diff --git a/src/declarations/stencil-private.ts b/src/declarations/stencil-private.ts
index 137beec3f8a..2835cebac34 100644
--- a/src/declarations/stencil-private.ts
+++ b/src/declarations/stencil-private.ts
@@ -1121,11 +1121,11 @@ export interface HostElement extends HTMLElement {
   ['s-sc']?: string;
 
   /**
-   * Root Scope Id
-   * The scope id of the root component when using scoped css encapsulation
+   * Scope Ids
+   * All the possible scope ids of this component when using scoped css encapsulation
    * or using shadow dom but the browser doesn't support it
    */
-  ['s-rsc']?: string;
+  ['s-scs']?: string[];
 
   /**
    * Hot Module Replacement, dev mode only
diff --git a/src/runtime/dom-extras.ts b/src/runtime/dom-extras.ts
index a2edcccd34b..acbc0d0ed3c 100644
--- a/src/runtime/dom-extras.ts
+++ b/src/runtime/dom-extras.ts
@@ -47,7 +47,7 @@ export const patchCloneNode = (HostElementPrototype: HTMLElement) => {
         's-nr',
         's-si',
         's-rf',
-        's-rsc',
+        's-scs',
       ];
 
       for (; i < srcNode.childNodes.length; i++) {
diff --git a/src/runtime/test/scoped.spec.tsx b/src/runtime/test/scoped.spec.tsx
index 890a255123a..531b66f48de 100644
--- a/src/runtime/test/scoped.spec.tsx
+++ b/src/runtime/test/scoped.spec.tsx
@@ -43,7 +43,7 @@ describe('scoped', () => {
       <cmp-b class="hydrated sc-cmp-a sc-cmp-b-h sc-cmp-b-s">
         <!---->
         <div class="sc-cmp-a sc-cmp-b sc-cmp-b-s">
-          <span class="sc-cmp-a">
+          <span class="sc-cmp-a sc-cmp-b">
             Hola
           </span>
         </div>
diff --git a/src/runtime/vdom/vdom-render.ts b/src/runtime/vdom/vdom-render.ts
index 8217a29661e..d00c8ab7454 100644
--- a/src/runtime/vdom/vdom-render.ts
+++ b/src/runtime/vdom/vdom-render.ts
@@ -111,6 +111,10 @@ const createElm = (oldParentVNode: d.VNode, newParentVNode: d.VNode, childIndex:
       elm.classList.add((elm['s-si'] = scopeId));
     }
 
+    if (BUILD.scoped) {
+      updateElementScopeIds(elm as d.RenderNode, parentElm as d.RenderNode);
+    }
+
     if (newVNode.$children$) {
       for (i = 0; i < newVNode.$children$.length; ++i) {
         // create the node
@@ -913,7 +917,7 @@ export const nullifyVNodeRefs = (vNode: d.VNode) => {
 
 /**
  * Inserts a node before a reference node as a child of a specified parent node.
- * Additionally, adds parent element's scope id as class to the new node.
+ * Additionally, adds parent elements' scope ids as class names to the new node.
  *
  * @param parent parent node
  * @param newNode element to be inserted
@@ -924,35 +928,50 @@ export const insertBefore = (parent: Node, newNode: Node, reference?: Node): Nod
   const inserted = parent?.insertBefore(newNode, reference);
 
   if (BUILD.scoped) {
-    setParentScopeIdAsClassName(newNode as d.RenderNode, parent as d.RenderNode);
+    updateElementScopeIds(newNode as d.RenderNode, parent as d.RenderNode);
   }
 
   return inserted;
 };
 
-const findParentScopeId = (element: d.RenderNode): string | undefined => {
-  return element
-    ? element['s-rsc'] || element['s-si'] || element['s-sc'] || findParentScopeId(element.parentElement)
-    : undefined;
+const findScopeIds = (element: d.RenderNode): string[] => {
+  const scopeIds: string[] = [];
+  if (element) {
+    scopeIds.push(
+      ...(element['s-scs'] || []),
+      element['s-si'],
+      element['s-sc'],
+      ...findScopeIds(element.parentElement),
+    );
+  }
+  return scopeIds;
 };
 
