diff --git a/source/core/ut_suite_cache_manager.pkb b/source/core/ut_suite_cache_manager.pkb
index 7c4b1ee93..06c4c76a5 100644
--- a/source/core/ut_suite_cache_manager.pkb
+++ b/source/core/ut_suite_cache_manager.pkb
@@ -161,13 +161,16 @@ create or replace package body ut_suite_cache_manager is
   begin
     return case
            when a_random_seed is null then q'[
-              replace(
-                --suite path until objects name (excluding contexts and test path) with trailing dot (full stop)
-                substr( c.obj.path, 1, instr( c.obj.path, lower(c.obj.object_name), -1 ) + length(c.obj.object_name) ),
-                '.',
-                --'.' replaced with chr(0) to assure that child elements come before parent when sorting in descending oder
-                chr(0)
-              ) desc nulls last,
+              nlssort(
+                replace(
+                  /*suite path until objects name (excluding contexts and test path) with trailing dot (full stop)*/
+                  substr( c.obj.path, 1, instr( c.obj.path, lower(c.obj.object_name), -1 ) + length(c.obj.object_name) ),
+                  '.',
+                  /*'.' replaced with chr(0) to assure that child elements come before parent when sorting in descending order*/
+                  chr(0)
+                ),
+                'nls_sort=binary'
+              )desc nulls last,
               case when c.obj.self_type = 'UT_SUITE_CONTEXT' then
                 ( select max( x.line_no ) + 1
                     from ut_suite_cache x
@@ -178,7 +181,7 @@ create or replace package body ut_suite_cache_manager is
               else
                 c.obj.line_no
               end,
-              --assures that child contexts come before parent contexts
+              /*assures that child contexts come before parent contexts*/
               regexp_count(c.obj.path,'\.') desc,
               :a_random_seed]'
            else
diff --git a/test/ut3_tester/core/test_suite_manager.pks b/test/ut3_tester/core/test_suite_manager.pks
index ed318b890..90b589b9e 100644
--- a/test/ut3_tester/core/test_suite_manager.pks
+++ b/test/ut3_tester/core/test_suite_manager.pks
@@ -3,9 +3,6 @@ create or replace package test_suite_manager is
   --%suite(suite_manager)
   --%suitepath(utplsql.ut3_tester.core)
 
-  procedure create_dummy_long_test_package;
-
-  procedure drop_dummy_long_test_package;
 
   --%beforeall
   procedure compile_dummy_packages;
@@ -170,6 +167,8 @@ create or replace package test_suite_manager is
   --%beforetest(create_dummy_long_test_package)
   --%aftertest(drop_dummy_long_test_package)
   procedure add_new_long_test_package;
+  procedure create_dummy_long_test_package;
+  procedure drop_dummy_long_test_package;
 
 end test_suite_manager;
 /
diff --git a/test/ut3_user/api/test_ut_run.pkb b/test/ut3_user/api/test_ut_run.pkb
index 5142b1770..e3af7c5ad 100644
--- a/test/ut3_user/api/test_ut_run.pkb
+++ b/test/ut3_user/api/test_ut_run.pkb
@@ -780,6 +780,74 @@ Failures:%
     execute immediate 'drop package '||gc_owner||'.'||gc_owner;
   end;
 
+  procedure create_suites_with_path is
+    pragma autonomous_transaction;
+  begin
+    execute immediate q'[create or replace package ut_abc is
+      -- %suite
+      -- %suitepath(main.abc)
+
+      -- %test
+      procedure ut_test_01;
+    end ut_abc;]';
+
+    execute immediate q'[create or replace package body ut_abc
+    is
+      procedure ut_test_01 as begin ut.expect(true).to_be_true(); end;
+    end;]';
+
+    execute immediate q'[create or replace package ut_abc_def
+    is
+      -- %suite
+      -- %suitepath(main.abc_def)
+
+      -- %test
+      procedure ut_test_01;
+    end ut_abc_def;]';
+
+    execute immediate q'[create or replace package body ut_abc_def
+    is
+      procedure ut_test_01 as begin ut.expect(true).to_be_true(); end;
+    end;]';
+
+  end;
+
+  procedure drop_suites_with_path is
+    pragma autonomous_transaction;
+  begin
+    execute immediate q'[drop package ut_abc]';
+    execute immediate q'[drop package ut_abc_def]';
+  end;
+
+  procedure run_suite_with_nls_sort is
+    L_current_sort varchar2(2000);
+    l_results    ut3_develop.ut_varchar2_list;
+    l_expected   clob;
+  begin
+    --Arrange
+    select value
+      into l_current_sort
+      from nls_session_parameters where parameter = 'NLS_SORT';
+
+    execute immediate 'alter session set nls_sort=GERMAN';
+
+    --Act
+    select *
+      bulk collect into l_results
+                   from table ( ut3_develop.ut.run( gc_owner||':main' ) );
+    --Assert
+    l_expected := q'[main%
+  abc_def%
+    ut_abc_def%
+      ut_test_01%
+  abc%
+    ut_abc%
+      ut_test_01%]';
+    ut.expect(ut3_tester_helper.main_helper.table_to_clob(l_results) ).to_be_like( l_expected );
+
+    execute immediate 'alter session set nls_sort='||l_current_sort;
+  end;
+
   procedure run_with_random_order is
     l_random_results ut3_develop.ut_varchar2_list;
     l_results        ut3_develop.ut_varchar2_list;
diff --git a/test/ut3_user/api/test_ut_run.pks b/test/ut3_user/api/test_ut_run.pks
index ac2e50e25..753af79da 100644
--- a/test/ut3_user/api/test_ut_run.pks
+++ b/test/ut3_user/api/test_ut_run.pks
@@ -155,6 +155,13 @@ create or replace package test_ut_run is
   procedure create_schema_name_package;
   procedure drop_schema_name_package;
 
+  --%test(Runs properly formed suite hierarchy regardless of NLS_SORT settings - Issue #1060)
+  --%beforetest(create_suites_with_path)
+  --%aftertest(drop_suites_with_path)
+  procedure run_suite_with_nls_sort;
+  procedure create_suites_with_path;
+  procedure drop_suites_with_path;
+
   --%endcontext
 
   --%context(random_order)