diff --git a/Source/Editor/Modules/SceneModule.cs b/Source/Editor/Modules/SceneModule.cs
index 0a51038ac..257262585 100644
--- a/Source/Editor/Modules/SceneModule.cs
+++ b/Source/Editor/Modules/SceneModule.cs
@@ -591,7 +591,7 @@ namespace FlaxEditor.Modules
         private void OnActorNameChanged(Actor actor)
         {
             ActorNode node = GetActorNode(actor);
-            node?.TreeNode.OnNameChanged();
+            node?.TreeNode.UpdateText();
         }
 
         private void OnActorActiveChanged(Actor actor)
diff --git a/Source/Editor/SceneGraph/GUI/ActorTreeNode.cs b/Source/Editor/SceneGraph/GUI/ActorTreeNode.cs
index 83ea666d9..c4edda65e 100644
--- a/Source/Editor/SceneGraph/GUI/ActorTreeNode.cs
+++ b/Source/Editor/SceneGraph/GUI/ActorTreeNode.cs
@@ -97,11 +97,6 @@ namespace FlaxEditor.SceneGraph.GUI
             }
         }
 
-        internal void OnNameChanged()
-        {
-            UpdateText();
-        }
-
         /// <summary>
         /// Updates the tree node text.
         /// </summary>
diff --git a/Source/Editor/Windows/Assets/PrefabWindow.Hierarchy.cs b/Source/Editor/Windows/Assets/PrefabWindow.Hierarchy.cs
index 1b1cfb4ff..5a532e362 100644
--- a/Source/Editor/Windows/Assets/PrefabWindow.Hierarchy.cs
+++ b/Source/Editor/Windows/Assets/PrefabWindow.Hierarchy.cs
@@ -430,7 +430,7 @@ namespace FlaxEditor.Windows.Assets
         {
             if (actorNode.Actor)
             {
-                actorNode.TreeNode.OnNameChanged();
+                actorNode.TreeNode.UpdateText();
                 actorNode.TreeNode.OnOrderInParentChanged();
             }
 
diff --git a/Source/Engine/Level/Prefabs/Prefab.Apply.cpp b/Source/Engine/Level/Prefabs/Prefab.Apply.cpp
index 5ea8ad0a4..e0df48fae 100644
--- a/Source/Engine/Level/Prefabs/Prefab.Apply.cpp
+++ b/Source/Engine/Level/Prefabs/Prefab.Apply.cpp
@@ -1255,20 +1255,19 @@ void Prefab::SyncNestedPrefabs(const NestedPrefabsList& allPrefabs, Array<Prefab
         auto nestedPrefab = allPrefabs[i].Get();
         if (nestedPrefab)
         {
-            if (WaitForLoaded())
+            if (nestedPrefab->WaitForLoaded())
             {
                 LOG(Warning, "Waiting for prefab asset load failed.");
                 continue;
             }
 
+            // Sync only if prefab is used by this prefab (directly) and it has been captured before
             const int32 nestedPrefabIndex = nestedPrefab->NestedPrefabs.Find(GetID());
             if (nestedPrefabIndex != -1)
             {
-                if (nestedPrefab->SyncChangesInternal(allPrefabsInstancesData[nestedPrefabIndex]))
+                if (nestedPrefab->SyncChangesInternal(allPrefabsInstancesData[i]))
                     continue;
-
                 nestedPrefab->SyncNestedPrefabs(allPrefabs, allPrefabsInstancesData);
-
                 ObjectsRemovalService::Flush();
             }
         }