diff --git a/CHANGELOG.md b/CHANGELOG.md
index 077d767a..68efc824 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## Master (Unreleased)
 
+- Fix a false positive for `FactoryBot/AssociationStyle` when using nested factories with traits. ([@jaydorsey])
+
 ## 2.25.1 (2024-01-08)
 
 - Fix a false positive for `FactoryBot/CreateList` when create call does have method calls and repeat multiple times with other argument. ([@ydah])
@@ -88,6 +90,7 @@
 [@ddieulivol]: https://github.com/ddieulivol
 [@dmitrytsepelev]: https://github.com/dmitrytsepelev
 [@harrylewis]: https://github.com/harrylewis
+[@jaydorsey]: https://github.com/jaydorsey
 [@jfragoulis]: https://github.com/jfragoulis
 [@jonatas]: https://github.com/jonatas
 [@leoarnold]: https://github.com/leoarnold
diff --git a/lib/rubocop/cop/factory_bot/association_style.rb b/lib/rubocop/cop/factory_bot/association_style.rb
index 7a483e5a..4a08f46d 100644
--- a/lib/rubocop/cop/factory_bot/association_style.rb
+++ b/lib/rubocop/cop/factory_bot/association_style.rb
@@ -67,6 +67,7 @@ class AssociationStyle < ::RuboCop::Cop::Base # rubocop:disable Metrics/ClassLen
 
         DEFAULT_NON_IMPLICIT_ASSOCIATION_METHOD_NAMES = %w[
           association
+          factory
           sequence
           skip_create
           traits_for_enum
diff --git a/spec/rubocop/cop/factory_bot/association_style_spec.rb b/spec/rubocop/cop/factory_bot/association_style_spec.rb
index 01afc883..874cfbd3 100644
--- a/spec/rubocop/cop/factory_bot/association_style_spec.rb
+++ b/spec/rubocop/cop/factory_bot/association_style_spec.rb
@@ -405,5 +405,19 @@ def inspected_source_filename
         RUBY
       end
     end
+
+    context 'when factory inside a factory with inline traits' do
+      it 'does not register an offense' do
+        expect_no_offenses(<<~RUBY)
+          factory :order do
+            traits :completed do
+              completed_at { 3.days.ago }
+            end
+
+            factory :order_completed, traits: [:completed]
+          end
+        RUBY
+      end
+    end
   end
 end