diff --git a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/SelectorChainParser.java b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/SelectorChainParser.java
index 43eab36fda..36958793f1 100644
--- a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/SelectorChainParser.java
+++ b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/SelectorChainParser.java
@@ -22,9 +22,14 @@ import org.w3c.dom.NodeList;
 
 import org.springframework.beans.factory.config.RuntimeBeanReference;
 import org.springframework.beans.factory.support.BeanDefinitionBuilder;
+import org.springframework.beans.factory.support.BeanDefinitionReaderUtils;
 import org.springframework.beans.factory.support.ManagedList;
 import org.springframework.beans.factory.xml.AbstractSingleBeanDefinitionParser;
+import org.springframework.beans.factory.xml.ParserContext;
 import org.springframework.integration.selector.MessageSelectorChain;
+import org.springframework.integration.selector.MessageSelectorChain.Strategy;
+import org.springframework.util.Assert;
+import org.springframework.util.StringUtils;
 
 /**
  * Parser for the <selector-chain/> element.
@@ -38,14 +43,35 @@ public class SelectorChainParser extends AbstractSingleBeanDefinitionParser {
 		return MessageSelectorChain.class;
 	}
 
+	public void doParse(Element element, ParserContext parserContext, BeanDefinitionBuilder builder) {
+		Assert.hasText(element.getAttribute("id"), "id is required");
+		this.parseSelectorChain(builder, element, parserContext);
+	}
+
 	@SuppressWarnings("unchecked")
-	public void doParse(Element element, BeanDefinitionBuilder builder) {
+	private void parseSelectorChain(BeanDefinitionBuilder builder, Element element, ParserContext parserContext) {
+		String strategy = element.getAttribute("strategy");
+		if (StringUtils.hasText(strategy)) {
+			builder.addPropertyValue("strategy", Strategy.valueOf(strategy));
+		}
 		ManagedList selectors = new ManagedList();
 		NodeList childNodes = element.getChildNodes();
 		for (int i = 0; i < childNodes.getLength(); i++) {
 			Node child = childNodes.item(i);
-			if (child.getNodeType() == Node.ELEMENT_NODE && "selector".equals(child.getLocalName())) {
-				selectors.add(new RuntimeBeanReference(((Element) child).getAttribute("ref")));
+			if (child.getNodeType() == Node.ELEMENT_NODE) {
+				String nodeName = child.getLocalName();
+				if ("selector".equals(nodeName)) {
+					String ref = ((Element) child).getAttribute("ref");
+					selectors.add(new RuntimeBeanReference(ref));
+				}
+				else if ("selector-chain".equals(nodeName)) {
+					BeanDefinitionBuilder nestedBuilder =
+							BeanDefinitionBuilder.genericBeanDefinition(MessageSelectorChain.class);
+					this.parseSelectorChain(nestedBuilder, (Element) child, parserContext);
+					String nestedBeanName = BeanDefinitionReaderUtils.registerWithGeneratedName(
+							nestedBuilder.getBeanDefinition(), parserContext.getRegistry());
+					selectors.add(new RuntimeBeanReference(nestedBeanName));
+				}
 			}
 		}
 		builder.addPropertyValue("selectors", selectors);
diff --git a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/spring-integration-1.0.xsd b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/spring-integration-1.0.xsd
index 6e4a854aa8..01192c72f1 100644
--- a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/spring-integration-1.0.xsd
+++ b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/spring-integration-1.0.xsd
@@ -146,7 +146,7 @@
 			<xsd:attribute name="id" type="xsd:ID" use="required"/>
 			<xsd:attribute name="service-interface" type="xsd:string" use="required"/>
 			<xsd:attribute name="default-request-channel" type="xsd:string"/>
-			<xsd:attribute name="default-reply-channel" type="xsd:string" use="optional"/>
+			<xsd:attribute name="default-reply-channel" type="xsd:string"/>
 			<xsd:attribute name="default-request-timeout" type="xsd:long"/>
 			<xsd:attribute name="default-reply-timeout" type="xsd:long"/>
 		</xsd:complexType>
@@ -192,8 +192,8 @@
 	<xsd:complexType name="inputOutputEndpointType">
 		<xsd:annotation>
 			<xsd:documentation>
-	Base type for handler endpoint elements that accept Messages from an input-channel
-	and also produce Messages to be sent to an output-channel.
+	Base type for Message Endpoint elements that accept Messages from an input-channel
+	and also may produce reply Messages to be sent to an output-channel.
 			</xsd:documentation>
 		</xsd:annotation>
 		<xsd:complexContent>
@@ -206,7 +206,7 @@
 	<xsd:complexType name="inputEndpointType">
 		<xsd:annotation>
 			<xsd:documentation>
-	Base type for handler endpoint elements that accept Messages from an input-channel.
+	Base type for Message Endpoint elements that accept Messages from an input-channel.
 			</xsd:documentation>
 		</xsd:annotation>
 		<xsd:complexContent>
@@ -214,7 +214,7 @@
 				<xsd:all>
 					<xsd:element ref="poller" minOccurs="0" maxOccurs="1"/>
 				</xsd:all>
-				<xsd:attribute name="input-channel" type="xsd:string" use="required"/>
+				<xsd:attribute name="input-channel" type="xsd:string"/>
 				<xsd:attribute name="ref" type="xsd:string"/>
 				<xsd:attribute name="method" type="xsd:string"/>
 				<xsd:attribute name="selector" type="xsd:string"/>
@@ -290,10 +290,26 @@
 	Defines a MessageSelector chain.
 				</xsd:documentation>
 			</xsd:annotation>
-			<xsd:sequence>
-				<xsd:element ref="selector" minOccurs="1" maxOccurs="unbounded"/>
-			</xsd:sequence>
-			<xsd:attribute name="id" type="xsd:ID" use="required"/>
+			<xsd:choice minOccurs="0" maxOccurs="unbounded">
+				<xsd:element ref="selector"/>
+				<xsd:element ref="selector-chain"/>
+			</xsd:choice>
+			<xsd:attribute name="id" type="xsd:ID"/>
+			<xsd:attribute name="strategy" default="ALL">
+				<xsd:annotation>
+					<xsd:documentation><![CDATA[
+	Enumeration with values that match the MessageSelectorChain.Strategy enum.
+					]]></xsd:documentation>
+				</xsd:annotation>
+				<xsd:simpleType>
+				<xsd:restriction base="xsd:string">
+					<xsd:enumeration value="ALL"/>
+					<xsd:enumeration value="ANY"/>
+					<xsd:enumeration value="AT_LEAST_HALF"/>
+					<xsd:enumeration value="MORE_THAN_HALF"/>
+				</xsd:restriction>
+			</xsd:simpleType>
+			</xsd:attribute>
 		</xsd:complexType>
 	</xsd:element>
 
