diff --git a/tensorflow/python/kernel_tests/cond_v2_test.py b/tensorflow/python/kernel_tests/cond_v2_test.py
index 2c990261055..050da5ff6cc 100644
--- a/tensorflow/python/kernel_tests/cond_v2_test.py
+++ b/tensorflow/python/kernel_tests/cond_v2_test.py
@@ -145,6 +145,22 @@ class CondV2Test(test.TestCase):
     self.assertEqual(cond_op.type, "If")
     return output, cond_op
 
+  def _createNestedCond(self, name):
+    """Like _createCond but creates a nested cond_v2 call as well."""
+    pred = constant_op.constant(True, name="pred")
+    x = constant_op.constant(1.0, name="x")
+
+    def true_fn():
+      return cond_v2.cond_v2(pred, lambda: x, lambda: x + 1)
+
+    def false_fn():
+      return x + 2
+
+    output = cond_v2.cond_v2(pred, true_fn, false_fn, name=name)
+    cond_op = output.op.inputs[0].op
+    self.assertEqual(cond_op.type, "If")
+    return output, cond_op
+
   def testDefaultName(self):
     with ops.Graph().as_default():
       _, cond_op = self._createCond(None)
@@ -645,9 +661,14 @@ class CondV2Test(test.TestCase):
       # Build the cond_v2 in an XLA context
       xla_context = control_flow_ops.XLAControlFlowContext()
       xla_context.Enter()
-      cond_output, _ = self._createCond("cond")
+      cond_output, cond_op = self._createCond("cond")
       xla_context.Exit()
 
+      # Check lowering attr is not set.
+      with self.assertRaises(ValueError):
+        cond_op.get_attr("_lower_using_switch_merge")
+
+      # Check the actual graph that is run.
       run_options = config_pb2.RunOptions(output_partition_graphs=True)
       run_metadata = config_pb2.RunMetadata()
       sess.run(cond_output, options=run_options, run_metadata=run_metadata)
@@ -672,6 +693,29 @@ class CondV2Test(test.TestCase):
           if_found,
           "An `If` op was not found, but the graph should not be lowered.")
 
+  @test_util.run_deprecated_v1
+  def testNestedLoweringDisabledInXLA(self):
+    # Build the cond_v2 in an XLA context
+    xla_context = control_flow_ops.XLAControlFlowContext()
+    xla_context.Enter()
+    _, cond_op = self._createNestedCond("cond")
+    xla_context.Exit()
+
+    # Check lowering attr is not set for either If node.
+    with self.assertRaises(ValueError):
+      cond_op.get_attr("_lower_using_switch_merge")
+
+    nested_if_ops = []
+    for func in ops.get_default_graph()._functions.values():
+      nested_if_ops.extend(op for op in func._graph.get_operations()
+                           if op.type == "If")
+    self.assertEqual(len(nested_if_ops), 1)
+    with self.assertRaises(ValueError):
+      nested_if_ops[0].get_attr("_lower_using_switch_merge")
+
+    # TODO(skyewm): check the actual graphs that are run once we have a way to
+    # programmatically access those graphs.
+
   @test_util.run_deprecated_v1
   def testLoweringDisabledWithSingleThreadedExecutorContext(self):
     with self.session(graph=ops.Graph()) as sess:
diff --git a/tensorflow/python/ops/control_flow_util.py b/tensorflow/python/ops/control_flow_util.py
index 8f5442da5e4..ff0dff0042e 100644
--- a/tensorflow/python/ops/control_flow_util.py
+++ b/tensorflow/python/ops/control_flow_util.py
@@ -57,6 +57,15 @@ def InXlaContext(graph):
   return GetContainingXLAContext(ctxt) is not None
 
 
+def GraphOrParentsInXlaContext(graph):
+  while True:
+    if InXlaContext(graph): return True
+    try:
+      graph = graph.outer_graph
+    except AttributeError:
+      return False
+
+
 def IsInWhileLoop(op):
   ctxt = op._get_control_flow_context()  # pylint: disable=protected-access
   return GetContainingWhileContext(ctxt) is not None
diff --git a/tensorflow/python/ops/control_flow_util_v2.py b/tensorflow/python/ops/control_flow_util_v2.py
index 5f56850884a..58917ad264a 100644
--- a/tensorflow/python/ops/control_flow_util_v2.py
+++ b/tensorflow/python/ops/control_flow_util_v2.py
@@ -114,7 +114,7 @@ def maybe_set_lowering_attr(op):
   Args:
     op: An `If` or `While` Operation.
   """
-  if (not control_flow_util.IsInXLAContext(op) and
+  if (not control_flow_util.GraphOrParentsInXlaContext(op.graph) and
       context.context().get_function_call_options().executor_type
       != "SINGLE_THREADED_EXECUTOR"):
     # pylint: disable=protected-access