diff --git a/doc/modules/ROOT/pages/version-history.adoc b/doc/modules/ROOT/pages/version-history.adoc
index e32339ef..77451176 100644
--- a/doc/modules/ROOT/pages/version-history.adoc
+++ b/doc/modules/ROOT/pages/version-history.adoc
@@ -15,6 +15,7 @@
 * Bug fixes (`backmp11`):
 ** Incorrect `FSM` type in calls to `on_entry(...)` and `on_exit(...)` (https://github.com/boostorg/msm/issues/167[#167])
 ** Completion events fire too often (https://github.com/boostorg/msm/issues/166[#166])
+** Transitions in hierarchical state machines are not selected correctly (favor_compile_time) (https://github.com/boostorg/msm/issues/200[#200])
 * **Breaking change (`backmp11`)**: Direct access to the event pool is changed from `public` to `protected`,
 because manipulating it outside of the library code can lead to undefined behavior.
 
diff --git a/include/boost/msm/backmp11/detail/basic_polymorphic.hpp b/include/boost/msm/backmp11/detail/basic_polymorphic.hpp
index 7bf156d1..ceee66f6 100644
--- a/include/boost/msm/backmp11/detail/basic_polymorphic.hpp
+++ b/include/boost/msm/backmp11/detail/basic_polymorphic.hpp
@@ -277,13 +277,13 @@ class basic_polymorphic
     {
         return basic_polymorphic{std::in_place_type<U>,
                                  std::forward<Args>(args)...};
-    };
+    }
 
     template <typename U>
     static basic_polymorphic make(const U& obj)
     {
         return basic_polymorphic{obj};
-    };
+    }
 
     T* get() const noexcept
     {
diff --git a/include/boost/msm/backmp11/favor_compile_time.hpp b/include/boost/msm/backmp11/favor_compile_time.hpp
index 82b6d6ef..9d9d8035 100644
--- a/include/boost/msm/backmp11/favor_compile_time.hpp
+++ b/include/boost/msm/backmp11/favor_compile_time.hpp
@@ -207,10 +207,9 @@ struct compile_policy_impl<favor_compile_time>
     {
       public:
         template<typename StateMachine>
-        process_result execute(StateMachine& sm, int region_id, any_event const& event) const
+        process_result execute(StateMachine& sm, int region_id, any_event const& event, process_result result) const
         {
             using cell_t = process_result (*)(StateMachine&, int, any_event const&);
-            process_result result = process_result::HANDLED_FALSE;
             for (const generic_cell cell : m_transition_cells)
             {
                 result |= reinterpret_cast<cell_t>(cell)(sm, region_id, event);
@@ -370,7 +369,7 @@ struct compile_policy_impl<favor_compile_time>
                 if (m_call_process_event)
                 {
                     result = m_call_process_event(sm, event);
-                    if (result)
+                    if (result & handled_true_or_deferred)
                     {
                         return result;
                     }
@@ -378,7 +377,7 @@ struct compile_policy_impl<favor_compile_time>
                 auto it = m_transition_chains.find(event.type());
                 if (it != m_transition_chains.end())
                 {
-                    result = (it->second.execute)(sm, region_id, event);
+                    result = (it->second.execute)(sm, region_id, event, result);
                 }
                 return result;
             }
diff --git a/test/Backmp11Context.cpp b/test/Backmp11Context.cpp
index 374feca0..2cc1373b 100644
--- a/test/Backmp11Context.cpp
+++ b/test/Backmp11Context.cpp
@@ -59,13 +59,13 @@ struct MachineBase_ : public state_machine_def<MachineBase_<T>>
     {
         Context& context = get_context(fsm);
         context.machine_entries++;
-    };
+    }
 
     template <typename Event, typename Fsm>
     void on_exit(const Event& /*event*/, Fsm& fsm)
     {
         get_context(fsm).machine_exits++;
-    };
+    }
 
     using initial_state = Default;
 };
diff --git a/test/Backmp11Deferred.cpp b/test/Backmp11Deferred.cpp
index a47b9f6a..00bf38d9 100644
--- a/test/Backmp11Deferred.cpp
+++ b/test/Backmp11Deferred.cpp
@@ -26,6 +26,9 @@ using namespace boost::msm::backmp11;
 
 namespace mp11 = boost::mp11;
 
+namespace
+{
+
 // Events
 struct Event1
 {
@@ -438,3 +441,5 @@ BOOST_AUTO_TEST_CASE_TEMPLATE(action_deferred, Fsm, Fsms)
 }
 
