diff --git a/src/vueWrapper.ts b/src/vueWrapper.ts
index b398e12af..f0d2b5f0c 100644
--- a/src/vueWrapper.ts
+++ b/src/vueWrapper.ts
@@ -74,19 +74,19 @@ export class VueWrapper<
     const checkTree = (subTree: VNode): boolean => {
       // if the subtree is an array of children, we have multiple root nodes
       if (subTree.shapeFlag === ShapeFlags.ARRAY_CHILDREN) return true
-
       if (
         subTree.shapeFlag & ShapeFlags.STATEFUL_COMPONENT ||
         subTree.shapeFlag & ShapeFlags.FUNCTIONAL_COMPONENT
       ) {
-        // Component has multiple children or slot with multiple children
-        if (subTree.shapeFlag & ShapeFlags.ARRAY_CHILDREN) {
-          return true
-        }
-
+        // We are rendering other component, check it's tree instead
         if (subTree.component?.subTree) {
           return checkTree(subTree.component.subTree)
         }
+
+        // Component has multiple children
+        if (subTree.shapeFlag & ShapeFlags.ARRAY_CHILDREN) {
+          return true
+        }
       }
 
       return false
diff --git a/tests/element.spec.ts b/tests/element.spec.ts
index 5e77ac720..d164caac0 100644
--- a/tests/element.spec.ts
+++ b/tests/element.spec.ts
@@ -105,4 +105,14 @@ describe('element', () => {
       '<div>foo</div><div>bar</div><div>baz</div>'
     )
   })
+
+  it('returns correct element for component which renders other component with array of vnodes in default slot', () => {
+    const Nested = {
+      template: '<div class="nested-root"><slot></slot></div>'
+    }
+    const Root = () => h(Nested, {}, [h('div', {}, 'foo'), h('div', {}, 'bar')])
+
+    const wrapper = mount(Root)
+    expect(wrapper.element.innerHTML).toBe('<div>foo</div><div>bar</div>')
+  })
 })