diff --git a/lib/factories/definitions.factory.ts b/lib/factories/definitions.factory.ts
index 5787e330..aa84b77d 100644
--- a/lib/factories/definitions.factory.ts
+++ b/lib/factories/definitions.factory.ts
@@ -29,6 +29,8 @@ export class DefinitionsFactory {
       }
       schemaMetadata.properties?.forEach((item) => {
         const options = this.inspectTypeDefinition(item.options as any);
+        this.inspectRef(item.options as any);
+
         schemaDefinition = {
           [item.propertyKey]: options as any,
           ...schemaDefinition,
@@ -49,6 +51,10 @@ export class DefinitionsFactory {
       } else if (this.isMongooseSchemaType(optionsOrType)) {
         return optionsOrType;
       }
+      const isClass = /^class\s/.test(
+        Function.prototype.toString.call(optionsOrType),
+      );
+      optionsOrType = isClass ? optionsOrType : optionsOrType();
 
       const schemaDefinition = this.createForClass(
         optionsOrType as Type<unknown>,
@@ -77,6 +83,22 @@ export class DefinitionsFactory {
     return optionsOrType;
   }
 
+  private static inspectRef(
+    optionsOrType: mongoose.SchemaTypeOptions<unknown> | Function,
+  ) {
+    if (!optionsOrType || typeof optionsOrType !== 'object') {
+      return;
+    }
+    if (typeof optionsOrType?.ref === 'function') {
+      optionsOrType.ref =
+        (optionsOrType.ref as Function)()?.name ?? optionsOrType.ref;
+    } else if (Array.isArray(optionsOrType.type)) {
+      if (optionsOrType.type.length > 0) {
+        this.inspectRef(optionsOrType.type[0]);
+      }
+    }
+  }
+
   private static isPrimitive(type: Function) {
     return BUILT_IN_TYPES.includes(type);
   }
diff --git a/tests/e2e/schema-definitions.factory.spec.ts b/tests/e2e/schema-definitions.factory.spec.ts
index 2ab6485c..57b10cbe 100644
--- a/tests/e2e/schema-definitions.factory.spec.ts
+++ b/tests/e2e/schema-definitions.factory.spec.ts
@@ -2,6 +2,15 @@ import * as mongoose from 'mongoose';
 import { DefinitionsFactory, Prop, raw, Schema } from '../../lib';
 import { CannotDetermineTypeError } from '../../lib/errors';
 
+@Schema()
+class RefClass {
+  @Prop()
+  title: string;
+
+  @Prop({ type: mongoose.Schema.Types.ObjectId, ref: () => ExampleClass })
+  host;
+}
+
 @Schema()
 class ChildClass {
   @Prop()
@@ -45,8 +54,16 @@ class ExampleClass {
   @Prop()
   number: number;
 
+  @Prop({
+    type: [{ type: mongoose.Schema.Types.ObjectId, ref: () => RefClass }],
+  })
+  ref: RefClass[];
+
   @Prop({ required: true })
-  children: ChildClass;
+  child: ChildClass;
+
+  @Prop({ type: () => ChildClass })
+  child2: ChildClass;
 
   @Prop([ChildClass])
   nodes: ChildClass[];
@@ -71,6 +88,14 @@ describe('DefinitionsFactory', () => {
       objectId: {
         type: mongoose.Schema.Types.ObjectId,
       },
+      ref: {
+        type: [
+          {
+            ref: 'RefClass',
+            type: mongoose.Schema.Types.ObjectId,
+          },
+        ],
+      },
       name: {
         required: true,
         type: String,
@@ -87,7 +112,7 @@ describe('DefinitionsFactory', () => {
       ],
       buffer: { type: mongoose.Schema.Types.Buffer },
       decimal: { type: mongoose.Schema.Types.Decimal128 },
-      children: {
+      child: {
         required: true,
         type: {
           id: {
@@ -98,6 +123,16 @@ describe('DefinitionsFactory', () => {
           },
         },
       },
+      child2: {
+        type: {
+          id: {
+            type: Number,
+          },
+          name: {
+            type: String,
+          },
+        },
+      },
       any: { type: mongoose.Schema.Types.Mixed },
       array: { type: [] },
       customArray: [{ custom: 'literal', object: true }],
@@ -117,6 +152,19 @@ describe('DefinitionsFactory', () => {
     });
   });
 
+  it('should generate a valid schema definition (class reference) for cyclic deps', () => {
+    const refClassDefinition = DefinitionsFactory.createForClass(RefClass);
+    expect(refClassDefinition).toEqual({
+      host: {
+        ref: 'ExampleClass',
+        type: mongoose.Schema.Types.ObjectId,
+      },
+      title: {
+        type: String,
+      },
+    });
+  });
+
   it('should throw an error when type is ambiguous', () => {
     try {
       class AmbiguousField {