diff --git a/metamorph/src/main/java/org/metafacture/metamorph/Metamorph.java b/metamorph/src/main/java/org/metafacture/metamorph/Metamorph.java
index 195afd71b..837d2368b 100644
--- a/metamorph/src/main/java/org/metafacture/metamorph/Metamorph.java
+++ b/metamorph/src/main/java/org/metafacture/metamorph/Metamorph.java
@@ -103,7 +103,7 @@ public final class Metamorph implements StreamPipe<StreamReceiver>, NamedValuePi
     private boolean elseNestedEntityStarted;
     private String currentLiteralName;
     private static final Logger LOG = LoggerFactory.getLogger(Metamorph.class);
-
+    final private Pattern literalPatternOfEntityMarker = Pattern.compile(flattener.getEntityMarker(), Pattern.LITERAL);
     protected Metamorph() {
         // package private
         init();
@@ -280,7 +280,6 @@ public void startEntity(final String name) {
         ++entityCount;
         currentEntityCount = entityCount;
         entityCountStack.push(Integer.valueOf(entityCount));
-
         flattener.startEntity(name);
     }
 
@@ -318,11 +317,10 @@ public void closeStream() {
 
     private void dispatch(final String path, final String value, final List<NamedValueReceiver> fallbackReceiver, final boolean endEntity) {
         final List<NamedValueReceiver> matchingData = dataRegistry.get(path);
-
         if (matchingData != null && !matchingData.isEmpty()) {
             send(path, value, matchingData);
         }
-        else if (fallbackReceiver != null) {
+        else if (fallbackReceiver != null && (literalPatternOfEntityMarker.split(path).length >0 && dataRegistry.get(literalPatternOfEntityMarker.split(path)[0]).isEmpty())) {
             if (endEntity) {
                 if (elseNestedEntityStarted) {
                     outputStreamReceiver.endEntity();
@@ -337,7 +335,6 @@ else if (fallbackReceiver != null) {
                         outputStreamReceiver.startEntity(entityName);
                         elseNestedEntityStarted = true;
                     }
-
                     send(currentLiteralName, value, fallbackReceiver);
                 }
                 else {
diff --git a/metamorph/src/test/java/org/metafacture/metamorph/TestMetamorphBasics.java b/metamorph/src/test/java/org/metafacture/metamorph/TestMetamorphBasics.java
index ea9599aa6..8263f33e6 100644
--- a/metamorph/src/test/java/org/metafacture/metamorph/TestMetamorphBasics.java
+++ b/metamorph/src/test/java/org/metafacture/metamorph/TestMetamorphBasics.java
@@ -355,6 +355,69 @@ else if (separatesFromEntity) {
         );
     }
 
+    @Test
+    public void shouldNotHandleDataByElseNestedSourceIfDataBelonginToEntityIsRuledByMorph() {
+        assertMorph(receiver,
+                "<rules>" +
+                "  <entity name='USA1'>" +
+                "    <data source='USA1.Sylt' name='Hawaii' />" +
+                "  </entity>" +
+                "  <entity name='USA2' sameEntity='true' reset='true' flushWith='USA2' flushIncomplete='true'>" +
+                "    <data source='USA2.Sylt' name='Hawaii' />" +
+                "    <data source='USA2.Langeoog' name='Langeoog' />" +
+                "  </entity>" +
+                "  <entity name='USA3' sameEntity='true' reset='true' flushWith='USA3' flushIncomplete='true'>" +
+                "    <data source='USA3.Sylt' name='Hawaii' />" +
+                "  </entity>" +
+                "  <data source='_elseNested' />" +
+                "</rules>",
+                i -> {
+                    i.startRecord("1");
+                    i.literal("Shikotan", "Aekap");
+                    i.startEntity("Germany");
+                    i.literal("Langeoog", "Moin");
+                    i.literal("Baltrum", "Moin Moin");
+                    i.endEntity();
+                    i.startEntity("USA1");
+                    i.literal("Sylt", "Aloha");
+                    i.endEntity();
+                    i.startEntity("USA2");
+                    i.literal("Sylt", "Aloha");
+                    i.literal("Langeoog", "Moin");
+                    i.literal("Baltrum", "Moin Moin");
+                    i.endEntity();
+                    i.startEntity("USA2");
+                    i.literal("Langeoog", "Moin");
+                    i.literal("Baltrum", "Moin Moin");
+                    i.endEntity();
+                    i.startEntity("USA3");
+                    i.literal("Baltrum", "Moin Moin");
+                    i.endEntity();
+                    i.endRecord();
+                },
+                (o, f) -> {
+                    o.get().startRecord("1");
+                    o.get().literal("Shikotan", "Aekap");
+                    o.get().startEntity("Germany");
+                    o.get().literal("Langeoog", "Moin");
+                    o.get().literal("Baltrum", "Moin Moin");
+                    o.get().endEntity();
+                    o.get().startEntity("USA1");
+                    o.get().literal("Hawaii", "Aloha");
+                    o.get().endEntity();
+                    o.get().startEntity("USA2");
+                    o.get().literal("Hawaii", "Aloha");
+                    o.get().literal("Langeoog", "Moin");
+                    o.get().endEntity();
+                    o.get().startEntity("USA2");
+                    o.get().literal("Langeoog", "Moin");
+                    o.get().endEntity();
+                    o.get().endRecord();
+                }
+        );
+    }
+
+
     @Test
     public void shouldMatchCharacterWithQuestionMarkWildcard() {
         assertMorph(receiver,