diff --git a/lib/util/edit.test.ts b/lib/util/edit.test.ts
index 27b5423..7f1d038 100644
--- a/lib/util/edit.test.ts
+++ b/lib/util/edit.test.ts
@@ -1130,6 +1130,26 @@ export const b = 'b';`,
       assert.equal(fileService.exists('/app/a_reexport.ts'), false);
       assert.equal(fileService.exists('/app/a.ts'), false);
     });
+
+    it('should look for deeply nested whole re-export without removing files', () => {
+      const fileService = new MemoryFileService();
+      fileService.set('/app/main.ts', `import { c } from './a';`);
+      fileService.set('/app/a.ts', `export * from './b';`);
+      fileService.set('/app/b.ts', `export * from './c';`);
+      fileService.set('/app/c.ts', `export const c = 'c';`);
+
+      edit({
+        fileService,
+        recursive,
+        deleteUnusedFile: true,
+        entrypoints: ['/app/main.ts'],
+      });
+
+      assert.equal(fileService.get('/app/main.ts'), `import { c } from './a';`);
+      assert.equal(fileService.get('/app/a.ts'), `export * from './b';`);
+      assert.equal(fileService.get('/app/b.ts'), `export * from './c';`);
+      assert.equal(fileService.get('/app/c.ts'), `export const c = 'c';`);
+    });
   });
 
   describe('namespace export declaration', () => {
diff --git a/lib/util/edit.ts b/lib/util/edit.ts
index 2ec5266..a2fd7e5 100644
--- a/lib/util/edit.ts
+++ b/lib/util/edit.ts
@@ -12,6 +12,12 @@ import { MemoryFileService } from './MemoryFileService.js';
 import { findFileUsage } from './findFileUsage.js';
 import { parseFile } from './parseFile.js';
 import { Output } from './Output.js';
+import {
+  WholeExportDeclarationWithFile,
+  isWholeExportDeclarationWithFile,
+  isNamedExport,
+  isWholeExportDeclaration,
+} from './export.js';
 
 const transform = (
   source: string,
@@ -148,7 +154,7 @@ const updateExportDeclaration = (code: string, unused: string[]) => {
 
   const printer = ts.createPrinter();
   const printed = result ? printer.printFile(result).replace(/\n$/, '') : '';
-  const leading = code.match(/^([\s]+)/)?.[0] || '';
+  const leading = code.match(/^(\s+)/)?.[0] || '';
 
   return `${leading}${printed}`;
 };
@@ -181,6 +187,76 @@ const getSpecifierPosition = (exportDeclaration: string) => {
   return result;
 };
 
+/**
+ * Retrieves the names of the exports from a whole export declaration.
+ * For each whole export declaration, it will recursively get the names of the exports from the file it points to.
+ */
+const deeplyGetExportNames = ({
+  item,
+  files,
+  fileNames,
+  options,
+}: {
+  item: WholeExportDeclarationWithFile;
+  files: Map<string, string>;
+  fileNames: Set<string>;
+  options: ts.CompilerOptions;
+}): string[] => {
+  const filesAlreadyVisited = new Set<string>();
+
+  return innerDeeplyGetExportNames({
+    item,
+    files,
+    fileNames,
+    options,
+    filesAlreadyVisited,
+  });
+};
+
+const innerDeeplyGetExportNames = ({
+  item,
+  files,
+  fileNames,
+  options,
+  filesAlreadyVisited,
+}: {
+  item: WholeExportDeclarationWithFile;
+  files: Map<string, string>;
+  fileNames: Set<string>;
+  options: ts.CompilerOptions;
+  filesAlreadyVisited: Set<string>;
+}): string[] => {
+  if (filesAlreadyVisited.has(item.file)) {
+    return [];
+  }
+
+  const parsed = parseFile({
+    file: item.file,
+    content: files.get(item.file) || '',
+    options,
+    destFiles: fileNames,
+  });
+
+  const deepExportNames = parsed.exports
+    .filter(
+      (v) => isWholeExportDeclaration(v) && isWholeExportDeclarationWithFile(v),
+    )
+    .flatMap((v) =>
+      innerDeeplyGetExportNames({
+        item: v,
+        files,
+        fileNames,
+        options,
+        filesAlreadyVisited: filesAlreadyVisited.add(item.file),
+      }),
+    );
+
+  return parsed.exports
+    .filter(isNamedExport)
+    .flatMap((v) => v.name)
+    .concat(deepExportNames);
+};
+
 const processFile = ({
   targetFile,
   files,
@@ -424,23 +500,19 @@ const processFile = ({
             break;
           }
           case 'whole': {
-            if (!item.file) {
+            if (!isWholeExportDeclarationWithFile(item)) {
               // whole export is directed towards a file that is not in the project
               break;
             }
 
