One of the performance bottlenecks of nested recursive computations is the intermediate collections created at different levels of recursion. The existing techniques such as vertical and horizontal loop fusion do not remove such intermediate allocations. This paper proposes deep fusion, a technique for the efficient compilation of nested recursive computation over collections. The input to our compilation framework is a high-level functional program that can represent computations on flat and nested collections such as lists, sets, bags, and maps. The intermediate collections are removed in three levels. First, the immutable collections are translated into mutable ones by leveraging in-place updates using the destination-passing style technique. Second, deep fusion enables the inner level of recursion to reuse the destinations of the outer levels for in-place updates. Third, deep fusion removes the need to allocate tiny intermediate collections at different depths of recursion. Our experiments show that deep fusion can improve the performance of nested recursion over nested lists and maps.