diff --git a/src/lib/parser.ts b/src/lib/parser.ts
index acd03be..e156b53 100644
--- a/src/lib/parser.ts
+++ b/src/lib/parser.ts
@@ -4,13 +4,30 @@ import type { ParsedSpec, OpenAPISpec } from './types.js';
 
 const HTTP_METHODS = ['get', 'post', 'put', 'patch', 'delete', 'head', 'options', 'trace'] as const;
 
-export async function parseSpec(specPath: string): Promise<{
+export async function parseSpec(specPath: string, options?: { dereference?: boolean }): Promise<{
   spec: OpenAPISpec;
   metadata: ParsedSpec;
+  dereferenced: boolean;
 }> {
-  const spec = await SwaggerParser.dereference(specPath);
+  const shouldDereference = options?.dereference !== false;
+
+  let spec: OpenAPISpec;
+  let dereferenced = false;
+
+  if (shouldDereference) {
+    try {
+      spec = await SwaggerParser.dereference(specPath);
+      dereferenced = true;
+    } catch {
+      // Fallback to parse without dereferencing if refs are broken
+      spec = await SwaggerParser.parse(specPath);
+    }
+  } else {
+    spec = await SwaggerParser.parse(specPath);
+  }
+
   const metadata = extractMetadata(spec);
-  return { spec, metadata };
+  return { spec, metadata, dereferenced };
 }
 
 export async function bundleSpec(specPath: string): Promise<OpenAPISpec> {
diff --git a/src/tools/parse.ts b/src/tools/parse.ts
index cfe3ea5..fc0264c 100644
--- a/src/tools/parse.ts
+++ b/src/tools/parse.ts
@@ -15,15 +15,19 @@ export async function parseToolHandler({ path }: { path: string }): Promise<{
   structuredContent: Record<string, unknown>;
 }> {
   try {
-    const { spec, metadata } = await parseSpec(path);
+    const { spec, metadata, dereferenced } = await parseSpec(path);
 
-    const text = formatMetadata(metadata);
+    let text = formatMetadata(metadata);
+    if (!dereferenced) {
+      text += '\n\n**Warning**: Spec has broken $refs. Parsed without dereferencing.';
+    }
 
     return {
       content: [{ type: 'text', text }],
       structuredContent: {
         success: true,
         metadata,
+        dereferenced,
         spec,
       },
     };