 } // namespace action_deferred
+
+} // namespace
diff --git a/test/Backmp11ManyDeferTransitions.cpp b/test/Backmp11ManyDeferTransitions.cpp
index b86cc5cc..b000e04b 100644
--- a/test/Backmp11ManyDeferTransitions.cpp
+++ b/test/Backmp11ManyDeferTransitions.cpp
@@ -22,6 +22,9 @@ using namespace boost::msm::front;
 using namespace boost::msm::backmp11;
 namespace mp11 = boost::mp11;
 
+namespace
+{
+
 // Events
 struct Event1 {};
 struct Event2 {};
@@ -235,3 +238,5 @@ BOOST_AUTO_TEST_CASE_TEMPLATE(action_defer_transitions, TestMachine, TestMachine
 }
 
 } // namespace action_defer_transitions
+
+} // namespace
diff --git a/test/Backmp11RootSm.cpp b/test/Backmp11RootSm.cpp
index 33cfd93d..3fb19527 100644
--- a/test/Backmp11RootSm.cpp
+++ b/test/Backmp11RootSm.cpp
@@ -96,7 +96,7 @@ struct hierarchical_machine
                 static_assert(std::is_same_v<Fsm,RootSm>);
             }
             fsm.get_root_sm().machine_entries++;
-        };
+        }
 
         template <typename Event, typename Fsm>
         void on_exit(const Event& /*event*/, Fsm& fsm)
@@ -106,7 +106,7 @@ struct hierarchical_machine
                 static_assert(std::is_same_v<Fsm,RootSm>);
             }
             fsm.get_root_sm().machine_exits++;
-        };
+        }
 
         using initial_state = Default;
     };
@@ -128,7 +128,7 @@ struct hierarchical_machine
                 // static_assert(std::is_same_v<Fsm,MiddleMachine>);
             }
             fsm.get_root_sm().machine_entries++;
-        };
+        }
 
         template <typename Event, typename Fsm>
         void on_exit(const Event& /*event*/, Fsm& fsm)
@@ -142,7 +142,7 @@ struct hierarchical_machine
                 // static_assert(std::is_same_v<Fsm,MiddleMachine>);
             }
             fsm.get_root_sm().machine_exits++;
-        };
+        }
     };
     using LowerMachine = state_machine<LowerMachine_, SmConfig>;
 
diff --git a/test/Backmp11Transitions.cpp b/test/Backmp11Transitions.cpp
index bae1a416..021c8902 100644
--- a/test/Backmp11Transitions.cpp
+++ b/test/Backmp11Transitions.cpp
@@ -9,20 +9,19 @@
 // file LICENSE_1_0.txt or copy at
 // http://www.boost.org/LICENSE_1_0.txt)
 
+#ifndef BOOST_MSM_NONSTANDALONE_TEST
+#define BOOST_TEST_MODULE backmp11_transitions_test
+#endif
+#include <boost/test/unit_test.hpp>
+
 // back-end
 #include <boost/msm/backmp11/state_machine.hpp>
 #include <boost/msm/backmp11/favor_compile_time.hpp>
 //front-end
-#include <boost/msm/front/state_machine_def.hpp>
-#include <boost/msm/front/functor_row.hpp>
+#include "FrontCommon.hpp"
 
 #include "Utils.hpp"
 
-#ifndef BOOST_MSM_NONSTANDALONE_TEST
-#define BOOST_TEST_MODULE backmp11_members_test
-#endif
-#include <boost/test/unit_test.hpp>
-
 namespace msm = boost::msm;
 namespace mp11 = boost::mp11;
 
@@ -32,15 +31,14 @@ using namespace msm::backmp11;
 namespace
 {
 
-template <typename T>
-struct Counter
-{
-    size_t count{};
-};
-
 // Events.
+struct EnterSubmachine{};
 struct TriggerTransition{};
 struct TriggerInternalTransition{};
+struct TriggerInternalTransitionWithGuard
+{
+    bool guard_value{};
+};
 struct TriggerSmInternalTransition{};
 struct TriggerAnyTransition{};
 
@@ -48,109 +46,161 @@ struct TriggerAnyTransition{};
 struct MyAction
 {
     template<typename Event, typename Fsm, typename Source, typename Target>
-    void operator()(const Event&, Fsm& fsm, Source&, Target&)
+    void operator()(const Event&, Fsm&, Source& source, Target&)
+    {
+        source.action_counter++;
+    }
+};
+
+// Guards
+struct MyGuard
+{
+    template<typename Fsm>
+    bool operator()(const TriggerInternalTransitionWithGuard& event, Fsm&) const
+    {
+        return event.guard_value;
+    }
+};
+
+struct NotMyGuard
+{
+    template<typename Fsm>
+    bool operator()(const TriggerInternalTransitionWithGuard& event, Fsm&) const
     {
-        std::get<Counter<Source>>(fsm.action_calls).count++;
+        return !event.guard_value;
     }
 };
 
