diff --git a/src/main/kotlin/org/pkl/intellij/type/ComputeExprType.kt b/src/main/kotlin/org/pkl/intellij/type/ComputeExprType.kt
index a83b2133..19fdc0db 100644
--- a/src/main/kotlin/org/pkl/intellij/type/ComputeExprType.kt
+++ b/src/main/kotlin/org/pkl/intellij/type/ComputeExprType.kt
@@ -130,7 +130,7 @@ private fun PsiElement.doComputeExprType(
         (type?.toType(base, bindings, context) ?: inferExprTypeFromContext(base, bindings, context))
           .instantiated(base, context)
       is PklThisExpr -> computeThisType(base, bindings, context)
-      is PklOuterExpr -> Type.Unknown // TODO
+      is PklOuterExpr -> computeOuterType(base, bindings, context)
       is PklSubscriptBinExpr -> {
         val receiverType = leftExpr.computeExprType(base, bindings, context)
         doComputeSubscriptExprType(receiverType, base, context)
diff --git a/src/main/kotlin/org/pkl/intellij/type/ComputeOuterType.kt b/src/main/kotlin/org/pkl/intellij/type/ComputeOuterType.kt
new file mode 100644
index 00000000..f6c56141
--- /dev/null
+++ b/src/main/kotlin/org/pkl/intellij/type/ComputeOuterType.kt
@@ -0,0 +1,137 @@
+/**
+ * Copyright © 2024 Apple Inc. and the Pkl project authors. All rights reserved.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+@file:Suppress("DuplicatedCode")
+
+package org.pkl.intellij.type
+
+import com.intellij.psi.PsiElement
+import org.pkl.intellij.packages.dto.PklProject
+import org.pkl.intellij.psi.*
+
+/**
+ * Computes the type of `outer` for the given PSI element.
+ *
+ * The `outer` keyword refers to the enclosing object scope that is one level up from
+ * the immediate object scope. This function walks up the PSI tree to find the immediate
+ * enclosing object, then continues walking to find the next enclosing object and returns
+ * its type.
+ */
+fun PsiElement.computeOuterType(
+  base: PklBaseModule,
+  bindings: TypeParameterBindings,
+  context: PklProject?
+): Type {
+  var element: PsiElement? = this
+  var memberPredicateExprSeen = false
+  var objectBodySeen = false
+  var skipNextObjectBody = false
+  var foundFirstObject = false
+
+  while (element != null) {
+    when (element) {
+      is PklAmendExpr,
+      is PklNewExpr -> {
+        if (objectBodySeen) {
+          if (foundFirstObject) {
+            // This is the outer object we're looking for
+            val type = element.computeExprType(base, bindings, context).amending(base, context)
+            return when {
+              memberPredicateExprSeen -> {
+                val classType = type.toClassType(base, context) ?: return Type.Unknown
+                when {
+                  classType.classEquals(base.listingType) -> classType.typeArguments[0]
+                  classType.classEquals(base.mappingType) -> classType.typeArguments[1]
+                  else -> Type.Unknown
+                }
+              }
+              else -> type
+            }
+          } else {
+            // This is the immediate object, mark it as found and continue searching
+            foundFirstObject = true
+            objectBodySeen = false
+            memberPredicateExprSeen = false
+          }
+        }
+      }
+      is PklExpr -> {
+        val parent = element.parent
+        if (
+          parent is PklWhenGenerator && element === parent.conditionExpr ||
+            parent is PklForGenerator && element === parent.iterableExpr ||
+            parent is PklObjectEntry && element === parent.keyExpr
+        ) {
+          skipNextObjectBody = true
+        } else if (parent is PklMemberPredicate && element === parent.conditionExpr) {
+          memberPredicateExprSeen = true
+        }
+      }
+      is PklObjectBody ->
+        when {
+          skipNextObjectBody -> skipNextObjectBody = false
+          else -> objectBodySeen = true
+        }
+      is PklProperty,
+      is PklObjectElement,
+      is PklObjectEntry,
+      is PklMemberPredicate -> {
+        if (objectBodySeen) {
+          if (foundFirstObject) {
+            // This is the outer object we're looking for
+            val type =
+              element.computeResolvedImportType(base, bindings, context).amending(base, context)
+            return when {
+              memberPredicateExprSeen -> {
+                val classType = type.toClassType(base, context) ?: return Type.Unknown
+                when {
+                  classType.classEquals(base.listingType) -> classType.typeArguments[0]
+                  classType.classEquals(base.mappingType) -> classType.typeArguments[1]
+                  else -> Type.Unknown
+                }
+              }
+              else -> type
+            }
+          } else {
+            // This is the immediate object, mark it as found and continue searching
+            foundFirstObject = true
+            objectBodySeen = false
+            memberPredicateExprSeen = false
+          }
+        }
+      }
+      is PklConstrainedType -> {
+        if (foundFirstObject) {
+          return element.type.toType(base, bindings, context)
+        }
+      }
+      is PklModule,
+      is PklClass,
+      is PklTypeAlias -> {
+        if (foundFirstObject) {
+          return element.computeResolvedImportType(base, bindings, context)
+        }
+      }
+      is PklAnnotation -> {
+        if (foundFirstObject) {
+          return element.typeName?.resolve(context).computeResolvedImportType(base, bindings, context)
+        }
+      }
+    }
+    element = element.parent
+  }
+
+  return Type.Unknown
+}
diff --git a/src/test/kotlin/org/pkl/intellij/completion/CompletionTest.kt b/src/test/kotlin/org/pkl/intellij/completion/CompletionTest.kt
index 7a36a4aa..bf23e790 100644
--- a/src/test/kotlin/org/pkl/intellij/completion/CompletionTest.kt
+++ b/src/test/kotlin/org/pkl/intellij/completion/CompletionTest.kt
@@ -100,6 +100,36 @@ class CompletionTest : PklTestCase() {
     assertThat(lookupStrings).contains("configMaps = ")
   }
 
+  fun `test complete from outer`() {
+    myFixture.configureByText(
+      PklFileType,
+      """
+      class BirdSpec {
+        name: String
+        songs: Listing<Song>
+        function generateSong(_tune: String): Song = new {
+          tune = _tune
+        }
+      }
+
+      class Song {
+        tune: String
+      }
+
+      peacock: BirdSpec = new {
+        name = "peacock"
+        songs {
+          outer.<caret>
+        }
+      }
+    """
+        .trimIndent()
+    )
+    myFixture.completeBasic()
+    val lookupStrings = myFixture.lookupElementStrings
+    assertThat(lookupStrings).contains("generateSong", "name", "songs")
+  }
+
   override val fixtureDir: Path?
     get() = Path.of("src/test/resources/completion")
 }