diff --git a/lib/json-schema/validator.rb b/lib/json-schema/validator.rb
index 46fa74fd..9ea92d7e 100644
--- a/lib/json-schema/validator.rb
+++ b/lib/json-schema/validator.rb
@@ -70,6 +70,7 @@ def initialize(schema_data, data, opts={})
     end
 
     def schema_from_fragment(base_schema, fragment)
+      schema_uri = base_schema.uri
       fragments = fragment.split("/")
 
       # ensure the first element was a hash, per the fragment spec
@@ -82,17 +83,17 @@ def schema_from_fragment(base_schema, fragment)
           if !base_schema.schema.has_key?(f)
             raise JSON::Schema::SchemaError.new("Invalid fragment resolution for :fragment option")
           end
-        base_schema = base_schema.schema[f]
+          base_schema = base_schema.schema[f]
         elsif base_schema.is_a?(Hash)
           if !base_schema.has_key?(f)
             raise JSON::Schema::SchemaError.new("Invalid fragment resolution for :fragment option")
           end
-        base_schema = initialize_schema(base_schema[f]) #need to return a Schema instance for validation to work
+          base_schema = JSON::Schema.new(base_schema[f],schema_uri,@options[:version])
         elsif base_schema.is_a?(Array)
           if base_schema[f.to_i].nil?
             raise JSON::Schema::SchemaError.new("Invalid fragment resolution for :fragment option")
           end
-        base_schema = initialize_schema(base_schema[f.to_i])
+          base_schema = JSON::Schema.new(base_schema[f.to_i],schema_uri,@options[:version])
         else
           raise JSON::Schema::SchemaError.new("Invalid schema encountered when resolving :fragment option")
         end
diff --git a/test/test_fragment_validation_with_ref.rb b/test/test_fragment_validation_with_ref.rb
new file mode 100644
index 00000000..3f17a955
--- /dev/null
+++ b/test/test_fragment_validation_with_ref.rb
@@ -0,0 +1,40 @@
+require File.expand_path('../test_helper', __FILE__)
+require 'json-schema'
+
+class FragmentValidationWithRef < Test::Unit::TestCase
+  def whole_schema
+    {
+      "$schema" => "http://json-schema.org/draft-04/schema#",
+      "type" => "object",
+      "definitions" => {
+        "post" => {
+          "type" => "object",
+          "properties" => {
+            "content" => {
+              "type" => "string"
+            },
+            "author" => {
+              "type" => "string"
+            }
+          }
+        },
+        "posts" => {
+          "type" => "array",
+          "items" => {
+            "$ref" => "#/definitions/post"
+          }
+        }
+      }
+    }
+  end
+
+  def test_validation_of_fragment
+    data = [{"content" => "ohai", "author" => "Bob"}]
+    v = nil
+    assert_nothing_raised do
+      v = JSON::Validator.fully_validate(whole_schema,data,:fragment => "#/definitions/posts")
+    end
+
+    assert(v.empty?, v.join("\n"))
+  end
+end
diff --git a/test/test_helper.rb b/test/test_helper.rb
new file mode 100644
index 00000000..1acfa6a0
--- /dev/null
+++ b/test/test_helper.rb
@@ -0,0 +1,2 @@
+require 'test/unit'
+$:.unshift(File.expand_path('../../lib', __FILE__))