diff --git a/crates/bevy_asset/src/lib.rs b/crates/bevy_asset/src/lib.rs
index 711b7a327e..d008c48b03 100644
--- a/crates/bevy_asset/src/lib.rs
+++ b/crates/bevy_asset/src/lib.rs
@@ -1823,6 +1823,83 @@ mod tests {
         });
     }
 
+    // This test is not checking a requirement, but documenting a current limitation. We simply are
+    // not capable of loading subassets when doing nested immediate loads.
+    #[test]
+    fn error_on_nested_immediate_load_of_subasset() {
+        let mut app = App::new();
+
+        let dir = Dir::default();
+        dir.insert_asset_text(
+            Path::new("a.cool.ron"),
+            r#"(
+    text: "b",
+    dependencies: [],
+    embedded_dependencies: [],
+    sub_texts: ["A"],
+)"#,
+        );
+        dir.insert_asset_text(Path::new("empty.txt"), "");
+
+        app.register_asset_source(
+            AssetSourceId::Default,
+            AssetSource::build()
+                .with_reader(move || Box::new(MemoryAssetReader { root: dir.clone() })),
+        )
+        .add_plugins((
+            TaskPoolPlugin::default(),
+            LogPlugin::default(),
+            AssetPlugin::default(),
+        ));
+
+        app.init_asset::<CoolText>()
+            .init_asset::<SubText>()
+            .register_asset_loader(CoolTextLoader);
+
+        struct NestedLoadOfSubassetLoader;
+
+        impl AssetLoader for NestedLoadOfSubassetLoader {
+            type Asset = TestAsset;
+            type Error = crate::loader::LoadDirectError;
+            type Settings = ();
+
+            async fn load(
+                &self,
+                _: &mut dyn Reader,
+                _: &Self::Settings,
+                load_context: &mut LoadContext<'_>,
+            ) -> Result<Self::Asset, Self::Error> {
+                // We expect this load to fail.
+                load_context
+                    .loader()
+                    .immediate()
+                    .load::<SubText>("a.cool.ron#A")
+                    .await?;
+                Ok(TestAsset)
+            }
+
+            fn extensions(&self) -> &[&str] {
+                &["txt"]
+            }
+        }
+
+        app.init_asset::<TestAsset>()
+            .register_asset_loader(NestedLoadOfSubassetLoader);
+
+        let asset_server = app.world().resource::<AssetServer>().clone();
+        let handle = asset_server.load::<TestAsset>("empty.txt");
+
+        run_app_until(&mut app, |_world| match asset_server.load_state(&handle) {
+            LoadState::Loading => None,
+            LoadState::Failed(err) => {
+                let error_message = format!("{err}");
+                assert!(error_message.contains("Requested to load an asset path (a.cool.ron#A) with a subasset, but this is unsupported"), "what? \"{error_message}\"");
+                Some(())
+            }
+            state => panic!("Unexpected asset state: {state:?}"),
+        });
+    }
+
     // validate the Asset derive macro for various asset types
     #[derive(Asset, TypePath)]
     pub struct TestAsset;
diff --git a/crates/bevy_asset/src/loader.rs b/crates/bevy_asset/src/loader.rs
index 7a8d6ca310..8b02e5b3db 100644
--- a/crates/bevy_asset/src/loader.rs
+++ b/crates/bevy_asset/src/loader.rs
@@ -359,10 +359,14 @@ impl<A: Asset> From<CompleteLoadedAsset<A>> for CompleteErasedLoadedAsset {
 /// [`NestedLoader::load`]: crate::NestedLoader::load
 /// [immediately]: crate::Immediate
 #[derive(Error, Debug)]
-#[error("Failed to load dependency {dependency:?} {error}")]
-pub struct LoadDirectError {
-    pub dependency: AssetPath<'static>,
-    pub error: AssetLoadError,
+pub enum LoadDirectError {
+    #[error("Requested to load an asset path ({0:?}) with a subasset, but this is unsupported. See issue #18291")]
+    RequestedSubasset(AssetPath<'static>),
+    #[error("Failed to load dependency {dependency:?} {error}")]
+    LoadError {
+        dependency: AssetPath<'static>,
+        error: AssetLoadError,
+    },
 }
 
 /// An error that occurs while deserializing [`AssetMeta`].
