diff --git a/test/ref-local.test.js b/test/ref-local.test.js
new file mode 100644
index 0000000..38afaa8
--- /dev/null
+++ b/test/ref-local.test.js
@@ -0,0 +1,146 @@
+'use strict'
+
+const { test } = require('tap')
+
+const RefResolver = require('../ref-resolver')
+
+test('Resolve absolute refs in schema', t => {
+  t.plan(1)
+  const opts = {
+    externalSchemas: [
+      {
+        $id: 'ObjectA',
+        type: 'object',
+        properties: {
+          example: {
+            type: 'string'
+          }
+        }
+      },
+      {
+        $id: 'ObjectC',
+        type: 'object',
+        properties: {
+          referencedObjA: {
+            $ref: 'ObjectA#'
+          },
+          referencedObjC: {
+            $ref: 'ObjectC#/properties/ObjectD'
+          },
+          ObjectD: {
+            type: 'object',
+            properties: {
+              d: {
+                type: 'string'
+              }
+            }
+          }
+        }
+      }
+    ]
+  }
+  const resolver = RefResolver()
+
+  const out = resolver.resolve({
+    $ref: 'ObjectC#'
+  }, opts)
+
+  t.same(out, {
+    $ref: '#/definitions/def-1',
+    definitions: {
+      'def-0': {
+        $id: 'ObjectA',
+        type: 'object',
+        properties: {
+          example: {
+            type: 'string'
+          }
+        }
+      },
+      'def-1': {
+        $id: 'ObjectC',
+        type: 'object',
+        properties: {
+          referencedObjA: {
+            $ref: '#/definitions/def-0'
+          },
+          referencedObjC: {
+            $ref: '#/definitions/def-1/properties/ObjectD'
+          },
+          ObjectD: {
+            type: 'object',
+            properties: {
+              d: {
+                type: 'string'
+              }
+            }
+          }
+        }
+      }
+    }
+  })
+})
+
+test('Resolve relative refs in schema', t => {
+  t.plan(1)
+  const opts = {
+    externalSchemas: [
+      {
+        $id: 'ObjectA',
+        type: 'object',
+        properties: {
+          sample: {
+            type: 'object',
+            properties: {
+              a: { type: 'string' },
+              b: { type: 'object', properties: { d: { type: 'string' } } }
+            }
+          },
+          someValue: { type: 'string' },
+          relativeExample: {
+            $ref: '#/properties/sample'
+          }
+        }
+      }
+    ]
+  }
+  const resolver = RefResolver()
+
+  const out = resolver.resolve({
+    $ref: 'ObjectA#/properties/relativeExample'
+  }, opts)
+
+  t.same(out, {
+    $ref: '#/definitions/def-0/properties/relativeExample',
+    definitions: {
+      'def-0': {
+        $id: 'ObjectA',
+        type: 'object',
+        properties: {
+          sample: {
+            type: 'object',
+            properties: {
+              a: {
+                type: 'string'
+              },
+              b: {
+                type: 'object',
+                properties: {
+                  d: {
+                    type: 'string'
+                  }
+                }
+              }
+            }
+          },
+          someValue: {
+            type: 'string'
+          },
+          relativeExample: {
+            $ref: '#/properties/sample'
+          }
+        }
+      }
+    }
+  })
+})