diff --git a/tycho-its/projects/tycho-ds-dependency/.mvn/extensions.xml b/tycho-its/projects/tycho-ds-dependency/.mvn/extensions.xml
new file mode 100644
index 0000000000..ff2889110d
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/.mvn/extensions.xml
@@ -0,0 +1,8 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<extensions>
+  <extension>
+    <groupId>org.eclipse.tycho</groupId>
+    <artifactId>tycho-build</artifactId>
+    <version>${tycho-version}</version>
+  </extension>
+</extensions>
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.a/.classpath b/tycho-its/projects/tycho-ds-dependency/plugin.a/.classpath
new file mode 100644
index 0000000000..81fe078c20
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.a/.classpath
@@ -0,0 +1,7 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<classpath>
+	<classpathentry kind="con" path="org.eclipse.jdt.launching.JRE_CONTAINER/org.eclipse.jdt.internal.debug.ui.launcher.StandardVMType/JavaSE-17"/>
+	<classpathentry kind="con" path="org.eclipse.pde.core.requiredPlugins"/>
+	<classpathentry kind="src" path="src"/>
+	<classpathentry kind="output" path="bin"/>
+</classpath>
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.a/META-INF/MANIFEST.MF b/tycho-its/projects/tycho-ds-dependency/plugin.a/META-INF/MANIFEST.MF
new file mode 100644
index 0000000000..c68de2a3f8
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.a/META-INF/MANIFEST.MF
@@ -0,0 +1,6 @@
+Manifest-Version: 1.0
+Bundle-ManifestVersion: 2
+Bundle-SymbolicName: plugin.a
+Bundle-Version: 1.0.0.qualifier
+Bundle-RequiredExecutionEnvironment: JavaSE-17
+Import-Package: org.osgi.service.event;version="[1.4.0,2.0.0)"
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.a/build.properties b/tycho-its/projects/tycho-ds-dependency/plugin.a/build.properties
new file mode 100644
index 0000000000..34d2e4d2da
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.a/build.properties
@@ -0,0 +1,4 @@
+source.. = src/
+output.. = bin/
+bin.includes = META-INF/,\
+               .
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.a/src/foo/bar/MyComponent.java b/tycho-its/projects/tycho-ds-dependency/plugin.a/src/foo/bar/MyComponent.java
new file mode 100644
index 0000000000..d7d5f90546
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.a/src/foo/bar/MyComponent.java
@@ -0,0 +1,12 @@
+package foo.bar;
+
+import org.osgi.service.component.annotations.Component;
+import org.osgi.service.event.EventHandler;
+import org.osgi.service.event.Event;
+
+@Component(service = EventHandler.class)
+public class MyComponent implements EventHandler {
+	@Override
+	public void handleEvent(Event event) {
+	}
+}
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.b/.classpath b/tycho-its/projects/tycho-ds-dependency/plugin.b/.classpath
new file mode 100644
index 0000000000..81fe078c20
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.b/.classpath
@@ -0,0 +1,7 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<classpath>
+	<classpathentry kind="con" path="org.eclipse.jdt.launching.JRE_CONTAINER/org.eclipse.jdt.internal.debug.ui.launcher.StandardVMType/JavaSE-17"/>
+	<classpathentry kind="con" path="org.eclipse.pde.core.requiredPlugins"/>
+	<classpathentry kind="src" path="src"/>
+	<classpathentry kind="output" path="bin"/>
+</classpath>
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.b/META-INF/MANIFEST.MF b/tycho-its/projects/tycho-ds-dependency/plugin.b/META-INF/MANIFEST.MF
