diff --git a/src/test/java/com/networknt/schema/Issue1260Test.java b/src/test/java/com/networknt/schema/Issue1260Test.java
new file mode 100644
index 000000000..e8092b5c8
--- /dev/null
+++ b/src/test/java/com/networknt/schema/Issue1260Test.java
@@ -0,0 +1,41 @@
+package com.networknt.schema;
+
+import static org.junit.jupiter.api.Assertions.assertFalse;
+import static org.junit.jupiter.api.Assertions.assertTrue;
+
+import java.io.IOException;
+
+import org.junit.jupiter.api.BeforeAll;
+import org.junit.jupiter.params.ParameterizedTest;
+import org.junit.jupiter.params.provider.ValueSource;
+
+class Issue1260Test extends BaseJsonSchemaValidatorTest {
+
+    private static final String RESOURCE_PREFIX = "issues/1260/";
+    private static Schema schema;
+
+    @BeforeAll
+    static void setup() {
+        schema = getJsonSchemaFromClasspath(resource("schema.json"), SpecificationVersion.DRAFT_2020_12);
+    }
+
+    @ParameterizedTest
+    @ValueSource(strings = {"valid1.json", "valid2.json", "valid3.json"})
+    void testNoErrorsForValidInput(String validJson) throws IOException {
+        final var node = getJsonNodeFromClasspath(resource(validJson));
+        final var errors = schema.validate(node);
+        assertTrue(errors.isEmpty(), "No validation errors for valid input");
+    }
+
+    @ParameterizedTest
+    @ValueSource(strings = {"invalid1.json", "invalid2.json", "invalid3.json"})
+    void testErrorsForInvalidInput(String invalidJson) throws IOException {
+        final var node = getJsonNodeFromClasspath(resource(invalidJson));
+        final var errors = schema.validate(node);
+        assertFalse(errors.isEmpty(), "Validation errors for invalid input");
+    }
+
+    private static String resource(String name) {
+        return RESOURCE_PREFIX + name;
+    }
+}
diff --git a/src/test/resources/issues/1260/invalid1.json b/src/test/resources/issues/1260/invalid1.json
new file mode 100644
index 000000000..cba0249cb
--- /dev/null
+++ b/src/test/resources/issues/1260/invalid1.json
@@ -0,0 +1,16 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "questions": null
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/invalid2.json b/src/test/resources/issues/1260/invalid2.json
new file mode 100644
index 000000000..a50971e34
--- /dev/null
+++ b/src/test/resources/issues/1260/invalid2.json
@@ -0,0 +1,21 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "onDemandAssessmentExpirationDays": 180,
+          "questions": {
+            "assessmentDate": {
+              "type": "date"
+            }
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/invalid3.json b/src/test/resources/issues/1260/invalid3.json
new file mode 100644
index 000000000..a1751f434
--- /dev/null
+++ b/src/test/resources/issues/1260/invalid3.json
@@ -0,0 +1,21 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "onDemandAssessmentExpirationDays": 180,
+          "questions": {
+            "expirationDate": {
+              "type": "date"
+            }
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/schema.json b/src/test/resources/issues/1260/schema.json
new file mode 100644
index 000000000..8f26c5959
--- /dev/null
+++ b/src/test/resources/issues/1260/schema.json
@@ -0,0 +1,172 @@
+{
+  "$schema": "https://json-schema.org/draft/2020-12/schema",
+  "$defs": {
+    "labeledField": {
+      "type": "object",
+      "properties": {
+        "label": {
+          "type": "string"
+        }
+      }
+    },
+    "question": {
+      "type": "object",
+      "unevaluatedProperties": false,
+      "required": [
+        "type"
+      ],
+      "properties": {
+        "type": {
+          "type": "string",
+          "enum": [
+            "date"
+          ]
+        }
+      }
+    },
+    "questions": {
+      "type": "object",
+      "additionalProperties": {
+        "$ref": "#/$defs/question"
+      }
+    },
+    "assessmentDef": {
+      "type": "object",
+      "unevaluatedProperties": false,
+      "required": [
+        "recurrence"
+      ],
+      "properties": {
+        "recurrence": {
+          "type": "string",
+          "enum": [
+            "once",
+            "monthly",
+            "ondemand"
+          ],
+          "default": "once"
+        },
+        "relatedObjectType": {
+          "type": "string",
+          "enum": [
+            "otherEntity"
+          ]
+        },
+        "onDemandAssessmentExpirationDays": {
