Meghan Markle, 37, has not spoken to her dad Thomas Markle, 75, since he dropped out of attending her wedding to Prince Harry last year.
The lighting director has since given a series of explosive interviews slamming his daughter for shutting him out and accused her of having a “sense of superiority”.
In the latest interview, he released a letter his pregnant daughter sent him last August.
In the note, Meghan wrote that her father had broken her heart into “a million pieces”.
And now the Queen is said to be concerned over the “family drama”.
A source told Vanity Fair Her Maj asked Meghan and Harry to deal with the situation before Christmas.
“She told them both that the whole thing was becoming a nightmare, and that they should try and sort things out,” they said.
The publication also added that Meghan has no plans to comment on the situation, despite being “at her wit’s end”.
The source said: “She cares for her dad, and has concerns for him and his mental health, which is one of the reasons she doesn’t want to comment on this.
“It’s a very complex, very emotional situation, and let’s not forget she is seven months pregnant.”
Releasing the letter, Mr Markle said it left him feeling “devastated”.
He told the Mail on Sunday: “I thought it would be an olive branch.
“Instead, it was a dagger to the heart.”
The interview came after five of Meghan’s friends revealed the Duchess had contacted her dad in a bombshell interview with US magazine People.
The unnamed pals defended the former actress, who has been at the centre of the very public rift with her father since her royal wedding last May.
One friend said about Meghan’s father: “He knows how to get in touch with her.
“He’s never called; he’s never texted. It’s super-painful.”
Mr Markle watched his daughter’s wedding on TV as he recovered from heart surgery.
He had been wrapped up in scandal in the lead up to the big day as he was accused of faking paparazzi shots in Mexico.
Meghan was said to be close with her dad growing up.
“The Queen wants it sorted out”
According to one Instagram post that she put up on Father’s Day, 2016, the former actress called herself her father’s “bean,” believes he’s the “very best in the whole wide world,” and that it was he who gave her “a work ethic”.
The situation with her dad isn’t the only family drama the Duchess of Sussex has had to deal with during her relationship with Prince Harry.
Samantha Markle, Meghan’s half-sister, has also reportedly not spoken to the Duchess in years and continues to lambast her half-sister in TV interviews.
She recently branded the Royal Family an “embarrassment” and warned she would hold Meghan responsible if their father dies.
Meghan and Harry will tonight attend a gala performance of The Wider Earth at the Natural History Museum.