diff --git a/system/Commands/Generators/ModelGenerator.php b/system/Commands/Generators/ModelGenerator.php
index 5450bda79b4c..30b7422238fd 100644
--- a/system/Commands/Generators/ModelGenerator.php
+++ b/system/Commands/Generators/ModelGenerator.php
@@ -114,18 +114,23 @@ protected function prepare(string $class): string
         }
 
         if ($return === 'entity') {
-            $return = str_replace('Models', 'Entities', $class);
+            // Build the fully-qualified entity class from the model class so
+            // that the generated Entity keeps any sub-namespaces (eg. Admin).
+            $entityClass = str_replace('Models', 'Entities', $class);
 
-            if (preg_match('/^(\S+)Model$/i', $return, $match) === 1) {
-                $return = $match[1];
+            if (preg_match('/^(\S+)Model$/i', $entityClass, $match) === 1) {
+                $entityClass = $match[1];
 
                 if ($this->getOption('suffix')) {
-                    $return .= 'Entity';
+                    $entityClass .= 'Entity';
                 }
             }
 
-            $return = '\\' . trim($return, '\\') . '::class';
-            $this->call('make:entity', array_merge([$baseClass], $this->params));
+            // Call the entity generator with the fully-qualified class name so
+            // it ends up under the correct sub-namespace/folder (eg. Admin).
+            $this->call('make:entity', array_merge([trim($entityClass, '\\')], $this->params));
+
+            $return = '\\' . trim($entityClass, '\\') . '::class';
         } else {
             $return = "'{$return}'";
         }
diff --git a/tests/system/Commands/Generators/ModelGeneratorTest.php b/tests/system/Commands/Generators/ModelGeneratorTest.php
index 520bbbdc7a3b..8dab8b007f19 100644
--- a/tests/system/Commands/Generators/ModelGeneratorTest.php
+++ b/tests/system/Commands/Generators/ModelGeneratorTest.php
@@ -134,6 +134,33 @@ public function testGenerateModelWithOptionSuffix(): void
         rmdir(dirname($entity));
     }
 
+    public function testGenerateModelWithSubNamespaceAndReturnEntity(): void
+    {
+        command('make:model admin/class --return entity');
+
+        $model  = APPPATH . 'Models/Admin/Class.php';
+        $entity = APPPATH . 'Entities/Admin/Class.php';
+
+        $this->assertFileExists($model);
+        $this->assertFileExists($entity);
+
+        if (is_file($model)) {
+            unlink($model);
+        }
+        $modelDir = dirname($model);
+        if (is_dir($modelDir)) {
+            rmdir($modelDir);
+        }
+
+        if (is_file($entity)) {
+            unlink($entity);
+        }
+        $entityDir = dirname($entity);
+        if (is_dir($entityDir)) {
+            rmdir($entityDir);
+        }
+    }
+
     /**
      * @see https://github.com/codeigniter4/CodeIgniter4/issues/5050
      */