diff --git a/packages/schema/src/plugins/enhancer/policy/utils.ts b/packages/schema/src/plugins/enhancer/policy/utils.ts
index 93212e386..fee0cc15a 100644
--- a/packages/schema/src/plugins/enhancer/policy/utils.ts
+++ b/packages/schema/src/plugins/enhancer/policy/utils.ts
@@ -8,6 +8,7 @@ import {
     getAttributeArg,
     getAuthDecl,
     getDataModelAndTypeDefs,
+    getDataModels,
     getEntityCheckerFunctionName,
     getIdFields,
     getLiteral,
@@ -537,16 +538,19 @@ export function generateNormalizedAuthRef(
  * Check if the given enum is referenced in the model
  */
 export function isEnumReferenced(model: Model, decl: Enum): unknown {
-    return streamAllContents(model).some((node) => {
-        if (isDataModelField(node) && node.type.reference?.ref === decl) {
-            // referenced as field type
-            return true;
-        }
-        if (isEnumFieldReference(node) && node.target.ref?.$container === decl) {
-            // enum field is referenced
-            return true;
-        }
-        return false;
+    const dataModels = getDataModels(model);
+    return dataModels.some((dm) => {
+        return streamAllContents(dm).some((node) => {
+            if (isDataModelField(node) && node.type.reference?.ref === decl) {
+                // referenced as field type
+                return true;
+            }
+            if (isEnumFieldReference(node) && node.target.ref?.$container === decl) {
+                // enum field is referenced
+                return true;
+            }
+            return false;
+        });
     });
 }
 
diff --git a/tests/regression/tests/issue-1835.test.ts b/tests/regression/tests/issue-1835.test.ts
new file mode 100644
index 000000000..f29efcbbb
--- /dev/null
+++ b/tests/regression/tests/issue-1835.test.ts
@@ -0,0 +1,28 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 1835', () => {
+    it('regression', async () => {
+        await loadSchema(
+            `
+        enum Enum {
+            SOME_VALUE
+            ANOTHER_VALUE
+        }
+
+        model Model {
+            id String @id @default(cuid())
+            value Enum
+            @@ignore
+        }
+
+        model AnotherModel {
+            id String @id @default(cuid())
+        }
+            `,
+            {
+                provider: 'postgresql',
+                pushDb: false,
+            }
+        );
+    });
+});