 // States.
-struct MyState : public state<>{};
-struct MyOtherState : public state<>{};
+struct MyState : public test::StateBase{};
+struct MyOtherState : public test::StateBase{};
 class StateMachine;
 struct StateMachine_;
 
-using Counters = std::tuple<
-    Counter<MyState>,
-    Counter<MyOtherState>,
-    Counter<StateMachine_>,
-    Counter<StateMachine>>;
-
-struct SmConfig : state_machine_config
+struct default_config : state_machine_config
 {
-    using root_sm = StateMachine;
-    // using compile_policy = favor_compile_time;
+    // using root_sm = StateMachine;
     template <typename T>
     using event_container = no_event_container<T>;
 };
-
-struct StateMachine_ : public state_machine_def<StateMachine_>
+struct favor_compile_time_config : default_config
 {
-    using activate_deferred_events = int;
+    using compile_policy = favor_compile_time;
+};
 
-    template <typename Event, typename Fsm>
-    void on_entry(const Event& /*event*/, Fsm& fsm)
-    {
-        fsm.entry_calls++;
-    };
+template <typename Config = default_config>
+struct hierarchical_state_machine
+{
 
-    template <typename Event, typename Fsm>
-    void on_exit(const Event& /*event*/, Fsm& fsm)
-    {
-        fsm.exit_calls++;
-    };
+struct Submachine_ : public test::StateMachineBase_<Submachine_>
+{
+    using initial_state = MyState;
+    using transition_table = mp11::mp_list<
+        Row<MyState, TriggerInternalTransitionWithGuard, none, MyAction, MyGuard>
+    >;
+};
+using Submachine = state_machine<Submachine_, Config>;
 
+struct StateMachine_ : public test::StateMachineBase_<StateMachine_>
+{
     using initial_state = MyState;
     using transition_table = mp11::mp_list<
-        Row<MyState     , TriggerInternalTransition  , none        , MyAction, none>,
-        Row<MyState     , TriggerSmInternalTransition, none        , MyAction, none>,
-        Row<MyState     , TriggerTransition          , MyOtherState, MyAction, none>
+        Row<MyState   , TriggerInternalTransition         , none        , MyAction, none>,
+        Row<MyState   , TriggerInternalTransitionWithGuard, none        , MyAction, NotMyGuard>,
+        Row<MyState   , TriggerSmInternalTransition       , none        , MyAction, none>,
+        Row<MyState   , TriggerTransition                 , MyOtherState, MyAction, none>,
+        Row<MyState   , EnterSubmachine                   , Submachine  , none    , none>,
+        Row<Submachine, TriggerInternalTransitionWithGuard, Submachine  , MyAction, NotMyGuard>
     >;
     using internal_transition_table = mp11::mp_list<
         Internal<std::any                   , MyAction, none>,
         Internal<TriggerSmInternalTransition, MyAction, none>
     >;
 };
+
 // Leave this class without inheriting constructors to check
 // that this only needs to be done in case we use a context
 // (for convenience).
-class StateMachine : public state_machine<StateMachine_, SmConfig, StateMachine>
+class StateMachine : public state_machine<StateMachine_, Config, StateMachine>
 {
-  public:
-    size_t entry_calls{};
-    size_t exit_calls{};
-    Counters action_calls{};
 };
 
-BOOST_AUTO_TEST_CASE( backmp11_members_test )
+};
+
+using TestMachines = boost::mpl::vector<
+    hierarchical_state_machine<>,
+    hierarchical_state_machine<favor_compile_time_config>
+    >;
+
+
+BOOST_AUTO_TEST_CASE_TEMPLATE(start_stop, StateMachine, TestMachines)
 {
-    StateMachine test_machine;
+    using TestMachine = typename StateMachine::StateMachine;
+    TestMachine test_machine;
 
     test_machine.start();
-    BOOST_REQUIRE(test_machine.entry_calls == 1);
+    BOOST_REQUIRE(test_machine.entry_counter == 1);
 
