diff --git a/CHANGELOG.md b/CHANGELOG.md
index b1338e3..85e7cfd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,8 @@ and this project adheres to [Semantic
 Versioning](http://semver.org/spec/v2.0.0.html).
 
 ## [Unreleased]
+### Fixed
+- Merge PR #223, allowing Ref usage inside SAM Global
 
 ## [1.9.5] - 2019-02-05
 ### Fixed
diff --git a/src/test/validatorTest.ts b/src/test/validatorTest.ts
index 7460618..b97b82c 100644
--- a/src/test/validatorTest.ts
+++ b/src/test/validatorTest.ts
@@ -1924,5 +1924,12 @@ describe('validator', () => {
             expect(result).to.have.deep.property('templateValid', false);
             expect(result['errors']['crit']).to.have.lengthOf(2);
         });
+
+        it('a valid template with Ref in Globals (sam_20161031_environment_ref.yaml) should validate successfully', () => {
+            const input = 'testData/valid/yaml/sam_20161031_environment_ref.yaml';
+            let result = validator.validateFile(input);
+            expect(result).to.have.deep.property('templateValid', true);
+            expect(result['errors']['crit']).to.have.lengthOf(0);
+        });
     });
 });
diff --git a/src/validator.ts b/src/validator.ts
index 2171685..9b9284e 100644
--- a/src/validator.ts
+++ b/src/validator.ts
@@ -852,7 +852,7 @@ function inferParameterValue(parameterName: string, parameter: any, okToGuess: b
                 normalizedType = 'string';
             }
 
-            const parameterDefault = parameterDefaultsByType[parameterTypesSpec[parameterType]!]! 
+            const parameterDefault = parameterDefaultsByType[parameterTypesSpec[parameterType]!]!
             if (isList) {
                 return [parameterDefault];
             } else {
@@ -1067,11 +1067,12 @@ function recursiveDecent(ref: any){
             // Check if an Intrinsic function is allowed here
             let inResourceProperty = (placeInTemplate[0] == "Resources" || placeInTemplate[2] == "Properties");
             let inResourceMetadata = (placeInTemplate[0] == "Resources" || placeInTemplate[2] == "Metadata");
+            let inGlobalEnvironment = (placeInTemplate[0] == "Globals" && placeInTemplate[2] == "Environment");
             let inOutputs = (placeInTemplate[0] == "Outputs");
             let inConditions = (placeInTemplate[0] == "Conditions");
             // TODO Check for usage inside update policy
 
-            if(!(inResourceProperty || inResourceMetadata || inOutputs || inConditions)){
+            if(!(inGlobalEnvironment || inResourceProperty || inResourceMetadata || inOutputs || inConditions)){
                 addError("crit", `Intrinsic function ${key} is not supported here`, placeInTemplate, key);
             }else {
                 // Resolve the function
@@ -1382,7 +1383,7 @@ function doIntrinsicSelect(ref: any, key: string){
         }
     } else if (list.indexOf(null) > -1) {
         addError('crit', "Fn::Select requires that the list be free of null values", placeInTemplate, "Fn::Select");
-    
+
     }
     if (index >= 0 && index < list.length) {
         return list[index];
@@ -1909,7 +1910,7 @@ export interface PrimitiveType {
     resourceType: string,
     primitiveType: string
 }
-  
+
 export type ObjectType = ResourceType | NamedProperty | PropertyType | PrimitiveType;
 
 /**
@@ -1929,7 +1930,7 @@ function getTypeName(objectType: ResourceType | NamedProperty | PropertyType ):
 }
 
 /**
- * 
+ *
  */
 function getItemType(objectType: NamedProperty): PrimitiveType | PropertyType {
     const maybePrimitiveType = resourcesSpec.getPrimitiveItemType(objectType.parentType, objectType.propertyName);
@@ -2064,7 +2065,7 @@ function check(objectType: ObjectType, objectToCheck: any) {
                     verify(isList, objectToCheck);
                     checkList(objectType as NamedProperty, objectToCheck);
                     break;
-                case KnownTypes.Arn:                    
+                case KnownTypes.Arn:
                     verify(isArn, objectToCheck);
                     break;
                 case KnownTypes.String:
@@ -2338,7 +2339,7 @@ function checkComplexObject(objectType: ResourceType | NamedProperty | PropertyT
                 parentType: objectTypeName,
                 propertyName: subPropertyName
             } as NamedProperty;
-        
+
             check(subPropertyObjectType, propertyValue)
 
         } finally {
diff --git a/testData/valid/yaml/sam_20161031_environment_ref.yaml b/testData/valid/yaml/sam_20161031_environment_ref.yaml
new file mode 100644
index 0000000..5728467
--- /dev/null
+++ b/testData/valid/yaml/sam_20161031_environment_ref.yaml
@@ -0,0 +1,17 @@
+AWSTemplateFormatVersion: '2010-09-09'
+Transform: AWS::Serverless-2016-10-31
+Description: Tests if Ref is allowed in Globals
+
+Parameters:
+  LocalVar:
+    Type: String
+
+Globals:
+    Function:
+        Environment:
+            Variables:
+                GLOB_ENV_VAR: !Ref LocalVar
+
+Resources:
+  Bucket:
+    Type: AWS::S3::Bucket