diff --git a/flytekit/image_spec/image_spec.py b/flytekit/image_spec/image_spec.py
index 766e4e4a97..c7c9235a4e 100644
--- a/flytekit/image_spec/image_spec.py
+++ b/flytekit/image_spec/image_spec.py
@@ -61,7 +61,7 @@ class ImageSpec:
     apt_packages: Optional[List[str]] = None
     cuda: Optional[str] = None
     cudnn: Optional[str] = None
-    base_image: Optional[str] = None
+    base_image: Optional[Union[str, "ImageSpec"]] = None
     platform: str = "linux/amd64"
     pip_index: Optional[str] = None
     pip_extra_index_url: Optional[List[str]] = None
@@ -228,6 +228,10 @@ def register(cls, builder_type: str, image_spec_builder: ImageSpecBuilder, prior
     @classmethod
     @lru_cache
     def build(cls, image_spec: ImageSpec) -> str:
+        if isinstance(image_spec.base_image, ImageSpec):
+            cls.build(image_spec.base_image)
+            image_spec.base_image = image_spec.base_image.image_name()
+
         if image_spec.builder is None and cls._REGISTRY:
             builder = max(cls._REGISTRY, key=lambda name: cls._REGISTRY[name][1])
         else:
@@ -269,6 +273,8 @@ def calculate_hash_from_image_spec(image_spec: ImageSpec):
     """
     # copy the image spec to avoid modifying the original image spec. otherwise, the hash will be different.
     spec = copy.deepcopy(image_spec)
+    if isinstance(spec.base_image, ImageSpec):
+        spec.base_image = spec.base_image.image_name()
     spec.source_root = hash_directory(image_spec.source_root) if image_spec.source_root else b""
     if spec.requirements:
         spec.requirements = hashlib.sha1(pathlib.Path(spec.requirements).read_bytes()).hexdigest()
diff --git a/plugins/flytekit-envd/tests/test_image_spec.py b/plugins/flytekit-envd/tests/test_image_spec.py
index 8e5d8b1631..f7c8e3f370 100644
--- a/plugins/flytekit-envd/tests/test_image_spec.py
+++ b/plugins/flytekit-envd/tests/test_image_spec.py
@@ -21,17 +21,27 @@ def register_envd_higher_priority():
 
 
 def test_image_spec():
+    base_image = ImageSpec(
+        packages=["numpy"],
+        python_version="3.8",
+        registry="",
+        base_image="cr.flyte.org/flyteorg/flytekit:py3.8-latest",
+    )
+    # Replace the base image name with the default flytekit image name,
+    # so Envd can find the base image when building imageSpec below
+    ImageBuildEngine._IMAGE_NAME_TO_REAL_NAME[base_image.image_name()] = "cr.flyte.org/flyteorg/flytekit:py3.8-latest"
+
     image_spec = ImageSpec(
         packages=["pandas"],
         apt_packages=["git"],
         python_version="3.8",
-        base_image="cr.flyte.org/flyteorg/flytekit:py3.8-latest",
+        base_image=base_image,
         pip_index="https://private-pip-index/simple",
     )
 
     image_spec = image_spec.with_commands("echo hello")
 
-    EnvdImageSpecBuilder().build_image(image_spec)
+    ImageBuildEngine.build(image_spec)
     config_path = create_envd_config(image_spec)
     assert image_spec.platform == "linux/amd64"
     image_name = image_spec.image_name()