Index: test/associations_cascaded_eager_loading_test.rb
===================================================================
--- test/associations_cascaded_eager_loading_test.rb	(revision 4757)
+++ test/associations_cascaded_eager_loading_test.rb	(working copy)
@@ -103,4 +103,9 @@
       authors.first.posts.first.special_comments.first.post.very_special_comment
     end
   end
+  
+  def test_eager_association_loading_with_recursive_cascaded_three_levels
+    root_node = RecursivelyCascadedTreeMixin.find(:first, :include=>{:children=>{:children=>:children}}, :order => 'mixins.id')
+    assert_equal mixins(:recursively_cascaded_tree_4), assert_no_queries { root_node.children.first.children.first.children.first }
+  end
 end
Index: test/fixtures/mixin.rb
===================================================================
--- test/fixtures/mixin.rb	(revision 4757)
+++ test/fixtures/mixin.rb	(working copy)
@@ -10,6 +10,10 @@
     acts_as_tree :foreign_key => "parent_id"
 end
 
+class RecursivelyCascadedTreeMixin < Mixin
+  acts_as_tree :foreign_key => "parent_id"
+end
+
 class ListMixin < Mixin
   acts_as_list :column => "pos", :scope => :parent
 
Index: test/fixtures/mixins.yml
===================================================================
--- test/fixtures/mixins.yml	(revision 4757)
+++ test/fixtures/mixins.yml	(working copy)
@@ -39,6 +39,26 @@
   type: TreeMixinWithoutOrder
   parent_id:
 
+recursively_cascaded_tree_1:
+  id: 5005
+  type: RecursivelyCascadedTreeMixin
+  parent_id:
+
+recursively_cascaded_tree_2:
+  id: 5006
+  type: RecursivelyCascadedTreeMixin
+  parent_id: 5005
+
+recursively_cascaded_tree_3:
+  id: 5007
+  type: RecursivelyCascadedTreeMixin
+  parent_id: 5006
+
+recursively_cascaded_tree_4:
+  id: 5008
+  type: RecursivelyCascadedTreeMixin
+  parent_id: 5007
+
 # List mixins
 
 <% (1..4).each do |counter| %>  
Index: lib/active_record/associations.rb
===================================================================
--- lib/active_record/associations.rb	(revision 4757)
+++ lib/active_record/associations.rb	(working copy)
@@ -1393,11 +1393,13 @@
               
               unless join_dependency.table_aliases[aliased_table_name].zero?
                 # if the table name has been used, then use an alias
-                @aliased_table_name = active_record.connection.table_alias_for "#{pluralize(reflection.name)}_#{parent_table_name}"
+                @aliased_table_name = cascade_alias
                 table_index = join_dependency.table_aliases[aliased_table_name]
+                join_dependency.table_aliases[@aliased_table_name] += 1
                 @aliased_table_name = @aliased_table_name[0..active_record.connection.table_alias_length-3] + "_#{table_index+1}" if table_index > 0
+              else
+                join_dependency.table_aliases[aliased_table_name] += 1
               end
-              join_dependency.table_aliases[aliased_table_name] += 1
               
               if reflection.macro == :has_and_belongs_to_many || (reflection.macro == :has_many && reflection.options[:through])
                 @aliased_join_table_name = reflection.macro == :has_and_belongs_to_many ? reflection.options[:join_table] : reflection.through_reflection.klass.table_name
@@ -1529,6 +1531,11 @@
               def interpolate_sql(sql)
                 instance_eval("%@#{sql.gsub('@', '\@')}@")
               end
+              
+            private
+              def cascade_alias
+                active_record.connection.table_alias_for "#{pluralize(reflection.name)}_#{parent_table_name}"
+              end
           end
         end
     end