diff --git a/app/models/service_retire_task.rb b/app/models/service_retire_task.rb
index a4b3522a2bb..a303bd10207 100644
--- a/app/models/service_retire_task.rb
+++ b/app/models/service_retire_task.rb
@@ -30,8 +30,10 @@ def after_request_task_create
   end
 
   def create_retire_subtasks(parent_service)
+    parent_service.direct_service_children.each { |child| create_retire_subtasks(child) }
     parent_service.service_resources.collect do |svc_rsc|
       next unless svc_rsc.resource.present? && svc_rsc.resource.respond_to?(:retire_now)
+      next if svc_rsc.resource.type.blank?
       next if svc_rsc.resource_type == "ServiceTemplate" &&
               !self.class.include_service_template?(self,
                                                     svc_rsc.resource.id,
diff --git a/spec/models/service_retire_task_spec.rb b/spec/models/service_retire_task_spec.rb
index 47a74d64f7a..f5f836c73db 100644
--- a/spec/models/service_retire_task_spec.rb
+++ b/spec/models/service_retire_task_spec.rb
@@ -57,6 +57,37 @@
         expect(VmRetireTask.count).to eq(1)
       end
     end
+
+    context "bundled service retires all children" do
+      let(:zone) { FactoryGirl.create(:small_environment) }
+      let(:vm1) { FactoryGirl.create(:vm_vmware) }
+      let(:service_c1) { FactoryGirl.create(:service, :service => service) }
+      let(:service_c2) { FactoryGirl.create(:service, :service => service_c1) }
+
+      before do
+        allow(MiqServer).to receive(:my_server).and_return(zone.miq_servers.first)
+        service_c1 << vm
+        service_c2 << vm1
+        service.save
+        service_c1.save
+        service_c2.save
+      end
+
+      it "creates subtask" do
+        @miq_request = FactoryGirl.create(:service_retire_request, :requester => user)
+        @miq_request.approve(approver, reason)
+        @service_retire_task = FactoryGirl.create(:service_retire_task, :source => service, :miq_request_task_id => nil, :miq_request_id => @miq_request.id, :options => {:src_ids => [service.id] })
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "VmOrTemplate", :service_id => service_c1.id, :resource_id => vm.id)
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "VmOrTemplate", :service_id => service_c1.id, :resource_id => vm1.id)
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "Service", :service_id => service_c1.id, :resource_id => service_c1.id)
+
+        @service_retire_task.after_request_task_create
+        expect(VmRetireTask.count).to eq(4)
+        expect(VmRetireTask.all.pluck(:message)).to eq(["Automation Starting", "Automation Starting", "Automation Starting", "Automation Starting"])
+        expect(ServiceRetireTask.count).to eq(1)
+        expect(ServiceRetireRequest.count).to eq(1)
+      end
+    end
   end
 
   describe "deliver_to_automate" do