diff --git a/CHANGES/11673.bugfix.rst b/CHANGES/11673.bugfix.rst
new file mode 100644
index 00000000000..accbe850847
--- /dev/null
+++ b/CHANGES/11673.bugfix.rst
@@ -0,0 +1,2 @@
+Fixed routing to a sub-application added via ``.add_domain()`` not working
+if the same path exists on the parent app. -- by :user:`Dreamsorcerer`.
diff --git a/aiohttp/web_urldispatcher.py b/aiohttp/web_urldispatcher.py
index 124afbba929..2642ed6542e 100644
--- a/aiohttp/web_urldispatcher.py
+++ b/aiohttp/web_urldispatcher.py
@@ -977,6 +977,21 @@ async def resolve(self, request: Request) -> UrlMappingMatchInfo:
         resource_index = self._resource_index
         allowed_methods: set[str] = set()
 
+        # MatchedSubAppResource is primarily used to match on domain names
+        # (though custom rules could match on other things). This means that
+        # the traversal algorithm below can't be applied, and that we likely
+        # need to check these first so a sub app that defines the same path
+        # as a parent app will get priority if there's a domain match.
+        #
+        # For most cases we do not expect there to be many of these since
+        # currently they are only added by `.add_domain()`.
+        for resource in self._matched_sub_app_resources:
+            match_dict, allowed = await resource.resolve(request)
+            if match_dict is not None:
+                return match_dict
+            else:
+                allowed_methods |= allowed
+
         # Walk the url parts looking for candidates. We walk the url backwards
         # to ensure the most explicit match is found first. If there are multiple
         # candidates for a given url part because there are multiple resources
@@ -994,21 +1009,6 @@ async def resolve(self, request: Request) -> UrlMappingMatchInfo:
                 break
             url_part = url_part.rpartition("/")[0] or "/"
 
-        #
-        # We didn't find any candidates, so we'll try the matched sub-app
-        # resources which we have to walk in a linear fashion because they
-        # have regex/wildcard match rules and we cannot index them.
-        #
-        # For most cases we do not expect there to be many of these since
-        # currently they are only added by `add_domain`
-        #
-        for resource in self._matched_sub_app_resources:
-            match_dict, allowed = await resource.resolve(request)
-            if match_dict is not None:
-                return match_dict
-            else:
-                allowed_methods |= allowed
-
         if allowed_methods:
             return MatchInfoError(HTTPMethodNotAllowed(request.method, allowed_methods))
 
diff --git a/docs/web_reference.rst b/docs/web_reference.rst
index 25f45c38ab2..7347e5d9b06 100644
--- a/docs/web_reference.rst
+++ b/docs/web_reference.rst
@@ -1539,6 +1539,14 @@ Application and Router
       matches the pattern *domain* then
       further resolving is passed to *subapp*.
 
+      .. warning::
+
+         Registering many domains using this method may cause performance
+         issues with handler routing. If you have a substantial number of
+         applications for different domains, you may want to consider
+         using a reverse proxy (such as Nginx) to handle routing to
+         different apps, rather that registering them as sub-applications.
+
       :param str domain: domain or mask of domain for the resource.
 
       :param Application subapp: nested application.
diff --git a/tests/test_web_urldispatcher.py b/tests/test_web_urldispatcher.py
index 50b1ad2e9e2..d0541587e07 100644
--- a/tests/test_web_urldispatcher.py
+++ b/tests/test_web_urldispatcher.py
@@ -951,6 +951,28 @@ async def get(self) -> web.Response:
         assert r.status == 200
 
 
+async def test_subapp_domain_routing_same_path(aiohttp_client: AiohttpClient) -> None:
+    """Regression test for #11665."""
+    app = web.Application()
+    sub_app = web.Application()
+
+    async def mainapp_handler(request: web.Request) -> web.Response:
+        assert False
+
+    async def subapp_handler(request: web.Request) -> web.Response:
+        return web.Response(text="SUBAPP")
+
+    app.router.add_get("/", mainapp_handler)
+    sub_app.router.add_get("/", subapp_handler)
+    app.add_domain("different.example.com", sub_app)
+
+    client = await aiohttp_client(app)
+    async with client.get("/", headers={"Host": "different.example.com"}) as r:
+        assert r.status == 200
+        result = await r.text()
+        assert result == "SUBAPP"
+
+
 async def test_route_with_regex(aiohttp_client: AiohttpClient) -> None:
     """Test a route with a regex preceded by a fixed string."""
     app = web.Application()