+          "type": "integer",
+          "minimum": 1
+        },
+        "label": {
+          "type": "string"
+        },
+        "questions": {
+          "$ref": "#/$defs/questions"
+        }
+      },
+      "dependentSchemas": {
+        "recurrence": {
+          "oneOf": [
+            {
+              "properties": {
+                "recurrence": {
+                  "enum": [
+                    "monthly"
+                  ]
+                }
+              }
+            },
+            {
+              "properties": {
+                "recurrence": {
+                  "enum": [
+                    "once"
+                  ]
+                }
+              },
+              "required": [
+                "relatedObjectType"
+              ]
+            },
+            {
+              "properties": {
+                "recurrence": {
+                  "enum": [
+                    "ondemand"
+                  ]
+                },
+                "questions": {
+                  "properties": {
+                    "allOf": [
+                      {
+                        "$ref": "#/$defs/questions"
+                      },
+                      {
+                        "assessmentDate": "#/$defs/question"
+                      },
+                      {
+                        "expirationDate": "#/$defs/question"
+                      }
+                    ]
+                  },
+                  "required": [
+                    "assessmentDate"
+                  ]
+                }
+              }
+            }
+          ]
+        },
+        "onDemandAssessmentExpirationDays": {
+          "oneOf": [
+            {
+              "properties": {
+                "questions": {
+                  "properties": {
+                    "expirationDate": "#/$defs/question"
+                  },
+                  "required": [
+                    "expirationDate"
+                  ]
+                }
+              }
+            }
+          ]
+        }
+      }
+    }
+  },
+  "type": "object",
+  "additionalProperties": false,
+  "required": [
+    "fields"
+  ],
+  "properties": {
+    "fields": {
+      "type": "object",
+      "additionalProperties": false,
+      "required": [
+        "entity"
+      ],
+      "properties": {
+        "entity": {
+          "type": "object",
+          "additionalProperties": false,
+          "required": [
+            "status"
+          ],
+          "properties": {
+            "status": {
+              "$ref": "#/$defs/labeledField"
+            },
+            "assessments": {
+              "type": "object",
+              "additionalProperties": {
+                "$ref": "#/$defs/assessmentDef"
+              }
+            }
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/valid1.json b/src/test/resources/issues/1260/valid1.json
new file mode 100644
index 000000000..53d53d040
--- /dev/null
+++ b/src/test/resources/issues/1260/valid1.json
@@ -0,0 +1,20 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "questions": {
+            "assessmentDate": {
+              "type": "date"
+            }
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/valid2.json b/src/test/resources/issues/1260/valid2.json
new file mode 100644
index 000000000..6aad96763
--- /dev/null
+++ b/src/test/resources/issues/1260/valid2.json
@@ -0,0 +1,23 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "questions": {
+            "assessmentDate": {
+              "type": "date"
+            },
+            "expirationDate": {
+              "type": "date"
+            }
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/src/test/resources/issues/1260/valid3.json b/src/test/resources/issues/1260/valid3.json
new file mode 100644
index 000000000..a200ccfe3
--- /dev/null
+++ b/src/test/resources/issues/1260/valid3.json
@@ -0,0 +1,24 @@
+{
+  "fields": {
+    "entity": {
+      "status": {
+        "label": "Status"
+      },
+      "assessments": {
+        "entityOndemand": {
+          "label": "Ondemand assessment of entity",
+          "recurrence": "ondemand",
+          "onDemandAssessmentExpirationDays": 180,
+          "questions": {
+            "assessmentDate": {
+              "type": "date"
+            },
+            "expirationDate": {
+              "type": "date"
+            }
+          }
+        }
+      }
+    }
+  }
+}