diff --git a/zio-json/shared/src/main/scala-3/zio/json/macros.scala b/zio-json/shared/src/main/scala-3/zio/json/macros.scala
index 1c9c91a16..05098ca73 100644
--- a/zio-json/shared/src/main/scala-3/zio/json/macros.scala
+++ b/zio-json/shared/src/main/scala-3/zio/json/macros.scala
@@ -397,7 +397,10 @@ object DeriveJsonDecoder extends Derivation[JsonDecoder] { self =>
     lazy val namesMap: Map[String, Int] =
       names.zipWithIndex.toMap
 
-    def isEnumeration = ctx.subtypes.forall(_.typeclass.isInstanceOf[CaseObjectDecoder[?, ?]])
+    def isEnumeration = 
+      (ctx.isEnum && ctx.subtypes.forall(_.typeclass.isInstanceOf[CaseObjectDecoder[?, ?]])) || (
+        !ctx.isEnum && ctx.subtypes.forall(_.isObject)
+      )
 
     def discrim = ctx.annotations.collectFirst { case jsonDiscriminator(n) => n }
 
@@ -632,7 +635,10 @@ object DeriveJsonEncoder extends Derivation[JsonEncoder] { self =>
     }
 
   def split[A](ctx: SealedTrait[JsonEncoder, A]): JsonEncoder[A] = {
-    val isEnumeration = ctx.subtypes.forall(_.typeclass == caseObjectEncoder)
+    val isEnumeration = 
+      (ctx.isEnum && ctx.subtypes.forall(_.typeclass == caseObjectEncoder)) || (
+        !ctx.isEnum && ctx.subtypes.forall(_.isObject)
+      )
 
     val jsonHintFormat: JsonMemberFormat =
       ctx.annotations.collectFirst { case jsonHintNames(format) => format }.getOrElse(IdentityFormat)