diff --git a/src/Microsoft.OpenApi/Models/BaseOpenApiReference.cs b/src/Microsoft.OpenApi/Models/BaseOpenApiReference.cs
index 675031fde..28ead3ff7 100644
--- a/src/Microsoft.OpenApi/Models/BaseOpenApiReference.cs
+++ b/src/Microsoft.OpenApi/Models/BaseOpenApiReference.cs
@@ -337,10 +337,14 @@ private static string ResolveRelativePointer(string nodeLocation, string relativ
             }
 
             // Fallback on building a full path
+            if (nodeLocation.StartsWith("#/components/schemas/", StringComparison.OrdinalIgnoreCase))
+            { // If the nodeLocation is a schema, we only want to keep the first three segments which are components/schemas/{schemaName}
+                return $"#/{string.Join("/", nodeLocationSegments.Take(3).Concat(relativeSegments))}";
+            }
 #if NETSTANDARD2_1 || NETCOREAPP2_1_OR_GREATER || NET5_0_OR_GREATER
-            return $"#/{string.Join("/", nodeLocationSegments.SkipLast(relativeSegments.Length).Union(relativeSegments))}";
+            return $"#/{string.Join("/", nodeLocationSegments.SkipLast(relativeSegments.Length).Concat(relativeSegments))}";
 #else
-            return $"#/{string.Join("/", nodeLocationSegments.Take(nodeLocationSegments.Count - relativeSegments.Length).Union(relativeSegments))}";
+            return $"#/{string.Join("/", nodeLocationSegments.Take(nodeLocationSegments.Count - relativeSegments.Length).Concat(relativeSegments))}";
 #endif
         }
     }
diff --git a/test/Microsoft.OpenApi.Readers.Tests/V31Tests/ReferenceSamples/recursiveRelativeSubschemaReference.json b/test/Microsoft.OpenApi.Readers.Tests/V31Tests/ReferenceSamples/recursiveRelativeSubschemaReference.json
new file mode 100644
index 000000000..37dfd220e
--- /dev/null
+++ b/test/Microsoft.OpenApi.Readers.Tests/V31Tests/ReferenceSamples/recursiveRelativeSubschemaReference.json
@@ -0,0 +1,96 @@
+{
+    "openapi": "3.1.0",
+    "info": {
+        "title": "Recursive relative reference in a subschema of an component schema",
+        "version": "1.0.0"
+    },
+    "paths": {
+        "/items": {
+            "get": {
+                "responses": {
+                    "200": {
+                        "description": "ok",
+                        "content": {
+                            "application/json": {
+                                "schema": {
+                                    "$ref": "#/components/schemas/Foo"
+                                }
+                            }
+                        }
+                    }
+                }
+            }
+        }
+    },
+    "components": {
+        "schemas": {
+            "Foo": {
+                "type": "object",
+                "properties": {
+                    "name": {
+                        "type": [
+                            "string",
+                            "null"
+                        ],
+                        "format": null,
+                        "x-schema-id": null
+                    },
+                    "parent": {
+                        "type": [
+                            "object",
+                            "null"
+                        ],
+                        "properties": {
+                            "name": {
+                                "type": [
+                                    "string",
+                                    "null"
+                                ],
+                                "format": null,
+                                "x-schema-id": null
+                            },
+                            "parent": {
+                                "$ref": "#/properties/parent",
+                                "x-schema-id": "Category"
+                            },
+                            "tags": {
+                                "type": [
+                                    "array",
+                                    "null"
+                                ],
+                                "items": {
+                                    "type": "object",
+                                    "properties": {
+                                        "name": {
+                                            "type": [
+                                                "string",
+                                                "null"
+                                            ],
+                                            "format": null,
+                                            "x-schema-id": null
+                                        }
+                                    },
+                                    "required": [
+                                        "name"
+                                    ],
+                                    "x-schema-id": "Tag"
+                                }
+                            }
+                        },
+                        "required": [
+                            "name"
+                        ],
+                        "x-schema-id": "Category"
+                    },
+                    "tags": {
+                        "$ref": "#/properties/parent/properties/tags"
+                    }
+                },
+                "required": [
+                    "name"
+                ],
+                "x-schema-id": "Category"
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/test/Microsoft.OpenApi.Readers.Tests/V31Tests/RelativeReferenceTests.cs b/test/Microsoft.OpenApi.Readers.Tests/V31Tests/RelativeReferenceTests.cs
index 455904ce8..83c89737c 100644
--- a/test/Microsoft.OpenApi.Readers.Tests/V31Tests/RelativeReferenceTests.cs
+++ b/test/Microsoft.OpenApi.Readers.Tests/V31Tests/RelativeReferenceTests.cs
@@ -280,7 +280,7 @@ public void ResolveSubSchema_ShouldRecurseIntoAllOfComposition()
             Assert.Equal(JsonSchemaType.Integer, result!.Type);
         }
         [Fact]
-        public async Task SHouldResolveRelativeSubReference()
+        public async Task ShouldResolveRelativeSubReference()
         {
             // Arrange
             var filePath = Path.Combine(SampleFolderPath, "relativeSubschemaReference.json");
@@ -296,5 +296,27 @@ public async Task SHouldResolveRelativeSubReference()
             Assert.Equal(JsonSchemaType.Array, seq2Property.Items.Type);
             Assert.Equal(JsonSchemaType.String, seq2Property.Items.Items.Type);
         }
+        [Fact]
+        public async Task ShouldResolveRecursiveRelativeSubReference()
+        {
+            // Arrange
+            var filePath = Path.Combine(SampleFolderPath, "recursiveRelativeSubschemaReference.json");
+
+            // Act
+            var (actual, _) = await OpenApiDocument.LoadAsync(filePath, SettingsFixture.ReaderSettings);
+
+            var fooComponentSchema = actual.Components.Schemas["Foo"];
+            var fooSchemaParentProperty = fooComponentSchema.Properties["parent"];
+            Assert.NotNull(fooSchemaParentProperty);
+            var fooSchemaParentPropertyTagsProperty = fooSchemaParentProperty.Properties["tags"];
+            Assert.NotNull(fooSchemaParentPropertyTagsProperty);
+            Assert.Equal(JsonSchemaType.Array | JsonSchemaType.Null, fooSchemaParentPropertyTagsProperty.Type);
+            Assert.Equal(JsonSchemaType.Object, fooSchemaParentPropertyTagsProperty.Items.Type);
+
+            var fooSchemaTagsProperty = fooComponentSchema.Properties["tags"];
+            Assert.NotNull(fooSchemaTagsProperty);
+            Assert.Equal(JsonSchemaType.Array | JsonSchemaType.Null, fooSchemaTagsProperty.Type);
+            Assert.Equal(JsonSchemaType.Object, fooSchemaTagsProperty.Items.Type);
+        }
     }
 }