Creating nested components in Angular enables modular application architecture where child components are embedded within parent components for better code organization. As the creator of CoreUI, a widely used open-source UI library, I’ve built thousands of nested Angular components for enterprise applications with complex component hierarchies. From my expertise, the most effective approach is creating separate child components and embedding them using their selectors in parent templates. This method provides clear separation of concerns, reusable components, and maintainable code structure.