diff --git a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/CHANGELOG b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/CHANGELOG
index f15a96c78cf..5ab83a5e8b2 100644
--- a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/CHANGELOG
+++ b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/CHANGELOG
@@ -1,5 +1,8 @@
 # Release History
 
+## 1.3.0 (12-12-2023)
++ Support local schema reference in another referred swagger file
+
 ## 1.2.0 (11-29-2023)
 + Added API version as PackageVersion in code file.
 
diff --git a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerAPIViewGenerator.cs b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerAPIViewGenerator.cs
index 1b912a6f437..c6281824754 100644
--- a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerAPIViewGenerator.cs
+++ b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerAPIViewGenerator.cs
@@ -173,6 +173,7 @@ public static async Task<SwaggerApiViewSpec> GenerateSwaggerApiView(Swagger swag
                     {
                         var resp = response;
                         var referenceSwaggerFilePath = swaggerFilePath;
+                        string referencePath = "";
 
                         if (response.IsRefObject())
                         {
@@ -180,11 +181,14 @@ public static async Task<SwaggerApiViewSpec> GenerateSwaggerApiView(Swagger swag
                             if (resp == null)
                             {
                                 resp = (Response)schemaCache.GetResponseFromCache(response.@ref, swaggerFilePath);
+                                // Update reference path if referenced object is in another swagger file
+                                if (response.IsRefObject() && !response.@ref.StartsWith("#"))
+                                    referencePath = response.@ref;
                             }
 
                             if (resp == null)
                             {
-                                var referencePath = response.@ref;
+                                referencePath = response.@ref;
                                 do
                                 {
                                     if (!Path.IsPathFullyQualified(referencePath))
@@ -216,7 +220,13 @@ public static async Task<SwaggerApiViewSpec> GenerateSwaggerApiView(Swagger swag
                         {
                             if (schema.IsRefObject())
                             {
-                                var referencePath = schema.@ref;
+                                // Update swagger file path to correct file if schema reference is local but parent itself is in another swagger file
+                                if (schema.@ref.StartsWith("#") && !string.IsNullOrEmpty(referencePath))
+                                {
+                                    referenceSwaggerFilePath = Utils.GetReferencedSwaggerFile(referencePath, referenceSwaggerFilePath);
+                                }
+                                
+                                referencePath = schema.@ref;
                                 do
                                 {
                                     referenceSwaggerFilePath = Utils.GetReferencedSwaggerFile(referencePath, referenceSwaggerFilePath);
diff --git a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerApiParser.csproj b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerApiParser.csproj
index a535c1f8768..420e137fc84 100644
--- a/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerApiParser.csproj
+++ b/tools/apiview/parsers/swagger-api-parser/SwaggerApiParser/SwaggerApiParser.csproj
@@ -6,7 +6,7 @@
     <ToolCommandName>swaggerAPIParser</ToolCommandName>
     <TargetFramework>net7.0</TargetFramework>
     <RootNamespace>SwaggerApiParser</RootNamespace>
-    <VersionPrefix>1.2.0</VersionPrefix>
+    <VersionPrefix>1.3.0</VersionPrefix>
     <AssemblyName>Azure.Sdk.Tools.SwaggerApiParser</AssemblyName>
     <SignAssembly>True</SignAssembly>
     <InformationalVersion>$(OfficialBuildId)</InformationalVersion>