diff --git a/lib/document.js b/lib/document.js
index eda744170c..9e01f3786d 100644
--- a/lib/document.js
+++ b/lib/document.js
@@ -5055,8 +5055,8 @@ Document.prototype.$__delta = function $__delta(pathsToSave, pathsToSaveSet) {
       const optCon = new Set(optimisticConcurrency);
       const modPaths = this.modifiedPaths();
       const hasRelevantModPaths = pathsToSave == null ?
-        modPaths.find(path => optCon.has(path)) :
-        modPaths.find(path => optCon.has(path) && isInPathsToSave(path, pathsToSaveSet, pathsToSave));
+        modPaths.find(path => _isIncludedByOptCon(path, optCon)) :
+        modPaths.find(path => _isIncludedByOptCon(path, optCon) && isInPathsToSave(path, pathsToSaveSet, pathsToSave));
       if (hasRelevantModPaths) {
         this.$__.version = dirty.length ? VERSION_ALL : VERSION_WHERE;
       }
@@ -5064,8 +5064,8 @@ Document.prototype.$__delta = function $__delta(pathsToSave, pathsToSaveSet) {
       const excluded = new Set(optimisticConcurrency.exclude);
       const modPaths = this.modifiedPaths();
       const hasRelevantModPaths = pathsToSave == null ?
-        modPaths.find(path => !excluded.has(path)) :
-        modPaths.find(path => !excluded.has(path) && isInPathsToSave(path, pathsToSaveSet, pathsToSave));
+        modPaths.find(path => !_isExcludedByOptCon(path, excluded)) :
+        modPaths.find(path => !_isExcludedByOptCon(path, excluded) && isInPathsToSave(path, pathsToSaveSet, pathsToSave));
       if (hasRelevantModPaths) {
         this.$__.version = dirty.length ? VERSION_ALL : VERSION_WHERE;
       }
@@ -5588,6 +5588,56 @@ Document.prototype._applyVersionIncrement = function _applyVersionIncrement() {
   }
 };
 
+/*!
+ * Check if a path is included by an optimisticConcurrency include list,
+ * handling nested paths in both directions.
+ */
+
+function _isIncludedByOptCon(path, includeSet) {
+  if (includeSet.has(path)) {
+    return true;
+  }
+  // Check if any parent prefix is included (e.g. 'profile' includes 'profile.name')
+  const pieces = path.split('.');
+  let cur = pieces[0];
+  for (let i = 1; i < pieces.length; ++i) {
+    if (includeSet.has(cur)) {
+      return true;
+    }
+    cur += '.' + pieces[i];
+  }
+  // Check if any included path is a child (e.g. modifying 'profile.address' is
+  // relevant when 'profile.address.country' is included)
+  const prefix = path + '.';
+  for (const p of includeSet) {
+    if (p.startsWith(prefix)) {
+      return true;
+    }
+  }
+  return false;
+}
+
+/*!
+ * Check if a path is excluded by an optimisticConcurrency exclude list,
+ * handling nested paths so that excluding a parent also excludes children.
+ */
+
+function _isExcludedByOptCon(path, excludeSet) {
+  if (excludeSet.has(path)) {
+    return true;
+  }
+  // Check if any parent prefix is excluded (e.g. 'profile' excludes 'profile.firstName')
+  const pieces = path.split('.');
+  let cur = pieces[0];
+  for (let i = 1; i < pieces.length; ++i) {
+    if (excludeSet.has(cur)) {
+      return true;
+    }
+    cur += '.' + pieces[i];
+  }
+  return false;
+}
+
 /*!
  * Module exports.
  */
diff --git a/test/versioning.test.js b/test/versioning.test.js
index e885d01c09..e1e1c9f8d0 100644
--- a/test/versioning.test.js
+++ b/test/versioning.test.js
@@ -892,5 +892,92 @@ describe('versioning', function() {
 
       return { user };
     }
+
+    describe('nested paths (gh-16054)', function() {
+      it('exclude: excluding parent also excludes child paths', async function() {
+        const profileSchema = new Schema({ firstName: String, lastName: String }, { _id: false });
+        const schema = new Schema({
+          profile: profileSchema,
+          balance: Number
+        }, { optimisticConcurrency: { exclude: ['profile'] } });
+
+        const User = db.model('TestOCNested1', schema);
+        const user = await User.create({ profile: { firstName: 'Alice', lastName: 'Smith' }, balance: 100 });
+
+        user.profile.firstName = 'Bob';
+        user.$__delta();
+
+        assert.strictEqual(user.$__.version, undefined);
+      });
+
+      it('exclude: modifying non-excluded path still triggers version when excluded parent has modified children', async function() {
+        const profileSchema = new Schema({ firstName: String, lastName: String }, { _id: false });
+        const schema = new Schema({
+          profile: profileSchema,
+          balance: Number
+        }, { optimisticConcurrency: { exclude: ['profile'] } });
+
+        const User = db.model('TestOCNested2', schema);
+        const user = await User.create({ profile: { firstName: 'Alice', lastName: 'Smith' }, balance: 100 });
+
+        user.profile.firstName = 'Bob';
+        user.balance = 200;
+        user.$__delta();
+
+        assert.strictEqual(user.$__.version, VERSION_ALL);
+      });
+
+      it('include: including parent also includes child paths', async function() {
+        const profileSchema = new Schema({ firstName: String, lastName: String }, { _id: false });
+        const schema = new Schema({
+          profile: profileSchema,
+          balance: Number
+        }, { optimisticConcurrency: ['profile'] });
+
+        const User = db.model('TestOCNested3', schema);
+        const user = await User.create({ profile: { firstName: 'Alice', lastName: 'Smith' }, balance: 100 });
+
+        user.profile.firstName = 'Bob';
+        user.$__delta();
+
+        assert.strictEqual(user.$__.version, VERSION_ALL);
+      });
+
+      it('include: modifying parent triggers version when child is included', async function() {
+        const addressSchema = new Schema({ street: String, country: String }, { _id: false });
+        const profileSchema = new Schema({ firstName: String, address: addressSchema }, { _id: false });
+        const schema = new Schema({
+          profile: profileSchema,
+          balance: Number
+        }, { optimisticConcurrency: ['profile.address.country'] });
+
+        const User = db.model('TestOCNested4', schema);
+        const user = await User.create({
+          profile: { firstName: 'Alice', address: { street: '123 Main', country: 'US' } },
+          balance: 100
+        });
+
+        user.set('profile.address', { street: '456 Oak', country: 'UK' });
+        user.$__delta();
+
+        assert.strictEqual(user.$__.version, VERSION_ALL);
+      });
+
+      it('include: modifying non-included nested path does not trigger version', async function() {
+        const profileSchema = new Schema({ firstName: String, lastName: String }, { _id: false });
+        const schema = new Schema({
+          profile: profileSchema,
+          balance: Number
+        }, { optimisticConcurrency: ['balance'] });
+
+        const User = db.model('TestOCNested5', schema);
+        const user = await User.create({ profile: { firstName: 'Alice', lastName: 'Smith' }, balance: 100 });
+
+        user.profile.firstName = 'Bob';
+        user.$__delta();
+
+        assert.strictEqual(user.$__.version, undefined);
+      });
+    });
   });
 });