diff --git a/include/boost/sml.hpp b/include/boost/sml.hpp
index e974c0f3..7065e66e 100644
--- a/include/boost/sml.hpp
+++ b/include/boost/sml.hpp
@@ -2925,7 +2925,21 @@ constexpr void update_composite_states(TSubs &subs, aux::false_type, Ts &&...) {
                     using sm_impl_t = aux::apply_t<back::sm_impl, state_t>;
                     update_composite_states<sm_impl_t>(subs, aux::false_type{}, Ts{}...);
                   }
-                });
+                  });
+}
+constexpr void clear_defer_queue(back::no_policy &) {}
+template <class TQueue>
+constexpr void clear_defer_queue(TQueue &queue) {
+  queue.erase(queue.begin(), queue.end());
+}
+template <class T, class TSubs>
+constexpr void clear_sub_sm_defer_state(TSubs &subs) {
+  auto &sub_sm = back::sub_sm<back::sm_impl<T>>::get(&subs);
+  clear_defer_queue(sub_sm.defer_);
+  sub_sm.defer_processing_ = decltype(sub_sm.defer_processing_){};
+  sub_sm.defer_again_ = decltype(sub_sm.defer_again_){};
+  sub_sm.defer_it_ = {};
+  sub_sm.defer_end_ = {};
 }
 template <class SM, class TDeps, class TSubs, class TSrcState, class TDstState>
 constexpr void update_current_state(SM &, TDeps &deps, TSubs &, typename SM::state_t &current_state,
@@ -2935,6 +2949,15 @@ constexpr void update_current_state(SM &, TDeps &deps, TSubs &, typename SM::sta
                                                       aux::string<typename TDstState::type>{});
   current_state = new_state;
 }
+template <class SM, class TDeps, class TSubs, class T, class TDstState,
+          __BOOST_SML_REQUIRES(!detail::is_composite_state_v<typename TDstState::type>)>
+constexpr void update_current_state(SM &, TDeps &deps, TSubs &subs, typename SM::state_t &current_state,
+                          const typename SM::state_t &new_state, const state<back::sm<T>> &, const TDstState &) {
+  back::policies::log_state_change<typename SM::sm_t>(aux::type_wrapper<typename SM::logger_t>{}, deps, aux::string<T>{},
+                                                      aux::string<typename TDstState::type>{});
+  current_state = new_state;
+  clear_sub_sm_defer_state<T>(subs);
+}
 template <class SM, class TDeps, class TSubs, class TSrcState, class T>
 constexpr void update_current_state(SM &, TDeps &deps, TSubs &subs, typename SM::state_t &current_state,
                           const typename SM::state_t &new_state, const TSrcState &, const state<back::sm<T>> &) {
@@ -2944,6 +2967,17 @@ constexpr void update_current_state(SM &, TDeps &deps, TSubs &subs, typename SM:
   update_composite_states<back::sm_impl<T>>(subs, typename back::sm_impl<T>::has_history_states{},
                                             typename back::sm_impl<T>::history_states_t{});
 }
+template <class SM, class TDeps, class TSubs, class TSrc, class TDst>
+constexpr void update_current_state(SM &, TDeps &deps, TSubs &subs, typename SM::state_t &current_state,
+                          const typename SM::state_t &new_state, const state<back::sm<TSrc>> &,
+                          const state<back::sm<TDst>> &) {
+  back::policies::log_state_change<typename SM::sm_t>(aux::type_wrapper<typename SM::logger_t>{}, deps, aux::string<TSrc>{},
+                                                      aux::string<TDst>{});
+  current_state = new_state;
+  clear_sub_sm_defer_state<TSrc>(subs);
+  update_composite_states<back::sm_impl<TDst>>(subs, typename back::sm_impl<TDst>::has_history_states{},
+                                               typename back::sm_impl<TDst>::history_states_t{});
+}
 template <class S1, class S2, class E, class G, class A>
 struct transition<state<S1>, state<S2>, front::event<E>, G, A> {
   static constexpr auto initial = state<S2>::initial;
diff --git a/test/ft/CMakeLists.txt b/test/ft/CMakeLists.txt
index 267a0c89..6c1750b9 100644
--- a/test/ft/CMakeLists.txt
+++ b/test/ft/CMakeLists.txt
@@ -48,6 +48,9 @@ add_test(test_fwd test_fwd)
 add_executable(test_history history.cpp)
 add_test(test_history test_history)
 
+add_executable(test_issue_253 issue_253.cpp)
+add_test(test_issue_253 test_issue_253)
+
 add_executable(test_guards guards.cpp)
 add_test(test_guards test_guards)
 
diff --git a/test/ft/issue_253.cpp b/test/ft/issue_253.cpp
new file mode 100644
index 00000000..28d5fe6a
--- /dev/null
+++ b/test/ft/issue_253.cpp
@@ -0,0 +1,80 @@
+//
+// Copyright (c) 2016-2020 Kris Jusiak (kris at jusiak dot net)
+//
+// Distributed under the Boost Software License, Version 1.0.
