diff --git a/src/process/__tests__/process.test.ts b/src/process/__tests__/process.test.ts
index 77d02182..55d04237 100644
--- a/src/process/__tests__/process.test.ts
+++ b/src/process/__tests__/process.test.ts
@@ -4548,6 +4548,135 @@ describe('Process Tests', function () {
     });
   });
 
+  it("Should validate Nested Form's components if it should not be cleared and no data provided", async function () {
+    const nestedForm = {
+      key: 'form',
+      type: 'form',
+      display: 'form',
+      input: true,
+      components: [
+        {
+          key: 'textField',
+          type: 'textfield',
+          validate: {
+            required: true,
+          },
+          input: true,
+        },
+      ],
+    };
+    const submission = {
+      data: {
+        submit: true,
+      },
+      state: 'submitted',
+    };
+    const form = {
+      title: 'Parent Form',
+      name: 'parentForm',
+      path: 'parentform',
+      type: 'form',
+      display: 'form',
+      components: [
+        nestedForm,
+        {
+          ...nestedForm,
+          key: 'form1',
+        },
+        {
+          type: 'button',
+          label: 'Submit',
+          key: 'submit',
+          input: true,
+          tableView: false,
+        },
+      ],
+    };
+    const context = {
+      form,
+      submission,
+      data: submission.data,
+      components: form.components,
+      processors: ProcessTargets.submission,
+      scope: {},
+      config: {
+        server: true,
+      },
+    };
+    processSync(context);
+    context.processors = ProcessTargets.evaluator;
+    const scope = processSync(context);
+    expect((scope as ValidationScope).errors).to.have.length(2);
+  });
+
+  it("Should validate Nested Form's components if it should not be cleared and no data provided and the parent form has errors itself", async function () {
+    const nestedForm = {
+      key: 'form',
+      type: 'form',
+      input: true,
+      components: [
+        {
+          key: 'textField',
+          type: 'textfield',
+          validate: {
+            required: true,
+          },
+          input: true,
+        },
+      ],
+    };
+    const submission = {
+      data: {
+        submit: true,
+      },
+      state: 'submitted',
+    };
+    const form = {
+      title: 'Parent Form',
+      name: 'parentForm',
+      path: 'parentform',
+      type: 'form',
+      display: 'form',
+      components: [
+        {
+          key: 'textField',
+          type: 'textfield',
+          validate: {
+            required: true,
+          },
+          input: true,
+        },
+        nestedForm,
+        {
+          ...nestedForm,
+          key: 'form1',
+        },
+        {
+          type: 'button',
+          label: 'Submit',
+          key: 'submit',
+          input: true,
+          tableView: false,
+        },
+      ],
+    };
+    const context = {
+      form,
+      submission,
+      data: submission.data,
+      components: form.components,
+      processors: ProcessTargets.submission,
+      scope: {},
+      config: {
+        server: true,
+      },
+    };
+    processSync(context);
+    context.processors = ProcessTargets.evaluator;
+    const scope = processSync(context);
+    expect((scope as ValidationScope).errors).to.have.length(3);
+  });
+
   it('Should not return errors for empty multiple values for url and dateTime', function () {
     const form = {
       _id: '671f7fbeaf87b0e2a26e4212',
diff --git a/src/utils/formUtil/eachComponentData.ts b/src/utils/formUtil/eachComponentData.ts
index 10e4a673..c7309161 100644
--- a/src/utils/formUtil/eachComponentData.ts
+++ b/src/utils/formUtil/eachComponentData.ts
@@ -27,7 +27,7 @@ export const eachComponentData = (
   parent?: Component,
   includeAll: boolean = false,
 ) => {
-  if (!components || !data) {
+  if (!components) {
     return;
   }
   return eachComponent(
@@ -61,14 +61,16 @@ export const eachComponentData = (
           return true;
         }
         if (getModelType(component) === 'dataObject') {
-          // No need to bother processing all the children data if there is no data for this form or the reference value has not been loaded.
           const nestedFormValue: any = get(data, component.path);
-          const noReferenceAttached =
-            nestedFormValue?._id && isEmpty(nestedFormValue.data) && !has(nestedFormValue, 'form');
-          const shouldProcessNestedFormData = nestedFormValue?._id
-            ? !noReferenceAttached
-            : has(data, component.path);
-          if (shouldProcessNestedFormData) {
+          const noReferenceAttached = nestedFormValue?._id
+            ? isEmpty(nestedFormValue.data) && !has(nestedFormValue, 'form')
+            : false;
+          const shouldBeCleared =
+            (!component.hasOwnProperty('clearOnHide') || component.clearOnHide) &&
+            (component.hidden || component.ephemeralState?.conditionallyHidden);
+          // Skip all the nested components processing if nested form is hidden and should be cleared on hide or if submission is saved as reference and not loaded
+          const shouldSkipProcessingNestedFormData = noReferenceAttached || shouldBeCleared;
+          if (!shouldSkipProcessingNestedFormData) {
             // For nested forms, we need to reset the "data" and "path" objects for all of the children components, and then re-establish the data when it is done.
             const childPath: string = componentDataPath(component, path, compPath);
             const childData: any = get(data, childPath, {});
diff --git a/src/utils/formUtil/eachComponentDataAsync.ts b/src/utils/formUtil/eachComponentDataAsync.ts
index 3889be0e..314d7190 100644
--- a/src/utils/formUtil/eachComponentDataAsync.ts
+++ b/src/utils/formUtil/eachComponentDataAsync.ts
@@ -1,4 +1,4 @@
-import { get, set, has, isEmpty } from 'lodash';
+import { get, set, isEmpty, has } from 'lodash';
 
 import {
   Component,
@@ -28,7 +28,7 @@ export const eachComponentDataAsync = async (
   parent?: Component,
   includeAll: boolean = false,
 ) => {
-  if (!components || !data) {
+  if (!components) {
     return;
   }
   return await eachComponentAsync(
@@ -64,14 +64,16 @@ export const eachComponentDataAsync = async (
           return true;
         }
         if (getModelType(component) === 'dataObject') {
-          // No need to bother processing all the children data if there is no data for this form or the reference value has not been loaded.
           const nestedFormValue: any = get(data, component.path);
-          const noReferenceAttached =
-            nestedFormValue?._id && isEmpty(nestedFormValue.data) && !has(nestedFormValue, 'form');
-          const shouldProcessNestedFormData = nestedFormValue?._id
-            ? !noReferenceAttached
-            : has(data, component.path);
-          if (shouldProcessNestedFormData) {
+          const noReferenceAttached = nestedFormValue?._id
+            ? isEmpty(nestedFormValue.data) && !has(nestedFormValue, 'form')
+            : false;
+          const shouldBeCleared =
+            (!component.hasOwnProperty('clearOnHide') || component.clearOnHide) &&
+            (component.hidden || component.ephemeralState?.conditionallyHidden);
+          // Skip all the nested components processing if nested form is hidden and should be cleared on hide or if submission is saved as reference and not loaded
+          const shouldSkipProcessingNestedFormData = noReferenceAttached || shouldBeCleared;
+          if (!shouldSkipProcessingNestedFormData) {
             // For nested forms, we need to reset the "data" and "path" objects for all of the children components, and then re-establish the data when it is done.
             const childPath: string = componentDataPath(component, path, compPath);
             const childData: any = get(data, childPath, null);