-    if constexpr (std::is_same_v<
-                      typename StateMachine::config_t::compile_policy,
-                      favor_runtime_speed>)
+    test_machine.stop();
+    BOOST_REQUIRE(test_machine.exit_counter == 1);
+}
+
+BOOST_AUTO_TEST_CASE_TEMPLATE(transitions, StateMachine, TestMachines)
+{
+    using TestMachine = typename StateMachine::StateMachine;
+    using compile_policy = typename TestMachine::config_t::compile_policy;
+    TestMachine test_machine;
+
+    test_machine.start();
+
+    if constexpr (std::is_same_v<compile_policy, favor_runtime_speed>)
     {
         test_machine.process_event(TriggerAnyTransition{});
-        ASSERT_ONE_AND_RESET(std::get<Counter<StateMachine>>(test_machine.action_calls).count);
+        ASSERT_ONE_AND_RESET(test_machine.action_counter);
     }
 
     test_machine.process_event(TriggerInternalTransition{});
-    ASSERT_ONE_AND_RESET(std::get<Counter<MyState>>(test_machine.action_calls).count);
+    ASSERT_ONE_AND_RESET(test_machine.template get_state<MyState>().action_counter);
 
     // Ensure MyState consumes the event instead of StateMachine.
     test_machine.process_event(TriggerSmInternalTransition{});
-    ASSERT_ONE_AND_RESET(std::get<Counter<MyState>>(test_machine.action_calls).count);
+    ASSERT_ONE_AND_RESET(test_machine.template get_state<MyState>().action_counter);
+
 
     test_machine.process_event(TriggerTransition{});
-    ASSERT_ONE_AND_RESET(std::get<Counter<MyState>>(test_machine.action_calls).count);
-    BOOST_REQUIRE(test_machine.is_state_active<MyOtherState>());
+    ASSERT_ONE_AND_RESET(test_machine.template get_state<MyState>().action_counter);
+    BOOST_REQUIRE(test_machine.template is_state_active<MyOtherState>());
 
-    if constexpr (std::is_same_v<
-                      typename StateMachine::config_t::compile_policy,
-                      favor_runtime_speed>)
+    if constexpr (std::is_same_v<compile_policy, favor_runtime_speed>)
     {
         test_machine.process_event(TriggerAnyTransition{});
-        ASSERT_ONE_AND_RESET(std::get<Counter<StateMachine>>(test_machine.action_calls).count);
+        ASSERT_ONE_AND_RESET(test_machine.action_counter);
     }
 
     test_machine.process_event(TriggerSmInternalTransition{});
-    ASSERT_ONE_AND_RESET(std::get<Counter<StateMachine>>(test_machine.action_calls).count);
+    ASSERT_ONE_AND_RESET(test_machine.action_counter);
+
+    test_machine.stop();
+}
+
+BOOST_AUTO_TEST_CASE_TEMPLATE(submachine_transitions, StateMachine, TestMachines)
+{
+    using TestMachine = typename StateMachine::StateMachine;
+    TestMachine test_machine;
+    auto& submachine = test_machine.template get_state<typename StateMachine::Submachine>();
+
+    test_machine.start();
+
+    test_machine.process_event(EnterSubmachine{});
+    ASSERT_ONE_AND_RESET(submachine.entry_counter);
+
+    test_machine.process_event(TriggerInternalTransitionWithGuard{false});
+    ASSERT_ONE_AND_RESET(submachine.action_counter);
+
+    test_machine.process_event(TriggerInternalTransitionWithGuard{true});
+    ASSERT_ONE_AND_RESET(submachine.template get_state<MyState>().action_counter);    
 
     test_machine.stop();
-    BOOST_REQUIRE(test_machine.exit_calls == 1);
 }
 
 } // namespace
diff --git a/test/CMakeLists.txt b/test/CMakeLists.txt
index 2f385d60..426664a7 100644
--- a/test/CMakeLists.txt
+++ b/test/CMakeLists.txt
@@ -12,7 +12,7 @@ if(BOOST_MSM_TEST_ONLY_BACKMP11)
     add_compile_definitions("BOOST_MSM_TEST_ONLY_BACKMP11")
 endif()
 if(BOOST_MSM_TEST_STRICT)
-    add_compile_options(-Wall -Wextra -Werror -Wno-language-extension-token)
+    add_compile_options(-Wall -Wpedantic -Wextra -Werror -Wno-language-extension-token)
 endif()
 if(BOOST_MSM_TEST_ENABLE_SANITIZERS)
     add_compile_options(-fsanitize=address -fno-omit-frame-pointer)
diff --git a/test/FrontCommon.hpp b/test/FrontCommon.hpp
index 87d25a1f..82d44fba 100644
--- a/test/FrontCommon.hpp
+++ b/test/FrontCommon.hpp
@@ -36,6 +36,7 @@ struct StateBase : state<>
 
     size_t entry_counter{};
     size_t exit_counter{};
+    size_t action_counter{};
 };
 
 // Base for a state machine used in the tests.
@@ -62,6 +63,7 @@ struct StateMachineBase_ : state_machine_def<T>
 
     size_t entry_counter{};
     size_t exit_counter{};
+    size_t action_counter{};
 };