diff --git a/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/index.ts b/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/index.ts
index 1a50f03868..5f08a26467 100644
--- a/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/index.ts
+++ b/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/index.ts
@@ -22,11 +22,23 @@ import OpenApi3_1DereferenceVisitor from './visitor';
 const visitAsync = visit[Symbol.for('nodejs.util.promisify.custom')];
 
 // eslint-disable-next-line @typescript-eslint/naming-convention
-const OpenApi3_1SwaggerClientDereferenceStrategy: stampit.Stamp<IDereferenceStrategy> = stampit(
-  DereferenceStrategy,
-  {
-    init() {
-      this.name = 'openapi-3-1';
+interface IOpenApi3_1SwaggerClientDereferenceStrategy extends IDereferenceStrategy {
+  useCircularStructures: boolean;
+}
+
+// eslint-disable-next-line @typescript-eslint/naming-convention
+const OpenApi3_1SwaggerClientDereferenceStrategy: stampit.Stamp<IOpenApi3_1SwaggerClientDereferenceStrategy> =
+  stampit(DereferenceStrategy, {
+    props: {
+      useCircularStructures: true,
+    },
+    init(
+      this: IOpenApi3_1SwaggerClientDereferenceStrategy,
+      { useCircularStructures = this.useCircularStructures } = {},
+    ) {
+      // @ts-ignore
+      this.name = 'openapi-3-1-swagger-client';
+      this.useCircularStructures = useCircularStructures;
     },
     methods: {
       canDereference(file: IFile): boolean {
@@ -52,14 +64,19 @@ const OpenApi3_1SwaggerClientDereferenceStrategy: stampit.Stamp<IDereferenceStra
           reference = refSet.find(propEq('uri', file.uri));
         }
 
-        const visitor = OpenApi3_1DereferenceVisitor({ reference, namespace, options });
+        const visitor = OpenApi3_1DereferenceVisitor({
+          reference,
+          namespace,
+          options,
+          useCircularStructures: this.useCircularStructures,
+        });
         const dereferencedElement = await visitAsync(refSet.rootRef.value, visitor, {
           keyMap,
           nodeTypeGetter: getNodeType,
         });
 
         /**
-         * Release all memory if this refSet was not provided as an configuration option.
+         * Release all memory if this refSet was not provided as a configuration option.
          * If provided as configuration option, then provider is responsible for cleanup.
          */
         if (options.dereference.refSet === null) {
@@ -69,7 +86,6 @@ const OpenApi3_1SwaggerClientDereferenceStrategy: stampit.Stamp<IDereferenceStra
         return dereferencedElement;
       },
     },
-  },
-);
+  });
 
 export default OpenApi3_1SwaggerClientDereferenceStrategy;
diff --git a/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/visitor.ts b/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/visitor.ts
index 79a720d6c8..29bcb76737 100644
--- a/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/visitor.ts
+++ b/packages/apidom-reference/src/dereference/strategies/openapi-3-1-swagger-client/visitor.ts
@@ -43,6 +43,7 @@ import {
   maybeRefractToSchemaElement,
 } from '../../../resolve/strategies/openapi-3-1/util';
 import EvaluationJsonSchemaUriError from '../openapi-3-1/selectors/uri/errors/EvaluationJsonSchemaUriError';
+import { isHttpUrl } from '../../../util/url';
 
 // @ts-ignore
 const visitAsync = visit[Symbol.for('nodejs.util.promisify.custom')];
@@ -55,13 +56,22 @@ const OpenApi3_1SwaggerClientDereferenceVisitor = stampit({
     namespace: null,
     reference: null,
     options: null,
+    useCircularStructures: true,
   },
-  init({ indirections = [], visited = new WeakSet(), reference, namespace, options }) {
+  init({
+    indirections = [],
+    visited = new WeakSet(),
+    reference,
+    namespace,
+    options,
+    useCircularStructures,
+  }) {
     this.indirections = indirections;
     this.visited = visited;
     this.namespace = namespace;
     this.reference = reference;
     this.options = options;
+    this.useCircularStructures = useCircularStructures;
   },
   methods: {
     toBaseURI(uri: string): string {
@@ -458,6 +468,20 @@ const OpenApi3_1SwaggerClientDereferenceVisitor = stampit({
         );
       }
 
