diff --git a/dacite/core.py b/dacite/core.py
index fa9e218..b8683c1 100644
--- a/dacite/core.py
+++ b/dacite/core.py
@@ -89,6 +89,8 @@ def _build_value(type_: Type, data: Any, config: Config) -> Any:
     elif is_generic_collection(type_) and is_instance(data, extract_origin_collection(type_)):
         return _build_value_for_collection(collection=type_, data=data, config=config)
     elif is_dataclass(type_) and is_instance(data, Data):
+        if hasattr(type_, "from_dict"):
+            return type_.from_dict(data_class=type_, data=data, config=config)
         return from_dict(data_class=type_, data=data, config=config)
     return data
 
diff --git a/tests/core/test_config.py b/tests/core/test_config.py
index dc3f187..dc888fc 100644
--- a/tests/core/test_config.py
+++ b/tests/core/test_config.py
@@ -1,4 +1,5 @@
 from dataclasses import dataclass
+from datetime import date
 from enum import Enum
 from typing import Optional, List, Union
 
@@ -203,3 +204,35 @@ class Z:
     result = from_dict(Z, data, Config(strict_unions_match=True))
 
     assert result == Z(u=Y(f=1))
+
+
+def test_custom_from_dict_in_nested_data_class():
+    @dataclass
+    class X:
+        d: date
+        t: str
+
+        def from_dict(data_class, data, config):
+            data["t"] = "prefix {}".format(data["t"])
+            return from_dict(
+                data_class=data_class,
+                data=data,
+                config=Config(type_hooks={date: date.fromtimestamp}),
+            )
+
+    @dataclass
+    class Y:
+        d: date
+        x: X
+
+    config = Config(type_hooks={date: date.fromordinal})
+    data = {"d": 737790, "x": {"d": 1607511900.985121, "t": "abc"}}
+    result = from_dict(Y, data, config=config)
+
+    assert result == Y(
+        d=date(2020, 12, 31),
+        x=X(
+            d=date(2020, 12, 9),
+            t="prefix abc",
+        ),
+    )