diff --git a/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptDeserializerTest.java b/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptDeserializerTest.java
index b77a0cc1d..e2aafc97d 100644
--- a/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptDeserializerTest.java
+++ b/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptDeserializerTest.java
@@ -49,4 +49,16 @@ void testDeserialize() throws IOException {
         System.out.println(JsonFactory.toPrettyString(archetypeJson));
         assertThat(jsonDiff(archetypeJson, readJson(expected)), is(EMPTY_JSON_ARRAY));
     }
+
+    @Test
+    void testDeserializeCondition() throws IOException {
+        Path targetDir = targetDir(this.getClass());
+        Path jsonFile = targetDir.resolve("test-classes/deserializer/script1.json");
+        Path expected = targetDir.resolve("test-classes/expected/deserializer.json");
+        Script script = ScriptDeserializer.deserialize(Files.newInputStream(jsonFile));
+
+        JsonObject archetypeJson = ScriptSerializer.serialize(script);
+        System.out.println(JsonFactory.toPrettyString(archetypeJson));
+        assertThat(jsonDiff(archetypeJson, readJson(expected)), is(EMPTY_JSON_ARRAY));
+    }
 }
diff --git a/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptSerializerTest.java b/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptSerializerTest.java
index f9c3f4064..234ba2be8 100644
--- a/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptSerializerTest.java
+++ b/archetype/engine-v2-json/src/test/java/io/helidon/build/archetype/v2/json/ScriptSerializerTest.java
@@ -100,6 +100,18 @@ void testInlined4() throws IOException {
         assertThat(jsonDiff(archetypeJson, readJson(expected)), is(EMPTY_JSON_ARRAY));
     }
 
+    @Test
+    void testInlined5() throws IOException {
+        Path targetDir = targetDir(this.getClass());
+        Path sourceDir = targetDir.resolve("test-classes/inlined5");
+        Path expected = targetDir.resolve("test-classes/expected/inlined5.json");
+        FileSystem fs = VirtualFileSystem.create(sourceDir);
+
+        JsonObject archetypeJson = ScriptSerializer.serialize(fs);
+        System.out.println(JsonFactory.toPrettyString(archetypeJson));
+        assertThat(jsonDiff(archetypeJson, readJson(expected)), is(EMPTY_JSON_ARRAY));
+    }
+
     @Test
     void testEmptyMethodNotCompiled() throws IOException {
         Path targetDir = targetDir(this.getClass());
diff --git a/archetype/engine-v2-json/src/test/resources/deserializer/script1.json b/archetype/engine-v2-json/src/test/resources/deserializer/script1.json
new file mode 100644
index 000000000..9c3204927
--- /dev/null
+++ b/archetype/engine-v2-json/src/test/resources/deserializer/script1.json
@@ -0,0 +1,84 @@
+{
+  "expressions": {
+    "1": [
+      {
+        "kind": "variable",
+        "value": "foo"
+      }
+    ],
+    "2": [
+      {
+        "kind": "variable",
+        "value": "bar2"
+      }
+    ],
+    "3": [
+      {
+        "kind": "variable",
+        "value": "bar3"
+      }
+    ]
+  },
+  "methods": {
+  },
+  "children": [
+    {
+      "kind": "variables",
+      "children": [
+        {
+          "kind": "boolean",
+          "path": "foo",
+          "value": true
+        },
+        {
+          "kind": "boolean",
+          "path": "bar2",
+          "value": true
+        },
+        {
+          "kind": "boolean",
+          "path": "bar3",
+          "value": true
+        }
+      ]
+    },
+    {
+      "kind": "step",
+      "name": "Step2",
+      "id": "1",
+      "if": "2",
+      "children": [
+        {
+          "kind": "inputs",
+          "children": [
+            {
+              "kind": "boolean",
+              "name": "Boolean2",
+              "id": "boolean2",
+              "default": false
+            }
+          ]
+        }
+      ]
+    },
+    {
+      "kind": "step",
+      "name": "Step3",
+      "id": "2",
+      "if": "3",
+      "children": [
+        {
+          "kind": "inputs",
+          "children": [
+            {
+              "kind": "boolean",
+              "name": "Boolean3",
+              "id": "boolean3",
+              "default": false
+            }
+          ]
+        }
+      ]
+    }
+  ]
+}
diff --git a/archetype/engine-v2-json/src/test/resources/expected/inlined5.json b/archetype/engine-v2-json/src/test/resources/expected/inlined5.json
new file mode 100644
index 000000000..e69de29bb
