diff --git a/src/Interpreters/InterpreterSelectQuery.cpp b/src/Interpreters/InterpreterSelectQuery.cpp
index 4b89273cd86..1158007d957 100644
--- a/src/Interpreters/InterpreterSelectQuery.cpp
+++ b/src/Interpreters/InterpreterSelectQuery.cpp
@@ -294,7 +294,7 @@ InterpreterSelectQuery::InterpreterSelectQuery(
     }
 
     // Only propagate WITH elements to subqueries if we're not a subquery
-    if (options.subquery_depth == 0)
+    if (!options.is_subquery)
     {
         if (context->getSettingsRef().enable_global_with_statement)
             ApplyWithAliasVisitor().visit(query_ptr);
diff --git a/src/Interpreters/SelectQueryOptions.h b/src/Interpreters/SelectQueryOptions.h
index 611c2b1601e..124b5a6daa0 100644
--- a/src/Interpreters/SelectQueryOptions.h
+++ b/src/Interpreters/SelectQueryOptions.h
@@ -33,6 +33,7 @@ struct SelectQueryOptions
     bool ignore_quota = false;
     bool ignore_limits = false;
     bool is_internal = false;
+    bool is_subquery = false; // non-subquery can also have subquery_depth > 0, e.g. insert select
 
     SelectQueryOptions(QueryProcessingStage::Enum stage = QueryProcessingStage::Complete, size_t depth = 0)
         : to_stage(stage), subquery_depth(depth)
@@ -46,6 +47,7 @@ struct SelectQueryOptions
         SelectQueryOptions out = *this;
         out.to_stage = QueryProcessingStage::Complete;
         ++out.subquery_depth;
+        out.is_subquery = true;
         return out;
     }
 
diff --git a/tests/queries/0_stateless/01711_cte_subquery_fix.reference b/tests/queries/0_stateless/01711_cte_subquery_fix.reference
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/tests/queries/0_stateless/01711_cte_subquery_fix.sql b/tests/queries/0_stateless/01711_cte_subquery_fix.sql
new file mode 100644
index 00000000000..19eed6cc612
--- /dev/null
+++ b/tests/queries/0_stateless/01711_cte_subquery_fix.sql
@@ -0,0 +1,2 @@
+create or replace table t engine = Memory as with cte as (select * from numbers(10)) select * from cte;
+drop table t;