diff --git a/modules/swagger-parser/src/main/java/io/swagger/parser/processors/ExternalRefProcessor.java b/modules/swagger-parser/src/main/java/io/swagger/parser/processors/ExternalRefProcessor.java
index 8bac000c85..d808ccb07e 100644
--- a/modules/swagger-parser/src/main/java/io/swagger/parser/processors/ExternalRefProcessor.java
+++ b/modules/swagger-parser/src/main/java/io/swagger/parser/processors/ExternalRefProcessor.java
@@ -1,6 +1,7 @@
 package io.swagger.parser.processors;
 
 import io.swagger.models.Model;
+import io.swagger.models.RefModel;
 import io.swagger.models.Swagger;
 import io.swagger.models.properties.Property;
 import io.swagger.models.properties.RefProperty;
@@ -48,6 +49,15 @@ public String processRefToExternalDefinition(String $ref, RefFormat refFormat) {
 
 
         //If this is a new model, then check it for other sub references
+        String file = $ref.split("#/")[0];
+        if (model instanceof RefModel) {
+            RefModel refModel = (RefModel) model;
+            if(isAnExternalRefFormat(refModel.getRefFormat())) {
+                processRefToExternalDefinition(refModel.get$ref(), refModel.getRefFormat());
+            } else {
+                processRefToExternalDefinition(file + refModel.get$ref(), RefFormat.RELATIVE);
+            }
+        }
         //Loop the properties and recursively call this method;
         Map<String, Property> subProps = model.getProperties();
         if(subProps != null) {
@@ -55,8 +65,11 @@ public String processRefToExternalDefinition(String $ref, RefFormat refFormat) {
                 if (prop.getValue() instanceof RefProperty) {
                     RefProperty subRef = (RefProperty) prop.getValue();
 
-                    if(isAnExternalRefFormat(subRef.getRefFormat()))
+                    if(isAnExternalRefFormat(subRef.getRefFormat())) {
                         subRef.set$ref(processRefToExternalDefinition(subRef.get$ref(), subRef.getRefFormat()));
+                    } else {
+                        processRefToExternalDefinition(file + subRef.get$ref(), RefFormat.RELATIVE);
+                    }
                 }
             }
         }