diff --git a/.changeset/nested-method-signatures.md b/.changeset/nested-method-signatures.md
new file mode 100644
index 00000000000..e54a40a58d7
--- /dev/null
+++ b/.changeset/nested-method-signatures.md
@@ -0,0 +1,5 @@
+---
+'react-docgen': patch
+---
+
+Preserve function arguments and return types for TypeScript method signatures in nested object types.
diff --git a/packages/react-docgen/src/utils/__tests__/getTSType-test.ts b/packages/react-docgen/src/utils/__tests__/getTSType-test.ts
index 0413d2b8503..2dc92c50677 100644
--- a/packages/react-docgen/src/utils/__tests__/getTSType-test.ts
+++ b/packages/react-docgen/src/utils/__tests__/getTSType-test.ts
@@ -304,6 +304,32 @@ describe('getTSType', () => {
     expect(getTSType(typePath)).toMatchSnapshot();
   });
 
+  test.each([
+    ['run(value: string): number', true],
+    ['run?(value: string): number', false],
+  ])('detects nested method signatures: %s', (method, required) => {
+    const typePath = typeAlias(`let x: { ${method} };`);
+
+    expect(getTSType(typePath)).toMatchObject({
+      signature: {
+        properties: [
+          {
+            key: 'run',
+            value: {
+              name: 'signature',
+              type: 'function',
+              required,
+              signature: {
+                arguments: [{ name: 'value', type: { name: 'string' } }],
+                return: { name: 'number' },
+              },
+            },
+          },
+        ],
+      },
+    });
+  });
+
   test('detects callable signature type', () => {
     const typePath = typeAlias(
       'let x: { (str: string): string, token: string };',
diff --git a/packages/react-docgen/src/utils/getTSType.ts b/packages/react-docgen/src/utils/getTSType.ts
index 91346f11915..c44ea3ab063 100644
--- a/packages/react-docgen/src/utils/getTSType.ts
+++ b/packages/react-docgen/src/utils/getTSType.ts
@@ -18,6 +18,7 @@ import type { NodePath } from '@babel/traverse';
 import type {
   TSUnionType,
   TSFunctionType,
+  TSMethodSignature,
   TSIntersectionType,
   TSMappedType,
   TSTupleType,
@@ -216,9 +217,18 @@ function handleTSTypeLiteral(
         doc = { description: docblock };
       }
 
+      let value: TypeDescriptor<TSFunctionSignatureType>;
+
+      if (param.isTSMethodSignature()) {
+        value = handleTSFunctionType(param, typeParams);
+        value.required = !param.node.optional;
+      } else {
+        value = getTSTypeWithRequirements(typeAnnotation, typeParams);
+      }
+
       type.signature.properties.push({
         key: propName,
-        value: getTSTypeWithRequirements(typeAnnotation, typeParams),
+        value,
         ...doc,
       });
     } else if (param.isTSCallSignatureDeclaration()) {
@@ -317,7 +327,9 @@ function handleTSMappedType(
 }
 
 function handleTSFunctionType(
-  path: NodePath<TSCallSignatureDeclaration | TSFunctionType>,
+  path: NodePath<
+    TSCallSignatureDeclaration | TSFunctionType | TSMethodSignature
+  >,
   typeParams: TypeParameters | null,
 ): TSFunctionSignatureType {
   let returnType: TypeDescriptor<TSFunctionSignatureType> | undefined;