diff --git a/src/Element/WebformEntityTrait.php b/src/Element/WebformEntityTrait.php
index 3aa95258..b3a0dd24 100644
--- a/src/Element/WebformEntityTrait.php
+++ b/src/Element/WebformEntityTrait.php
@@ -4,6 +4,7 @@ namespace Drupal\webform\Element;
 
 use Drupal\Core\Form\OptGroup;
 use Drupal\Component\Utility\Html;
+use Drupal\webform\Utility\WebformOptionsHelper;
 
 /**
  * Trait for entity reference elements.
@@ -61,9 +62,7 @@ trait WebformEntityTrait {
     }
 
     // Issue #2826451: TermSelection returning HTML characters in select list.
-    foreach ($options as $key => $value) {
-      $options[$key] = Html::decodeEntities($value);
-    }
+    $options = WebformOptionsHelper::decodeOptions($options);
 
     $element['#options'] = $options;
   }
diff --git a/src/Utility/WebformOptionsHelper.php b/src/Utility/WebformOptionsHelper.php
index 27473232..649e0b3f 100644
--- a/src/Utility/WebformOptionsHelper.php
+++ b/src/Utility/WebformOptionsHelper.php
@@ -1,6 +1,7 @@
 <?php
 
 namespace Drupal\webform\Utility;
+use Drupal\Component\Utility\Html;
 
 /**
  * Helper class webform options based methods.
@@ -82,7 +83,7 @@ class WebformOptionsHelper {
    *   An associative array of options with TranslatableMarkup.
    *
    * @return string
-   *   An associative array of options of strings
+   *   An associative array of options of strings,
    */
   public static function convertOptionsToString(array $options) {
     $string = [];
@@ -98,6 +99,29 @@ class WebformOptionsHelper {
   }
 
   /**
+   * Decode HTML entities in options.
+   *
+   * @param array $options
+   *   An associative array of options.
+   *
+   * @return string
+   *   An associative array of options with HTML entities decoded.
+   *
+   * @see Issue #2826451: TermSelection returning HTML characters in select list.
+   */
+  public static function decodeOptions(array $options) {
+    foreach ($options as $option_value => $option_text) {
+      if (is_array($option_text)) {
+        $options[$option_value] = self::decodeOptions($option_text);
+      }
+      else{
+        $options[$option_value] = Html::decodeEntities((string) $option_text);
+      }
+    }
+    return $options;
+  }
+
+  /**
    * Build an associative array containing a range of options.
    *
    * @param int|string $min