-            const parsed = parseFile({
-              file: item.file,
-              content: files.get(item.file) || '',
+            const exportNames = deeplyGetExportNames({
+              item,
+              files,
+              fileNames,
               options,
-              destFiles: fileNames,
             });
 
-            const exported = parsed.exports.flatMap((v) =>
-              'name' in v ? v.name : [],
-            );
-
-            if (exported.some((v) => usage.has(v))) {
+            if (exportNames.some((v) => usage.has(v))) {
               break;
             }
 
@@ -582,13 +654,11 @@ export {};\n`,
 
   fileService.set(targetFile, content);
 
-  const result = {
+  return {
     operation: 'edit' as const,
     content: fileService.get(targetFile),
     removedExports: logs,
   };
-
-  return result;
 };
 
 export const edit = ({
diff --git a/lib/util/export.ts b/lib/util/export.ts
new file mode 100644
index 0000000..61b925d
--- /dev/null
+++ b/lib/util/export.ts
@@ -0,0 +1,187 @@
+import ts from 'typescript';
+
+type ClassDeclaration = {
+  kind: ts.SyntaxKind.ClassDeclaration;
+  name: string;
+  change: {
+    code: string;
+    isUnnamedDefaultExport?: boolean;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type EnumDeclaration = {
+  kind: ts.SyntaxKind.EnumDeclaration;
+  name: string;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type ExportAssignment = {
+  kind: ts.SyntaxKind.ExportAssignment;
+  name: 'default';
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type FunctionDeclaration = {
+  kind: ts.SyntaxKind.FunctionDeclaration;
+  name: string;
+  change: {
+    code: string;
+    isUnnamedDefaultExport?: boolean;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type InterfaceDeclaration = {
+  kind: ts.SyntaxKind.InterfaceDeclaration;
+  name: string;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type NameExportDeclaration = {
+  kind: ts.SyntaxKind.ExportDeclaration;
+  type: 'named';
+  name: string[];
+  skip: boolean;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  start: number;
+};
+
+type NamespaceExportDeclaration = {
+  kind: ts.SyntaxKind.ExportDeclaration;
+  type: 'namespace';
+  name: string;
+  start: number;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+};
+
+type TypeAliasDeclaration = {
+  kind: ts.SyntaxKind.TypeAliasDeclaration;
+  name: string;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type VariableStatement = {
+  kind: ts.SyntaxKind.VariableStatement;
+  name: string[];
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+  skip: boolean;
+  start: number;
+};
+
+type NamedExport =
+  | ClassDeclaration
+  | EnumDeclaration
+  | ExportAssignment
+  | FunctionDeclaration
+  | InterfaceDeclaration
+  | NameExportDeclaration
+  | NamespaceExportDeclaration
+  | TypeAliasDeclaration
+  | VariableStatement;
+
+type WholeExportDeclarationBase = {
+  kind: ts.SyntaxKind.ExportDeclaration;
+  type: 'whole';
+  specifier: string;
+  start: number;
+  change: {
+    code: string;
+    span: {
+      start: number;
+      length: number;
+    };
+  };
+};
+
+/**
+ * Whole export when the file is found within the destFiles
+ */
+export type WholeExportDeclarationWithFile = WholeExportDeclarationBase & {
+  file: string;
+};
+
+/**
+ * Whole export when the file is not found within the destFiles, i.e. the file is not part of the project
+ */
+type WholeExportDeclarationWithoutFile = WholeExportDeclarationBase & {
+  file: null;
+};
+
+type WholeExportDeclaration =
+  | WholeExportDeclarationWithFile
+  | WholeExportDeclarationWithoutFile;
+
+export const isWholeExportDeclarationWithFile = (
+  exportDeclaration: WholeExportDeclaration,
+): exportDeclaration is WholeExportDeclarationWithFile =>
+  exportDeclaration.file !== null;
+
+export type Export = NamedExport | WholeExportDeclaration;
+
+export const isNamedExport = (v: Export): v is NamedExport => 'name' in v;
+
+export const isWholeExportDeclaration = (
+  v: Export,
+): v is WholeExportDeclaration =>
+  v.kind === ts.SyntaxKind.ExportDeclaration && v.type === 'whole';
diff --git a/lib/util/findFileUsage.ts b/lib/util/findFileUsage.ts
index 1047465..3e79482 100644
--- a/lib/util/findFileUsage.ts
+++ b/lib/util/findFileUsage.ts
@@ -2,7 +2,8 @@ import ts from 'typescript';
 import { Vertexes } from './DependencyGraph.js';
 import { parseFile } from './parseFile.js';
 
