diff --git a/src/build123d/operations_generic.py b/src/build123d/operations_generic.py
index 19d3e0ac..16734949 100644
--- a/src/build123d/operations_generic.py
+++ b/src/build123d/operations_generic.py
@@ -616,7 +616,14 @@ def offset(
                     inner_wires.append(offset_wire)
             except:
                 pass
-        new_face = Face(outer_wire, inner_wires)
+        # inner wires may go beyond the outer wire so subtract faces
+        new_face = Face(outer_wire)
+        if inner_wires:
+            inner_faces = [Face(w) for w in inner_wires]
+            new_face = new_face.cut(*inner_faces)
+            if isinstance(new_face, Compound):
+                new_face = new_face.unwrap(fully=True)
+
         if (new_face.normal_at() - face.normal_at()).length > 0.001:
             new_face = -new_face
         new_faces.append(new_face)
diff --git a/tests/test_build_generic.py b/tests/test_build_generic.py
index 68f013f5..46a6c345 100644
--- a/tests/test_build_generic.py
+++ b/tests/test_build_generic.py
@@ -521,6 +521,13 @@ def test_face_offset(self):
             offset(amount=1, kind=Kind.INTERSECTION)
         self.assertAlmostEqual(test.sketch.area, 9, 5)
 
+    def test_face_offset_with_holes(self):
+        sk = Rectangle(100, 100) - GridLocations(80, 80, 2, 2) * Circle(5)
+        sk2 = offset(sk, -5)
+        self.assertTrue(sk2.face().is_valid())
+        self.assertLess(sk2.area, sk.area)
+        self.assertEqual(len(sk2), 1)
+
     def test_box_offset(self):
         with BuildPart() as test:
             Box(10, 10, 10)