diff --git a/archetype/engine-v2-json/src/test/resources/inlined5/main.xml b/archetype/engine-v2-json/src/test/resources/inlined5/main.xml
new file mode 100644
index 000000000..859f66a9b
--- /dev/null
+++ b/archetype/engine-v2-json/src/test/resources/inlined5/main.xml
@@ -0,0 +1,29 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <variables>
+        <boolean path="foo">true</boolean>
+        <boolean path="bar2">true</boolean>
+        <boolean path="bar3">true</boolean>
+    </variables>
+    <exec src="script1.xml" if="${foo}"/>
+</archetype-script>
diff --git a/archetype/engine-v2-json/src/test/resources/inlined5/script1.xml b/archetype/engine-v2-json/src/test/resources/inlined5/script1.xml
new file mode 100644
index 000000000..60b21e0ca
--- /dev/null
+++ b/archetype/engine-v2-json/src/test/resources/inlined5/script1.xml
@@ -0,0 +1,25 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2022 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <exec src="script2.xml" if="${bar2}"/>
+    <exec src="script3.xml" if="${bar3}"/>
+</archetype-script>
diff --git a/archetype/engine-v2-json/src/test/resources/inlined5/script2.xml b/archetype/engine-v2-json/src/test/resources/inlined5/script2.xml
new file mode 100644
index 000000000..a5dcb0dd8
--- /dev/null
+++ b/archetype/engine-v2-json/src/test/resources/inlined5/script2.xml
@@ -0,0 +1,27 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+    <step name="Step2">
+        <inputs>
+            <boolean id="boolean2" name="Boolean2"/>
+        </inputs>
+    </step>
+</archetype-script>
diff --git a/archetype/engine-v2-json/src/test/resources/inlined5/script3.xml b/archetype/engine-v2-json/src/test/resources/inlined5/script3.xml
new file mode 100644
index 000000000..f5dfc7f1e
--- /dev/null
+++ b/archetype/engine-v2-json/src/test/resources/inlined5/script3.xml
@@ -0,0 +1,28 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <step name="Step3">
+        <inputs>
+            <boolean id="boolean3" name="Boolean3"/>
+        </inputs>
+    </step>
+</archetype-script>
diff --git a/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/ast/Condition.java b/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/ast/Condition.java
index 0b789801a..47d7c6704 100644
--- a/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/ast/Condition.java
+++ b/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/ast/Condition.java
@@ -158,6 +158,10 @@ public Builder then(Node.Builder<? extends Node, ?> then) {
             return this;
         }
 
+        public boolean isThenNull() {
+            return then == null;
+        }
+
         @Override
         protected Condition doBuild() {
             return new Condition(this);
diff --git a/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/util/ClientCompiler.java b/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/util/ClientCompiler.java
index aaf8e775f..edbfefda0 100644
--- a/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/util/ClientCompiler.java
+++ b/archetype/engine-v2/src/main/java/io/helidon/build/archetype/engine/v2/util/ClientCompiler.java
@@ -150,6 +150,7 @@ public Node.VisitResult visitBlock(Block block, Script script) {
     @Override
     public Node.VisitResult postVisitBlock(Block block, Script arg) {
         Node.Builder<?, ?> builder = stack.pop();
+        Node.Builder<?, ?> parentBuilder = stack.peek();
         if (builder.children().isEmpty()) {
             // skip certain blocks without children
             switch (block.kind()) {
@@ -159,7 +160,6 @@ public Node.VisitResult postVisitBlock(Block block, Script arg) {
                 case VARIABLES:
                 case INVOKE:
                 case INVOKE_DIR:
-                    Node.Builder<?, ?> parentBuilder = stack.peek();
                     if (parentBuilder != null) {
                         parentBuilder.nestedBuilders().remove(builder);
                     }
@@ -167,6 +167,13 @@ public Node.VisitResult postVisitBlock(Block block, Script arg) {
                 default:
             }
         }
+
+        if (builder instanceof Condition.Builder) {
+            if (((Condition.Builder) builder).isThenNull() && parentBuilder != null) {
+                parentBuilder.nestedBuilders().remove(builder);
+                return Node.VisitResult.CONTINUE;
+            }
+        }
         builder.build();
         return Node.VisitResult.CONTINUE;
     }
diff --git a/archetype/engine-v2/src/test/java/io/helidon/build/archetype/engine/v2/util/ClientCompilerTest.java b/archetype/engine-v2/src/test/java/io/helidon/build/archetype/engine/v2/util/ClientCompilerTest.java