+      // detect possible cycle and avoid it
+      if (!this.useCircularStructures && this.visited.has(referencedElement)) {
+        // make the referencing URL absolute if possible
+        if (isHttpUrl(reference.uri) && isStringElement(referencingElement.$ref)) {
+          const absoluteJSONPointerURL = url.resolve(
+            reference.uri,
+            referencingElement.$ref?.toValue(),
+          );
+          referencingElement.set('$ref', absoluteJSONPointerURL);
+        }
+        // skip processing this node
+        return false;
+      }
+
       // dive deep into the fragment
       const visitor: any = OpenApi3_1SwaggerClientDereferenceVisitor({
         reference,
@@ -465,6 +489,7 @@ const OpenApi3_1SwaggerClientDereferenceVisitor = stampit({
         indirections: [...this.indirections],
         options: this.options,
         visited: this.visited,
+        useCircularStructures: this.useCircularStructures,
       });
       referencedElement = await visitAsync(referencedElement, visitor, {
         keyMap,
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/bootstrap.ts b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/bootstrap.ts
index 32b10e58ad..4b1f2c74ee 100644
--- a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/bootstrap.ts
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/bootstrap.ts
@@ -7,9 +7,11 @@ import YamlParser from './helpers/parsers/yaml1-2';
 import OpenApiJson3_1Parser from './helpers/parsers/openapi-json-3-1';
 import OpenApiYaml3_1Parser from './helpers/parsers/openapi-yaml-3-1';
 import HttpResolverSwaggerClient from '../../../../src/resolve/resolvers/HttpResolverSwaggerClient';
+import OpenApi3_1SwaggerClientDereferenceStrategy from '../../../../src/dereference/strategies/openapi-3-1-swagger-client';
 
 const originalParsers = [...options.parse.parsers];
 const originalResolvers = [...options.resolve.resolvers];
+const originalDereferenceStrategies = [...options.dereference.strategies];
 
 export const before = () => {
   // configure custom parser plugins globally
@@ -43,9 +45,20 @@ export const before = () => {
 
     return resolver;
   });
+
+  // configure custom dereference strategy globally
+  options.dereference.strategies = options.dereference.strategies.map((strategy) => {
+    // @ts-ignore
+    if (strategy.name === 'openapi-3-1') {
+      return OpenApi3_1SwaggerClientDereferenceStrategy();
+    }
+
+    return strategy;
+  });
 };
 
