diff --git a/packages/ruleset/src/functions/valid-schema-example.js b/packages/ruleset/src/functions/valid-schema-example.js
index 36c5a273..eb53d3e6 100644
--- a/packages/ruleset/src/functions/valid-schema-example.js
+++ b/packages/ruleset/src/functions/valid-schema-example.js
@@ -5,7 +5,7 @@
 
 const { validate } = require('jsonschema');
 const { validateSubschemas } = require('@ibm-cloud/openapi-ruleset-utilities');
-const { LoggerFactory } = require('../utils');
+const { nestedSchemaKeys, LoggerFactory } = require('../utils');
 
 let ruleId;
 let logger;
@@ -50,6 +50,14 @@ function checkSchemaExamples(schema, path) {
 function validateExamples(examples) {
   return examples
     .map(({ schema, example, path }) => {
+      if (hasUnresolvedRefs(schema)) {
+        logger.debug(
+          `Skipping example validation at path ${path.join('.')}: schema contains unresolved $ref references`
+        );
+        // Skip validation for schemas with unresolved references.
+        return undefined;
+      }
+
       // Setting required: true prevents undefined values from passing validation.
       const { valid, errors } = validate(example, schema, { required: true });
       if (!valid) {
@@ -63,6 +71,45 @@ function validateExamples(examples) {
     .filter(e => isDefined(e));
 }
 
+/**
+ * Recursively checks if a schema or any of its nested schemas contain unresolved $ref references.
+ * @param {object} schema - The schema to check
+ * @returns {boolean} - True if the schema contains unresolved $ref references
+ */
+function hasUnresolvedRefs(schema) {
+  if (!schema || typeof schema !== 'object') {
+    return false;
+  }
+
+  if (schema.$ref) {
+    return true;
+  }
+
+  // Recursively check nested schemas in common locations.
+  for (const key of nestedSchemaKeys) {
+    if (schema[key]) {
+      if (Array.isArray(schema[key])) {
+        // Check each item in arrays (allOf, anyOf, oneOf).
+        if (schema[key].some(item => hasUnresolvedRefs(item))) {
+          return true;
+        }
+      } else if (key === 'properties') {
+        // Check each property in properties object.
+        if (Object.values(schema[key]).some(prop => hasUnresolvedRefs(prop))) {
+          return true;
+        }
+      } else {
+        // Check single nested schema (items, additionalProperties, not).
+        if (hasUnresolvedRefs(schema[key])) {
+          return true;
+        }
+      }
+    }
+  }
+
+  return false;
+}
+
 function isDefined(x) {
   return x !== undefined;
 }
diff --git a/packages/ruleset/src/utils/index.js b/packages/ruleset/src/utils/index.js
index 5ea3ea17..fd8b0447 100644
--- a/packages/ruleset/src/utils/index.js
+++ b/packages/ruleset/src/utils/index.js
@@ -18,6 +18,7 @@ module.exports = {
   isRequestBodyExploded: require('./is-requestbody-exploded'),
   LoggerFactory: require('./logger-factory'),
   mergeAllOfSchemaProperties: require('./merge-allof-schema-properties'),
+  nestedSchemaKeys: require('./nested-schema-keys'),
   operationMethods: require('./constants'),
   pathHasMinimallyRepresentedResource: require('./path-has-minimally-represented-resource'),
   pathMatchesRegexp: require('./path-matches-regexp'),
diff --git a/packages/ruleset/src/utils/nested-schema-keys.js b/packages/ruleset/src/utils/nested-schema-keys.js
new file mode 100644
index 00000000..3ef61583
--- /dev/null
+++ b/packages/ruleset/src/utils/nested-schema-keys.js
@@ -0,0 +1,16 @@
+/**
+ * Copyright 2017 - 2026 IBM Corporation.
+ * SPDX-License-Identifier: Apache2.0
+ */
+
+const nestedSchemaKeys = [
+  'items',
+  'additionalProperties',
+  'properties',
+  'allOf',
+  'anyOf',
+  'oneOf',
+  'not',
+];
+
+module.exports = nestedSchemaKeys;
diff --git a/packages/ruleset/test/rules/valid-schema-example.test.js b/packages/ruleset/test/rules/valid-schema-example.test.js
index 089252be..4c1ca4ff 100644
--- a/packages/ruleset/test/rules/valid-schema-example.test.js
+++ b/packages/ruleset/test/rules/valid-schema-example.test.js
@@ -22,6 +22,125 @@ describe(`Spectral rule: ${ruleId}`, () => {
       const results = await testRule(ruleId, rule, rootDocument);
       expect(results).toHaveLength(0);
     });
+
+    it('Recursive schema should not make the rule fail', async () => {
+      const testDocument = makeCopy(rootDocument);
+
+      // Replace the API structure with the recursiveAPI structure
+      testDocument.paths = {
+        '/test': {
+          get: {
+            description: 'Test',
+            operationId: 'listTest',
+            parameters: [],
+            responses: {
+              200: {
+                description: 'Paginated list of objects',
+                content: {
+                  'application/json': {
+                    schema: {
+                      $ref: '#/components/schemas/TestListResponse',
+                    },
+                  },
+                },
+              },
+            },
+            security: [
+              {
+                bearer: [],
+              },
+            ],
+            summary: 'List test',
+            tags: ['Test'],
+          },
+        },
+      };
+
+      testDocument.tags = [
+        {
+          name: 'Test',
+        },
+      ];
+
+      testDocument.components.securitySchemes = {
+        bearer: {
+          scheme: 'bearer',
+          bearerFormat: 'JWT',
+          type: 'http',
+        },
+      };
+
+      testDocument.components.schemas = {
+        Templates: {
+          type: 'object',
+          properties: {
+            id: {
+              type: 'number',
+              example: 1234,
+              description: 'Id',
+            },
+            templates: {
+              description: 'Nested check templates',
+              type: 'array',
+              items: {
+                $ref: '#/components/schemas/Templates',
+              },
+            },
+          },
+          required: ['id'],
+        },
+        TestResponse: {
+          type: 'object',
+          properties: {
+            id: {
+              type: 'number',
+              example: 12345,
+              description: 'test id',
+            },
+            templates: {
+              description: 'templates',
+              example: [
+                {
+                  id: 2,
+                  templates: [
+                    {
+                      id: 3,
+                    },
+                    {
+                      id: 4,
+                    },
+                  ],
+                },
+              ],
+              type: 'array',
+              items: {
+                $ref: '#/components/schemas/Templates',
+              },
+            },
+          },
+          required: ['id', 'templates'],
+        },
+        TestListResponse: {
+          type: 'object',
+          properties: {
+            data: {
+              type: 'array',
+              items: {
+                $ref: '#/components/schemas/TestResponse',
+              },
+            },
+          },
+          required: ['data'],
+        },
+      };
+
+      // Remove responses and requestBodies that reference old schemas
+      delete testDocument.components.responses;
+      delete testDocument.components.requestBodies;
+
+      const results = await testRule(ruleId, rule, testDocument);
+      expect(results).toHaveLength(0);
+    });
   });
 
   describe('Should yield errors', () => {