diff --git a/org.springframework.integration/src/test/java/org/springframework/integration/config/SelectorChainParserTests.java b/org.springframework.integration/src/test/java/org/springframework/integration/config/SelectorChainParserTests.java
index ed42b2e96d..e41cc02e53 100644
--- a/org.springframework.integration/src/test/java/org/springframework/integration/config/SelectorChainParserTests.java
+++ b/org.springframework.integration/src/test/java/org/springframework/integration/config/SelectorChainParserTests.java
@@ -17,6 +17,7 @@
 package org.springframework.integration.config;
 
 import static org.junit.Assert.assertEquals;
+import static org.junit.Assert.assertTrue;
 
 import java.util.List;
 
@@ -24,8 +25,10 @@ import org.junit.Test;
 
 import org.springframework.beans.DirectFieldAccessor;
 import org.springframework.context.support.ClassPathXmlApplicationContext;
+import org.springframework.integration.message.StringMessage;
 import org.springframework.integration.selector.MessageSelector;
 import org.springframework.integration.selector.MessageSelectorChain;
+import org.springframework.integration.selector.MessageSelectorChain.Strategy;
 
 /**
  * @author Mark Fisher
@@ -33,18 +36,65 @@ import org.springframework.integration.selector.MessageSelectorChain;
 public class SelectorChainParserTests {
 
