diff --git a/xarray/core/duck_array_ops.py b/xarray/core/duck_array_ops.py
index 8993c136ba6..f23125ee113 100644
--- a/xarray/core/duck_array_ops.py
+++ b/xarray/core/duck_array_ops.py
@@ -51,6 +51,13 @@
         normalize_axis_index,
     )
 
+try:
+    from nested_duck_arrays import first_layer
+except ImportError:
+
+    def first_layer(x):
+        return type(x)
+
 
 dask_available = module_available("dask")
 
@@ -266,9 +273,9 @@ def as_shared_dtype(scalars_or_arrays, xp=None):
             f" array types {[x.dtype for x in scalars_or_arrays]}"
         )
 
-    # Avoid calling array_type("cupy") repeatidely in the any check
+    # Avoid calling array_type("cupy") repeatedly in the any check
     array_type_cupy = array_type("cupy")
-    if any(isinstance(x, array_type_cupy) for x in scalars_or_arrays):
+    if any(issubclass(first_layer(x), array_type_cupy) for x in scalars_or_arrays):
         import cupy as cp
 
         xp = cp
diff --git a/xarray/tests/__init__.py b/xarray/tests/__init__.py
index 0caab6e8247..1f3ab79feed 100644
--- a/xarray/tests/__init__.py
+++ b/xarray/tests/__init__.py
@@ -113,6 +113,9 @@ def _importorskip(
         category=DeprecationWarning,
     )
     has_dask_expr, requires_dask_expr = _importorskip("dask_expr")
+has_nested_duck_arrays, requires_nested_duck_arrays = _importorskip(
+    "nested_duck_arrays"
+)
 has_bottleneck, requires_bottleneck = _importorskip("bottleneck")
 has_rasterio, requires_rasterio = _importorskip("rasterio")
 has_zarr, requires_zarr = _importorskip("zarr")
diff --git a/xarray/tests/test_cupy.py b/xarray/tests/test_cupy.py
index 94776902c11..3f9d1cfd98e 100644
--- a/xarray/tests/test_cupy.py
+++ b/xarray/tests/test_cupy.py
@@ -5,6 +5,7 @@
 import pytest
 
 import xarray as xr
+from xarray.tests import requires_dask, requires_nested_duck_arrays
 
 cp = pytest.importorskip("cupy")
 
@@ -60,3 +61,22 @@ def test_where() -> None:
     output = where(data < 1, 1, data).all()
     assert output
     assert isinstance(output, cp.ndarray)
+
+
+@requires_nested_duck_arrays
+@requires_dask
+def test_where_dask() -> None:
+    import dask.array as da
+    import nested_duck_arrays.dask  # noqa: F401
+
+    from xarray.core.duck_array_ops import where
+
+    data = cp.zeros(10)
+    chunked = da.from_array(data, chunks=(2,))
+
+    chunked_output = where(chunked < 1, 1, chunked).all()
+    assert isinstance(chunked_output, da.Array)
+
+    output = chunked_output.compute()
+    assert output
+    assert isinstance(output, cp.ndarray)