 export const after = () => {
   options.parse.parsers = originalParsers;
   options.resolve.resolvers = originalResolvers;
+  options.dereference.strategies = originalDereferenceStrategies;
 };
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/dereferenced.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/dereferenced.json
new file mode 100644
index 0000000000..325bce9102
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/dereferenced.json
@@ -0,0 +1,21 @@
+[
+  {
+    "openapi": "3.1.0",
+    "components": {
+      "schemas": {
+        "User": {
+          "type": "object",
+          "properties": {
+            "profile": {
+              "properties": {
+                "parent": {
+                  "$ref": "http://localhost:8123/ex.json#/$defs/UserProfile"
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+  }
+]
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/ex.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/ex.json
new file mode 100644
index 0000000000..3867c3eeb0
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/ex.json
@@ -0,0 +1,11 @@
+{
+  "$defs": {
+    "UserProfile": {
+      "properties": {
+        "parent": {
+          "$ref": "#/$defs/UserProfile"
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/root.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/root.json
new file mode 100644
index 0000000000..15ee3edf1c
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled-http/root.json
@@ -0,0 +1,15 @@
+{
+  "openapi": "3.1.0",
+  "components": {
+    "schemas": {
+      "User": {
+        "type": "object",
+        "properties": {
+          "profile": {
+            "$ref": "./ex.json#/$defs/UserProfile"
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/dereferenced.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/dereferenced.json
new file mode 100644
index 0000000000..05b2a3dd83
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/dereferenced.json
@@ -0,0 +1,21 @@
+[
+  {
+    "openapi": "3.1.0",
+    "components": {
+      "schemas": {
+        "User": {
+          "type": "object",
+          "properties": {
+            "profile": {
+              "properties": {
+                "parent": {
+                  "$ref": "#/$defs/UserProfile"
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+  }
+]
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/ex.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/ex.json
new file mode 100644
index 0000000000..3867c3eeb0
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/ex.json
@@ -0,0 +1,11 @@
+{
+  "$defs": {
+    "UserProfile": {
+      "properties": {
+        "parent": {
+          "$ref": "#/$defs/UserProfile"
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/root.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/root.json
new file mode 100644
index 0000000000..15ee3edf1c
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-external-disabled/root.json
@@ -0,0 +1,15 @@
+{
+  "openapi": "3.1.0",
+  "components": {
+    "schemas": {
+      "User": {
+        "type": "object",
+        "properties": {
+          "profile": {
+            "$ref": "./ex.json#/$defs/UserProfile"
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/dereferenced.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/dereferenced.json
new file mode 100644
index 0000000000..9f25cf0878
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/dereferenced.json
@@ -0,0 +1,17 @@
+[
+  {
+    "openapi": "3.1.0",
+    "components": {
+      "schemas": {
+        "User": {
+          "type": "object",
+          "properties": {
+            "parent": {
+              "$ref": "http://localhost:8123/root.json#/components/schemas/User"
+            }
+          }
+        }
+      }
+    }
+  }
+]
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/root.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/root.json
new file mode 100644
index 0000000000..badb77703d
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled-http/root.json
@@ -0,0 +1,15 @@
+{
+  "openapi": "3.1.0",
+  "components": {
+    "schemas": {
+      "User": {
+        "type": "object",
+        "properties": {
+          "parent": {
+            "$ref": "#/components/schemas/User"
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/dereferenced.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/dereferenced.json
new file mode 100644
index 0000000000..eece862a09
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/dereferenced.json
@@ -0,0 +1,17 @@
+[
+  {
+    "openapi": "3.1.0",
+    "components": {
+      "schemas": {
+        "User": {
+          "type": "object",
+          "properties": {
+            "parent": {
+              "$ref": "#/components/schemas/User"
+            }
+          }
+        }
+      }
+    }
+  }
+]
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/root.json b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/root.json
new file mode 100644
index 0000000000..badb77703d
--- /dev/null
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/fixtures/cycle-internal-disabled/root.json
@@ -0,0 +1,15 @@
+{
+  "openapi": "3.1.0",
+  "components": {
+    "schemas": {
+      "User": {
+        "type": "object",
+        "properties": {
+          "parent": {
+            "$ref": "#/components/schemas/User"
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/index.ts b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/index.ts
index dace965b45..ed6b84d254 100644
--- a/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/index.ts
+++ b/packages/apidom-reference/test/dereference/strategies/openapi-3-1-swagger-client/schema-object/index.ts
@@ -11,10 +11,11 @@ import {
   MaximumResolverDepthError,
   ResolverError,
 } from '../../../../../src/util/errors';
-import { loadJsonFile } from '../../../../helpers';
+import { createHTTPServer, loadJsonFile } from '../../../../helpers';
 import { EvaluationJsonSchema$anchorError } from '../../../../../src/dereference/strategies/openapi-3-1/selectors/$anchor/errors';
 import { EvaluationJsonSchemaUriError } from '../../../../../src/dereference/strategies/openapi-3-1/selectors/uri/errors';
 import * as bootstrap from '../bootstrap';
+import OpenApi3_1SwaggerClientDereferenceStrategy from '../../../../../src/dereference/strategies/openapi-3-1-swagger-client';
 
 const rootFixturePath = path.join(__dirname, 'fixtures');
 
@@ -88,9 +89,8 @@ describe('dereference', function () {
         });
 
         context('given Schema Objects with internal cycles', function () {
-          const fixturePath = path.join(rootFixturePath, 'cycle-internal');
-
           specify('should dereference', async function () {
+            const fixturePath = path.join(rootFixturePath, 'cycle-internal');
             const rootFilePath = path.join(fixturePath, 'root.json');
             const dereferenced = await dereference(rootFilePath, {
               parse: { mediaType: mediaTypes.latest('json') },
@@ -103,12 +103,55 @@ describe('dereference', function () {
 
