diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2d2195d5..b509deb3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 ## Unreleased
 
+- Update `ApplicationPolicy`` generator to qualify the `Scope` class name (#792)
+
 - Policy generator uses `NoMethodError` to indicate `#resolve` is not implemented (#776)
 
 ## 2.3.1 (2023-07-17)
diff --git a/README.md b/README.md
index 36d74d13..d40d2f53 100644
--- a/README.md
+++ b/README.md
@@ -279,7 +279,7 @@ generator, or create your own base class to inherit from:
 
 ``` ruby
 class PostPolicy < ApplicationPolicy
-  class Scope < Scope
+  class Scope < ApplicationPolicy::Scope
     def resolve
       if user.admin?
         scope.all
@@ -476,7 +476,7 @@ example, associations which might be `nil`.
 
 ```ruby
 class NilClassPolicy < ApplicationPolicy
-  class Scope < Scope
+  class Scope < ApplicationPolicy::Scope
     def resolve
       raise Pundit::NotDefinedError, "Cannot scope NilClass"
     end
diff --git a/lib/generators/pundit/policy/templates/policy.rb b/lib/generators/pundit/policy/templates/policy.rb
index 6798550b..c802b94c 100644
--- a/lib/generators/pundit/policy/templates/policy.rb
+++ b/lib/generators/pundit/policy/templates/policy.rb
@@ -1,6 +1,12 @@
 <% module_namespacing do -%>
 class <%= class_name %>Policy < ApplicationPolicy
-  class Scope < Scope
+  # NOTE: Prior to Pundit v2.4.0, the inheritance was declared as
+  # `Scope < Scope` rather than `Scope < ApplicationPolicy`. In most cases the
+  # behavior will be identical, but if updating exisiting code, beware of
+  # possible changes to the ancestors:
+  # https://gist.github.com/Burgestrand/4b4bc22f31c8a95c425fc0e30d7ef1f5
+
+  class Scope < ApplicationPolicy::Scope
     # NOTE: Be explicit about which records you allow access to!
     # def resolve
     #   scope.all