 	@Test
-	@SuppressWarnings("unchecked")
-	public void testSelectorChain() {
+	public void selectorChain() {
 		ClassPathXmlApplicationContext context = new ClassPathXmlApplicationContext(
 				"selectorChainParserTests.xml", this.getClass());
 		MessageSelector selector1 = (MessageSelector) context.getBean("selector1");
 		MessageSelector selector2 = (MessageSelector) context.getBean("selector2");
 		MessageSelectorChain chain = (MessageSelectorChain) context.getBean("selectorChain");
-		DirectFieldAccessor accessor = new DirectFieldAccessor(chain);
-		List<MessageSelector> selectors = (List<MessageSelector>)
-				accessor.getPropertyValue("selectors");
+		List<MessageSelector> selectors = this.getSelectors(chain);
+		assertEquals(Strategy.ALL, this.getStrategy(chain));
 		assertEquals(selector1, selectors.get(0));
 		assertEquals(selector2, selectors.get(1));
+		assertTrue(chain.accept(new StringMessage("test")));
+	}
+
+	@Test
+	public void nestedSelectorChain() {
+		ClassPathXmlApplicationContext context = new ClassPathXmlApplicationContext(
+				"selectorChainParserTests.xml", this.getClass());
+		MessageSelector selector1 = (MessageSelector) context.getBean("selector1");
+		MessageSelector selector2 = (MessageSelector) context.getBean("selector2");
+		MessageSelector selector3 = (MessageSelector) context.getBean("selector3");
+		MessageSelector selector4 = (MessageSelector) context.getBean("selector4");
+		MessageSelector selector5 = (MessageSelector) context.getBean("selector5");
+		MessageSelector selector6 = (MessageSelector) context.getBean("selector6");
+		MessageSelectorChain chain1 = (MessageSelectorChain) context.getBean("nestedSelectorChain");
+		assertEquals(Strategy.MORE_THAN_HALF, this.getStrategy(chain1));
+		List<MessageSelector> selectorList1 = this.getSelectors(chain1);
+		assertEquals(selector1, selectorList1.get(0));
+		assertTrue(selectorList1.get(1) instanceof MessageSelectorChain);
+		MessageSelectorChain chain2 = (MessageSelectorChain) selectorList1.get(1);
+		assertEquals(Strategy.ALL, this.getStrategy(chain2));
+		List<MessageSelector> selectorList2 = this.getSelectors(chain2);
+		assertEquals(selector2, selectorList2.get(0));
+		assertTrue(selectorList2.get(1) instanceof MessageSelectorChain);
+		MessageSelectorChain chain3 = (MessageSelectorChain) selectorList2.get(1);
+		assertEquals(Strategy.ANY, this.getStrategy(chain3));
+		List<MessageSelector> selectorList3 = this.getSelectors(chain3);
+		assertEquals(selector3, selectorList3.get(0));
+		assertEquals(selector4, selectorList3.get(1));
+		assertEquals(selector5, selectorList2.get(2));
+		assertTrue(selectorList1.get(2) instanceof MessageSelectorChain);
+		MessageSelectorChain chain4 = (MessageSelectorChain) selectorList1.get(2);
+		assertEquals(Strategy.AT_LEAST_HALF, this.getStrategy(chain4));
+		List<MessageSelector> selectorList4 = this.getSelectors(chain4);
+		assertEquals(selector6, selectorList4.get(0));
+		assertTrue(chain1.accept(new StringMessage("test1")));
+		assertTrue(chain2.accept(new StringMessage("test2")));
+		assertTrue(chain3.accept(new StringMessage("test3")));
+		assertTrue(chain4.accept(new StringMessage("test4")));
+	}
+
+
+	@SuppressWarnings("unchecked")
+	private List<MessageSelector> getSelectors(MessageSelectorChain chain) {
+		DirectFieldAccessor accessor = new DirectFieldAccessor(chain);
+		return (List<MessageSelector>) accessor.getPropertyValue("selectors");
+	}
+
+	private Strategy getStrategy(MessageSelectorChain chain) {
+		return (Strategy) new DirectFieldAccessor(chain).getPropertyValue("strategy");
 	}
 
 }
diff --git a/org.springframework.integration/src/test/java/org/springframework/integration/config/StubMessageSelector.java b/org.springframework.integration/src/test/java/org/springframework/integration/config/StubMessageSelector.java
index 9d005858da..7aec818886 100644
--- a/org.springframework.integration/src/test/java/org/springframework/integration/config/StubMessageSelector.java
+++ b/org.springframework.integration/src/test/java/org/springframework/integration/config/StubMessageSelector.java
@@ -16,16 +16,28 @@
 
 package org.springframework.integration.config;
 
+import org.springframework.beans.factory.BeanNameAware;
 import org.springframework.integration.message.Message;
 import org.springframework.integration.selector.MessageSelector;
 
 /**
  * @author Mark Fisher
  */
-public class StubMessageSelector implements MessageSelector {
+public class StubMessageSelector implements MessageSelector, BeanNameAware {
+
+	private String beanName;
+
+
+	public void setBeanName(String beanName) {
+		this.beanName = beanName;
+	}
 
 	public boolean accept(Message<?> message) {
 		return true;
 	}
 
+	public String toString() {
+		return this.beanName;
+	}
+
 }
diff --git a/org.springframework.integration/src/test/java/org/springframework/integration/config/selectorChainParserTests.xml b/org.springframework.integration/src/test/java/org/springframework/integration/config/selectorChainParserTests.xml
index 769e40f09c..2fed90c6e9 100644
--- a/org.springframework.integration/src/test/java/org/springframework/integration/config/selectorChainParserTests.xml
+++ b/org.springframework.integration/src/test/java/org/springframework/integration/config/selectorChainParserTests.xml
@@ -12,8 +12,31 @@
 		<selector ref="selector2"/>
 	</selector-chain>
 
+	<selector-chain id="nestedSelectorChain" strategy="MORE_THAN_HALF">
+		<selector ref="selector1"/>
+		<selector-chain strategy="ALL">
+			<selector ref="selector2"/>
+			<selector-chain strategy="ANY">
+				<selector ref="selector3"/>
+				<selector ref="selector4"/>
+			</selector-chain>
+			<selector ref="selector5"/>
+		</selector-chain>
+		<selector-chain strategy="AT_LEAST_HALF">
+			<selector ref="selector6"/>
+		</selector-chain>
+	</selector-chain>
+
 	<beans:bean id="selector1" class="org.springframework.integration.config.StubMessageSelector"/>
 
 	<beans:bean id="selector2" class="org.springframework.integration.config.StubMessageSelector"/>
 
+	<beans:bean id="selector3" class="org.springframework.integration.config.StubMessageSelector"/>
+
+	<beans:bean id="selector4" class="org.springframework.integration.config.StubMessageSelector"/>
+
+	<beans:bean id="selector5" class="org.springframework.integration.config.StubMessageSelector"/>
+
+	<beans:bean id="selector6" class="org.springframework.integration.config.StubMessageSelector"/>
+
 </beans:beans>