diff --git a/release-notes/CREDITS b/release-notes/CREDITS
index c5ac4e61..8badde02 100644
--- a/release-notes/CREDITS
+++ b/release-notes/CREDITS
@@ -177,3 +177,6 @@ Christian Beikov (@beikov)
   (3.3.0)
  * Fixed #890: Count 19-digit `long` coercion in `isExpectedNumberIntToken()`
   (3.3.0)
+ * Fixed #893: Decode element name before matching virtual wrapper in
+   `_initStartElement`
+  (3.3.0)
diff --git a/release-notes/VERSION b/release-notes/VERSION
index a928c9cc..9f03ef6c 100644
--- a/release-notes/VERSION
+++ b/release-notes/VERSION
@@ -26,6 +26,8 @@ Version: 3.x (for earlier see VERSION-2.x)
  (fix by @Sahana2524)
 #890: Count 19-digit `long` coercion in `isExpectedNumberIntToken()`
  (fix by @Sahana2524)
+#893: Decode element name before matching virtual wrapper in `_initStartElement`
+ (fix by @Sahana2524)
 
 3.2.2 (not yet released)
 
diff --git a/src/main/java/tools/jackson/dataformat/xml/deser/XmlTokenStream.java b/src/main/java/tools/jackson/dataformat/xml/deser/XmlTokenStream.java
index cbabade7..0d9205ae 100644
--- a/src/main/java/tools/jackson/dataformat/xml/deser/XmlTokenStream.java
+++ b/src/main/java/tools/jackson/dataformat/xml/deser/XmlTokenStream.java
@@ -732,28 +732,36 @@ private final int _initStartElement() throws XMLStreamException
 
         _checkXsiAttributes();
 
+        // Decode the name up front: virtual wrappers store the decoded name
+        // (repeatStartElement uses _localName/_namespaceURI), so with a
+        // configured XmlNameProcessor the match below has to compare the
+        // decoded name too. Otherwise every unwrapped list item fails to match
+        // its own wrapper and each element closes the virtual array, silently
+        // dropping all but the last. The delayed-replay path keeps the raw
+        // name since _handleRepeatElement decodes it again later.
+        _decodeElementName(ns, localName);
+
         // Support for virtual wrapping: in wrapping, may either create a new
         // wrapper scope (if in sub-tree, or matches wrapper element itself),
         // or implicitly close existing scope.
 
         if (_currentWrapper != null) {
-            if (_currentWrapper.matchesWrapper(localName, ns)) {
+            if (_currentWrapper.matchesWrapper(_localName, _namespaceURI)) {
                 _currentWrapper = _currentWrapper.intermediateWrapper();
 //System.out.println(" _initStartElement(): START_ELEMENT ("+localName+") DOES match ["+_currentWrapper+"]: leave/add intermediate");
             } else {
                 // implicit end is more interesting:
 //System.out.println(" _initStartElement(): START_ELEMENT ("+localName+") not matching '"+_localName+"'; add extra XML-END-ELEMENT!");
+                // Restore the (raw) START_ELEMENT to replay after the synthetic END:
+                _nextLocalName = localName;
+                _nextNamespaceURI = ns;
                 _localName = _currentWrapper.getWrapperLocalName();
                 _namespaceURI = _currentWrapper.getWrapperNamespace();
                 _currentWrapper = _currentWrapper.getParent();
-                // Important! We also need to restore the START_ELEMENT, so:
-                _nextLocalName = localName;
-                _nextNamespaceURI = ns;
                 _repeatElement = REPLAY_START_DELAYED;
                 return (_currentState = XML_END_ELEMENT);
             }
         }
-        _decodeElementName(ns, localName);
         return (_currentState = XML_START_ELEMENT);
     }
 
diff --git a/src/test/java/tools/jackson/dataformat/xml/misc/XmlNameProcessorUnwrappedListTest.java b/src/test/java/tools/jackson/dataformat/xml/misc/XmlNameProcessorUnwrappedListTest.java
new file mode 100644
index 00000000..77d2233d
--- /dev/null
+++ b/src/test/java/tools/jackson/dataformat/xml/misc/XmlNameProcessorUnwrappedListTest.java
@@ -0,0 +1,60 @@
+package tools.jackson.dataformat.xml.misc;
+
+import java.util.List;
+
+import org.junit.jupiter.api.Test;
+
+import tools.jackson.dataformat.xml.XmlFactory;
+import tools.jackson.dataformat.xml.XmlMapper;
+import tools.jackson.dataformat.xml.XmlNameProcessor;
+import tools.jackson.dataformat.xml.XmlNameProcessors;
+import tools.jackson.dataformat.xml.XmlTestUtil;
+import tools.jackson.dataformat.xml.annotation.JacksonXmlElementWrapper;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertNotNull;
+
+// Virtual wrapping of unwrapped (repeated) elements matches the incoming
+// element name against a name stored after the XmlNameProcessor has decoded
+// it; the match itself must therefore use the decoded name too.
+public class XmlNameProcessorUnwrappedListTest extends XmlTestUtil
+{
+    static class Bean {
+        @JacksonXmlElementWrapper(useWrapping = false)
+        public List<String> lists;
+    }
+
+    private XmlMapper mapperWith(XmlNameProcessor proc) {
+        return XmlMapper.builder(
+                XmlFactory.builder().xmlNameProcessor(proc).build()
+        ).build();
+    }
+
+    @Test
+    public void testAlwaysOnBase64RoundTrip() throws Exception {
+        XmlMapper mapper = mapperWith(XmlNameProcessors.newAlwaysOnBase64Processor());
+        Bean bean = new Bean();
+        bean.lists = List.of("a", "b", "c");
+
+        String xml = mapper.writeValueAsString(bean);
+        Bean back = mapper.readValue(xml, Bean.class);
+
+        assertNotNull(back.lists);
+        assertEquals(List.of("a", "b", "c"), back.lists);
+    }
+
+    @Test
+    public void testBase64EncodedNameRoundTrip() throws Exception {
+        // "lists" is a valid XML name, so it only gets base64-escaped once it
+        // collides with the prefix; use a custom prefix that forces escaping.
+        XmlMapper mapper = mapperWith(XmlNameProcessors.newBase64Processor("lists"));
+        Bean bean = new Bean();
+        bean.lists = List.of("x", "y", "z");
+
+        String xml = mapper.writeValueAsString(bean);
+        Bean back = mapper.readValue(xml, Bean.class);
+
+        assertNotNull(back.lists);
+        assertEquals(List.of("x", "y", "z"), back.lists);
+    }
+}