diff --git a/reference.go b/reference.go
index 55f84c2..bd916d1 100644
--- a/reference.go
+++ b/reference.go
@@ -11,11 +11,7 @@ import (
 	"github.com/lukasjarosch/skipper/data"
 )
 
-// TODO: handle reference-to-reference
-// TODO: PathReferences / KeyReferences
-// TODO: handle cyclic references
-// TODO: handle multiple references per path
-// TODO: handle reference-to-reference with multiple references on the same path
+// TODO: PathReferences which allow yaml keys to be references as well
 
 var (
 	// ReferenceRegex defines the strings which are valid references
@@ -24,6 +20,7 @@ var (
 
 	ErrUndefinedReferenceTarget = fmt.Errorf("undefined reference target path")
 	ErrReferenceSourceIsNil     = fmt.Errorf("reference source is nil")
+	ErrReferenceCycle           = fmt.Errorf("reference cycles are not allowed")
 )
 
 // Reference is a reference to a value with a different path.
@@ -113,7 +110,7 @@ func ResolveReferences(references []Reference, resolveSource ReferenceSourceGett
 		return ref.TargetPath.String()
 	}
 
-	g := graph.New(referenceNodeHash, graph.Acyclic(), graph.Directed())
+	g := graph.New(referenceNodeHash, graph.Acyclic(), graph.Directed(), graph.PreventCycles())
 
 	// Register all references as nodes
 	var nodes []referenceVertex
@@ -151,6 +148,9 @@ func ResolveReferences(references []Reference, resolveSource ReferenceSourceGett
 
 			err = g.AddEdge(refNode.TargetPath.String(), n.TargetPath.String())
 			if err != nil {
+				if errors.Is(err, graph.ErrEdgeCreatesCycle) {
+					return nil, fmt.Errorf("reference %s -> %s would introduce cycle: %w", refNode.Name(), refDep.Name(), ErrReferenceCycle)
+				}
 				return nil, err
 			}
 		}
diff --git a/reference_test.go b/reference_test.go
index b24a3e8..eef15c5 100644
--- a/reference_test.go
+++ b/reference_test.go
@@ -150,7 +150,7 @@ func TestResolveReferencesChained(t *testing.T) {
 	expected := []Reference{
 		{
 			Path:       data.NewPath("chained.gotcha"),
-			TargetPath: data.NewPath("chained.john.name"),
+			TargetPath: data.NewPath("chained.john.first_name"),
 		},
 		{
 			Path:       data.NewPath("chained.name_placeholder"),
@@ -168,3 +168,61 @@ func TestResolveReferencesChained(t *testing.T) {
 
 	assert.Equal(t, resolved, expected)
 }
+
+func TestResolveReferencesCycle(t *testing.T) {
+	class, err := NewClass("testdata/references/local/cycle.yaml", codec.NewYamlCodec(), data.NewPathFromOsPath("cycle"))
+	assert.NoError(t, err)
+
+	references, err := ParseReferences(class)
+	assert.NoError(t, err)
+	assert.NotNil(t, references)
+
+	resolved, err := ResolveReferences(references, class)
+	assert.ErrorIs(t, err, ErrReferenceCycle)
+	assert.Len(t, resolved, 0)
+}
+
+func TestResolveReferencesMulti(t *testing.T) {
+	class, err := NewClass("testdata/references/local/multi.yaml", codec.NewYamlCodec(), data.NewPathFromOsPath("multi"))
+	assert.NoError(t, err)
+
+	expected := []Reference{
+		{
+			Path:       data.NewPath("multi.project.description"),
+			TargetPath: data.NewPath("project.name"),
+		},
+		{
+			Path:       data.NewPath("multi.project.description"),
+			TargetPath: data.NewPath("multi.project.name"),
+		},
+		{
+			Path:       data.NewPath("multi.project.description"),
+			TargetPath: data.NewPath("project.name"),
+		},
+		{
+			Path:       data.NewPath("multi.project.description"),
+			TargetPath: data.NewPath("multi.project.repo"),
+		},
+		{
+			Path:       data.NewPath("multi.project.repo"),
+			TargetPath: data.NewPath("multi.common.repo_url"),
+		},
+	}
+
+	references, err := ParseReferences(class)
+	assert.NoError(t, err)
+	assert.NotNil(t, references)
+	assert.Len(t, references, len(expected))
+
+	resolved, err := ResolveReferences(references, class)
+	assert.NoError(t, err)
+	assert.Len(t, resolved, len(expected))
+
+	// The TopologicalSort does always produce a correct
+	// result, but the order still may change as there
+	// is usually more than one solution.
+	// Hence we only check that the sincle nested reference
+	// is properly resolved. Here the 'multi.common.repo_url'
+	// MUST be the first reference to be resolved.
+	assert.Equal(t, resolved[0], expected[4])
+}
diff --git a/testdata/references/local/chained.yaml b/testdata/references/local/chained.yaml
index e867f20..b0eea1b 100644
--- a/testdata/references/local/chained.yaml
+++ b/testdata/references/local/chained.yaml
@@ -1,7 +1,8 @@
 chained:
   greeting: Hello, ${first_name}
-  gotcha: ${chained:john:name}
+  gotcha: ${chained:john:first_name}
   john:
-    name: John
+    first_name: John
+    last_name: Doe
   first_name: ${name_placeholder}
   name_placeholder: ${gotcha}
diff --git a/testdata/references/local/cycle.yaml b/testdata/references/local/cycle.yaml
new file mode 100644
index 0000000..f77b87f
--- /dev/null
+++ b/testdata/references/local/cycle.yaml
@@ -0,0 +1,4 @@
+cycle:
+  john: ${middle}
+  name: ${john}
+  middle: ${name}
diff --git a/testdata/references/local/multi.yaml b/testdata/references/local/multi.yaml
new file mode 100644
index 0000000..ac82c41
--- /dev/null
+++ b/testdata/references/local/multi.yaml
@@ -0,0 +1,9 @@
+multi:
+  common:
+    repo_url: "github.com/lukasjarosch/skipper"
+  project:
+    name: "skipper"
+    repo: "${multi:common:repo_url}"
+    description: >
+      The ${project:name} project is very cool. Because ${multi:project:name} helps in working with the Infrastructure as Data concept.
+      The project '${project:name}' is hosted on ${multi:project:repo}.