diff --git a/lib/factory_girl/syntax/default.rb b/lib/factory_girl/syntax/default.rb
index a89904abb..36372914c 100644
--- a/lib/factory_girl/syntax/default.rb
+++ b/lib/factory_girl/syntax/default.rb
@@ -24,7 +24,8 @@ def factory(name, options = {}, &block)
           FactoryGirl.register_factory(factory)
 
           proxy.child_factories.each do |(child_name, child_options, child_block)|
-            factory(child_name, child_options.merge(:parent => name), &child_block)
+            parent_factory = child_options.delete(:parent) || name
+            factory(child_name, child_options.merge(:parent => parent_factory), &child_block)
           end
         end
 
diff --git a/spec/acceptance/parent_spec.rb b/spec/acceptance/parent_spec.rb
index 753405cf2..36ee45f6d 100644
--- a/spec/acceptance/parent_spec.rb
+++ b/spec/acceptance/parent_spec.rb
@@ -65,3 +65,26 @@
   end
 end
 
+describe "nested factories with different parents" do
+  before do
+    define_model("User", :name => :string)
+
+    FactoryGirl.define do
+      factory :user do
+        name  "Basic User"
+
+        factory :male_user do
+          name "John Doe"
+        end
+
+        factory :uppercase_male_user, :parent => :male_user do
+          after_build {|user| user.name = user.name.upcase }
+        end
+      end
+    end
+  end
+
+  it "honors :parent over the factory block nesting" do
+    FactoryGirl.build(:uppercase_male_user).name.should == "JOHN DOE"
+  end
+end