diff --git a/tools/lib/bpf/btf_dump.c b/tools/lib/bpf/btf_dump.c
index d6fd93a57f11..580985ee5545 100644
--- a/tools/lib/bpf/btf_dump.c
+++ b/tools/lib/bpf/btf_dump.c
@@ -830,47 +830,26 @@ static void btf_dump_emit_type(struct btf_dump *d, __u32 id, __u32 cont_id)
 	}
 }
 
-static int btf_natural_align_of(const struct btf *btf, __u32 id)
-{
-	const struct btf_type *t = btf__type_by_id(btf, id);
-	int i, align, vlen;
-	const struct btf_member *m;
-
-	if (!btf_is_composite(t))
-		return btf__align_of(btf, id);
-
-	align = 1;
-	m = btf_members(t);
-	vlen = btf_vlen(t);
-	for (i = 0; i < vlen; i++, m++) {
-		align = max(align, btf__align_of(btf, m->type));
-	}
-
-	return align;
-}
-
 static bool btf_is_struct_packed(const struct btf *btf, __u32 id,
 				 const struct btf_type *t)
 {
 	const struct btf_member *m;
-	int align, i, bit_sz;
+	int max_align = 1, align, i, bit_sz;
 	__u16 vlen;
 
-	align = btf_natural_align_of(btf, id);
-	/* size of a non-packed struct has to be a multiple of its alignment */
-	if (align && (t->size % align) != 0)
-		return true;
-
 	m = btf_members(t);
 	vlen = btf_vlen(t);
 	/* all non-bitfield fields have to be naturally aligned */
 	for (i = 0; i < vlen; i++, m++) {
-		align = btf_natural_align_of(btf, m->type);
+		align = btf__align_of(btf, m->type);
 		bit_sz = btf_member_bitfield_size(t, i);
 		if (align && bit_sz == 0 && m->offset % (8 * align) != 0)
 			return true;
+		max_align = max(align, max_align);
 	}
-
+	/* size of a non-packed struct has to be a multiple of its alignment */
+	if (t->size % max_align != 0)
+		return true;
 	/*
 	 * if original struct was marked as packed, but its layout is
 	 * naturally aligned, we'll detect that it's not packed
diff --git a/tools/testing/selftests/bpf/progs/btf_dump_test_case_packing.c b/tools/testing/selftests/bpf/progs/btf_dump_test_case_packing.c
index 5c6c62f7ed32..7998f27df7dd 100644
--- a/tools/testing/selftests/bpf/progs/btf_dump_test_case_packing.c
+++ b/tools/testing/selftests/bpf/progs/btf_dump_test_case_packing.c
@@ -116,6 +116,23 @@ struct usb_host_endpoint {
 	long: 0;
 };
 
+/* ----- START-EXPECTED-OUTPUT ----- */
+struct nested_packed_struct {
+	int a;
+	char b;
+} __attribute__((packed));
+
+struct outer_nonpacked_struct {
+	short a;
+	struct nested_packed_struct b;
+};
+
+struct outer_packed_struct {
+	short a;
+	struct nested_packed_struct b;
+} __attribute__((packed));
+
+/* ------ END-EXPECTED-OUTPUT ------ */
 
 int f(struct {
 	struct packed_trailing_space _1;
@@ -128,6 +145,8 @@ int f(struct {
 	union jump_code_union _8;
 	struct outer_implicitly_packed_struct _9;
 	struct usb_host_endpoint _10;
+	struct outer_nonpacked_struct _11;
+	struct outer_packed_struct _12;
 } *_)
 {
 	return 0;