diff --git a/src/main/java/com/networknt/schema/JsonSchema.java b/src/main/java/com/networknt/schema/JsonSchema.java
index 44b513971..1171366ef 100644
--- a/src/main/java/com/networknt/schema/JsonSchema.java
+++ b/src/main/java/com/networknt/schema/JsonSchema.java
@@ -557,7 +557,6 @@ public Set<ValidationMessage> validate(ExecutionContext executionContext, JsonNo
                 if (results == null || results.isEmpty()) {
                     // Do nothing if valid
                 } else {
-                    executionContext.getResults().setResult(instanceLocation, v.getSchemaLocation(), v.getEvaluationPath(), false);
                     if (errors == null) {
                         errors = new LinkedHashSet<>();
                     }
@@ -595,6 +594,11 @@ public Set<ValidationMessage> validate(ExecutionContext executionContext, JsonNo
             }
         }
 
+        if (errors != null && !errors.isEmpty()) {
+            // Failed with assertion set result and drop all annotations from this schema
+            // and all subschemas
+            executionContext.getResults().setResult(instanceLocation, getSchemaLocation(), getEvaluationPath(), false);
+        }
         return errors == null ? Collections.emptySet() : errors;
     }
 
diff --git a/src/main/java/com/networknt/schema/result/JsonNodeResults.java b/src/main/java/com/networknt/schema/result/JsonNodeResults.java
index 07a419441..78b51f3bd 100644
--- a/src/main/java/com/networknt/schema/result/JsonNodeResults.java
+++ b/src/main/java/com/networknt/schema/result/JsonNodeResults.java
@@ -44,7 +44,7 @@ public boolean isValid(JsonNodePath instanceLocation, JsonNodePath evaluationPat
         List<JsonNodeResult> instance = values.get(instanceLocation);
         if (instance != null) {
             for (JsonNodeResult result : instance) {
-                if (evaluationPath.startsWith(result.getEvaluationPath().getParent())) {
+                if (evaluationPath.startsWith(result.getEvaluationPath())) {
                     if(!result.isValid()) {
                         return false;
                     }
diff --git a/src/test/java/com/networknt/schema/UnevaluatedPropertiesValidatorTest.java b/src/test/java/com/networknt/schema/UnevaluatedPropertiesValidatorTest.java
new file mode 100644
index 000000000..eee772886
--- /dev/null
+++ b/src/test/java/com/networknt/schema/UnevaluatedPropertiesValidatorTest.java
@@ -0,0 +1,70 @@
+/*
+ * Copyright (c) 2024 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.networknt.schema;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
+import java.util.List;
+import java.util.Set;
+import java.util.stream.Collectors;
+
+import org.junit.jupiter.api.Test;
+
+import com.networknt.schema.SpecVersion.VersionFlag;
+
+/**
+ * UnevaluatedPropertiesValidatorTest.
+ */
+public class UnevaluatedPropertiesValidatorTest {
+    /**
+     * Issue 962.
+     */
+    @Test
+    void annotationsOnlyDroppedAtTheEndOfSchemaProcessing() {
+        String schemaData = "{\r\n"
+                + "  \"type\": \"object\",\r\n"
+                + "  \"required\": [\r\n"
+                + "    \"key1\"\r\n"
+                + "  ],\r\n"
+                + "  \"properties\": {\r\n"
+                + "    \"key1\": {\r\n"
+                + "      \"type\": \"string\"\r\n"
+                + "    },\r\n"
+                + "    \"key2\": {\r\n"
+                + "      \"type\": \"string\"\r\n"
+                + "    },\r\n"
+                + "    \"key3\": {\r\n"
+                + "      \"type\": \"string\"\r\n"
+                + "    }\r\n"
+                + "  },\r\n"
+                + "  \"unevaluatedProperties\": false\r\n"
+                + "}";
+        String inputData = "{\r\n"
+                + "    \"key2\": \"value2\",\r\n"
+                + "    \"key3\": \"value3\",\r\n"
+                + "    \"key4\": \"value4\"\r\n"
+                + "}";
+        JsonSchema schema = JsonSchemaFactory.getInstance(VersionFlag.V202012).getSchema(schemaData);
+        Set<ValidationMessage> messages = schema.validate(inputData, InputFormat.JSON);
+        assertEquals(2, messages.size());
+        List<ValidationMessage> assertions = messages.stream().collect(Collectors.toList());
+        assertEquals("required", assertions.get(0).getType());
+        assertEquals("key1", assertions.get(0).getProperty());
+        assertEquals("unevaluatedProperties", assertions.get(1).getType());
+        assertEquals("key4", assertions.get(1).getProperty());
+    }
+}
diff --git a/src/test/resources/schema/unevaluatedTests/unevaluated-tests.json b/src/test/resources/schema/unevaluatedTests/unevaluated-tests.json
index fdd7dc148..a0e19fa71 100644
--- a/src/test/resources/schema/unevaluatedTests/unevaluated-tests.json
+++ b/src/test/resources/schema/unevaluatedTests/unevaluated-tests.json
@@ -253,8 +253,9 @@
         },
         "valid": false,
         "validationMessages": [
-          "$.vehicle: property 'pontoons' must not be unevaluated",
-          "$.vehicle: property 'wings' must not be unevaluated"
+          "$.vehicle: must be valid to one and only one schema, but 2 are valid",
+          "$.vehicle: required property 'wheels' not found",
+          "$.vehicle: required property 'headlights' not found"
         ]
       },
       {
@@ -271,9 +272,10 @@
         },
         "valid": false,
         "validationMessages": [
+          "$.vehicle: must be valid to one and only one schema, but 2 are valid",
           "$.vehicle: property 'invalid' must not be unevaluated",
-          "$.vehicle: property 'pontoons' must not be unevaluated",
-          "$.vehicle: property 'wings' must not be unevaluated"
+          "$.vehicle: required property 'wheels' not found",
+          "$.vehicle: required property 'headlights' not found"
         ]
       },
       {
@@ -288,6 +290,7 @@
         },
         "valid": false,
         "validationMessages": [
+          "$.vehicle: must be valid to one and only one schema, but 0 are valid",
           "$.vehicle: property 'invalid' must not be unevaluated"
         ]
       }