diff --git a/release-notes/CREDITS-2.x b/release-notes/CREDITS-2.x
index bc33fdec4..0142c659d 100644
--- a/release-notes/CREDITS-2.x
+++ b/release-notes/CREDITS-2.x
@@ -66,6 +66,12 @@ Alexei Volkov (softkot@github)
 * Reported #294: XML parser error with nested same element names
  (2.11.1)
 
+Eric Schoonover (spoon16@github)
+
+* Reported #86: Can not deserialize unwrapped list when `@JacksonXmlProperty` localName
+  matches `@JacksonXmlRootElement` localName
+ (2.12.0)
+
 Joseph Petersen (jetersen@github)
 
 * Reported #273: Input mismatch with case-insensitive properties
diff --git a/release-notes/VERSION-2.x b/release-notes/VERSION-2.x
index b89348f58..59e0190e1 100644
--- a/release-notes/VERSION-2.x
+++ b/release-notes/VERSION-2.x
@@ -6,6 +6,9 @@ Project: jackson-dataformat-xml
 
 2.12.0 (not yet released)
 
+#86: Can not deserialize unwrapped list when `@JacksonXmlProperty` localName
+  matches `@JacksonXmlRootElement` localName
+ (reported by Eric S)
 #273: Input mismatch with case-insensitive properties
  (reported by Joseph P)
 #318: XMLMapper fails to deserialize null (POJO reference) from blank tag
diff --git a/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/FromXmlParser.java b/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/FromXmlParser.java
index 67345d279..9ea617139 100644
--- a/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/FromXmlParser.java
+++ b/src/main/java/com/fasterxml/jackson/dataformat/xml/deser/FromXmlParser.java
@@ -322,18 +322,23 @@ public XMLStreamReader getStaxReader() {
      */
     public void addVirtualWrapping(Set<String> namesToWrap0, boolean caseInsensitive)
     {
-//System.out.printf("addVirtualWrapping(%s) [case-insensitive? %s]\n", namesToWrap0, caseInsensitive);
+//System.out.printf("addVirtualWrapping(%s) at '%s' [case-insensitive? %s]\n", namesToWrap0, _parsingContext.pathAsPointer(), caseInsensitive);
 
         final Set<String> namesToWrap = caseInsensitive
                 ? CaseInsensitiveNameSet.construct(namesToWrap0)
                 : namesToWrap0;
 
-// 17-Sep-2012, tatu: Not 100% sure why, but this is necessary to avoid
+        // 17-Sep-2012, tatu: Not 100% sure why, but this is necessary to avoid
         //   problems with Lists-in-Lists properties
-        String name = _xmlTokens.getLocalName();
-        if ((name != null) && namesToWrap.contains(name)) {
+        // 12-May-2020, tatu: But as per [dataformat-xml#86] NOT for root element
+        //   (would still like to know why work-around needed ever, but...)
+        if (_parsingContext.inObject()
+                 && !_parsingContext.getParent().inRoot()) {
+            String name = _xmlTokens.getLocalName();
+            if ((name != null) && namesToWrap.contains(name)) {
 //System.out.println("REPEAT from addVirtualWrapping()");
-            _xmlTokens.repeatStartElement();
+                _xmlTokens.repeatStartElement();
+            }
         }
         _parsingContext.setNamesToWrap(namesToWrap);
     }
diff --git a/src/test/java/com/fasterxml/jackson/dataformat/xml/failing/TestUnwrappedDeserIssue86.java b/src/test/java/com/fasterxml/jackson/dataformat/xml/lists/NestedUnwrappedLists86Test.java
similarity index 96%
rename from src/test/java/com/fasterxml/jackson/dataformat/xml/failing/TestUnwrappedDeserIssue86.java
rename to src/test/java/com/fasterxml/jackson/dataformat/xml/lists/NestedUnwrappedLists86Test.java
index ded692bcc..1c14d6c03 100644
--- a/src/test/java/com/fasterxml/jackson/dataformat/xml/failing/TestUnwrappedDeserIssue86.java
+++ b/src/test/java/com/fasterxml/jackson/dataformat/xml/lists/NestedUnwrappedLists86Test.java
@@ -1,4 +1,4 @@
-package com.fasterxml.jackson.dataformat.xml.failing;
+package com.fasterxml.jackson.dataformat.xml.lists;
 
 import java.util.Arrays;
 import java.util.List;
@@ -11,7 +11,7 @@
 import com.fasterxml.jackson.dataformat.xml.annotation.JacksonXmlProperty;
 import com.fasterxml.jackson.dataformat.xml.annotation.JacksonXmlRootElement;
 
-public class TestUnwrappedDeserIssue86 extends XmlTestBase
+public class NestedUnwrappedLists86Test extends XmlTestBase
 {
     @JacksonXmlRootElement(localName = "test")
     public static class Issue86 {