diff --git a/quickfixj-codegenerator/src/main/resources/org/quickfixj/codegenerator/MessageSubclass.xsl b/quickfixj-codegenerator/src/main/resources/org/quickfixj/codegenerator/MessageSubclass.xsl
index 4333c3b62c..85ded0abf2 100644
--- a/quickfixj-codegenerator/src/main/resources/org/quickfixj/codegenerator/MessageSubclass.xsl
+++ b/quickfixj-codegenerator/src/main/resources/org/quickfixj/codegenerator/MessageSubclass.xsl
@@ -197,7 +197,7 @@ import quickfix.Group;</xsl:if>
     </xsl:if>
 </xsl:template>
 
-<xsl:template mode="group-delimeter" match="group//component">
+<xsl:template mode="group-delimeter" match="component">
 	<xsl:if test="position() = 1">
 		<xsl:variable name="name" select="@name"/>
 		<xsl:apply-templates select="/fix/components/component[@name=$name]/*[name(.)='field' or name(.)='group' or name(.)='component']"
diff --git a/quickfixj-codegenerator/src/test/java/org/quickfixj/codegenerator/NestedComponentDelimiterTest.java b/quickfixj-codegenerator/src/test/java/org/quickfixj/codegenerator/NestedComponentDelimiterTest.java
new file mode 100644
index 0000000000..24ffe8f97e
--- /dev/null
+++ b/quickfixj-codegenerator/src/test/java/org/quickfixj/codegenerator/NestedComponentDelimiterTest.java
@@ -0,0 +1,107 @@
+package org.quickfixj.codegenerator;
+
+import static org.junit.Assert.*;
+
+import java.io.File;
+import java.io.FileNotFoundException;
+import java.io.IOException;
+import java.util.Scanner;
+
+import org.apache.maven.plugin.MojoExecutionException;
+import org.junit.Before;
+import org.junit.Test;
+import org.apache.commons.io.FileUtils;
+
+/**
+ * Test for nested component delimiter generation (issue #1084).
+ * Verifies that when a group's first element is a component whose first element 
+ * is another component (nested > 1), the correct delimiter field number is used.
+ */
+public class NestedComponentDelimiterTest {
+
+    private File outputDirectory = new File("./target/test-output/nested-components");
+    private File dictDirectory = new File("./src/test/resources/org/quickfixj/codegenerator");
+    private File schemaDirectory = new File("./src/main/resources/org/quickfixj/codegenerator");
+    private String fieldPackage = "quickfix.field";
+    private String utcTimestampPrecision = null;
+    private boolean orderedFields = true;
+    private boolean decimal = true;
+    private MessageCodeGenerator generator;
+
+    @Before
+    public void setup() throws IOException {
+        if (outputDirectory.exists()) {
+            FileUtils.cleanDirectory(outputDirectory);
+        } else {
+            outputDirectory.mkdirs();
+        }
+        generator = new MessageCodeGenerator();
+        System.out.println("Successfully created an instance of the QuickFIX source generator");
+    }
+
+    @Test
+    public void testNestedComponentDelimiterGeneration() throws MojoExecutionException {
+        MessageCodeGenerator.Task task = new MessageCodeGenerator.Task();
+        System.out.println("Initialising code generator task for nested components test");
+
+        String packaging = "quickfix.test";
+        File dictFile = new File(dictDirectory, "NestedComponentsTest.xml");
+        generate(generator, task, dictFile, packaging, true);
+
+        // Check that NestedTwice component was generated
+        String nestedTwiceFilePath = outputDirectory.getAbsolutePath() + 
+            "/quickfix/test/component/NestedTwice.java";
+        File nestedTwiceFile = new File(nestedTwiceFilePath);
+        assertTrue("NestedTwice.java should be generated", nestedTwiceFile.exists());
+
+        // Read the file and check for the correct delimiter
+        String content = readFileContent(nestedTwiceFile);
+        
+        // The NoEntries group should have the correct delimiter (58 = Text field number)
+        // Expected: super(20001, 58, ORDER);
+        assertTrue("Generated code should contain 'super(20001, 58, ORDER);'",
+            content.contains("super(20001, 58, ORDER);"));
+        
+        // Verify structural elements are present
+        assertTrue("Generated code should contain NoEntries class",
+            content.contains("public static class NoEntries extends Group"));
+        
+        assertTrue("Generated code should contain ORDER array",
+            content.contains("private static final int[] ORDER"));
+    }
+
+    private void generate(MessageCodeGenerator generator, MessageCodeGenerator.Task task,
+            File dictfile, String packaging, boolean overwrite) throws MojoExecutionException {
+        if (dictfile != null && dictfile.exists()) {
+            task.setSpecification(dictfile);
+        } else {
+            throw new MojoExecutionException("File could not be found or was NULL!");
+        }
+
+        System.out.println("Processing " + dictfile);
+
+        task.setName(dictfile.getName());
+        task.setTransformDirectory(schemaDirectory);
+        task.setMessagePackage(packaging);
+        task.setOutputBaseDirectory(outputDirectory);
+        task.setFieldPackage(fieldPackage);
+        task.setUtcTimestampPrecision(utcTimestampPrecision);
+        task.setOverwrite(overwrite);
+        task.setOrderedFields(orderedFields);
+        task.setDecimalGenerated(decimal);
+        generator.generate(task);
+    }
+
+    private String readFileContent(File file) {
+        StringBuilder content = new StringBuilder();
+        try (Scanner scanner = new Scanner(file)) {
+            while (scanner.hasNextLine()) {
+                content.append(scanner.nextLine()).append("\n");
+            }
+        } catch (FileNotFoundException e) {
+            e.printStackTrace();
+            fail("Failed to read file: " + file.getAbsolutePath());
+        }
+        return content.toString();
+    }
+}
diff --git a/quickfixj-codegenerator/src/test/resources/org/quickfixj/codegenerator/NestedComponentsTest.xml b/quickfixj-codegenerator/src/test/resources/org/quickfixj/codegenerator/NestedComponentsTest.xml
new file mode 100644
index 0000000000..4c991c9ad9
--- /dev/null
+++ b/quickfixj-codegenerator/src/test/resources/org/quickfixj/codegenerator/NestedComponentsTest.xml
@@ -0,0 +1,37 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<fix major="4" minor="4">
+  <header>
+    <field name="BeginString" required="Y"/>
+    <field name="BodyLength" required="Y"/>
+    <field name="MsgType" required="Y"/>
+    <field name="SenderCompID" required="Y"/>
+    <field name="TargetCompID" required="Y"/>
+    <field name="MsgSeqNum" required="Y"/>
+    <field name="SendingTime" required="Y"/>
+  </header>
+  <trailer>
+    <field name="CheckSum" required="Y"/>
+  </trailer>
+  <messages>
+    <message name="TestMessage" msgtype="TEST" msgcat="app">
+      <component name="NestedTwice" required="N"/>
+    </message>
+  </messages>
+  <components>
+    <component name="Level2">
+      <field name="Text" required="N"/>
+    </component>
+    <component name="Level1">
+      <component name="Level2" required="N"/>
+    </component>
+    <component name="NestedTwice">
+      <group name="NoEntries" required="N">
+        <component name="Level1" required="N"/>
+      </group>
+    </component>
+  </components>
+  <fields>
+    <field number="58" name="Text" type="STRING"/>
+    <field number="20001" name="NoEntries" type="NUMINGROUP"/>
+  </fields>
+</fix>