diff --git a/ampersand-state.js b/ampersand-state.js
index 79a742e..1783e43 100644
--- a/ampersand-state.js
+++ b/ampersand-state.js
@@ -140,8 +140,16 @@ _.extend(Base.prototype, BBEvents, {
 
 
             if (!def) {
-                // if this is a child model or collection
-                if (this._children[attr] || this._collections[attr]) {
+                // if this is a child model
+                if (this._children[attr]) {
+                    if (newVal instanceof this._children[attr]) {
+                        // Get the raw attributes including the session values.
+                        newVal = newVal.getAttributes({ props: true, session: true }, true);
+                    }
+                    this[attr].set(newVal, options);
+                    continue;
+                // if this is a collection
+                } else if (this._collections[attr]) {
                     this[attr].set(newVal, options);
                     continue;
                 } else if (extraProperties === 'ignore') {
diff --git a/test/full.js b/test/full.js
index e6eaab2..110c990 100644
--- a/test/full.js
+++ b/test/full.js
@@ -1046,6 +1046,46 @@ test('listens to child events', function (t) {
     first.firstChild.grandChild.name = 'Bob';
 });
 
+test('instantiated children can be set', function (t) {
+    var Child = State.extend({
+        props: {
+            id: 'string',
+            name: 'string'
+        }
+    });
+
+    var Parent = State.extend({
+        props: {
+            id: 'string',
+            name: 'string'
+        },
+        children: {
+            firstChild: Child,
+            secondChild: Child
+        }
+    });
+
+    var child = new Child({
+        id: 'first-child',
+        name: 'first-child-name'
+    });
+
+    var parent = new Parent({
+        id: 'child',
+        name: 'first-name',
+        firstChild: child,
+        secondChild: {
+            id: 'second-child',
+            name: 'second-child-name'
+        }
+    });
+
+    t.plan(2);
+    
+    t.equal(parent.firstChild.name, 'first-child-name', 'instantiated child should be directly accessible');   
+    t.equal(parent.secondChild.name, 'second-child-name', 'regular child should be directly accessible');   
+});
+
 test('Should be able to declare derived properties that have nested deps', function (t) {
     var GrandChild = State.extend({
         props: {