diff --git a/.chronus/changes/openapi3-fix-circ-ref-unions-2024-6-19-10-0-54.md b/.chronus/changes/openapi3-fix-circ-ref-unions-2024-6-19-10-0-54.md
new file mode 100644
index 00000000000..2d5d19ad2ad
--- /dev/null
+++ b/.chronus/changes/openapi3-fix-circ-ref-unions-2024-6-19-10-0-54.md
@@ -0,0 +1,7 @@
+---
+changeKind: fix
+packages:
+  - "@typespec/openapi3"
+---
+
+Fixes bug where circular references in unions caused an empty object to be emitted instead of a ref.
\ No newline at end of file
diff --git a/packages/openapi3/src/schema-emitter.ts b/packages/openapi3/src/schema-emitter.ts
index 212f9a4ea70..3340fa57d33 100644
--- a/packages/openapi3/src/schema-emitter.ts
+++ b/packages/openapi3/src/schema-emitter.ts
@@ -521,25 +521,16 @@ export class OpenAPI3SchemaEmitter extends TypeEmitter<
       }
     }
 
-    if (schemaMembers.length === 0) {
-      if (nullable) {
-        // This union is equivalent to just `null` but OA3 has no way to specify
-        // null as a value, so we throw an error.
-        reportDiagnostic(program, { code: "union-null", target: union });
-        return new ObjectBuilder({});
-      } else {
-        // completely empty union can maybe only happen with bugs?
-        compilerAssert(false, "Attempting to emit an empty union");
-      }
-    }
-
-    if (schemaMembers.length === 1) {
+    const wrapWithObjectBuilder = (
+      schemaMember: { schema: any; type: Type | null },
+      { applyNullable }: { applyNullable: boolean }
+    ): ObjectBuilder<OpenAPI3Schema> => {
       // we can just return the single schema member after applying nullable
-      const schema = schemaMembers[0].schema;
-      const type = schemaMembers[0].type;
+      const schema = schemaMember.schema;
+      const type = schemaMember.type;
       const additionalProps: Partial<OpenAPI3Schema> = this.#applyConstraints(union, {});
 
-      if (nullable) {
+      if (applyNullable && nullable) {
         additionalProps.nullable = true;
       }
 
@@ -567,10 +558,26 @@ export class OpenAPI3SchemaEmitter extends TypeEmitter<
           return merged;
         }
       }
+    };
+
+    if (schemaMembers.length === 0) {
+      if (nullable) {
+        // This union is equivalent to just `null` but OA3 has no way to specify
+        // null as a value, so we throw an error.
+        reportDiagnostic(program, { code: "union-null", target: union });
+        return new ObjectBuilder({});
+      } else {
+        // completely empty union can maybe only happen with bugs?
+        compilerAssert(false, "Attempting to emit an empty union");
+      }
+    }
+
+    if (schemaMembers.length === 1) {
+      return wrapWithObjectBuilder(schemaMembers[0], { applyNullable: true });
     }
 
     const schema: OpenAPI3Schema = {
-      [ofType]: schemaMembers.map((m) => m.schema),
+      [ofType]: schemaMembers.map((m) => wrapWithObjectBuilder(m, { applyNullable: false })),
     };
 
     if (nullable) {
diff --git a/packages/openapi3/test/circular-references.test.ts b/packages/openapi3/test/circular-references.test.ts
index ada605bbb40..b677c719723 100644
--- a/packages/openapi3/test/circular-references.test.ts
+++ b/packages/openapi3/test/circular-references.test.ts
@@ -34,4 +34,20 @@ describe("openapi3: circular reference", () => {
       },
     });
   });
+
+  it("can reference itself via a union property", async () => {
+    const res = await oapiForModel(
+      "Pet",
+      `
+      model Pet { parents?: string | Pet };
+      `
+    );
+
+    deepStrictEqual(res.schemas.Pet, {
+      type: "object",
+      properties: {
+        parents: { anyOf: [{ type: "string" }, { $ref: "#/components/schemas/Pet" }] },
+      },
+    });
+  });
 });