diff --git a/src/parser.ts b/src/parser.ts
index 443ce7b..2f3f0eb 100644
--- a/src/parser.ts
+++ b/src/parser.ts
@@ -18,12 +18,18 @@ export async function parse(
   options: BundlerOptions = {}
 ) {
   /* eslint-disable indent */
+
+  let circular: boolean | 'ignore' = false;
+  if (options.dereference === 'ignore-circular') {
+    circular = 'ignore';
+  }
+
   // It is assumed that there will be major Spec versions 4, 5 and on.
   switch (specVersion) {
     case 2:
       RefParserOptions = {
         dereference: {
-          circular: false,
+          circular,
           // prettier-ignore
           excludedPathMatcher: (path: string): any => { // eslint-disable-line
             return;
@@ -39,7 +45,7 @@ export async function parse(
     case 3:
       RefParserOptions = {
         dereference: {
-          circular: false,
+          circular,
           excludedPathMatcher: (path: string): any => {
             return (
               // prettier-ignore
@@ -69,5 +75,9 @@ export async function parse(
       );
   }
 
-  return await $RefParser.dereference(JSONSchema, RefParserOptions) as AsyncAPIObject;
+  let bundled = JSONSchema;
+  if (circular !== false) {
+    bundled = await $RefParser.bundle(bundled, RefParserOptions);
+  }
+  return await $RefParser.dereference(bundled, RefParserOptions) as AsyncAPIObject;
 }
diff --git a/src/spec-types.ts b/src/spec-types.ts
index 59c8520..adbabea 100644
--- a/src/spec-types.ts
+++ b/src/spec-types.ts
@@ -455,4 +455,5 @@ export interface Options {
   base?: string;
   baseDir?: string;
   xOrigin?: boolean;
+  dereference?: string;
 }
diff --git a/tests/circular.yml b/tests/circular.yml
new file mode 100644
index 0000000..f4fec28
--- /dev/null
+++ b/tests/circular.yml
@@ -0,0 +1,20 @@
+asyncapi: 3.0.0
+info:
+  title: Test model
+  version: 1.0.0
+components:
+  messages:
+    btree:
+      payload:
+        type: object
+        properties:
+          root:
+            $ref: '#/components/messages/node'
+    node:
+      payload:
+        type: object
+        properties:
+          left:
+            $ref: '#/components/messages/node'
+          right:
+            $ref: '#/components/messages/node'
diff --git a/tests/circular/asyncapi.yaml b/tests/circular/asyncapi.yaml
new file mode 100644
index 0000000..56228ea
--- /dev/null
+++ b/tests/circular/asyncapi.yaml
@@ -0,0 +1,10 @@
+asyncapi: 3.0.0
+info:
+  title: Test model
+  version: 1.0.0
+components:
+  messages:
+    btree:
+      title: BTree
+      payload:
+        $ref: "./btree.yml"
diff --git a/tests/circular/btree.yml b/tests/circular/btree.yml
new file mode 100644
index 0000000..5c1aa1f
--- /dev/null
+++ b/tests/circular/btree.yml
@@ -0,0 +1,6 @@
+$schema: "https://json-schema.org/draft-07/schema#"
+title: BTree
+type: object
+properties:
+  root:
+    $ref: "./node.yml"
diff --git a/tests/circular/node.yml b/tests/circular/node.yml
new file mode 100644
index 0000000..15f260e
--- /dev/null
+++ b/tests/circular/node.yml
@@ -0,0 +1,8 @@
+$schema: "https://json-schema.org/draft-07/schema#"
+title: Node
+type: object
+properties:
+  left:
+    $ref: "#"
+  right:
+    $ref: "#"
diff --git a/tests/lib/index.spec.ts b/tests/lib/index.spec.ts
index c2329e8..564959f 100644
--- a/tests/lib/index.spec.ts
+++ b/tests/lib/index.spec.ts
@@ -378,6 +378,88 @@ describe('[integration testing] bundler should ', () => {
 
     expect(document.json()).toMatchObject(resultingObject);
   });
+
+  test('should throw if circular `$ref` exists and derefrence for circular references is disabled for single file', async () => {
+    const files = ['circular.yml'];
+
+    await expect(async () => {
+      await bundle(files, {
+        xOrigin: true,
+        baseDir: path.resolve(process.cwd(), './tests'),
+        dereference: 'strict',
+      })
+    }).rejects.toThrow(Error);
+  });
+
+  test('should not throw if circular `$ref` exists and derefrence for circular references is ignored for single file', async () => {
+    const files = ['circular.yml'];
+
+    const response = await bundle(files, {
+      xOrigin: true,
+      baseDir: path.resolve(process.cwd(), './tests'),
+      dereference: 'ignore-circular',
+    });
+    expect(response).resolves;
+  });
+
+  test('should throw if circular `$ref` exists and derefrence for circular references is disabled for multiple files', async () => {
+    const files = ['asyncapi.yaml'];
+
+    await expect(async () => {
+      await bundle(files, {
+        xOrigin: true,
+        baseDir: path.resolve(process.cwd(), './tests/circular'),
+        dereference: 'strict',
+      })
+    }).rejects.toThrow(Error);
+  });
+
+  test('should not throw if circular `$ref` exists and derefrence for circular references is ignored for multiple files', async () => {
+    const resultingObject = {
+      asyncapi: '3.0.0',
+      info: {
+        title: 'Test model',
+        version: '1.0.0',
+      },
+      components: {
+        messages: {
+          btree: {
+            title: 'BTree',
+            payload: {
+              $schema: 'https://json-schema.org/draft-07/schema#',
+              title: 'BTree',
+              type: 'object',
+              properties: {
+                root: {
+                  $schema: 'https://json-schema.org/draft-07/schema#',
+                  title: 'Node',
+                  type: 'object',
+                  properties: {
+                    left: {
+                      $ref: '#/components/messages/btree/payload/properties/root'
+                    },
+                    right: {
+                      $ref: '#/components/messages/btree/payload/properties/root'
+                    },
+                  },
+                },
+              },
+            },
+          },
+        },
+      },
+    };
+
+    const files = ['asyncapi.yaml'];
+
+    const response =      await bundle(files, {
+      xOrigin: true,
+      baseDir: path.resolve(process.cwd(), './tests/circular'),
+      dereference: 'ignore-circular',
+    });
+
+    expect(response.json()).toMatchObject(resultingObject);
+  });
 });
 
 describe('[unit testing]', () => {