diff --git a/AndroidAnnotations/androidannotations-core/androidannotations/src/main/java/org/androidannotations/internal/process/ModelProcessor.java b/AndroidAnnotations/androidannotations-core/androidannotations/src/main/java/org/androidannotations/internal/process/ModelProcessor.java
index a6a0d0c9cd..6c32c6af14 100644
--- a/AndroidAnnotations/androidannotations-core/androidannotations/src/main/java/org/androidannotations/internal/process/ModelProcessor.java
+++ b/AndroidAnnotations/androidannotations-core/androidannotations/src/main/java/org/androidannotations/internal/process/ModelProcessor.java
@@ -1,5 +1,6 @@
 /**
  * Copyright (C) 2010-2016 eBusiness Information, Excilys Group
+ * Copyright (C) 2016-2018 the AndroidAnnotations project
  *
  * Licensed under the Apache License, Version 2.0 (the "License"); you may not
  * use this file except in compliance with the License. You may obtain a copy of
@@ -169,6 +170,7 @@ private boolean isAbstractClass(Element annotatedElement) {
 	@SuppressWarnings({ "unchecked", "rawtypes" })
 	private boolean generateElements(AnnotationElements validatedModel, ProcessHolder processHolder) throws Exception {
 		boolean isElementRemaining = false;
+		Set<? extends Element> validatedElements = validatedModel.getAllElements();
 		for (GeneratingAnnotationHandler generatingAnnotationHandler : environment.getGeneratingHandlers()) {
 			if (!generatingAnnotationHandler.isEnabled()) {
 				continue;
@@ -192,7 +194,11 @@ private boolean generateElements(AnnotationElements validatedModel, ProcessHolde
 						Element enclosingElement = annotatedElement.getEnclosingElement();
 
 						if (typeElement.getNestingKind() == NestingKind.MEMBER && processHolder.getGeneratedClassHolder(enclosingElement) == null) {
-							isElementRemaining = true;
+							if (validatedElements.contains(enclosingElement)) {
+								isElementRemaining = true;
+							} else {
+								LOGGER.error("Enclosing element {} has not been successfully validated", annotatedElement, enclosingElement);
+							}
 						} else {
 							GeneratedClassHolder generatedClassHolder = generatingAnnotationHandler.createGeneratedClassHolder(environment, typeElement);
 							processHolder.put(annotatedElement, generatedClassHolder);
diff --git a/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/InvalidFragmentWithValidBean.java b/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/InvalidFragmentWithValidBean.java
new file mode 100644
index 0000000000..cdfd074751
--- /dev/null
+++ b/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/InvalidFragmentWithValidBean.java
@@ -0,0 +1,29 @@
+/**
+ * Copyright (C) 2010-2016 eBusiness Information, Excilys Group
+ * Copyright (C) 2016-2018 the AndroidAnnotations project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License"); you may not
+ * use this file except in compliance with the License. You may obtain a copy of
+ * the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed To in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+ * WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+ * License for the specific language governing permissions and limitations under
+ * the License.
+ */
+package org.androidannotations.generation;
+
+import org.androidannotations.annotations.EBean;
+import org.androidannotations.annotations.EFragment;
+
+@EFragment
+public class InvalidFragmentWithValidBean {
+
+	@EBean
+	public static class ValidBean {
+	}
+
+}
diff --git a/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/NestedEnhancedClassGenerationTest.java b/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/NestedEnhancedClassGenerationTest.java
new file mode 100644
index 0000000000..2c367965d0
--- /dev/null
+++ b/AndroidAnnotations/androidannotations-core/androidannotations/src/test/java/org/androidannotations/generation/NestedEnhancedClassGenerationTest.java
@@ -0,0 +1,44 @@
+/**
+ * Copyright (C) 2010-2016 eBusiness Information, Excilys Group
+ * Copyright (C) 2016-2018 the AndroidAnnotations project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License"); you may not
+ * use this file except in compliance with the License. You may obtain a copy of
+ * the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed To in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+ * WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+ * License for the specific language governing permissions and limitations under
+ * the License.
+ */
+package org.androidannotations.generation;
+
+import java.io.IOException;
+
+import org.androidannotations.internal.AndroidAnnotationProcessor;
+import org.androidannotations.testutils.AAProcessorTestHelper;
+import org.junit.Before;
+import org.junit.Test;
+
+public class NestedEnhancedClassGenerationTest extends AAProcessorTestHelper {
+
+	@Before
+	public void setUp() {
+		addManifestProcessorParameter(ActivityInManifest.class);
+		addProcessor(AndroidAnnotationProcessor.class);
+		ensureOutputDirectoryIsEmpty();
+	}
+
+	@Test(timeout = 10_000)
+	public void shouldNotLoop() throws IOException {
+		CompileResult result = compileFiles(InvalidFragmentWithValidBean.class);
+
+		assertCompilationErrorCount(2, result);
+
+		assertCompilationErrorOn(InvalidFragmentWithValidBean.class, "@EFragment", result);
+		assertCompilationErrorOn(InvalidFragmentWithValidBean.class, "@EBean", result);
+	}
+}