Stir dry pudding mix, pineapple with juice, nuts and 1 cup of the marshmallows in large bowl until well blended. Gently stir in 1 tub of the whipped topping.

Add remaining tub of whipped topping into a separate medium bowl. Add 2 cups of the marshmallows; mix lightly.

Spoon half of the pudding mixture into large serving bowl; cover with layer of half of the marshmallow mixture. Repeat both layers. Top with remaining 1-1/4 cups marshmallows and the cherries. Refrigerate at least 1 hour before serving.

Store leftover dessert in refrigerator.