diff --git a/dbt/compilation.py b/dbt/compilation.py
index 569149c125e..7feb0e4edd7 100644
--- a/dbt/compilation.py
+++ b/dbt/compilation.py
@@ -224,8 +224,8 @@ def do_ref(*args):
 
             target_model_id = target_model.get('unique_id')
 
-            if target_model.get('config', {}) \
-                           .get('enabled') is False:
+            if target_model.get('config', {}).get('enabled') is False and \
+               model.get('config', {}).get('enabled') is True:
                 compiler_error(
                     model,
                     "Model '{}' depends on model '{}' which is disabled in "
diff --git a/test/integration/006_simple_dependency_test/models/disabled_one.sql b/test/integration/006_simple_dependency_test/models/disabled_one.sql
new file mode 100644
index 00000000000..6f373105aac
--- /dev/null
+++ b/test/integration/006_simple_dependency_test/models/disabled_one.sql
@@ -0,0 +1,3 @@
+{{config(enabled=False)}}
+
+select 1
diff --git a/test/integration/006_simple_dependency_test/models/disabled_two.sql b/test/integration/006_simple_dependency_test/models/disabled_two.sql
new file mode 100644
index 00000000000..b20d379edea
--- /dev/null
+++ b/test/integration/006_simple_dependency_test/models/disabled_two.sql
@@ -0,0 +1,3 @@
+{{config(enabled=False)}}
+
+select * from {{ref('disabled_one')}}