diff --git a/spring-test/src/main/java/org/springframework/test/context/jdbc/SqlScriptsTestExecutionListener.java b/spring-test/src/main/java/org/springframework/test/context/jdbc/SqlScriptsTestExecutionListener.java
index 9b23ef966ed..623c376fa34 100644
--- a/spring-test/src/main/java/org/springframework/test/context/jdbc/SqlScriptsTestExecutionListener.java
+++ b/spring-test/src/main/java/org/springframework/test/context/jdbc/SqlScriptsTestExecutionListener.java
@@ -208,7 +208,38 @@ public class SqlScriptsTestExecutionListener extends AbstractTestExecutionListen
 	 */
 	private void executeClassLevelSqlScripts(TestContext testContext, ExecutionPhase executionPhase) {
 		Class<?> testClass = testContext.getTestClass();
-		executeSqlScripts(getSqlAnnotationsFor(testClass), testContext, executionPhase, true);
+		
+		// Check if we should exclude inherited execution phase scripts
+		if (shouldExcludeInheritedExecutionPhaseScripts(testClass)) {
+			// Only execute scripts declared directly on this class, not inherited ones
+			Set<Sql> sqlAnnotations = getSqlAnnotationsFor(testClass).stream()
+					.filter(sql -> sql.executionPhase() == executionPhase)
+					.filter(sql -> isDeclaredOnClass(sql, testClass))
+					.collect(java.util.stream.Collectors.toSet());
+			executeSqlScripts(sqlAnnotations, testContext, executionPhase, true);
+		}
+		else {
+			executeSqlScripts(getSqlAnnotationsFor(testClass), testContext, executionPhase, true);
+		}
+	}
+
+	/**
+	 * Determine if inherited execution phase scripts should be excluded for the given class.
+	 */
+	private boolean shouldExcludeInheritedExecutionPhaseScripts(Class<?> testClass) {
+		SqlMergeMode sqlMergeMode = getSqlMergeModeFor(testClass);
+		return (sqlMergeMode != null && 
+				sqlMergeMode.value() == MergeMode.OVERRIDE_AND_EXCLUDE_INHERITED_EXECUTION_PHASE_SCRIPTS);
+	}
+
+	/**
+	 * Determine if the given {@code @Sql} annotation is declared directly on the specified class
+	 * (not inherited from a superclass or enclosing class).
+	 */
+	private boolean isDeclaredOnClass(Sql sql, Class<?> testClass) {
+		Set<Sql> directAnnotations = AnnotatedElementUtils.getMergedRepeatableAnnotations(
+				testClass, Sql.class, SqlGroup.class);
+		return directAnnotations.contains(sql);
 	}
 
 	/**
diff --git a/spring-test/src/test/java/org/springframework/test/context/junit/jupiter/nested/SqlScriptExecutionPhaseNestedTests.java b/spring-test/src/test/java/org/springframework/test/context/junit/jupiter/nested/SqlScriptExecutionPhaseNestedTests.java
new file mode 100644
index 00000000000..12ccc483df8
--- /dev/null
+++ b/spring-test/src/test/java/org/springframework/test/context/junit/jupiter/nested/SqlScriptExecutionPhaseNestedTests.java
@@ -0,0 +1,112 @@
+/*
+ * Copyright 2002-present the original author or authors.
+ *
+ * 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.
