
+        // _count nested inside an include, with a filter on the counted relation
+        const result3 = await client.user.findFirst({
+            include: {
+                posts: {
+                    include: {
+                        _count: { select: { comments: { where: { content: 'c1' } } } },
+                    },
+                },
+            },
+        });
+        expect(result3?.posts.find((p) => p.id === post1.id)?._count).toEqual({ comments: 1 });
+    });
+
     it('rejects orderBy array elements with multiple keys', async () => {
         await createUser(client, 'u1@test.com');
 
diff --git a/tests/regression/test/issue-2669.test.ts b/tests/regression/test/issue-2669.test.ts
new file mode 100644
index 000000000..49db66458
--- /dev/null
+++ b/tests/regression/test/issue-2669.test.ts
@@ -0,0 +1,72 @@
+import { createTestClient } from '@zenstackhq/testtools';
+import { describe, expect, it } from 'vitest';
+
+// https://github.com/zenstackhq/zenstack/issues/2669
+describe.each([{ provider: 'sqlite' as const }, { provider: 'postgresql' as const }])(
+    'Regression for issue 2669 ($provider)',
+    ({ provider }) => {
+        const schema = `
+datasource db {
+    provider = '${provider}'
+    url = '${provider === 'sqlite' ? 'file:./dev.db' : '$DB_URL'}'
+}
+
+model User {
+    id    Int    @id @default(autoincrement())
+    email String @unique
+    posts Post[]
+}
+
+model Post {
+    id        Int       @id @default(autoincrement())
+    title     String
+    author    User      @relation(fields: [authorId], references: [id])
+    authorId  Int
+    comments  Comment[]
+}
+
+model Comment {
+    id      Int    @id @default(autoincrement())
+    content String
+    post    Post   @relation(fields: [postId], references: [id])
+    postId  Int
+}
+`;
+
+        it('supports _count inside a nested include', async () => {
+            const db = await createTestClient(schema, {
+                provider,
+            });
+
+            await db.user.create({
+                data: {
+                    email: 'user1@test.com',
+                    posts: {
+                        create: {
+                            title: 'Post1',
+                            comments: {
+                                create: [{ content: 'c1' }, { content: 'c2' }],
+                            },
+                        },
+                    },
+                },
+            });
+
+            const result = await db.user.findMany({
+                include: {
+                    posts: {
+                        include: {
+                            _count: {
+                                select: { comments: true },
+                            },
+                        },
+                    },
+                },
+            });
+
+            expect(result).toHaveLength(1);
+            expect(result[0]!.posts).toHaveLength(1);
+            expect(result[0]!.posts[0]!._count).toEqual({ comments: 2 });
+        });
+    },
+);