diff --git a/lib/dereference.js b/lib/dereference.js
index 66bcf625..7e41e4dc 100644
--- a/lib/dereference.js
+++ b/lib/dereference.js
@@ -16,7 +16,7 @@ module.exports = dereference;
  */
 function dereference (parser, options) {
   // console.log('Dereferencing $ref pointers in %s', parser.$refs._root$Ref.path);
-  let dereferenced = crawl(parser.schema, parser.$refs._root$Ref.path, "#", [], [], {}, parser.$refs, options);
+  let dereferenced = crawl(parser.schema, parser.$refs._root$Ref.path, "#", [], {}, parser.$refs, options);
   parser.$refs.circular = dereferenced.circular;
   parser.schema = dereferenced.value;
 }
@@ -28,38 +28,44 @@ function dereference (parser, options) {
  * @param {string} path - The full path of `obj`, possibly with a JSON Pointer in the hash
  * @param {string} pathFromRoot - The path of `obj` from the schema root
  * @param {object[]} parents - An array of the parent objects that have already been dereferenced
- * @param {object[]} processedObjects - An array of all the objects that have already been processed
  * @param {object} dereferencedCache - An map of all the dereferenced objects
  * @param {$Refs} $refs
  * @param {$RefParserOptions} options
  * @returns {{value: object, circular: boolean}}
  */
-function crawl (obj, path, pathFromRoot, parents, processedObjects, dereferencedCache, $refs, options) {
+function crawl (obj, path, pathFromRoot, parents, dereferencedCache, $refs, options) {
   let dereferenced;
   let result = {
     value: obj,
     circular: false
   };
 
-  if (options.dereference.circular === "ignore" || processedObjects.indexOf(obj) === -1) {
-    if (obj && typeof obj === "object" && !ArrayBuffer.isView(obj)) {
-      parents.push(obj);
-      processedObjects.push(obj);
+  if (obj && typeof obj === "object" && !ArrayBuffer.isView(obj)) {
+    parents.push(obj);
 
-      if ($Ref.isAllowed$Ref(obj, options)) {
-        dereferenced = dereference$Ref(obj, path, pathFromRoot, parents, processedObjects, dereferencedCache, $refs, options);
-        result.circular = dereferenced.circular;
-        result.value = dereferenced.value;
-      }
-      else {
-        for (let key of Object.keys(obj)) {
-          let keyPath = Pointer.join(path, key);
-          let keyPathFromRoot = Pointer.join(pathFromRoot, key);
-          let value = obj[key];
-          let circular = false;
-
-          if ($Ref.isAllowed$Ref(value, options)) {
-            dereferenced = dereference$Ref(value, keyPath, keyPathFromRoot, parents, processedObjects, dereferencedCache, $refs, options);
+    if ($Ref.isAllowed$Ref(obj, options)) {
+      dereferenced = dereference$Ref(obj, path, pathFromRoot, parents, dereferencedCache, $refs, options);
+      result.circular = dereferenced.circular;
+      result.value = dereferenced.value;
+    }
+    else {
+      for (let key of Object.keys(obj)) {
+        let keyPath = Pointer.join(path, key);
+        let keyPathFromRoot = Pointer.join(pathFromRoot, key);
+        let value = obj[key];
+        let circular = false;
+
+        if ($Ref.isAllowed$Ref(value, options)) {
+          dereferenced = dereference$Ref(value, keyPath, keyPathFromRoot, parents, dereferencedCache, $refs, options);
+          circular = dereferenced.circular;
+          // Avoid pointless mutations; breaks frozen objects to no profit
+          if (obj[key] !== dereferenced.value) {
+            obj[key] = dereferenced.value;
+          }
+        }
+        else {
+          if (parents.indexOf(value) === -1) {
+            dereferenced = crawl(value, keyPath, keyPathFromRoot, parents, dereferencedCache, $refs, options);
             circular = dereferenced.circular;
             // Avoid pointless mutations; breaks frozen objects to no profit
             if (obj[key] !== dereferenced.value) {
@@ -67,26 +73,16 @@ function crawl (obj, path, pathFromRoot, parents, processedObjects, dereferenced
             }
           }
           else {
-            if (parents.indexOf(value) === -1) {
-              dereferenced = crawl(value, keyPath, keyPathFromRoot, parents, processedObjects, dereferencedCache, $refs, options);
-              circular = dereferenced.circular;
-              // Avoid pointless mutations; breaks frozen objects to no profit
-              if (obj[key] !== dereferenced.value) {
-                obj[key] = dereferenced.value;
-              }
-            }
-            else {
-              circular = foundCircularReference(keyPath, $refs, options);
-            }
+            circular = foundCircularReference(keyPath, $refs, options);
           }
-
-          // Set the "isCircular" flag if this or any other property is circular
-          result.circular = result.circular || circular;
         }
-      }
 
-      parents.pop();
+        // Set the "isCircular" flag if this or any other property is circular
+        result.circular = result.circular || circular;
+      }
     }
+
+    parents.pop();
   }
 
   return result;
@@ -99,12 +95,12 @@ function crawl (obj, path, pathFromRoot, parents, processedObjects, dereferenced
  * @param {string} path - The full path of `$ref`, possibly with a JSON Pointer in the hash
  * @param {string} pathFromRoot - The path of `$ref` from the schema root
  * @param {object[]} parents - An array of the parent objects that have already been dereferenced
- * @param {object[]} processedObjects - An array of all the objects that have already been dereferenced
+ * @param {object} dereferencedCache - An map of all the dereferenced objects
  * @param {$Refs} $refs
  * @param {$RefParserOptions} options
  * @returns {{value: object, circular: boolean}}
  */
-function dereference$Ref ($ref, path, pathFromRoot, parents, processedObjects, dereferencedCache, $refs, options) {
+function dereference$Ref ($ref, path, pathFromRoot, parents, dereferencedCache, $refs, options) {
   // console.log('Dereferencing $ref pointer "%s" at %s', $ref.$ref, path);
 
   let $refPath = url.resolve(path, $ref.$ref);
@@ -129,7 +125,6 @@ function dereference$Ref ($ref, path, pathFromRoot, parents, processedObjects, d
     return cache;
   }
 
-
   let pointer = $refs._resolve($refPath, path, options);
 
   if (pointer === null) {
@@ -150,7 +145,7 @@ function dereference$Ref ($ref, path, pathFromRoot, parents, processedObjects, d
   // Crawl the dereferenced value (unless it's circular)
   if (!circular) {
     // Determine if the dereferenced value is circular
-    let dereferenced = crawl(dereferencedValue, pointer.path, pathFromRoot, parents, processedObjects, dereferencedCache, $refs, options);
+    let dereferenced = crawl(dereferencedValue, pointer.path, pathFromRoot, parents, dereferencedCache, $refs, options);
     circular = dereferenced.circular;
     dereferencedValue = dereferenced.value;
   }