diff --git a/runtime/sema/check_reference_expression.go b/runtime/sema/check_reference_expression.go
index 88b62af78c..477674e2f8 100644
--- a/runtime/sema/check_reference_expression.go
+++ b/runtime/sema/check_reference_expression.go
@@ -71,7 +71,16 @@ func (checker *Checker) VisitReferenceExpression(referenceExpression *ast.Refere
 
 	referencedExpression := referenceExpression.Expression
 
-	_, _ = checker.visitExpression(referencedExpression, targetType)
+	referencedType, _ := checker.visitExpression(referencedExpression, targetType)
+
+	if !IsValidReferencedType(referencedType) {
+		checker.report(
+			&InvalidReferenceTargetTypeError{
+				TargetType: targetType,
+				Range:      ast.NewRangeFromPositioned(checker.memoryGauge, referenceExpression.Expression),
+			},
+		)
+	}
 
 	if referenceType == nil {
 		return InvalidType
@@ -81,3 +90,13 @@ func (checker *Checker) VisitReferenceExpression(referenceExpression *ast.Refere
 
 	return returnType
 }
+
+func IsValidReferencedType(referencedType Type) bool {
+	switch referencedType.(type) {
+	case *TransactionRoleType:
+		return false
+		// TODO: in Stable Cadence we may also want to disallow transactions
+	}
+
+	return true
+}
diff --git a/runtime/sema/checker.go b/runtime/sema/checker.go
index 8aed019865..b9b21ac17e 100644
--- a/runtime/sema/checker.go
+++ b/runtime/sema/checker.go
@@ -2233,16 +2233,16 @@ func (checker *Checker) VisitExpressionWithForceType(expr ast.Expression, expect
 // visitExpressionWithForceType
 //
 // Parameters:
-// expr         - Expression to check
-// expectedType - Contextually expected type of the expression
-// forceType    - Specifies whether to use the expected type as a hard requirement (forceType = true)
-//
-//	or whether to use the expected type for type inferring only (forceType = false)
+//   - expr: Expression to check
+//   - expectedType: Contextually expected type of the expression
+//   - forceType:
+//     Specifies whether to use the expected type as a hard requirement (forceType = true)
+//     or whether to use the expected type for type inferring only (forceType = false)
 //
 // Return types:
-// visibleType - The type that others should 'see' as the type of this expression. This could be
-//
-//	used as the type of the expression to avoid the type errors being delegated up.
+//   - visibleType:
+//     The type that others should 'see' as the type of this expression.
+//     This could be used as the type of the expression to avoid the type errors being delegated up.
 //
 // actualType  - The actual type of the expression.
 func (checker *Checker) visitExpressionWithForceType(
diff --git a/runtime/sema/errors.go b/runtime/sema/errors.go
index 0b5bbb7c9a..f9632ce00f 100644
--- a/runtime/sema/errors.go
+++ b/runtime/sema/errors.go
@@ -2615,6 +2615,27 @@ func (e *NonReferenceTypeReferenceError) SecondaryError() string {
 	)
 }
 
+// InvalidReferenceTargetTypeError is reported when a reference expression
+// targets a type which may not be referenced.
+type InvalidReferenceTargetTypeError struct {
+	TargetType Type
+	ast.Range
+}
+
+var _ SemanticError = &InvalidReferenceTargetTypeError{}
+var _ errors.UserError = &InvalidReferenceTargetTypeError{}
+
+func (*InvalidReferenceTargetTypeError) isSemanticError() {}
+
+func (*InvalidReferenceTargetTypeError) IsUserError() {}
+
+func (e *InvalidReferenceTargetTypeError) Error() string {
+	return fmt.Sprintf(
+		"cannot create reference to `%s`",
+		e.TargetType.QualifiedString(),
+	)
+}
+
 // InvalidResourceCreationError
 
 type InvalidResourceCreationError struct {
@@ -2903,7 +2924,6 @@ func (e *ReadOnlyTargetAssignmentError) Error() string {
 }
 
 // MissingPrepareForFieldError
-//
 type MissingPrepareForFieldError struct {
 	FirstFieldName string
 	FirstFieldPos  ast.Position
diff --git a/runtime/tests/checker/reference_test.go b/runtime/tests/checker/reference_test.go
index 2a401971c4..da2574f1a6 100644
--- a/runtime/tests/checker/reference_test.go
+++ b/runtime/tests/checker/reference_test.go
@@ -1279,3 +1279,28 @@ func TestCheckReferenceTypeImplicitConformance(t *testing.T) {
 		require.IsType(t, &sema.TypeMismatchError{}, errs[0])
 	})
 }
+
+func TestCheckInvalidReferenceTargetType(t *testing.T) {
+
+	t.Parallel()
+
+	t.Run("transaction role", func(t *testing.T) {
+
+		t.Parallel()
+
+		_, err := ParseAndCheck(t, `
+          transaction {
+
+              role role1 {}
+
+              execute {
+                  &self.role1 as &AnyStruct
+              }
+          }
+        `)
+
+		errs := RequireCheckerErrors(t, err, 1)
+
+		assert.IsType(t, &sema.InvalidReferenceTargetTypeError{}, errs[0])
+	})
+}