diff --git a/crd-generator/api/src/main/java/io/fabric8/crd/generator/AbstractJsonSchema.java b/crd-generator/api/src/main/java/io/fabric8/crd/generator/AbstractJsonSchema.java
index 92a61ec8d36..8a00b7db6d0 100644
--- a/crd-generator/api/src/main/java/io/fabric8/crd/generator/AbstractJsonSchema.java
+++ b/crd-generator/api/src/main/java/io/fabric8/crd/generator/AbstractJsonSchema.java
@@ -325,7 +325,7 @@ private T internalFromImpl(TypeDef definition, Set<String> visited, List<Interna
         continue;
       }
       final T schema = internalFromImpl(name, possiblyRenamedProperty.getTypeRef(), visited, schemaSwaps, parameterMap);
-      if (facade.preserveUnknownFields) {
+      if (facade.isJsonAny) {
         preserveUnknownFields = true;
       }
 
@@ -416,6 +416,7 @@ private static class PropertyOrAccessor {
     private boolean nullable;
     private boolean required;
     private boolean ignored;
+    private boolean isJsonAny;
     private boolean preserveUnknownFields;
     private String description;
     private TypeRef schemaFrom;
@@ -478,6 +479,8 @@ public void process() {
             break;
           case ANNOTATION_JSON_ANY_GETTER:
           case ANNOTATION_JSON_ANY_SETTER:
+            isJsonAny = true;
+            break;
           case ANNOTATION_PERSERVE_UNKNOWN_FIELDS:
             preserveUnknownFields = true;
             break;
@@ -520,6 +523,10 @@ public boolean isIgnored() {
       return ignored;
     }
 
+    public boolean isJsonAny() {
+      return isJsonAny;
+    }
+
     public boolean isPreserveUnknownFields() {
       return preserveUnknownFields;
     }
@@ -564,6 +571,7 @@ private static class PropertyFacade {
     private boolean nullable;
     private boolean required;
     private boolean ignored;
+    private boolean isJsonAny;
     private boolean preserveUnknownFields;
     private final Property original;
     private String nameContributedBy;
@@ -644,6 +652,7 @@ public Property process() {
           ignored = true;
         }
 
+        isJsonAny = p.isJsonAny() || isJsonAny;
         preserveUnknownFields = p.isPreserveUnknownFields() || preserveUnknownFields;
 
         if (p.contributeSchemaFrom()) {
diff --git a/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/ExtractionSpec.java b/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/ExtractionSpec.java
index 62d7aa2e23b..b9620f15deb 100644
--- a/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/ExtractionSpec.java
+++ b/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/ExtractionSpec.java
@@ -26,4 +26,6 @@ public class ExtractionSpec {
   @PreserveUnknownFields
   private Foo bar;
 
+  private Qux qux;
+
 }
diff --git a/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/Qux.java b/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/Qux.java
new file mode 100644
index 00000000000..f38fcc8d5ff
--- /dev/null
+++ b/crd-generator/api/src/test/java/io/fabric8/crd/example/extraction/Qux.java
@@ -0,0 +1,8 @@
+package io.fabric8.crd.example.extraction;
+
+import io.fabric8.crd.generator.annotation.PreserveUnknownFields;
+
+public class Qux {
+  @PreserveUnknownFields
+  public Foo foo;
+}
diff --git a/crd-generator/api/src/test/java/io/fabric8/crd/generator/v1/JsonSchemaTest.java b/crd-generator/api/src/test/java/io/fabric8/crd/generator/v1/JsonSchemaTest.java
index 8d487b77a1b..ea58b4b5436 100644
--- a/crd-generator/api/src/test/java/io/fabric8/crd/generator/v1/JsonSchemaTest.java
+++ b/crd-generator/api/src/test/java/io/fabric8/crd/generator/v1/JsonSchemaTest.java
@@ -196,7 +196,7 @@ void shouldExtractPropertiesSchemaFromExtractValueAnnotation() {
     assertEquals(2, properties.size());
     final JSONSchemaProps specSchema = properties.get("spec");
     Map<String, JSONSchemaProps> spec = specSchema.getProperties();
-    assertEquals(2, spec.size());
+    assertEquals(3, spec.size());
 
     // check typed SchemaFrom
     JSONSchemaProps foo = spec.get("foo");
@@ -222,6 +222,13 @@ void shouldExtractPropertiesSchemaFromExtractValueAnnotation() {
 
     // you can exclude fields
     assertNull(barProps.get("baz"));
+
+    // verify that x-kubernetes-preserve-unknown-fields isn't on parent object when
+    // nested object is annotated with @PreserveUnknownFields
+    JSONSchemaProps qux = spec.get("qux");
+    Map<String, JSONSchemaProps> quxProps = qux.getProperties();
+    assertTrue(quxProps.get("foo").getXKubernetesPreserveUnknownFields());
+    assertNull(qux.getXKubernetesPreserveUnknownFields());
   }
 
   @Test