diff --git a/packages/apidom-reference/src/dereference/strategies/openapi-3-1/visitor.ts b/packages/apidom-reference/src/dereference/strategies/openapi-3-1/visitor.ts
index 0f7490d8c5..3c6ca3c10c 100644
--- a/packages/apidom-reference/src/dereference/strategies/openapi-3-1/visitor.ts
+++ b/packages/apidom-reference/src/dereference/strategies/openapi-3-1/visitor.ts
@@ -242,13 +242,17 @@ const OpenApi3_1DereferenceVisitor = stampit({
        *
        * Cases to consider:
        *  1. We're crossing document boundary
-       *  2. Fragment is a Reference Object. We need to follow it to get the eventual value
-       *  3. We are dereferencing the fragment lazily/eagerly depending on circular mode
+       *  2. Fragment is from non-root document
+       *  3. Fragment is a Reference Object. We need to follow it to get the eventual value
+       *  4. We are dereferencing the fragment lazily/eagerly depending on circular mode
        */
+      const isNonRootDocument = reference.refSet.rootRef.uri !== reference.uri;
+      const shouldDetectCircular = ['error', 'replace'].includes(this.options.dereference.circular);
       if (
         (isExternalReference ||
+          isNonRootDocument ||
           isReferenceElement(referencedElement) ||
-          ['error', 'replace'].includes(this.options.dereference.circular)) &&
+          shouldDetectCircular) &&
         !ancestorsLineage.includesCycle(referencedElement)
       ) {
         // append referencing reference to ancestors lineage
@@ -425,13 +429,17 @@ const OpenApi3_1DereferenceVisitor = stampit({
        *
        * Cases to consider:
        *  1. We're crossing document boundary
-       *  2. Fragment is a Path Item Object with $ref field. We need to follow it to get the eventual value
-       *  3. We are dereferencing the fragment lazily/eagerly depending on circular mode
+       *  2. Fragment is from non-root document
+       *  3. Fragment is a Path Item Object with $ref field. We need to follow it to get the eventual value
+       *  4. We are dereferencing the fragment lazily/eagerly depending on circular mode
        */
+      const isNonRootDocument = reference.refSet.rootRef.uri !== reference.uri;
+      const shouldDetectCircular = ['error', 'replace'].includes(this.options.dereference.circular);
       if (
         (isExternalReference ||
+          isNonRootDocument ||
           (isPathItemElement(referencedElement) && isStringElement(referencedElement.$ref)) ||
-          ['error', 'replace'].includes(this.options.dereference.circular)) &&
+          shouldDetectCircular) &&
         !ancestorsLineage.includesCycle(referencedElement)
       ) {
         // append referencing reference to ancestors lineage
@@ -845,13 +853,17 @@ const OpenApi3_1DereferenceVisitor = stampit({
        *
        * Cases to consider:
        *  1. We're crossing document boundary
-       *  2. Fragment is a Schema Object with $ref field. We need to follow it to get the eventual value
-       *  3. We are dereferencing the fragment lazily/eagerly depending on circular mode
+       *  2. Fragment is from non-root document
+       *  3. Fragment is a Schema Object with $ref field. We need to follow it to get the eventual value
+       *  4. We are dereferencing the fragment lazily/eagerly depending on circular mode
        */
+      const isNonRootDocument = reference.refSet.rootRef.uri !== reference.uri;
+      const shouldDetectCircular = ['error', 'replace'].includes(this.options.dereference.circular);
       if (
         (isExternalReference ||
+          isNonRootDocument ||
           (isSchemaElement(referencedElement) && isStringElement(referencedElement.$ref)) ||
-          ['error', 'replace'].includes(this.options.dereference.circular)) &&
+          shouldDetectCircular) &&
         !ancestorsLineage.includesCycle(referencedElement)
       ) {
         // append referencing reference to ancestors lineage
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/dereferenced.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/dereferenced.json
index 85fde7c64f..dd63827a5f 100644
--- a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/dereferenced.json
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/dereferenced.json
@@ -9,11 +9,10 @@
             "profile": {
               "type": "object",
               "properties": {
-                "firstName": {
-                  "type": "string"
-                },
-                "lastName": {
-                  "type": "string"
+                "sentAt": {
+                  "type": "string",
+                  "format": "date-time",
+                  "description": "Date and time when the message was sent."
                 }
               }
             }
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/ex.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/ex.json
index c115310b05..36de5eedcb 100644
--- a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/ex.json
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/ex.json
@@ -1,16 +1,21 @@
 {
   "type": "object",
   "$defs": {
-    "UserProfile": {
+    "schema1": {
+      "$ref": "#/$defs/somePayload"
+    },
+    "somePayload": {
       "type": "object",
       "properties": {
-        "firstName": {
-          "type": "string"
-        },
-        "lastName": {
-          "type": "string"
+        "sentAt": {
+          "$ref": "#/$defs/sentAt"
         }
       }
+    },
+    "sentAt": {
+      "type": "string",
+      "format": "date-time",
+      "description": "Date and time when the message was sent."
     }
   }
 }
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/root.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/root.json
index 15ee3edf1c..ec4513e634 100644
--- a/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/root.json
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1/schema-object/fixtures/external-only/root.json
@@ -6,7 +6,7 @@
         "type": "object",
         "properties": {
           "profile": {
-            "$ref": "./ex.json#/$defs/UserProfile"
+            "$ref": "./ex.json#/$defs/schema1"
           }
         }
       }