diff --git a/activerecord/lib/active_record/model_schema.rb b/activerecord/lib/active_record/model_schema.rb
index 08f3451254..adf85c6436 100644
--- a/activerecord/lib/active_record/model_schema.rb
+++ b/activerecord/lib/active_record/model_schema.rb
@@ -291,7 +291,7 @@ module ActiveRecord
         base = base_class
         if self == base
           # Nested classes are prefixed with singular parent table name.
-          if parent < ActiveRecord::Base && !parent.abstract_class?
+          if parent < ActiveRecord::Model && !parent.abstract_class?
             contained = parent.table_name
             contained = contained.singularize if parent.pluralize_table_names
             contained += '_'
diff --git a/activerecord/test/cases/inclusion_test.rb b/activerecord/test/cases/inclusion_test.rb
index 189e537bd6..4b3320cf04 100644
--- a/activerecord/test/cases/inclusion_test.rb
+++ b/activerecord/test/cases/inclusion_test.rb
@@ -29,6 +29,10 @@ class BasicInclusionModelTest < ActiveRecord::TestCase
     assert_equal "Bob", Teapot.where(:id => [t]).first.name
     assert_equal "Bob", Teapot.where(:id => t).first.name
   end
+
+  def test_nested_model
+    assert_equal "ceiling_teapots", Ceiling::Teapot.table_name
+  end
 end
 
 class InclusionUnitTest < ActiveRecord::TestCase
diff --git a/activerecord/test/models/teapot.rb b/activerecord/test/models/teapot.rb
index 00e066a1b3..ff18b6a96d 100644
--- a/activerecord/test/models/teapot.rb
+++ b/activerecord/test/models/teapot.rb
@@ -22,3 +22,11 @@ class CoolTeapot < OMFGIMATEAPOT
   include ActiveRecord::Model
   self.table_name = "teapots"
 end
+
+class Ceiling
+  include ActiveRecord::Model
+
+  class Teapot
+    include ActiveRecord::Model
+  end
+end