diff --git a/src/com/amazon/ion/impl/IonCursorBinary.java b/src/com/amazon/ion/impl/IonCursorBinary.java
index 07e89cdb0f..811afbfd42 100644
--- a/src/com/amazon/ion/impl/IonCursorBinary.java
+++ b/src/com/amazon/ion/impl/IonCursorBinary.java
@@ -1808,7 +1808,9 @@ void slice(long offset, long limit, String ionVersionId) {
         valueMarker.endIndex = -1;
         event = Event.NEEDS_DATA;
         valueTid = null;
-        containerIndex = -1; // Slices are treated as if they were at the top level.
+        // Slices are treated as if they were at the top level.
+        parent = null;
+        containerIndex = -1;
         if (SystemSymbols.ION_1_0.equals(ionVersionId)) {
             typeIds = IonTypeID.TYPE_IDS_1_0;
             majorVersion = 1;
diff --git a/test/com/amazon/ion/streaming/SeekableReaderTest.java b/test/com/amazon/ion/streaming/SeekableReaderTest.java
index 066249d386..95992ac0f9 100644
--- a/test/com/amazon/ion/streaming/SeekableReaderTest.java
+++ b/test/com/amazon/ion/streaming/SeekableReaderTest.java
@@ -263,6 +263,29 @@ public void testHoistingAnnotatedContainedValue()
         expectTopEof();
     }
 
+    @Test
+    public void testHoistingNestedContainerWithoutSteppingOutOfParent()
+    {
+        read("{first: {foo: bar}, second: a::{baz: zar}, third: 123}");
+        in.next();
+        in.stepIn();
+        in.next();
+        in.next();
+        Span span = sr.currentSpan();
+        in.next();
+        // Note: we do not step out of the struct.
+
+        hoist(span);
+        assertSame(IonType.STRUCT, in.next());
+        expectTopLevel();
+        Assert.assertArrayEquals(new String[]{"a"}, in.getTypeAnnotations());
+        in.stepIn();
+        in.next();
+        assertEquals("zar", in.stringValue());
+        in.stepOut();
+        expectTopEof();
+    }
+
     @Test
     public void testHoistingAcrossSymbolTableBoundary()
         throws IOException