diff --git a/R/step-subset-expand.R b/R/step-subset-expand.R
index fefa753fa..7efbae270 100644
--- a/R/step-subset-expand.R
+++ b/R/step-subset-expand.R
@@ -38,12 +38,101 @@
 #' fruits %>% dplyr::right_join(all)
 # exported onLoad
 expand.dtplyr_step <- function(data, ..., .name_repair = "check_unique") {
-  dots <- capture_dots(data, ..., .j = FALSE)
-  dots <- dots[!vapply(dots, is_null, logical(1))]
+  dots <- prepare_expand_dots(data, ..., .name_repair = .name_repair)
+
+  # TODO handle factors
   if (length(dots) == 0) {
     return(data)
   }
 
+  tbl_list <- c(
+    list(expand_no_nesting(data, dots$simple)),
+    expand_nesting(data, dots$nesting)
+  )
+
+  out <- Reduce(function(x, y) left_join(x, y, by = group_vars(data)), tbl_list)
+
+  renamed <- names(dots$select) != unname(dots$select)
+  relocated <- unname(dots$select) != out$vars
+  if (any(renamed) || any(relocated)) {
+    out <- select(out, !!!dots$select)
+  }
+
+  out
+}
+
+# exported onLoad
+expand.data.table <- function(data, ..., .name_repair = "check_unique") {
+  data <- lazy_dt(data)
+  tidyr::expand(data, ..., .name_repair = .name_repair)
+}
+
+prepare_expand_dots <- function(data, ..., .name_repair) {
+  dots <- capture_dots(data, ..., .j = FALSE)
+
+  dot_is_null <- vapply(dots, is_null, logical(1))
+  dots <- dots[!dot_is_null]
+  dot_names_tidyr <- names(exprs(..., .named = TRUE))[!dot_is_null]
+  if (is_null(dots)) {
+    return(NULL)
+  }
+
+  is_nesting <- vapply(dots, function(x) is_call(x, "nesting"), logical(1))
+  dots_df <- tibble::tibble(
+    expr = dots,
+    position = seq_along(dots)
+  )
+
+  dots_df_nesting <- dots_df[is_nesting, ]
+  nesting_vars <- lapply(dots_df_nesting$expr, get_nesting_vars)
+  dots_df_nesting$name_tidyr <- lapply(nesting_vars, names)
+  dots_df_nesting$var <- lapply(nesting_vars, unlist)
+
+  dots_df_simple <- dots_df[!is_nesting, ]
+  simple_vars <- dt_dot_names(dots_df_simple$expr)
+  dots_df_simple$name_dt <- names(simple_vars)
+  dots_df_simple$var <- simple_vars
+  dots_df_simple$name_tidyr <- dot_names_tidyr[!is_nesting]
+
+  meta_df <- dplyr::bind_rows(
+    dots_df_simple,
+    tidyr::unnest(dots_df_nesting, "name_tidyr")
+  )
+  groups <- group_vars(data)
+  names_dt <- c(groups, dplyr::coalesce(meta_df$name_dt, meta_df$name_tidyr))
+  names_tidyr <- vctrs::vec_as_names(
+    c(groups, meta_df$name_tidyr),
+    repair = .name_repair
+  )
+  order <- c(seq_along(groups), length(groups) + order(meta_df$position))
+
+  list(
+    simple = dots_df_simple$var,
+    nesting = dots_df_nesting$var,
+    select = set_names(names_dt, names_tidyr)[order]
+  )
+}
+
+get_nesting_vars <- function(expr) {
+  args <- call_args(expr)
+
+  repair <- args[[".name_repair"]] %||% "check_unique"
+  args[[".name_repair"]] <- NULL
+
+  vars <- exprs_auto_name(args)
+  nms <- vctrs::vec_as_names(names(vars), repair = repair)
+  set_names(vars, nms)
+}
+
+expand_nesting <- function(data, vars) {
+  if (is_empty(vars)) {
+    return(NULL)
+  }
+
+  lapply(vars, function(x) distinct(data, !!!x))
+}
+
+dt_dot_names <- function(dots, .name_repair) {
   named_dots <- have_name(dots)
   if (any(!named_dots)) {
     # Auto-names generated by enquos() don't always work with the CJ() step
@@ -55,24 +144,31 @@ expand.dtplyr_step <- function(data, ..., .name_repair = "check_unique") {
     names(dots)[needs_v_name] <- v_names[needs_v_name]
     names(dots)[symbol_dots] <- lapply(dots[symbol_dots], as_name)
   }
-  names(dots) <- vctrs::vec_as_names(names(dots), repair = .name_repair)
-
-  on <- names(dots)
-  cj <- expr(CJ(!!!syms(on), unique = TRUE))
+  dots
+}
 
