diff --git a/src/value/cast/cast.ts b/src/value/cast/cast.ts
index 999e9379..c3313f7b 100644
--- a/src/value/cast/cast.ts
+++ b/src/value/cast/cast.ts
@@ -80,8 +80,9 @@ function ScoreUnion(schema: TSchema, references: TSchema[], value: any): number
   }
 }
 function SelectUnion(union: TUnion, references: TSchema[], value: any): TSchema {
-  let [select, best] = [union.anyOf[0], 0]
-  for (const schema of union.anyOf) {
+  const schemas = union.anyOf.map((schema) => Deref(schema, references))
+  let [select, best] = [schemas[0], 0]
+  for (const schema of schemas) {
     const score = ScoreUnion(schema, references, value)
     if (score > best) {
       select = schema
diff --git a/src/value/deref/deref.ts b/src/value/deref/deref.ts
index c51fc23f..91a77915 100644
--- a/src/value/deref/deref.ts
+++ b/src/value/deref/deref.ts
@@ -30,15 +30,22 @@ import type { TSchema } from '../../type/schema/index'
 import type { TRef } from '../../type/ref/index'
 import type { TThis } from '../../type/recursive/index'
 import { TypeBoxError } from '../../type/error/index'
+import { Kind } from '../../type/symbols/index'
 
 export class TypeDereferenceError extends TypeBoxError {
   constructor(public readonly schema: TRef | TThis) {
     super(`Unable to dereference schema with $id '${schema.$id}'`)
   }
 }
+function Resolve(schema: TThis | TRef, references: TSchema[]): TSchema {
+  const target = references.find((target) => target.$id === schema.$ref)
+  if (target === undefined) throw new TypeDereferenceError(schema)
+  return Deref(target, references)
+}
 /** Dereferences a schema from the references array or throws if not found */
-export function Deref(schema: TRef | TThis, references: TSchema[]): TSchema {
-  const index = references.findIndex((target) => target.$id === schema.$ref)
-  if (index === -1) throw new TypeDereferenceError(schema)
-  return references[index]
+export function Deref(schema: TSchema, references: TSchema[]): TSchema {
+  // prettier-ignore
+  return (schema[Kind] === 'This' || schema[Kind] === 'Ref') 
+    ? Resolve(schema as never, references)
+    : schema
 }
diff --git a/test/runtime/value/cast/union.ts b/test/runtime/value/cast/union.ts
index 33d77b41..d9ae7302 100644
--- a/test/runtime/value/cast/union.ts
+++ b/test/runtime/value/cast/union.ts
@@ -145,4 +145,20 @@ describe('value/cast/Union', () => {
       value: 'B',
     })
   })
+  // ----------------------------------------------------------------
+  // https://github.com/sinclairzx81/typebox/issues/880
+  // ----------------------------------------------------------------
+  // prettier-ignore
+  it('Should dereference union variants', () => {
+    const A = Type.Object({ type: Type.Literal('A') }, { $id: 'A' })
+    const B = Type.Object({ type: Type.Literal('B'), value: Type.Number() }, { $id: 'B' })
+    const RA = Type.Union([A, B])
+    const RB = Type.Union([Type.Ref(A), Type.Ref(B)])
+    // variant 0
+    Assert.IsEqual(Value.Cast(RA, [A, B], { type: 'B' }), { type: 'B', value: 0 })
+    Assert.IsEqual(Value.Cast(RB, [A, B], { type: 'B' }), { type: 'B', value: 0 })
+    // variant 1
+    Assert.IsEqual(Value.Cast(RA, [A, B], { type: 'A' }), { type: 'A' })
+    Assert.IsEqual(Value.Cast(RB, [A, B], { type: 'A' }), { type: 'A' })
+  })
 })