diff --git a/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/XmlReadContext.java b/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/XmlReadContext.java
index bfef7d4db..8c57cfe4f 100644
--- a/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/XmlReadContext.java
+++ b/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/XmlReadContext.java
@@ -66,6 +66,7 @@ public XmlReadContext(XmlReadContext parent, int type, int lineNr, int colNr)
         _lineNr = lineNr;
         _columnNr = colNr;
         _index = -1;
+        _nestingDepth = parent == null ? 0 : parent._nestingDepth + 1;
     }
 
     protected final void reset(int type, int lineNr, int colNr)
diff --git a/src/test/java/com/fasterxml/jackson/dataformat/xml/stream/XmlParserTest.java b/src/test/java/com/fasterxml/jackson/dataformat/xml/stream/XmlParserTest.java
index c19d58868..12a8fcb1e 100644
--- a/src/test/java/com/fasterxml/jackson/dataformat/xml/stream/XmlParserTest.java
+++ b/src/test/java/com/fasterxml/jackson/dataformat/xml/stream/XmlParserTest.java
@@ -30,13 +30,19 @@ public void testSimplest() throws Exception
         // -> "{\"leaf\":\"abc\"}"
 
         try (JsonParser p = _xmlMapper.createParser(XML)) {
+            assertEquals(0, p.getParsingContext().getNestingDepth());
             assertToken(JsonToken.START_OBJECT, p.nextToken());
+            assertEquals(1, p.getParsingContext().getNestingDepth());
             assertToken(JsonToken.FIELD_NAME, p.nextToken());
             assertEquals("leaf", p.currentName());
+            assertEquals(1, p.getParsingContext().getNestingDepth());
             assertToken(JsonToken.VALUE_STRING, p.nextToken());
             assertEquals("abc", p.getText());
+            assertEquals(1, p.getParsingContext().getNestingDepth());
             assertToken(JsonToken.END_OBJECT, p.nextToken());
+            assertEquals(0, p.getParsingContext().getNestingDepth());
             assertNull(p.nextToken());
+            assertEquals(0, p.getParsingContext().getNestingDepth());
         }
     }