+ */
+
+package org.springframework.test.context.junit.jupiter.nested;
+
+import org.junit.jupiter.api.Nested;
+import org.junit.jupiter.api.Test;
+
+import org.springframework.test.annotation.DirtiesContext;
+import org.springframework.test.context.jdbc.EmptyDatabaseConfig;
+import org.springframework.test.context.jdbc.Sql;
+import org.springframework.test.context.jdbc.Sql.ExecutionPhase;
+import org.springframework.test.context.jdbc.SqlMergeMode;
+import org.springframework.test.context.jdbc.SqlMergeMode.MergeMode;
+import org.springframework.test.context.junit.jupiter.SpringJUnitConfig;
+
+import static org.springframework.test.annotation.DirtiesContext.ClassMode.BEFORE_CLASS;
+import static org.springframework.test.context.jdbc.Sql.ExecutionPhase.BEFORE_TEST_CLASS;
+
+/**
+ * Integration tests that verify support for excluding inherited class-level
+ * execution phase SQL scripts in {@code @Nested} test classes using
+ * {@link SqlMergeMode.MergeMode#OVERRIDE_AND_EXCLUDE_INHERITED_EXECUTION_PHASE_SCRIPTS}.
+ *
+ * <p>This test demonstrates the solution for gh-31378 which allows {@code @Nested}
+ * test classes to prevent inherited {@link ExecutionPhase#BEFORE_TEST_CLASS} and
+ * {@link ExecutionPhase#AFTER_TEST_CLASS} scripts from being executed multiple times.
+ *
+ * @author Sam Brannen
+ * @since 6.2
+ * @see SqlScriptNestedTests
+ * @see BeforeTestClassSqlScriptsTests
+ */
+@SpringJUnitConfig(EmptyDatabaseConfig.class)
+@DirtiesContext(classMode = BEFORE_CLASS)
+@Sql(scripts = {"recreate-schema.sql", "data-add-catbert.sql"}, executionPhase = BEFORE_TEST_CLASS)
+class SqlScriptExecutionPhaseNestedTests extends AbstractTransactionalTests {
+
+	@Test
+	void outerClassLevelScriptsHaveBeenRun() {
+		assertUsers("Catbert");
+	}
+
+	/**
+	 * This nested test class demonstrates the default behavior where inherited
+	 * class-level execution phase scripts ARE executed.
+	 */
+	@Nested
+	class DefaultBehaviorNestedTests {
+
+		@Test
+		void inheritedClassLevelScriptsAreExecuted() {
+			// The outer class's BEFORE_TEST_CLASS scripts are inherited and executed
+			assertUsers("Catbert");
+		}
+	}
+
+	/**
+	 * This nested test class demonstrates the NEW behavior using
+	 * {@link MergeMode#OVERRIDE_AND_EXCLUDE_INHERITED_EXECUTION_PHASE_SCRIPTS}
+	 * where inherited class-level execution phase scripts are NOT executed.
+	 */
+	@Nested
+	@SqlMergeMode(MergeMode.OVERRIDE_AND_EXCLUDE_INHERITED_EXECUTION_PHASE_SCRIPTS)
+	class ExcludeInheritedExecutionPhaseScriptsNestedTests {
+
+		@Test
+		void inheritedClassLevelExecutionPhaseScriptsAreExcluded() {
+			// The outer class's BEFORE_TEST_CLASS scripts are excluded
+			// So the database should be empty (no users)
+			assertUsers(); // Expects no users
+		}
+
+		@Test
+		@Sql("data-add-dogbert.sql")
+		void methodLevelScriptsStillWork() {
+			// Method-level scripts should still be executed
+			assertUsers("Dogbert");
+		}
+	}
+
+	/**
+	 * This nested test class can declare its own BEFORE_TEST_CLASS scripts
+	 * without inheriting the outer class's scripts.
+	 */
+	@Nested
+	@SqlMergeMode(MergeMode.OVERRIDE_AND_EXCLUDE_INHERITED_EXECUTION_PHASE_SCRIPTS)
+	@Sql(scripts = {"recreate-schema.sql", "data-add-dogbert.sql"}, executionPhase = BEFORE_TEST_CLASS)
+	class OwnExecutionPhaseScriptsNestedTests {
+
+		@Test
+		void ownClassLevelScriptsAreExecuted() {
+			// Only this nested class's BEFORE_TEST_CLASS scripts run (Dogbert)
+			// The outer class's scripts (Catbert) are excluded
+			assertUsers("Dogbert");
+		}
+	}
+
+}