diff --git a/statemachine/state.py b/statemachine/state.py
index 1d77bc9b..c4ba2c04 100644
--- a/statemachine/state.py
+++ b/statemachine/state.py
@@ -71,11 +71,18 @@ def __new__(  # type: ignore [misc]
             inherited_kwargs.update(getattr(base, "_factory_kwargs", {}))
         inherited_kwargs.update(kwargs)
 
+        # Lazy import to avoid circular dependency (states.py imports state.py)
+        from .states import States
+
         states = []
         history = []
         callbacks = {}
         for key, value in attrs.items():
-            if isinstance(value, HistoryState):
+            if isinstance(value, States):
+                for state_id, state in value.items():
+                    state._set_id(state_id)
+                    states.append(state)
+            elif isinstance(value, HistoryState):
                 value._set_id(key)
                 history.append(value)
             elif isinstance(value, State):
diff --git a/tests/test_statechart_compound.py b/tests/test_statechart_compound.py
index 334b4f28..4570c08d 100644
--- a/tests/test_statechart_compound.py
+++ b/tests/test_statechart_compound.py
@@ -7,7 +7,11 @@
 Theme: Fellowship journey through Middle-earth.
 """
 
+from enum import Enum
+from enum import auto
+
 import pytest
+from statemachine.states import States
 
 from statemachine import State
 from statemachine import StateChart
@@ -213,3 +217,38 @@ class shire(State.Compound, name="The Shire"):
 
         sm = NamedCompound()
         assert sm.shire.name == "The Shire"
+
+    async def test_from_enum_inside_compound(self, sm_runner):
+        """States.from_enum() works inside compound states (#606)."""
+
+        class OuterStates(Enum):
+            FOO = auto()
+            BAR = auto()
+
+        class InnerStates(Enum):
+            FIZZ = auto()
+            BUZZ = auto()
+
+        class SC(StateChart):
+            baz = States.from_enum(OuterStates, initial=OuterStates.FOO, final=OuterStates.BAR)
+
+            class inner(State.Compound):
+                qux = States.from_enum(
+                    InnerStates, initial=InnerStates.FIZZ, final=InnerStates.BUZZ
+                )
+                fizz_to_buzz = qux.FIZZ.to(qux.BUZZ)
+
+            baz_foo_to_inner = baz.FOO.to(inner)
+            inner_to_baz_bar = inner.to(baz.BAR)
+
+        sm = await sm_runner.start(SC)
+        assert {OuterStates.FOO} == set(sm.configuration_values)
+
+        await sm_runner.send(sm, "baz_foo_to_inner")
+        assert {"inner", InnerStates.FIZZ} == set(sm.configuration_values)
+
+        await sm_runner.send(sm, "fizz_to_buzz")
+        assert {"inner", InnerStates.BUZZ} == set(sm.configuration_values)
+
+        await sm_runner.send(sm, "inner_to_baz_bar")
+        assert {OuterStates.BAR} == set(sm.configuration_values)
diff --git a/tests/test_statechart_parallel.py b/tests/test_statechart_parallel.py
index 619d1b36..297589e3 100644
--- a/tests/test_statechart_parallel.py
+++ b/tests/test_statechart_parallel.py
@@ -7,8 +7,14 @@
 Theme: War of the Ring — multiple simultaneous fronts.
 """
 
+from enum import Enum
+from enum import auto
+
 import pytest
+from statemachine.states import States
 
+from statemachine import State
+from statemachine import StateChart
 from tests.machines.parallel.session import Session
 from tests.machines.parallel.session_with_done_state import SessionWithDoneState
 from tests.machines.parallel.two_towers import TwoTowers
@@ -139,6 +145,53 @@ async def test_top_level_parallel_done_state_fires_before_termination(self, sm_r
         assert {"finished"} == set(sm.configuration_values)
         assert sm.is_terminated is True
 
+    async def test_from_enum_inside_parallel(self, sm_runner):
+        """States.from_enum() works inside parallel states (#606)."""
+
+        class RegionA(Enum):
+            IDLE = auto()
+            ACTIVE = auto()
+
+        class RegionB(Enum):
+            OFF = auto()
+            ON = auto()
+
+        class SC(StateChart):
+            start = State(initial=True)
+            done = State(final=True)
+
+            class work(State.Parallel):
+                class region_a(State.Compound):
+                    a = States.from_enum(RegionA, initial=RegionA.IDLE, final=RegionA.ACTIVE)
+                    go_a = a.IDLE.to(a.ACTIVE)
+
+                class region_b(State.Compound):
+                    b = States.from_enum(RegionB, initial=RegionB.OFF, final=RegionB.ON)
+                    go_b = b.OFF.to(b.ON)
+
+            begin = start.to(work)
+            finish = work.to(done)
+
+        sm = await sm_runner.start(SC)
+        assert {"start"} == set(sm.configuration_values)
+
+        await sm_runner.send(sm, "begin")
+        vals = set(sm.configuration_values)
+        assert "work" in vals
+        assert RegionA.IDLE in vals
+        assert RegionB.OFF in vals
+
+        await sm_runner.send(sm, "go_a")
+        vals = set(sm.configuration_values)
+        assert RegionA.ACTIVE in vals
+        assert RegionB.OFF in vals  # region_b unchanged
+
+        await sm_runner.send(sm, "go_b")
+        # Both regions final -> done.state.work fires
+        assert {RegionA.ACTIVE, RegionB.ON} <= set(sm.configuration_values) or {"done"} == set(
+            sm.configuration_values
+        )
+
     async def test_top_level_parallel_not_terminated_when_one_region_pending(self, sm_runner):
         """Machine keeps running when only one region reaches final."""
         sm = await sm_runner.start(Session)