 /**
- * to be able to style the deep nested scoped component from the root component,
- * root component's scope id needs to be added to the child nodes since sass compiler
+ * To be able to style the deep nested scoped component from the parent components,
+ * all the scope ids of its parents need to be added to the child node since sass compiler
  * adds scope id to the nested selectors during compilation phase
  *
  * @param element an element to be updated
  * @param parent a parent element that scope id is retrieved
+ * @param iterateChildNodes iterate child nodes
  */
-export const setParentScopeIdAsClassName = (element: d.RenderNode, parent: d.RenderNode) => {
-  if (element && parent) {
-    const oldRootScopeId = element['s-rsc'];
-    const newRootScopeId = findParentScopeId(parent);
-
-    oldRootScopeId && element.classList?.contains(oldRootScopeId) && element.classList.remove(oldRootScopeId);
-    if (newRootScopeId) {
-      element['s-rsc'] = newRootScopeId;
-      !element.classList?.contains(newRootScopeId) && element.classList?.add(newRootScopeId);
+const updateElementScopeIds = (element: d.RenderNode, parent: d.RenderNode, iterateChildNodes = false) => {
+  if (element && parent && element.nodeType === NODE_TYPE.ElementNode) {
+    const scopeIds = new Set(findScopeIds(parent).filter(Boolean));
+    if (scopeIds.size) {
+      element.classList?.add(...(element['s-scs'] = [...scopeIds]));
+
+      if (element['s-ol'] || iterateChildNodes) {
+        /**
+         * If the element has an original location, this means element is relocated.
+         * So, we need to notify the child nodes to update their new scope ids since
+         * the DOM structure is changed.
+         */
+        for (const childNode of Array.from(element.childNodes)) {
+          updateElementScopeIds(childNode as d.RenderNode, element, true);
+        }
+      }
     }
   }
 };
diff --git a/test/wdio/scoped-id-in-nested-classname/cmp-level-2.scss b/test/wdio/scoped-id-in-nested-classname/cmp-level-2.scss
new file mode 100644
index 00000000000..930681f81bb
--- /dev/null
+++ b/test/wdio/scoped-id-in-nested-classname/cmp-level-2.scss
@@ -0,0 +1,9 @@
+:host {
+  cmp-level-3 {
+    font-weight: 800;
+
+    #test-element {
+      font-weight: 600;
+    }
+  }
+}
diff --git a/test/wdio/scoped-id-in-nested-classname/cmp-level-2.tsx b/test/wdio/scoped-id-in-nested-classname/cmp-level-2.tsx
index ca967ac5705..44ed759fa25 100644
--- a/test/wdio/scoped-id-in-nested-classname/cmp-level-2.tsx
+++ b/test/wdio/scoped-id-in-nested-classname/cmp-level-2.tsx
@@ -2,6 +2,7 @@ import { Component, h } from '@stencil/core';
 
 @Component({
   tag: 'cmp-level-2',
+  styleUrl: 'cmp-level-2.scss',
   shadow: false,
   scoped: true,
 })
diff --git a/test/wdio/scoped-id-in-nested-classname/cmp.test.tsx b/test/wdio/scoped-id-in-nested-classname/cmp.test.tsx
index 49657d7f55b..4791d99ca8a 100644
--- a/test/wdio/scoped-id-in-nested-classname/cmp.test.tsx
+++ b/test/wdio/scoped-id-in-nested-classname/cmp.test.tsx
@@ -7,9 +7,13 @@ describe('scope-id-in-nested-classname', function () {
       template: () => <cmp-level-1></cmp-level-1>,
     });
     await expect($('cmp-level-3')).toHaveElementClass('sc-cmp-level-1');
+    await expect($('cmp-level-3')).toHaveElementClass('sc-cmp-level-2');
 
-    const appliedCss = await (await $('cmp-level-3')).getCSSProperty('padding');
-    await expect(appliedCss.parsed.value).toBe(32);
+    const padding = await $('cmp-level-3').getCSSProperty('padding');
+    await expect(padding.parsed.value).toBe(32);
+
+    const fontWeight = await $('cmp-level-3').getCSSProperty('font-weight');
+    await expect(fontWeight.parsed.value).toBe(800);
   });
 
   it('should have root scope id in the user provided nested element as classname', async () => {
@@ -21,8 +25,12 @@ describe('scope-id-in-nested-classname', function () {
       ),
     });
     await expect($('#test-element')).toHaveElementClass('sc-cmp-level-1');
+    await expect($('#test-element')).toHaveElementClass('sc-cmp-level-2');
+
+    const padding = await $('#test-element').getCSSProperty('padding');
+    await expect(padding.parsed.value).toBe(24);
 
-    const appliedCss = await (await $('#test-element')).getCSSProperty('padding');
-    await expect(appliedCss.parsed.value).toBe(24);
+    const fontWeight = await $('#test-element').getCSSProperty('font-weight');
+    await expect(fontWeight.parsed.value).toBe(600);
   });
 });