diff --git a/src/DynamicData.Tests/Cache/TransformManyObservableCacheFixture.cs b/src/DynamicData.Tests/Cache/TransformManyObservableCacheFixture.cs
index 01f261ed8..b97414b1f 100644
--- a/src/DynamicData.Tests/Cache/TransformManyObservableCacheFixture.cs
+++ b/src/DynamicData.Tests/Cache/TransformManyObservableCacheFixture.cs
@@ -4,7 +4,7 @@
 using System.Diagnostics;
 using System.Linq;
 using System.Reactive.Linq;
-
+using DynamicData.Binding;
 using DynamicData.Tests.Domain;
 
 using FluentAssertions;
@@ -117,6 +117,57 @@ public void FlattenReadOnlyObservableCollection()
         aggregator.Data.Lookup("Replacement").HasValue.Should().BeTrue();
     }
 
+    [Fact]
+    public void FlattenObservableCache()
+    {
+        var children = Enumerable.Range(1, 100).Select(i => new Person("Name" + i, i)).ToArray();
+
+        int childIndex = 0;
+        var parents = Enumerable.Range(1, 50).Select(
+            i =>
+            {
+                var parent = new Parent(
+                    i,
+                    new[]
+                    {
+                        children[childIndex],
+                        children[childIndex + 1]
+                    });
+
+                childIndex += 2;
+                return parent;
+            }).ToArray();
+
+        using var source = new SourceCache<Parent, int>(x => x.Id);
+        using var aggregator = source.Connect().TransformMany(p => p.ChildrenCache, c => c.Name).AsAggregator();
+        source.AddOrUpdate(parents);
+
+        aggregator.Data.Count.Should().Be(100);
+
+        //add a child to an observable collection and check the new item is added
+        parents[0].Children.Add(new Person("NewlyAddded", 100));
+        aggregator.Data.Count.Should().Be(101);
+
+        ////remove first parent and check children have gone
+        source.RemoveKey(1);
+        aggregator.Data.Count.Should().Be(98);
+
+        //check items can be cleared and then added back in
+        var childrenInZero = parents[1].Children.ToArray();
+        parents[1].Children.Clear();
+        aggregator.Data.Count.Should().Be(96);
+        parents[1].Children.AddRange(childrenInZero);
+        aggregator.Data.Count.Should().Be(98);
+
+        //replace produces an update
+        var replacedChild = parents[1].Children[0];
+        parents[1].Children[0] = new Person("Replacement", 100);
+        aggregator.Data.Count.Should().Be(98);
+
+        aggregator.Data.Lookup(replacedChild.Key).HasValue.Should().BeFalse();
+        aggregator.Data.Lookup("Replacement").HasValue.Should().BeTrue();
+    }
+
     [Fact]
     public void ObservableCollectionWithoutInitialData()
     {
@@ -183,6 +234,24 @@ public void ReadOnlyObservableCollectionWithoutInitialData()
         collection.Count.Should().Be(2);
     }
 
+    [Fact]
+    public void ObservableCacheWithoutInitialData()
+    {
+        using var parents = new SourceCache<Parent, int>(d => d.Id);
+        var collection = parents.Connect().TransformMany(d => d.ChildrenCache, p => p.Name).AsObservableCache();
+
+        var parent = new Parent(1);
+        parents.AddOrUpdate(parent);
+
+        collection.Count.Should().Be(0);
+
+        parent.Children.Add(new Person("child1", 1));
+        collection.Count.Should().Be(1);
+
+        parent.Children.Add(new Person("child2", 2));
+        collection.Count.Should().Be(2);
+    }
+
     private class Parent
     {
         public Parent(int id, IEnumerable<Person> children)
@@ -190,6 +259,7 @@ public Parent(int id, IEnumerable<Person> children)
             Id = id;
             Children = new ObservableCollection<Person>(children);
             ChildrenReadonly = new ReadOnlyObservableCollection<Person>(Children);
+            ChildrenCache = Children.ToObservableChangeSet(x => x.Name).AsObservableCache();
         }
 
         public Parent(int id)
@@ -197,11 +267,14 @@ public Parent(int id)
             Id = id;
             Children = new ObservableCollection<Person>();
             ChildrenReadonly = new ReadOnlyObservableCollection<Person>(Children);
+            ChildrenCache = Children.ToObservableChangeSet(x => x.Name).AsObservableCache();
         }
 
