diff --git a/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/8_8_0/7384-fix-chained-reference-search-error-on-mdm-expansion.yaml b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/8_8_0/7384-fix-chained-reference-search-error-on-mdm-expansion.yaml
new file mode 100644
index 00000000000..5144e999594
--- /dev/null
+++ b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/8_8_0/7384-fix-chained-reference-search-error-on-mdm-expansion.yaml
@@ -0,0 +1,8 @@
+---
+type: fix
+issue: 7384
+jira: SMILE-11171
+title: "When MDM expansion search was enabled, search operations with chained references returned 404 Not Found errors.
+  The OperationOutcome in the response indicated that the wrong resource name had been used for the search.
+  This issue has now been resolved.
+  "
diff --git a/hapi-fhir-jpaserver-mdm/src/test/java/ca/uhn/fhir/jpa/mdm/interceptor/MdmSearchExpandingInterceptorIT.java b/hapi-fhir-jpaserver-mdm/src/test/java/ca/uhn/fhir/jpa/mdm/interceptor/MdmSearchExpandingInterceptorIT.java
index 038eaea19fb..bcc5e0cce6b 100644
--- a/hapi-fhir-jpaserver-mdm/src/test/java/ca/uhn/fhir/jpa/mdm/interceptor/MdmSearchExpandingInterceptorIT.java
+++ b/hapi-fhir-jpaserver-mdm/src/test/java/ca/uhn/fhir/jpa/mdm/interceptor/MdmSearchExpandingInterceptorIT.java
@@ -19,6 +19,7 @@
 import ca.uhn.fhir.rest.param.TokenParam;
 import jakarta.servlet.http.HttpServletRequest;
 import org.hl7.fhir.instance.model.api.IIdType;
+import org.hl7.fhir.r4.model.AllergyIntolerance;
 import org.hl7.fhir.r4.model.CodeableConcept;
 import org.hl7.fhir.r4.model.Observation;
 import org.hl7.fhir.r4.model.Patient;
@@ -26,6 +27,7 @@
 import org.junit.jupiter.api.Test;
 import org.junit.jupiter.api.extension.RegisterExtension;
 import org.mockito.Mockito;
+import org.slf4j.Logger;
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.test.context.ContextConfiguration;
 
@@ -36,10 +38,13 @@
 import static org.assertj.core.api.Assertions.assertThat;
 import static org.junit.jupiter.api.Assertions.assertEquals;
 import static org.junit.jupiter.api.Assertions.assertNotNull;
+import static org.slf4j.LoggerFactory.getLogger;
 
 @ContextConfiguration(classes = {MdmHelperConfig.class})
 public class MdmSearchExpandingInterceptorIT extends BaseMdmR4Test {
 
+	private static final Logger ourLog = getLogger(MdmSearchExpandingInterceptorIT.class);
+
 	@RegisterExtension
 	@Autowired
 	public MdmHelperR4 myMdmHelper;
@@ -266,6 +271,32 @@ public void testReferenceExpansionQuietlyFailsOnMissingMdmMatches() throws Inter
 		assertEquals(1, search.size());
 	}
 
+	@Test
+	public void testChainedReferenceSearch_whenMdmExpansionEnabled_shouldGetSearchResult() throws InterruptedException {
+		// setup
+		myStorageSettings.setAllowMdmExpansion(true);
+
+		Patient patient = buildResource(("Patient"), withIdentifier("http://foo.bar/test", "abc"));
+		String pid = myMdmHelper.executeWithLatch(() -> myMdmHelper.doCreateResource(patient, true)).getId().getIdPart();
+		AllergyIntolerance allergy = new AllergyIntolerance();
+		allergy.setPatient(new Reference("Patient/" + pid));
+		doCreateResource(allergy);
+
+		SearchParameterMap paramMap = new SearchParameterMap();
+		ReferenceParam param = new ReferenceParam("identifier", "http://foo.bar/test|abc");
+		param.setValueAsQueryToken(myFhirContext, "patient", ":Patient.identifier", "http://foo.bar/test|abc");
+		paramMap.add("patient", param);
+
+		// execute
+		myCaptureQueriesListener.clear();
+		IBundleProvider search = myAllergyIntoleranceDao.search(paramMap, mySrd);
+		myCaptureQueriesListener.logAllQueriesForCurrentThread();
+
+		// validate
+		assertEquals(1, search.size());
+		ourLog.info(myCaptureQueriesListener.getSelectQueriesForCurrentThread().get(0).getSql(true, true));
+	}
+
 	private Observation createObservationWithSubject(String thePatientId) {
 		Observation observation = new Observation();
 		observation.setSubject(new Reference("Patient/" + thePatientId));
diff --git a/hapi-fhir-server-mdm/src/main/java/ca/uhn/fhir/mdm/svc/MdmSearchExpansionSvc.java b/hapi-fhir-server-mdm/src/main/java/ca/uhn/fhir/mdm/svc/MdmSearchExpansionSvc.java
index f762d2b756b..ca460565ed9 100644
--- a/hapi-fhir-server-mdm/src/main/java/ca/uhn/fhir/mdm/svc/MdmSearchExpansionSvc.java
+++ b/hapi-fhir-server-mdm/src/main/java/ca/uhn/fhir/mdm/svc/MdmSearchExpansionSvc.java
@@ -146,7 +146,7 @@ private void expandAnyReferenceParameters(
 		List<IQueryParameterType> toRemove = new ArrayList<>();
 		List<IQueryParameterType> toAdd = new ArrayList<>();
 		for (IQueryParameterType iQueryParameterType : orList) {
-			if (iQueryParameterType instanceof ReferenceParam refParam) {
+			if (iQueryParameterType instanceof ReferenceParam refParam && !refParam.hasChain()) {
 				if (theParamTester.shouldExpand(theParamName, refParam)) {
 					ourLog.debug("Found a reference parameter to expand: {}", refParam);
 					// First, attempt to expand as a source resource.