diff --git a/test/leaf.cfgdb b/test/leaf.cfgdb
new file mode 100644
index 00000000..54ebc6ea
--- /dev/null
+++ b/test/leaf.cfgdb
@@ -0,0 +1,17 @@
+{
+  "$schema": "https://json-schema.org/draft/2020-12/schema",
+  "$comment": "PR#112 Verify nested references",
+  "$defs": {
+    "comp": {
+      "type": "object",
+      "properties": {
+        "a": {
+          "type": "string"
+        },
+        "b": {
+          "type": "string"
+        }
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/mid.cfgdb b/test/mid.cfgdb
new file mode 100644
index 00000000..878b085d
--- /dev/null
+++ b/test/mid.cfgdb
@@ -0,0 +1,14 @@
+{
+  "$schema": "https://json-schema.org/draft/2020-12/schema",
+  "$comment": "PR#112 Verify nested references",
+  "$defs": {
+    "mid-obj": {
+      "type": "object",
+      "properties": {
+        "inner": {
+          "$ref": "leaf/$defs/comp"
+        }
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/test-external.cfgdb b/test/test-external.cfgdb
index 17a8bf46..bcb0c678 100644
--- a/test/test-external.cfgdb
+++ b/test/test-external.cfgdb
@@ -7,6 +7,10 @@
     },
     "colors": {
       "$ref": "test-config-enum/properties/colors"
+    },
+    "nested-ref": {
+      "$comment": "PR#112 Verify nested references",
+      "$ref": "mid/$defs/mid-obj"
     }
   }
 }
\ No newline at end of file
diff --git a/tools/dbgen.py b/tools/dbgen.py
index 019293d6..807e9102 100644
--- a/tools/dbgen.py
+++ b/tools/dbgen.py
@@ -834,6 +834,7 @@ def create_object_property(obj: Object) -> Property:
                 if obj := ref_node.get('object'):
                     if obj.schema_id != parent_prop.obj.schema_id:
                         database.external_objects[object_ref] = obj
+                        databases[parent_prop.obj.schema_id].external_objects[object_ref] = obj
                     return create_object_property(obj)
 
                 if next_ref := ref_node.get('$ref'):
@@ -875,6 +876,7 @@ def create_object_and_property(Class) -> Property:
                 db.object_defs[object_ref] = obj
             if obj.schema_id != parent_prop.obj.schema_id:
                 database.external_objects[object_ref] = obj
+                databases[parent_prop.obj.schema_id].external_objects[object_ref] = obj
             fields['object'] = obj
             return create_object_property(obj)