diff --git a/processor/src/main/java/org/mapstruct/ap/model/NestedPropertyMappingMethod.java b/processor/src/main/java/org/mapstruct/ap/model/NestedPropertyMappingMethod.java
index 29f1a5b7b..f627e978d 100644
--- a/processor/src/main/java/org/mapstruct/ap/model/NestedPropertyMappingMethod.java
+++ b/processor/src/main/java/org/mapstruct/ap/model/NestedPropertyMappingMethod.java
@@ -59,9 +59,14 @@ public class NestedPropertyMappingMethod extends MappingMethod {
 
         public NestedPropertyMappingMethod build() {
             List<String> existingVariableNames = new ArrayList<String>();
+            for ( Parameter parameter : method.getSourceParameters() ) {
+                existingVariableNames.add( parameter.getName() );
+            }
             List<SafePropertyEntry> safePropertyEntries = new ArrayList<SafePropertyEntry>();
             for ( PropertyEntry propertyEntry : propertyEntries ) {
-                safePropertyEntries.add( new SafePropertyEntry( propertyEntry, existingVariableNames ) );
+                String safeName = Strings.getSaveVariableName( propertyEntry.getName(), existingVariableNames);
+                safePropertyEntries.add( new SafePropertyEntry( propertyEntry, safeName ) );
+                existingVariableNames.add( safeName );
             }
             return new NestedPropertyMappingMethod( method, safePropertyEntries, existingVariableNames );
         }
@@ -144,16 +149,16 @@ public class NestedPropertyMappingMethod extends MappingMethod {
 
     public static class SafePropertyEntry extends PropertyEntry {
 
-        private final List<String> existingVariableNames;
+        private final String safeName;
 
-        public SafePropertyEntry( PropertyEntry entry, List<String> existingVariableNames ) {
+        public SafePropertyEntry( PropertyEntry entry, String safeName ) {
             super( entry.getName(), entry.getAccessor(), entry.getType() );
-            this.existingVariableNames = existingVariableNames;
+            this.safeName = safeName;
         }
 
         @Override
         public String getName() {
-            return Strings.getSaveVariableName( super.getName(), existingVariableNames );
+            return safeName;
         }
     }
 
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Branch.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Branch.java
new file mode 100644
index 000000000..2c30b7b0c
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Branch.java
@@ -0,0 +1,37 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+/**
+ *
+ * @author Sjaak Derksen
+ */
+public class Branch {
+
+    private BranchLocation branchLocation;
+
+    public BranchLocation getBranchLocation() {
+        return branchLocation;
+    }
+
+    public void setBranchLocation(BranchLocation branchLocation) {
+        this.branchLocation = branchLocation;
+    }
+
+}
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/BranchLocation.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/BranchLocation.java
new file mode 100644
index 000000000..b9e9bbcfd
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/BranchLocation.java
@@ -0,0 +1,37 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+/**
+ *
+ * @author Sjaak Derksen
+ */
+public class BranchLocation {
+
+    private Country country;
+
+    public Country getCountry() {
+        return country;
+    }
+
+    public void setCountry(Country country) {
+        this.country = country;
+    }
+
+}
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Country.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Country.java
new file mode 100644
index 000000000..9c86932cb
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Country.java
@@ -0,0 +1,27 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+/**
+ *
+ * @author Sjaak Derksen
+ */
+public class Country {
+
+}
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Mapper.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Mapper.java
new file mode 100644
index 000000000..abcfea1fc
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Mapper.java
@@ -0,0 +1,34 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+import org.mapstruct.Mapper;
+import org.mapstruct.Mapping;
+
+/**
+ *
+ * @author Sjaak Derksen
+ */
+@Mapper
+public interface Issue373Mapper {
+
+    @Mapping(target = "countryReference", source = "branchLocation.country")
+    ResultDto toResultDto(Branch entity);
+
+}
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Test.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Test.java
new file mode 100644
index 000000000..0f9e4533e
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/Issue373Test.java
@@ -0,0 +1,40 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mapstruct.ap.testutil.IssueKey;
+import org.mapstruct.ap.testutil.WithClasses;
+import org.mapstruct.ap.testutil.runner.AnnotationProcessorTestRunner;
+
+/**
+ * Reproducer for https://github.com/mapstruct/mapstruct/issues/373.
+ *
+ * @author Sjaak Derksen
+ */
+@IssueKey( "373" )
+@RunWith(AnnotationProcessorTestRunner.class)
+public class Issue373Test {
+
+    @Test
+    @WithClasses( { Issue373Mapper.class, Branch.class, BranchLocation.class, Country.class, ResultDto.class } )
+    public void shouldForgeCorrectEntityBranchLocationCountry() {
+    }
+}
diff --git a/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/ResultDto.java b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/ResultDto.java
new file mode 100644
index 000000000..a0124e909
--- /dev/null
+++ b/processor/src/test/java/org/mapstruct/ap/test/bugs/_373/ResultDto.java
@@ -0,0 +1,37 @@
+/**
+ *  Copyright 2012-2014 Gunnar Morling (http://www.gunnarmorling.de/)
+ *  and/or other contributors as indicated by the @authors tag. See the
+ *  copyright.txt file in the distribution for a full listing of all
+ *  contributors.
+ *
+ *  Licensed under the Apache License, Version 2.0 (the "License");
+ *  you may not use this file except in compliance with the License.
+ *  You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+package org.mapstruct.ap.test.bugs._373;
+
+/**
+ *
+ * @author Sjaak Derksen
+ */
+public class ResultDto {
+
+    private Country countryReference;
+
+    public Country getCountryReference() {
+        return countryReference;
+    }
+
+    public void setCountryReference(Country countryReference) {
+        this.countryReference = countryReference;
+    }
+
+}