-  out <- distinct(data, !!!syms(data$groups), !!!dots)
+expand_no_nesting <- function(data, dots, .name_repair) {
   if (length(data$groups) == 0) {
-    out <- step_subset(out, i = cj, on = on)
+    dt_vars <- names(dots)
+
+    dt_auto_names <- names(dt_dot_names(unname(dots)))
+    name_needed <- dt_auto_names != dt_vars
+    names(dots)[!name_needed] <- ""
+
+    out <- step_subset_j(
+      parent = data,
+      vars = dt_vars,
+      j = expr(CJ(!!!dots, unique = TRUE))
+    )
   } else {
+    out <- distinct(data, !!!syms(data$groups), !!!dots)
+
+    on <- names(dots)
+    cj <- expr(CJ(!!!syms(on), unique = TRUE))
+
     on <- call2(".", !!!syms(on))
     out <- step_subset(out, j = expr(.SD[!!cj, on = !!on]))
   }
 
   out
 }
-
-# exported onLoad
-expand.data.table <- function(data, ..., .name_repair = "check_unique") {
-  data <- lazy_dt(data)
-  tidyr::expand(data, ..., .name_repair = .name_repair)
-}
diff --git a/tests/testthat/test-step-subset-expand.R b/tests/testthat/test-step-subset-expand.R
index 03133531b..53484e2c4 100644
--- a/tests/testthat/test-step-subset-expand.R
+++ b/tests/testthat/test-step-subset-expand.R
@@ -6,7 +6,7 @@ test_that("expand completes all values", {
 
   expect_equal(
     show_query(step),
-    expr(unique(DT)[CJ(x, y, unique = TRUE), on = .(x, y)])
+    expr(DT[, CJ(x, y, unique = TRUE)])
   )
   expect_equal(step$vars, c("x", "y"))
   expect_equal(nrow(out), 4)
@@ -29,9 +29,10 @@ test_that("works with unnamed vectors", {
 
   expect_equal(
     show_query(step),
-    expr(unique(DT[, .(x = x, V2 = 1:2)])[CJ(x, V2, unique = TRUE), on = .(x, V2)])
+    # expr(unique(DT[, .(x = x, V2 = 1:2)])[CJ(x, V2, unique = TRUE), on = .(x, V2)])
+    expr(DT[, CJ(x, 1:2, unique = TRUE)][, .(x, `1:2` = V2)])
   )
-  expect_equal(step$vars, c("x", "V2"))
+  expect_equal(step$vars, c("x", "1:2"))
   expect_equal(nrow(out), 4)
 })
 
@@ -43,7 +44,8 @@ test_that("works with named vectors", {
 
   expect_equal(
     show_query(step),
-    expr(unique(DT[, .(x = x, val = 1:2)])[CJ(x, val, unique = TRUE), on = .(x, val)])
+    # expr(unique(DT[, .(x = x, val = 1:2)])[CJ(x, val, unique = TRUE), on = .(x, val)])
+    expr(DT[, CJ(x, val = 1:2, unique = TRUE)])
   )
   expect_equal(step$vars, c("x", "val"))
   expect_equal(nrow(out), 4)