diff --git a/CHANGELOG.md b/CHANGELOG.md
index b014249c06..8b50b082dd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,12 @@ should change the heading of the (upcoming) version to include a major version b
 
 -->
 
+# 5.23.3
+
+## @rjsf/utils
+
+- Fixed issue with assigning default values to formData with deeply nested required properties, fixing [#4399](https://github.com/rjsf-team/react-jsonschema-form/issues/4399)
+
 # 5.23.2
 
 ## @rjsf/core
diff --git a/packages/utils/src/schema/getDefaultFormState.ts b/packages/utils/src/schema/getDefaultFormState.ts
index f367b2cbf0..ba0cf7bec7 100644
--- a/packages/utils/src/schema/getDefaultFormState.ts
+++ b/packages/utils/src/schema/getDefaultFormState.ts
@@ -115,11 +115,11 @@ function maybeAddDefaultToObject<T = any>(
     // Or if the schema has a const property defined, then we should always return the computedDefault since it's coming from the const.
     obj[key] = computedDefault;
   } else if (emptyObjectFields !== 'skipDefaults') {
-    if (isObject(computedDefault)) {
-      // If isParentRequired is undefined, then we are at the root level of the schema so defer to the requiredness of
-      // the field key itself in the `requiredField` list
-      const isSelfOrParentRequired = isParentRequired === undefined ? requiredFields.includes(key) : isParentRequired;
+    // If isParentRequired is undefined, then we are at the root level of the schema so defer to the requiredness of
+    // the field key itself in the `requiredField` list
+    const isSelfOrParentRequired = isParentRequired === undefined ? requiredFields.includes(key) : isParentRequired;
 
+    if (isObject(computedDefault)) {
       // If emptyObjectFields 'skipEmptyDefaults' store computedDefault if it's a non-empty object(e.g. not {})
       if (emptyObjectFields === 'skipEmptyDefaults') {
         if (!isEmpty(computedDefault)) {
@@ -138,11 +138,12 @@ function maybeAddDefaultToObject<T = any>(
     } else if (
       // Store computedDefault if it's a defined primitive (e.g., true) and satisfies certain conditions
       // Condition 1: computedDefault is not undefined
-      // Condition 2: If emptyObjectFields is 'populateAllDefaults' or 'skipEmptyDefaults) or if the key is a required field
+      // Condition 2: If emptyObjectFields is 'populateAllDefaults' or 'skipEmptyDefaults)
+      // Or if isSelfOrParentRequired is 'true' and the key is a required field
       computedDefault !== undefined &&
       (emptyObjectFields === 'populateAllDefaults' ||
         emptyObjectFields === 'skipEmptyDefaults' ||
-        requiredFields.includes(key))
+        (isSelfOrParentRequired && requiredFields.includes(key)))
     ) {
       obj[key] = computedDefault;
     }
diff --git a/packages/utils/test/schema/getDefaultFormStateTest.ts b/packages/utils/test/schema/getDefaultFormStateTest.ts
index cf3ef4cd6a..6cf5da2979 100644
--- a/packages/utils/test/schema/getDefaultFormStateTest.ts
+++ b/packages/utils/test/schema/getDefaultFormStateTest.ts
@@ -2284,6 +2284,48 @@ export default function getDefaultFormStateTest(testValidator: TestValidatorType
           })
         ).toEqual({ requiredProperty: 'foo' });
       });
+      it('test an object with a required property that has a nested optional property which has a nested required property with default', () => {
+        const schema: RJSFSchema = {
+          type: 'object',
+          properties: {
+            baseRequiredProperty: {
+              type: 'object',
+              properties: {
+                optionalProperty: {
+                  type: 'object',
+                  properties: {
+                    nestedRequiredProperty: {
+                      type: 'string',
+                      default: '',
+                    },
+                  },
+                  required: ['nestedRequiredProperty'],
+                },
+                requiredProperty: {
+                  type: 'string',
+                  default: 'foo',
+                },
+              },
+              required: ['requiredProperty'],
+            },
+            baseOptionalProperty: {
+              type: 'string',
+              default: 'baseOptionalProperty',
+            },
+          },
+          required: ['baseRequiredProperty'],
+        };
+        expect(
+          computeDefaults(testValidator, schema, {
+            rootSchema: schema,
+            experimental_defaultFormStateBehavior: { emptyObjectFields: 'populateRequiredDefaults' },
+          })
+        ).toEqual({
+          baseRequiredProperty: {
+            requiredProperty: 'foo',
+          },
+        });
+      });
       it('test an object with an optional property that has a nested required property and includeUndefinedValues', () => {
         const schema: RJSFSchema = {
           type: 'object',