diff --git a/zkdoc/release-note b/zkdoc/release-note
index 6cac807c98..3998a4b696 100644
--- a/zkdoc/release-note
+++ b/zkdoc/release-note
@@ -11,6 +11,7 @@ ZK 10.1.0
   ZK-5784: a fontawesome bug causes zk to lose all styles in Chrome and Edge
   ZK-5659: Tree only renders 50 nodes in client mvvm
   ZK-5677: Executions.schedule cause infinite loop if async event causes exception
+  ZK-5696: Nested Shadow element fails in ZK 10
 
 * Upgrade Notes
   + Remove Htmls.encodeJavaScript(), Strings.encodeJavaScript(), Strings.escape() with Strings.ESCAPE_JAVASCRIPT, and replace them with OWASP Java Encoder APIs instead.
diff --git a/zktest/src/main/webapp/test2/B101-ZK-5696.zul b/zktest/src/main/webapp/test2/B101-ZK-5696.zul
new file mode 100644
index 0000000000..1a9b09b8fb
--- /dev/null
+++ b/zktest/src/main/webapp/test2/B101-ZK-5696.zul
@@ -0,0 +1,32 @@
+<?xml version="1.0" encoding="UTF-8"?>
+
+<!--
+B101-ZK-5696.zul
+
+	Purpose:
+
+	Description:
+
+	History:
+		2024/9/9, Created by jumperchen
+
+Copyright (C) 2024 Potix Corporation. All Rights Reserved.
+
+-->
+<zk>
+	<zscript><![CDATA[
+        int counter = 0;
+        ListModelList items = new ListModelList();
+    ]]></zscript>
+	<div apply="org.zkoss.bind.BindComposer">
+		<forEach items="@init(items)">
+			<div>
+				<label value="${each}"/>
+				<if test="@init(true)">
+					conditional
+				</if>
+			</div>
+		</forEach>
+	</div>
+	<button onClick="items.add(++counter)" label="add"/>
+</zk>
\ No newline at end of file
diff --git a/zktest/src/main/webapp/test2/config.properties b/zktest/src/main/webapp/test2/config.properties
index cf7d56dc0f..cd86dca7f0 100644
--- a/zktest/src/main/webapp/test2/config.properties
+++ b/zktest/src/main/webapp/test2/config.properties
@@ -3131,6 +3131,7 @@ B90-ZK-4431.zul=A,E,Multislider
 ##zats##B101-ZK-5659-1.zul=A,E,ClientMVVM,Tree,Model,ROD
 ##zats##B101-ZK-5659-2.zul=A,E,ClientMVVM,Tree,Model,ROD
 ##zats##B101-ZK-5677.zul=A,E,Scheduler,Event,Exception
+##zats##B101-ZK-5696.zul=A,E,NestedShadow,ServerMVVM,ForEach,Differ
 
 ##
 # Features - 3.0.x version
diff --git a/zktest/src/test/java/org/zkoss/zktest/zats/test2/B101_ZK_5696Test.java b/zktest/src/test/java/org/zkoss/zktest/zats/test2/B101_ZK_5696Test.java
new file mode 100644
index 0000000000..621e8c499c
--- /dev/null
+++ b/zktest/src/test/java/org/zkoss/zktest/zats/test2/B101_ZK_5696Test.java
@@ -0,0 +1,34 @@
+/* B101_ZK_5696Test.java
+
+	Purpose:
+
+	Description:
+
+	History:
+		11:58 AM 2024/9/9, Created by jumperchen
+
+Copyright (C) 2024 Potix Corporation. All Rights Reserved.
+*/
+package org.zkoss.zktest.zats.test2;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
+import org.junit.jupiter.api.Test;
+
+import org.zkoss.test.webdriver.WebDriverTestCase;
+
+/**
+ * @author jumperchen
+ */
+public class B101_ZK_5696Test extends WebDriverTestCase {
+	@Test
+	public void test() {
+		connect();
+		for (int i = 0; i < 5; ) {
+			click(jq(".z-button"));
+			waitResponse();
+			assertEquals(1, jq(".z-label:contains(" + ++i + ")").length());
+			assertEquals(i,  jq(".z-label:contains(conditional)").length());
+		}
+	}
+}