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Yes, it's possible to create a functional component inside the body of another functional component. This is called a nested functional component.

Here's an example of a nested functional component:

function ParentComponent() {
  const ChildComponent = () => {
    return (
      <div>
        <h2>This is the child component</h2>
      </div>
    )
  }

  return (
    <div>
      <h1>This is the parent component</h1>
      <ChildComponent />
    </div>
  )
}

In this example, the ParentComponent has a nested functional component called ChildComponent. It's defined as a function expression inside the ParentComponent. The ChildComponent is then rendered inside the ParentComponent JSX code as <ChildComponent />.

Note that you can also define the nested component outside of the parent component and import it in. Whatever makes it easier to manage and maintain your components!