Rule 1201 A statement within the scope of an exception to the hearsay rule is not inadmissible on the ground that the evidence of such statement is hearsay evid…

Sometimes a piece of evidence contains multiple layers of hearsay, meaning one out-of-court statement is reported inside another out-of-court statement. This rule says that kind of "hearsay within hearsay" can still be used in court.

For the evidence to be allowed, each separate layer of hearsay must qualify under its own exception to the hearsay rule. If even one layer does not fit an exception, the whole thing gets blocked. But if every layer qualifies, the court can accept the full statement as evidence.