             assert.strictEqual(parent, cyclicParent);
           });
+
+          context('and useCircularStructures=false', function () {
+            specify('should avoid cycles by skipping transclusion', async function () {
+              const fixturePath = path.join(rootFixturePath, 'cycle-internal-disabled');
+              const rootFilePath = path.join(fixturePath, 'root.json');
+              const actual = await dereference(rootFilePath, {
+                parse: { mediaType: mediaTypes.latest('json') },
+                dereference: {
+                  strategies: [
+                    OpenApi3_1SwaggerClientDereferenceStrategy({ useCircularStructures: false }),
+                  ],
+                },
+              });
+              const expected = loadJsonFile(path.join(fixturePath, 'dereferenced.json'));
+
+              assert.deepEqual(toValue(actual), expected);
+            });
+
+            context('and using HTTP protocol', function () {
+              specify('should make JSON Pointer absolute', async function () {
+                let httpServer: any;
+
+                try {
+                  const fixturePath = path.join(rootFixturePath, 'cycle-external-disabled-http');
+                  httpServer = createHTTPServer({ port: 8123, cwd: fixturePath });
+                  const actual = await dereference('http://localhost:8123/root.json', {
+                    parse: { mediaType: mediaTypes.latest('json') },
+                    dereference: {
+                      strategies: [
+                        OpenApi3_1SwaggerClientDereferenceStrategy({
+                          useCircularStructures: false,
+                        }),
+                      ],
+                    },
+                  });
+                  const expected = loadJsonFile(path.join(fixturePath, 'dereferenced.json'));
+
+                  assert.deepEqual(toValue(actual), expected);
+                } finally {
+                  await httpServer?.terminate();
+                }
+              });
+            });
+          });
         });
 
         context('given Schema Objects with external cycles', function () {
-          const fixturePath = path.join(rootFixturePath, 'cycle-external');
-
           specify('should dereference', async function () {
+            const fixturePath = path.join(rootFixturePath, 'cycle-external');
             const rootFilePath = path.join(fixturePath, 'root.json');
             const dereferenced = await dereference(rootFilePath, {
               parse: { mediaType: mediaTypes.latest('json') },
@@ -124,6 +167,24 @@ describe('dereference', function () {
 
             assert.strictEqual(parent, cyclicParent);
           });
+
+          context('and useCircularStructures=false', function () {
+            specify('should avoid cycles by skipping transclusion', async function () {
+              const fixturePath = path.join(rootFixturePath, 'cycle-external-disabled');
+              const rootFilePath = path.join(fixturePath, 'root.json');
+              const actual = await dereference(rootFilePath, {
+                parse: { mediaType: mediaTypes.latest('json') },
+                dereference: {
+                  strategies: [
+                    OpenApi3_1SwaggerClientDereferenceStrategy({ useCircularStructures: false }),
+                  ],
+                },
+              });
+              const expected = loadJsonFile(path.join(fixturePath, 'dereferenced.json'));
+
+              assert.deepEqual(toValue(actual), expected);
+            });
+          });
         });
 
         context('given Schema Objects with internal and external cycles', function () {
@@ -777,6 +838,7 @@ describe('dereference', function () {
 
           specify('should throw error', async function () {
             const rootFilePath = path.join(fixturePath, 'root.json');
+
             try {
               await dereference(rootFilePath, {
                 parse: { mediaType: mediaTypes.latest('json') },
@@ -786,6 +848,26 @@ describe('dereference', function () {
               assert.instanceOf(e, DereferenceError);
             }
           });
+
+          context('and useCircularStructures=false', function () {
+            specify('should throw error', async function () {
+              const rootFilePath = path.join(fixturePath, 'root.json');
+
+              try {
+                await dereference(rootFilePath, {
+                  parse: { mediaType: mediaTypes.latest('json') },
+                  dereference: {
+                    strategies: [
+                      OpenApi3_1SwaggerClientDereferenceStrategy({ useCircularStructures: false }),
+                    ],
+                  },
+                });
+                assert.fail('should throw DereferenceError');
+              } catch (e) {
+                assert.instanceOf(e, DereferenceError);
+              }
+            });
+          });
         });
 
         context('given Schema Objects with indirect circular internal reference', function () {
@@ -793,6 +875,7 @@ describe('dereference', function () {
 
           specify('should throw error', async function () {
             const rootFilePath = path.join(fixturePath, 'root.json');
+
             try {
               await dereference(rootFilePath, {
                 parse: { mediaType: mediaTypes.latest('json') },
@@ -802,6 +885,25 @@ describe('dereference', function () {
               assert.instanceOf(e, DereferenceError);
             }
           });
+
+          context('and useCircularStructures=false', function () {
+            specify('should throw error', async function () {
+              const rootFilePath = path.join(fixturePath, 'root.json');
+              try {
+                await dereference(rootFilePath, {
+                  parse: { mediaType: mediaTypes.latest('json') },
+                  dereference: {
+                    strategies: [
+                      OpenApi3_1SwaggerClientDereferenceStrategy({ useCircularStructures: false }),
+                    ],
+                  },
+                });
+                assert.fail('should throw DereferenceError');
+              } catch (e) {
+                assert.instanceOf(e, DereferenceError);
+              }
+            });
+          });
         });
       });
     });