diff --git a/lib/schemaUtils.js b/lib/schemaUtils.js
index e203f1d35..e2f52664f 100644
--- a/lib/schemaUtils.js
+++ b/lib/schemaUtils.js
@@ -693,6 +693,13 @@ module.exports = {
       key,
       variableStore = {};
 
+    // Resolving $ref, if present in any of the Path Objects
+    for (const path in spec.paths) {
+      if (spec.paths[path].hasOwnProperty('$ref')) {
+        spec.paths[path] = this.getRefObject(spec.paths[path].$ref, spec, options);
+      }
+    }
+
     /**
       We need a trie because the decision of whether or not a node
       is a folder or request can only be made once the whole trie is generated
@@ -1953,16 +1960,11 @@ module.exports = {
     });
     // at this stage, savedSchema is [components, part1, parts]
     // must have min. 2 segments after "#/components"
-    if (savedSchema.length < 3) {
+    if (savedSchema.length < 2) {
       console.warn(`ref ${$ref} not found.`);
       return { value: `reference ${$ref} not found in the given specification` };
     }
 
-    if (savedSchema[0] !== 'components' && savedSchema[0] !== 'paths') {
-      console.warn(`Error reading ${$ref}. Can only use references from components and paths`);
-      return { value: `Error reading ${$ref}. Can only use references from components and paths` };
-    }
-
     // at this point, savedSchema is similar to ['components', 'schemas','Address']
     // components is actually components and paths (an object with components + paths as 1st-level-props)
     refObj = _.get(components, savedSchema);
diff --git a/test/unit/util.test.js b/test/unit/util.test.js
index 7c11546b2..e2427899b 100644
--- a/test/unit/util.test.js
+++ b/test/unit/util.test.js
@@ -300,39 +300,23 @@ describe('SCHEMA UTILITY FUNCTION TESTS ', function () {
       expect(retVal).to.eql([]);
     });
 
-    it('should not throw error if a parameter with invalid $ref is passed', function () {
+    it('should resolve ref outside components and paths', function () {
       var operationParam = [
-          { name: 'limit', in: 'query', $ref: '#/invalid/ref/1' }
+          { name: 'limit', in: 'query', $ref: '#/valid/ref' }
         ],
-        pathParam = [
-          { $ref: '#/components/schemas/searchParam' }
-        ],
-        componentsAndPaths = {
-          components: {
-            schemas: {
-              searchParam: {
-                name: 'search',
-                in: 'query',
-                schema: {
-                  type: 'string'
-                }
+        spec = {
+          valid: {
+            ref: {
+              name: 'valid',
+              in: 'query',
+              schema: {
+                type: 'string'
               }
             }
           }
         },
-        retVal = SchemaUtils.getRequestParams(operationParam, pathParam, componentsAndPaths);
-      expect(retVal).to.deep.equal([
-        {
-          value: 'Error reading #/invalid/ref/1. Can only use references from components and paths'
-        },
-        {
-          name: 'search',
-          in: 'query',
-          schema: {
-            type: 'string'
-          }
-        }
-      ]);
+        retVal = SchemaUtils.getRequestParams(operationParam, null, spec);
+      expect(retVal).to.eql(operationParam);
     });
   });