index f498b9a86..2f6231b9c 100644
--- a/archetype/engine-v2/src/test/java/io/helidon/build/archetype/engine/v2/util/ClientCompilerTest.java
+++ b/archetype/engine-v2/src/test/java/io/helidon/build/archetype/engine/v2/util/ClientCompilerTest.java
@@ -546,6 +546,39 @@ public VisitResult visitAny(Input input, Void arg) {
         assertThat(index[0], is(17));
     }
 
+    @Test
+    void testInlined5() {
+        Script script = load("compiler/inlined5/main.xml");
+        Script compiledScript = ClientCompiler.compile(script, false);
+        int[] index = new int[]{0};
+        walk(new Node.Visitor<>() {
+            @Override
+            public VisitResult visitBlock(Block block, Void arg) {
+                return block.accept(new Block.Visitor<>() {
+
+                    @Override
+                    public VisitResult visitInput(Input input, Void arg) {
+                        return input.accept(new Input.Visitor<>() {
+
+                            @Override
+                            public VisitResult visitBoolean(Input.Boolean input, Void arg) {
+                                ++index[0];
+                                return VisitResult.CONTINUE;
+                            }
+
+                            @Override
+                            public VisitResult visitAny(Input input, Void arg) {
+                                fail(String.format("Unexpected input: %s, index=%d", block, index[0]));
+                                return VisitResult.CONTINUE;
+                            }
+                        }, arg);
+                    }
+                }, arg);
+            }
+        }, compiledScript);
+        //assertThat(index[0], is(17));
+    }
+
     @Test
     void testDeclarations() {
         Script script = load("compiler/declarations/main.xml");
diff --git a/archetype/engine-v2/src/test/resources/compiler/inlined5/main.xml b/archetype/engine-v2/src/test/resources/compiler/inlined5/main.xml
new file mode 100644
index 000000000..ace7f2879
--- /dev/null
+++ b/archetype/engine-v2/src/test/resources/compiler/inlined5/main.xml
@@ -0,0 +1,24 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <exec src="script1.xml" if="${foo}"/>
+</archetype-script>
diff --git a/archetype/engine-v2/src/test/resources/compiler/inlined5/script1.xml b/archetype/engine-v2/src/test/resources/compiler/inlined5/script1.xml
new file mode 100644
index 000000000..60b21e0ca
--- /dev/null
+++ b/archetype/engine-v2/src/test/resources/compiler/inlined5/script1.xml
@@ -0,0 +1,25 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2022 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <exec src="script2.xml" if="${bar2}"/>
+    <exec src="script3.xml" if="${bar3}"/>
+</archetype-script>
diff --git a/archetype/engine-v2/src/test/resources/compiler/inlined5/script2.xml b/archetype/engine-v2/src/test/resources/compiler/inlined5/script2.xml
new file mode 100644
index 000000000..f5026956a
--- /dev/null
+++ b/archetype/engine-v2/src/test/resources/compiler/inlined5/script2.xml
@@ -0,0 +1,26 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <inputs>
+        <boolean id="boolean2" name="Boolean2"/>
+    </inputs>
+</archetype-script>
diff --git a/archetype/engine-v2/src/test/resources/compiler/inlined5/script3.xml b/archetype/engine-v2/src/test/resources/compiler/inlined5/script3.xml
new file mode 100644
index 000000000..a3051cadb
--- /dev/null
+++ b/archetype/engine-v2/src/test/resources/compiler/inlined5/script3.xml
@@ -0,0 +1,26 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Copyright (c) 2024 Oracle and/or its affiliates.
+
+    Licensed under the Apache License, Version 2.0 (the "License");
+    you may not use this file except in compliance with the License.
+    You may obtain a copy of the License at
+
+        http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing, software
+    distributed under the License is distributed on an "AS IS" BASIS,
+    WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+    See the License for the specific language governing permissions and
+    limitations under the License.
+
+-->
+<archetype-script xmlns="https://helidon.io/archetype/2.0"
+                  xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                  xsi:schemaLocation="https://helidon.io/archetype/2.0 file:/archetype.xsd">
+
+    <inputs>
+        <boolean id="boolean3" name="Boolean3"/>
+    </inputs>
+</archetype-script>