diff --git a/src/main/java/tools/jackson/dataformat/xml/deser/XmlTextDeserializer.java b/src/main/java/tools/jackson/dataformat/xml/deser/XmlTextDeserializer.java
index ed0cbced0..3e056c697 100644
--- a/src/main/java/tools/jackson/dataformat/xml/deser/XmlTextDeserializer.java
+++ b/src/main/java/tools/jackson/dataformat/xml/deser/XmlTextDeserializer.java
@@ -4,6 +4,7 @@
 import tools.jackson.databind.*;
 import tools.jackson.databind.deser.*;
 import tools.jackson.databind.deser.bean.BeanDeserializerBase;
+import tools.jackson.databind.deser.bean.BuilderBasedDeserializer;
 import tools.jackson.databind.deser.std.DelegatingDeserializer;
 import tools.jackson.databind.jsontype.TypeDeserializer;
 import tools.jackson.databind.util.TokenBuffer;
@@ -33,6 +34,12 @@ public class XmlTextDeserializer
 
     protected final ValueInstantiator _valueInstantiator;
 
+    /**
+     * A flag indicating the ValueInstantiator.createUsingDefault()
+     * will return an instance (and specifically not a builder)
+     */
+    protected final boolean _canCreateUsingDefault;
+
     /*
     /**********************************************************************
     /* Construction
@@ -51,6 +58,8 @@ public XmlTextDeserializer(BeanDeserializerBase delegate, SettableBeanProperty p
         _xmlTextProperty = prop;
         _xmlTextPropertyIndex = prop.getPropertyIndex();
         _valueInstantiator = delegate.getValueInstantiator();
+        _canCreateUsingDefault = _valueInstantiator.canCreateUsingDefault() &&
+                                     !(delegate instanceof BuilderBasedDeserializer);
     }
 
     /**
@@ -65,6 +74,8 @@ public XmlTextDeserializer(BeanDeserializerBase delegate, int textPropIndex)
         _xmlTextPropertyIndex = textPropIndex;
         _valueInstantiator = delegate.getValueInstantiator();
         _xmlTextProperty = delegate.findProperty(textPropIndex);
+        _canCreateUsingDefault = _valueInstantiator.canCreateUsingDefault() &&
+                                     !(delegate instanceof BuilderBasedDeserializer);
     }
 
     /**
@@ -82,6 +93,8 @@ public XmlTextDeserializer(ValueDeserializer<?> delegate,
         _xmlTextPropertyIndex = textPropIndex;
         _valueInstantiator = inner.getValueInstantiator();
         _xmlTextProperty = inner.findProperty(textPropIndex);
+        _canCreateUsingDefault = _valueInstantiator.canCreateUsingDefault() &&
+                                     !(inner instanceof BuilderBasedDeserializer);
     }
     
     /*
@@ -122,7 +135,7 @@ public Object deserialize(JsonParser p, DeserializationContext ctxt)
         throws JacksonException
     {
         if (p.currentToken() == JsonToken.VALUE_STRING) {
-            if (_valueInstantiator.canCreateUsingDefault()) {
+            if (_canCreateUsingDefault) {
                 Object bean = _valueInstantiator.createUsingDefault(ctxt);
                 _xmlTextProperty.deserializeAndSet(p, ctxt, bean);
                 return bean;
diff --git a/src/test/java/tools/jackson/dataformat/xml/deser/builder/BuilderWithTextValueTest.java b/src/test/java/tools/jackson/dataformat/xml/deser/builder/BuilderWithTextValueTest.java
new file mode 100644
index 000000000..cffeb3158
--- /dev/null
+++ b/src/test/java/tools/jackson/dataformat/xml/deser/builder/BuilderWithTextValueTest.java
@@ -0,0 +1,104 @@
+package tools.jackson.dataformat.xml.deser.builder;
+
+
+import org.junit.jupiter.api.Test;
+
+
+import tools.jackson.databind.annotation.JsonDeserialize;
+import tools.jackson.databind.annotation.JsonPOJOBuilder;
+
+import tools.jackson.dataformat.xml.XmlMapper;
+import tools.jackson.dataformat.xml.XmlTestUtil;
+import tools.jackson.dataformat.xml.annotation.*;
+
+import static org.junit.jupiter.api.Assertions.*;
+
+public class BuilderWithTextValueTest extends XmlTestUtil
+{
+    @JsonDeserialize(builder = Outer.OuterBuilder.class)
+    public static class Outer {
+
+        final Inner inner;
+
+        final String title;
+
+        private Outer(Inner inner, String title) {
+            this.inner = inner;
+            this.title = title;
+        }
+
+        public static OuterBuilder builder() {
+            return new OuterBuilder();
+        }
+
+        @JsonPOJOBuilder(withPrefix = "")
+        public static class OuterBuilder {
+            private Inner inner;
+            private String title;
+
+            @JacksonXmlProperty(localName = "Inner")
+            public OuterBuilder inner(Inner inner) {
+                this.inner = inner;
+                return this;
+            }
+
+            @JacksonXmlProperty(localName = "Title")
+            public OuterBuilder title(String title) {
+                this.title = title;
+                return this;
+            }
+
+            public Outer build() {
+                return new Outer(inner, title);
+            }
+        }
+    }
+
+    @JsonDeserialize(builder = Inner.InnerBuilder.class)
+    public static class Inner {
+
+        final String value;
+
+        final String title;
+
+        private Inner(String value, String title) {
+            this.value = value;
+            this.title = title;
+        }
+
+        public static InnerBuilder builder() {
+            return new InnerBuilder();
+        }
+
+        @JsonPOJOBuilder(withPrefix = "")
+        public static class InnerBuilder {
+            private String value;
+            private String title;
+
+            @JacksonXmlText
+            public InnerBuilder value(String value) {
+                this.value = value;
+                return this;
+            }
+
+            @JacksonXmlProperty(isAttribute = true)
+            public InnerBuilder title(String title) {
+                this.title = title;
+                return this;
+            }
+
+            public Inner build() {
+                return new Inner(value, title);
+            }
+        }
+    }
+
+    @Test
+    public void testNestedBuilderWithTextValue() throws Exception
+    {
+        XmlMapper mapper = XmlMapper.builder().build();
+        final String XML = "<Outer><Inner>Value</Inner></Outer>";
+        Outer outer = mapper.readValue(XML, Outer.class);
+        assertEquals("Value", outer.inner.value);
+    }
+}