@@ -621,7 +625,7 @@ impl<'a> LoadContext<'a> {
                 self.populate_hashes,
             )
             .await
-            .map_err(|error| LoadDirectError {
+            .map_err(|error| LoadDirectError::LoadError {
                 dependency: path.clone(),
                 error,
             })?;
diff --git a/crates/bevy_asset/src/loader_builders.rs b/crates/bevy_asset/src/loader_builders.rs
index 630ab1f92c..1867e5b03c 100644
--- a/crates/bevy_asset/src/loader_builders.rs
+++ b/crates/bevy_asset/src/loader_builders.rs
@@ -387,13 +387,16 @@ impl<'builder, 'reader, T> NestedLoader<'_, '_, T, Immediate<'builder, 'reader>>
         path: &AssetPath<'static>,
         asset_type_id: Option<TypeId>,
     ) -> Result<(Arc<dyn ErasedAssetLoader>, CompleteErasedLoadedAsset), LoadDirectError> {
+        if path.label().is_some() {
+            return Err(LoadDirectError::RequestedSubasset(path.clone()));
+        }
         let (mut meta, loader, mut reader) = if let Some(reader) = self.mode.reader {
             let loader = if let Some(asset_type_id) = asset_type_id {
                 self.load_context
                     .asset_server
                     .get_asset_loader_with_asset_type_id(asset_type_id)
                     .await
-                    .map_err(|error| LoadDirectError {
+                    .map_err(|error| LoadDirectError::LoadError {
                         dependency: path.clone(),
                         error: error.into(),
                     })?
@@ -402,7 +405,7 @@ impl<'builder, 'reader, T> NestedLoader<'_, '_, T, Immediate<'builder, 'reader>>
                     .asset_server
                     .get_path_asset_loader(path)
                     .await
-                    .map_err(|error| LoadDirectError {
+                    .map_err(|error| LoadDirectError::LoadError {
                         dependency: path.clone(),
                         error: error.into(),
                     })?
@@ -415,7 +418,7 @@ impl<'builder, 'reader, T> NestedLoader<'_, '_, T, Immediate<'builder, 'reader>>
                 .asset_server
                 .get_meta_loader_and_reader(path, asset_type_id)
                 .await
-                .map_err(|error| LoadDirectError {
+                .map_err(|error| LoadDirectError::LoadError {
                     dependency: path.clone(),
                     error,
                 })?;
@@ -453,15 +456,17 @@ impl NestedLoader<'_, '_, StaticTyped, Immediate<'_, '_>> {
         self.load_internal(&path, Some(TypeId::of::<A>()))
             .await
             .and_then(move |(loader, untyped_asset)| {
-                untyped_asset.downcast::<A>().map_err(|_| LoadDirectError {
-                    dependency: path.clone(),
-                    error: AssetLoadError::RequestedHandleTypeMismatch {
-                        path,
-                        requested: TypeId::of::<A>(),
-                        actual_asset_name: loader.asset_type_name(),
-                        loader_name: loader.type_name(),
-                    },
-                })
+                untyped_asset
+                    .downcast::<A>()
+                    .map_err(|_| LoadDirectError::LoadError {
+                        dependency: path.clone(),
+                        error: AssetLoadError::RequestedHandleTypeMismatch {
+                            path,
+                            requested: TypeId::of::<A>(),
+                            actual_asset_name: loader.asset_type_name(),
+                            loader_name: loader.type_name(),
+                        },
+                    })
             })
     }
 }