         public ObservableCollection<Person> Children { get; }
 
-        public ReadOnlyObservableCollection<Person> ChildrenReadonly { get; }
+        public ReadOnlyObservableCollection<Person> ChildrenReadonly { get; }
+
+        public IObservableCache<Person, string> ChildrenCache { get; }
 
         public int Id { get; }
     }
diff --git a/src/DynamicData/Cache/Internal/TransformMany.cs b/src/DynamicData/Cache/Internal/TransformMany.cs
index 3a1fa4df2..0bdfe75b5 100644
--- a/src/DynamicData/Cache/Internal/TransformMany.cs
+++ b/src/DynamicData/Cache/Internal/TransformMany.cs
@@ -67,6 +67,25 @@ public TransformMany(IObservable<IChangeSet<TSource, TSourceKey>> source, Func<T
     {
     }
 
+    public TransformMany(IObservable<IChangeSet<TSource, TSourceKey>> source, Func<TSource, IObservableCache<TDestination, TDestinationKey>> manySelector, Func<TDestination, TDestinationKey> keySelector)
+        : this(source,
+            x => manySelector(x).Items,
+            keySelector,
+            t => Observable.Defer(
+                () =>
+                {
+                    var subsequentChanges = Observable.Create<IChangeSet<TDestination, TDestinationKey>>(o => manySelector(t).Connect().Subscribe(o));
+
+                    if (manySelector(t).Count > 0)
+                    {
+                        return subsequentChanges;
+                    }
+
+                    return Observable.Return(ChangeSet<TDestination, TDestinationKey>.Empty).Concat(subsequentChanges);
+                }))
+    {
+    }
+
     public TransformMany(IObservable<IChangeSet<TSource, TSourceKey>> source, Func<TSource, IEnumerable<TDestination>> manySelector, Func<TDestination, TDestinationKey> keySelector, Func<TSource, IObservable<IChangeSet<TDestination, TDestinationKey>>>? childChanges = null)
     {
         _source = source;
@@ -108,11 +127,11 @@ private IObservable<IChangeSet<TDestination, TDestinationKey>> CreateWithChangeS
                     {
                         // Only skip initial for first time Adds where there is initial data records
                         var locker = new object();
-                        var collection = _manySelector(t);
                         var changes = _childChanges(t).Synchronize(locker).Skip(1);
                         return new ManyContainer(
                             () =>
                             {
+                                var collection = _manySelector(t);
                                 lock (locker)
                                 {
                                     return collection.Select(m => new DestinationContainer(m, _keySelector(m))).ToArray();
diff --git a/src/DynamicData/Cache/ObservableCacheEx.cs b/src/DynamicData/Cache/ObservableCacheEx.cs
index 0d8371195..adc8ffb5b 100644
--- a/src/DynamicData/Cache/ObservableCacheEx.cs
+++ b/src/DynamicData/Cache/ObservableCacheEx.cs
@@ -4694,6 +4694,24 @@ public static IObservable<IChangeSet<TDestination, TDestinationKey>> TransformMa
         return new TransformMany<TDestination, TDestinationKey, TSource, TSourceKey>(source, manySelector, keySelector).Run();
     }
 
+    /// <summary>
+    /// Flatten the nested observable cache, and subsequently observe observable cache changes.
+    /// </summary>
+    /// <typeparam name="TDestination">The type of the destination.</typeparam>
+    /// <typeparam name="TDestinationKey">The type of the destination key.</typeparam>
+    /// <typeparam name="TSource">The type of the source.</typeparam>
+    /// <typeparam name="TSourceKey">The type of the source key.</typeparam>
+    /// <returns>An observable with the transformed change set.</returns>
+    /// <param name="source">The source.</param>
+    /// <param name="manySelector">Will select an observable cache of values.</param>
+    /// <param name="keySelector">The key selector which must be unique across all.</param>
+    public static IObservable<IChangeSet<TDestination, TDestinationKey>> TransformMany<TDestination, TDestinationKey, TSource, TSourceKey>(this IObservable<IChangeSet<TSource, TSourceKey>> source, Func<TSource, IObservableCache<TDestination, TDestinationKey>> manySelector, Func<TDestination, TDestinationKey> keySelector)
+        where TSourceKey : notnull
+        where TDestinationKey : notnull
+    {
+        return new TransformMany<TDestination, TDestinationKey, TSource, TSourceKey>(source, manySelector, keySelector).Run();
+    }
+
     /// <summary>
     /// Projects each update item to a new form using the specified transform function,
     /// providing an error handling action to safely handle transform errors without killing the stream.