+// (See accompanying file LICENSE_1_0.txt or copy at
+// http://www.boost.org/LICENSE_1_0.txt)
+//
+#include <boost/sml.hpp>
+#include <deque>
+#include <queue>
+
+namespace sml = boost::sml;
+
+test issue_253_nested_defer_queue_is_cleared_on_exit = [] {
+  struct issue_253_enter {};
+  struct issue_253_exit {};
+  struct issue_253_to_s2 {};
+  struct issue_253_to_s1 {};
+  struct issue_253_e1 {};
+  struct issue_253_outer_idle {};
+
+  struct issue_253_counters {
+    int nested_calls = 0;
+    int outer_calls = 0;
+  };
+
+  struct issue_253_nested {
+    auto operator()() const {
+      using namespace sml;
+      const auto issue_253_s1 = sml::state<class issue_253_s1>;
+      const auto issue_253_s2 = sml::state<class issue_253_s2>;
+      // clang-format off
+      return make_transition_table(
+          *issue_253_s1 + event<issue_253_to_s2> = issue_253_s2
+        , issue_253_s2 + event<issue_253_e1> / defer
+        , issue_253_s2 + event<issue_253_to_s1> = issue_253_s1
+        , issue_253_s1 + event<issue_253_e1> / [](issue_253_counters& counters) { ++counters.nested_calls; }
+      );
+      // clang-format on
+    }
+  };
+
+  struct issue_253_outer {
+    auto operator()() const {
+      using namespace sml;
+      const auto issue_253_idle = sml::state<issue_253_outer_idle>;
+      const auto issue_253_nested_state = sml::state<issue_253_nested>;
+      // clang-format off
+      return make_transition_table(
+          *issue_253_idle + event<issue_253_enter> = issue_253_nested_state
+        , issue_253_nested_state + event<issue_253_exit> = issue_253_idle
+        , issue_253_idle + event<issue_253_e1> / [](issue_253_counters& counters) { ++counters.outer_calls; }
+      );
+      // clang-format on
+    }
+  };
+
+  issue_253_counters counters{};
+  sml::sm<issue_253_outer, sml::defer_queue<std::deque>, sml::process_queue<std::queue>> sm{counters};
+
+  expect(sm.process_event(issue_253_enter{}));
+  expect(sm.process_event(issue_253_to_s2{}));
+  expect(sm.process_event(issue_253_e1{}));
+  expect(sm.process_event(issue_253_to_s1{}));
+  expect(sm.process_event(issue_253_exit{}));
+  expect(1 == counters.nested_calls);
+  expect(0 == counters.outer_calls);
+
+  expect(sm.process_event(issue_253_e1{}));
+  expect(1 == counters.outer_calls);
+
+  expect(sm.process_event(issue_253_enter{}));
+  expect(sm.process_event(issue_253_to_s2{}));
+  expect(sm.process_event(issue_253_to_s1{}));
+  expect(sm.process_event(issue_253_exit{}));
+  expect(1 == counters.nested_calls);
+
+  expect(sm.process_event(issue_253_e1{}));
+  expect(2 == counters.outer_calls);
+};