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Yes, this is possible. It's called deeply nested fiction (and happens to be a particular interest of mine!). Many of the great classic works of world literature, such as the Arabian Nights, use t...
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#3: Attribution notice added
Source: https://writers.stackexchange.com/a/42345 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
Yes, **this is possible**. It's called deeply [nested fiction](https://en.wikipedia.org/wiki/Story_within_a_story) (and happens to be a [particular interest of mine](https://www.publishersweekly.com/978-0-689-83399-1)!). Many of the great classic works of world literature, such as the _Arabian Nights_, use this pattern. It's likewise common in [modern metafiction](https://en.wikipedia.org/wiki/Metafiction). In general, in my experience, the more deeply you nest your fiction, **the simpler, the less realist, the more archetypal and the more symbolic the deeper levels become**. So there's an effective limit to how many levels you can reasonably have.