diff --git a/packages/repository/src/__tests__/unit/repositories/legacy-juggler-bridge.unit.ts b/packages/repository/src/__tests__/unit/repositories/legacy-juggler-bridge.unit.ts
index ee7d4ac1dee7..63de1a675e16 100644
--- a/packages/repository/src/__tests__/unit/repositories/legacy-juggler-bridge.unit.ts
+++ b/packages/repository/src/__tests__/unit/repositories/legacy-juggler-bridge.unit.ts
@@ -210,6 +210,35 @@ describe('DefaultCrudRepository', () => {
       expect(User.definition.properties.roles.itemType).to.equal(Role);
       expect(User.definition.properties.address.type).to.equal(Address);
     });
+
+    it('handles recursive model references', () => {
+      @model()
+      class ReportState extends Entity {
+        @property({id: true})
+        id: string;
+
+        @property.array(ReportState, {})
+        states: ReportState[];
+
+        @property({
+          type: 'string',
+        })
+        benchmarkId?: string;
+
+        @property({
+          type: 'string',
+        })
+        color?: string;
+
+        constructor(data?: Partial<ReportState>) {
+          super(data);
+        }
+      }
+      const repo = new DefaultCrudRepository(ReportState, ds);
+      const definition = repo.modelClass.definition;
+      const typeOfStates = definition.properties.states.type;
+      expect(typeOfStates).to.eql([repo.modelClass]);
+    });
   });
 
   it('shares the backing PersistedModel across repo instances', () => {
diff --git a/packages/repository/src/repositories/legacy-juggler-bridge.ts b/packages/repository/src/repositories/legacy-juggler-bridge.ts
index 5606125d0129..3fa02d4fa6cc 100644
--- a/packages/repository/src/repositories/legacy-juggler-bridge.ts
+++ b/packages/repository/src/repositories/legacy-juggler-bridge.ts
@@ -127,12 +127,13 @@ export class DefaultCrudRepository<
       `Entity ${entityClass.name} must have at least one id/pk property.`,
     );
 
-    this.modelClass = this.definePersistedModel(entityClass);
+    this.modelClass = this.definePersistedModel(entityClass, new Map());
   }
 
   // Create an internal legacy Model attached to the datasource
   private definePersistedModel(
     entityClass: typeof Model,
+    visited: Map<typeof Model, typeof juggler.PersistedModel>,
   ): typeof juggler.PersistedModel {
     const definition = entityClass.definition;
     assert(
@@ -140,18 +141,41 @@ export class DefaultCrudRepository<
       `Entity ${entityClass.name} must have valid model definition.`,
     );
 
+    let resolved = visited.get(entityClass);
+    if (resolved) {
+      return resolved;
+    }
+
     const dataSource = this.dataSource;
 
     const model = dataSource.getModel(definition.name);
     if (model) {
       // The backing persisted model has been already defined.
-      return model as typeof juggler.PersistedModel;
+      resolved = model as typeof juggler.PersistedModel;
+      visited.set(entityClass, resolved);
+      return resolved;
     }
 
     // We need to convert property definitions from PropertyDefinition
     // to plain data object because of a juggler limitation
     const properties: {[name: string]: object} = {};
 
+    const modelClass = dataSource.createModel<juggler.PersistedModelClass>(
+      definition.name,
+      definition.properties,
+      Object.assign(
+        // settings that users can override
+        {strict: true},
+        // user-defined settings
+        definition.settings,
+        // settings enforced by the framework
+        {strictDelete: false},
+      ),
+    );
+
+    // Cache the result to allow recursive refs
+    visited.set(entityClass, modelClass);
+
     // We need to convert PropertyDefinition into the definition that
     // the juggler understands
     Object.entries(definition.properties).forEach(([key, value]) => {
@@ -159,36 +183,37 @@ export class DefaultCrudRepository<
       // ensures that model definitions can be reused with multiple datasources
       if (value.type === 'array' || value.type === Array) {
         value = Object.assign({}, value, {
-          type: [value.itemType && this.resolvePropertyType(value.itemType)],
+          type: [
+            value.itemType && this.resolvePropertyType(value.itemType, visited),
+          ],
         });
         delete value.itemType;
       } else {
         value = Object.assign({}, value, {
-          type: this.resolvePropertyType(value.type),
+          type: this.resolvePropertyType(value.type, visited),
         });
       }
       properties[key] = Object.assign({}, value);
     });
-    const modelClass = dataSource.createModel<juggler.PersistedModelClass>(
-      definition.name,
-      properties,
-      Object.assign(
-        // settings that users can override
-        {strict: true},
-        // user-defined settings
-        definition.settings,
-        // settings enforced by the framework
-        {strictDelete: false},
-      ),
-    );
+
+    // Now the property types have been fully resolved
+    // Force the model to be rebuilt
+    modelClass.definition.rawProperties = properties;
+    delete modelClass.definition.properties;
+
+    // Force rebuild definitions
+    modelClass.definition.build();
     modelClass.attachTo(dataSource);
     return modelClass;
   }
 
-  private resolvePropertyType(type: PropertyType): PropertyType {
+  private resolvePropertyType(
+    type: PropertyType,
+    visited: Map<typeof Model, typeof juggler.PersistedModel>,
+  ): PropertyType {
     const resolved = resolveType(type);
     return isModelClass(resolved)
-      ? this.definePersistedModel(resolved)
+      ? this.definePersistedModel(resolved, visited)
       : resolved;
   }