-const ALL_EXPORTS_OF_UNKNOWN_FILE = '__all_exports_of_unknown_file__';
+const ALL_EXPORTS_OF_UNKNOWN_FILE = '#all_exports_of_unknown_file#';
+const CIRCULAR_DEPENDENCY = '#circular_dependency#';
 
 const getExportsOfFile = ({
   targetFile,
@@ -17,6 +18,7 @@ const getExportsOfFile = ({
 }) => {
   const result: string[] = [];
 
+  const alreadyVisited = new Set<string>();
   const stack = [targetFile];
 
   while (stack.length) {
@@ -26,6 +28,13 @@ const getExportsOfFile = ({
       break;
     }
 
+    if (alreadyVisited.has(item)) {
+      result.push(CIRCULAR_DEPENDENCY);
+      continue;
+    }
+
+    alreadyVisited.add(item);
+
     const { exports } = parseFile({
       file: item,
       content: files.get(item) || '',
@@ -81,7 +90,7 @@ export const findFileUsage = ({
   );
 
   while (stack.length) {
-    const item = stack.pop()!;
+    const item = stack.pop();
 
     if (!item) {
       break;
diff --git a/lib/util/parseFile.ts b/lib/util/parseFile.ts
index bdf1cda..7be7c47 100644
--- a/lib/util/parseFile.ts
+++ b/lib/util/parseFile.ts
@@ -1,6 +1,7 @@
 import ts from 'typescript';
 import { memoize } from './memoize.js';
 import { namespaceUsage } from './namespaceUsage.js';
+import { Export } from './export.js';
 
 const getLeadingComment = (node: ts.Node) => {
   const fullText = node.getSourceFile().getFullText();
@@ -128,143 +129,6 @@ const getChange = (
   };
 };
 
-type Export =
-  | {
-      kind: ts.SyntaxKind.VariableStatement;
-      name: string[];
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.FunctionDeclaration;
-      name: string;
-      change: {
-        code: string;
-        isUnnamedDefaultExport?: boolean;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.InterfaceDeclaration;
-      name: string;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.TypeAliasDeclaration;
-      name: string;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.ExportAssignment;
-      name: 'default';
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.ExportDeclaration;
-      type: 'named';
-      name: string[];
-      skip: boolean;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.ExportDeclaration;
-      type: 'namespace';
-      name: string;
-      start: number;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-    }
-  | {
-      kind: ts.SyntaxKind.ExportDeclaration;
-      type: 'whole';
-      // will be null if the file is not found within the destFiles, i.e. the file is not part of the project
-      file: string | null;
-      specifier: string;
-      start: number;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-    }
-  | {
-      kind: ts.SyntaxKind.ClassDeclaration;
-      name: string;
-      change: {
-        code: string;
-        isUnnamedDefaultExport?: boolean;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    }
-  | {
-      kind: ts.SyntaxKind.EnumDeclaration;
-      name: string;
-      change: {
-        code: string;
-        span: {
-          start: number;
-          length: number;
-        };
-      };
-      skip: boolean;
-      start: number;
-    };
-
 type AmbientDeclaration = {
   kind: ts.SyntaxKind.ModuleDeclaration;
 };