diff --git a/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/config/MappingMongoConverterParser.java b/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/config/MappingMongoConverterParser.java
index b5de837fd..44ab72c95 100644
--- a/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/config/MappingMongoConverterParser.java
+++ b/spring-data-mongodb/src/main/java/org/springframework/data/mongodb/config/MappingMongoConverterParser.java
@@ -72,6 +72,7 @@ import org.w3c.dom.Element;
  * @author Oliver Gierke
  * @author Maciej Walkowiak
  * @author Thomas Darimont
+ * @author Christoph Strobl
  */
 public class MappingMongoConverterParser implements BeanDefinitionParser {
 
@@ -84,8 +85,11 @@ public class MappingMongoConverterParser implements BeanDefinitionParser {
 	 */
 	public BeanDefinition parse(Element element, ParserContext parserContext) {
 
-		BeanDefinitionRegistry registry = parserContext.getRegistry();
+		if (parserContext.isNested()) {
+			parserContext.getReaderContext().error("Mongo Converter must not be defined as nested bean.", element);
+		}
 
+		BeanDefinitionRegistry registry = parserContext.getRegistry();
 		String id = element.getAttribute(AbstractBeanDefinitionParser.ID_ATTRIBUTE);
 		id = StringUtils.hasText(id) ? id : DEFAULT_CONVERTER_BEAN_NAME;
 
diff --git a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/config/MappingMongoConverterParserIntegrationTests.java b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/config/MappingMongoConverterParserIntegrationTests.java
index 793117688..bdf7c54f6 100644
--- a/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/config/MappingMongoConverterParserIntegrationTests.java
+++ b/spring-data-mongodb/src/test/java/org/springframework/data/mongodb/config/MappingMongoConverterParserIntegrationTests.java
@@ -21,7 +21,6 @@ import static org.junit.Assert.*;
 import java.util.Collections;
 import java.util.Set;
 
-import org.junit.Before;
 import org.junit.Rule;
 import org.junit.Test;
 import org.junit.rules.ExpectedException;
@@ -49,18 +48,13 @@ import com.mongodb.DBObject;
  * 
  * @author Oliver Gierke
  * @author Thomas Darimont
+ * @author Christoph Strobl
  */
 public class MappingMongoConverterParserIntegrationTests {
 
-	DefaultListableBeanFactory factory;
-	public @Rule ExpectedException exception = ExpectedException.none();
+	@Rule public ExpectedException exception = ExpectedException.none();
 
-	@Before
-	public void setUp() {
-		factory = new DefaultListableBeanFactory();
-		XmlBeanDefinitionReader reader = new XmlBeanDefinitionReader(factory);
-		reader.loadBeanDefinitions(new ClassPathResource("namespace/converter.xml"));
-	}
+	DefaultListableBeanFactory factory;
 
 	/**
 	 * @see DATAMONGO-243
@@ -68,6 +62,7 @@ public class MappingMongoConverterParserIntegrationTests {
 	@Test
 	public void allowsDbFactoryRefAttribute() {
 
+		loadValidConfiguration();
 		factory.getBeanDefinition("converter");
 		factory.getBean("converter");
 	}
@@ -78,6 +73,7 @@ public class MappingMongoConverterParserIntegrationTests {
 	@Test
 	public void hasCustomTypeMapper() {
 
+		loadValidConfiguration();
 		MappingMongoConverter converter = factory.getBean("converter", MappingMongoConverter.class);
 		MongoTypeMapper customMongoTypeMapper = factory.getBean(CustomMongoTypeMapper.class);
 
@@ -90,6 +86,7 @@ public class MappingMongoConverterParserIntegrationTests {
 	@Test
 	public void scansForConverterAndSetsUpCustomConversionsAccordingly() {
 
+		loadValidConfiguration();
 		CustomConversions conversions = factory.getBean(CustomConversions.class);
 		assertThat(conversions.hasCustomWriteTarget(Person.class), is(true));
 		assertThat(conversions.hasCustomWriteTarget(Account.class), is(true));
@@ -101,6 +98,7 @@ public class MappingMongoConverterParserIntegrationTests {
 	@Test
 	public void activatesAbbreviatingPropertiesCorrectly() {
 
+		loadValidConfiguration();
 		BeanDefinition definition = factory.getBeanDefinition("abbreviatingConverter.mongoMappingContext");
 		Object value = definition.getPropertyValues().getPropertyValue("fieldNamingStrategy").getValue();
 
@@ -124,6 +122,32 @@ public class MappingMongoConverterParserIntegrationTests {
 		reader.loadBeanDefinitions(new ClassPathResource("namespace/converter-invalid.xml"));
 	}
 
+	/**
+	 * @see DATAMONGO-892
+	 */
+	@Test
+	public void shouldThrowBeanDefinitionParsingExceptionIfConverterDefinedAsNestedBean() {
+
+		exception.expect(BeanDefinitionParsingException.class);
+		exception.expectMessage("Mongo Converter must not be defined as nested bean.");
+
+		loadNestedBeanConfiguration();
+	}
+
+	private void loadValidConfiguration() {
+		this.loadConfiguration("namespace/converter.xml");
+	}
+
+	private void loadNestedBeanConfiguration() {
+		this.loadConfiguration("namespace/converter-nested-bean-definition.xml");
+	}
+
+	private void loadConfiguration(String configLocation) {
+		factory = new DefaultListableBeanFactory();
+		XmlBeanDefinitionReader reader = new XmlBeanDefinitionReader(factory);
+		reader.loadBeanDefinitions(new ClassPathResource(configLocation));
+	}
+
 	@Component
 	public static class SampleConverter implements Converter<Person, DBObject> {
 		public DBObject convert(Person source) {
diff --git a/spring-data-mongodb/src/test/resources/namespace/converter-nested-bean-definition.xml b/spring-data-mongodb/src/test/resources/namespace/converter-nested-bean-definition.xml
new file mode 100644
index 000000000..1ef0063ab
--- /dev/null
+++ b/spring-data-mongodb/src/test/resources/namespace/converter-nested-bean-definition.xml
@@ -0,0 +1,16 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<beans xmlns="http://www.springframework.org/schema/beans"
+	xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+	xmlns:mongo="http://www.springframework.org/schema/data/mongo"
+	xsi:schemaLocation="http://www.springframework.org/schema/data/mongo http://www.springframework.org/schema/data/mongo/spring-mongo.xsd
+		http://www.springframework.org/schema/beans http://www.springframework.org/schema/beans/spring-beans.xsd">
+	
+	<mongo:db-factory id="factory" />
+	
+	<bean class="org.springframework.data.mongodb.core.MongoTemplate">
+		<constructor-arg>
+			<mongo:mapping-converter />
+		</constructor-arg>
+	</bean>
+	
+</beans>