new file mode 100644
index 0000000000..4f00fc0d85
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.b/META-INF/MANIFEST.MF
@@ -0,0 +1,6 @@
+Manifest-Version: 1.0
+Bundle-ManifestVersion: 2
+Bundle-SymbolicName: plugin.b
+Bundle-Version: 1.0.0.qualifier
+Require-Bundle: plugin.a;bundle-version="1.0.0"
+Bundle-RequiredExecutionEnvironment: JavaSE-17
diff --git a/tycho-its/projects/tycho-ds-dependency/plugin.b/build.properties b/tycho-its/projects/tycho-ds-dependency/plugin.b/build.properties
new file mode 100644
index 0000000000..7594fab8d5
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/plugin.b/build.properties
@@ -0,0 +1,2 @@
+bin.includes = META-INF/,\
+               .
diff --git a/tycho-its/projects/tycho-ds-dependency/pom.xml b/tycho-its/projects/tycho-ds-dependency/pom.xml
new file mode 100644
index 0000000000..b93d0c8b05
--- /dev/null
+++ b/tycho-its/projects/tycho-ds-dependency/pom.xml
@@ -0,0 +1,51 @@
+<project xmlns="http://maven.apache.org/POM/4.0.0"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 https://maven.apache.org/xsd/maven-4.0.0.xsd">
+	<modelVersion>4.0.0</modelVersion>
+
+	<groupId>foo</groupId>
+	<artifactId>foo</artifactId>
+	<version>1.0.0-SNAPSHOT</version>
+	<packaging>pom</packaging>
+
+	<modules>
+		<module>plugin.a</module>
+		<module>plugin.b</module>
+	</modules>
+
+	<properties>
+		<project.build.sourceEncoding>UTF-8</project.build.sourceEncoding>
+	</properties>
+
+	<repositories>
+		<repository>
+			<id>platform</id>
+			<url>${target-platform}</url>
+			<layout>p2</layout>
+		</repository>
+	</repositories>
+
+	<build>
+		<plugins>
+
+			<plugin>
+				<groupId>org.eclipse.tycho</groupId>
+				<artifactId>tycho-maven-plugin</artifactId>
+				<version>${tycho-version}</version>
+				<extensions>true</extensions>
+			</plugin>
+
+			<plugin>
+				<groupId>org.eclipse.tycho</groupId>
+				<artifactId>tycho-ds-plugin</artifactId>
+				<version>${tycho-version}</version>
+				<configuration>
+					<dsVersion>1.4</dsVersion>
+					<enabled>true</enabled>
+				</configuration>
+			</plugin>
+
+		</plugins>
+	</build>
+
+</project>
\ No newline at end of file
diff --git a/tycho-its/src/test/java/org/eclipse/tycho/test/compiler/CompilerClasspathEntryTest.java b/tycho-its/src/test/java/org/eclipse/tycho/test/compiler/CompilerClasspathEntryTest.java
index 757cb1718b..2e17799291 100644
--- a/tycho-its/src/test/java/org/eclipse/tycho/test/compiler/CompilerClasspathEntryTest.java
+++ b/tycho-its/src/test/java/org/eclipse/tycho/test/compiler/CompilerClasspathEntryTest.java
@@ -17,6 +17,7 @@
 
 import java.io.File;
 import java.nio.file.Files;
+import java.nio.file.Path;
 import java.util.List;
 import java.util.stream.Collectors;
 
@@ -89,6 +90,15 @@ private void verifyDs(Verifier verifier) throws VerificationException {
 		assertFalse(new File(generated, "tycho.ds.TestComponent2.xml").isFile());
 	}
 
+	@Test
+	public void testTransitiveDSComponents() throws Exception {
+		Verifier verifier = getVerifier("tycho-ds-dependency", true, true);
+		verifier.executeGoals(List.of("clean", "verify"));
+		verifier.verifyErrorFreeLog();
+		Path generated = Path.of(verifier.getBasedir(), "plugin.a/target/classes/OSGI-INF");
+		assertTrue(Files.isRegularFile(generated.resolve("foo.bar.MyComponent.xml")));
+	}
+
 	@Test
 	public void testOSGiAnnotations() throws Exception {
 		Verifier verifier = getVerifier("compiler.annotations", false, true);