diff --git a/ast/compile.go b/ast/compile.go
index 08dcc217b8..74aadb05d9 100644
--- a/ast/compile.go
+++ b/ast/compile.go
@@ -241,41 +241,32 @@ func (c *Compiler) resolveAllRefs() {
 
 func (c *Compiler) resolveRef(globals map[Var]Value, ref Ref) Ref {
 
-	global := globals[ref[0].Value.(Var)]
-	if global == nil {
-		return ref
-	}
-	fqn := Ref{}
-	switch global := global.(type) {
-	case Ref:
-		fqn = append(fqn, global...)
-		for _, p := range ref[1:] {
-			switch v := p.Value.(type) {
-			case Var:
-				global := globals[v]
-				if global != nil {
-					_, isRef := global.(Ref)
-					if isRef {
-						c.err("nested references in %v: %v => %v", ref, v, global)
-						return ref
+	r := Ref{}
+	for i, x := range ref {
+		switch v := x.Value.(type) {
+		case Var:
+			if g, ok := globals[v]; ok {
+				switch g := g.(type) {
+				case Ref:
+					if i == 0 {
+						r = append(r, g...)
+					} else {
+						r = append(r, &Term{Location: x.Location, Value: g[:]})
 					}
-					fqn = append(fqn, &Term{Location: p.Location, Value: global})
-				} else {
-					fqn = append(fqn, p)
+				case Var:
+					r = append(r, &Term{Value: g})
 				}
-			default:
-				fqn = append(fqn, p)
+			} else {
+				r = append(r, x)
 			}
+		case Ref:
+			r = append(r, c.resolveRefsInTerm(globals, x))
+		default:
+			r = append(r, x)
 		}
-	case Var:
-		fqn = append(fqn, &Term{Value: global})
-		fqn = append(fqn, ref[1:]...)
-	default:
-		c.err("unexpected %T: %v", global, global)
-		return ref
 	}
 
-	return fqn
+	return r
 }
 
 func (c *Compiler) resolveRefsInBody(globals map[Var]Value, body Body) Body {
@@ -515,7 +506,7 @@ func (vis *ruleGraphBuilder) Visit(v interface{}) Visitor {
 	for _, v := range findRules(vis.moduleTree, ref) {
 		vis.edges[v] = struct{}{}
 	}
-	return nil
+	return vis
 }
 
 type ruleGraphTraveral struct {
diff --git a/ast/compile_test.go b/ast/compile_test.go
index 65ef2ef1c1..4e9b8c5c31 100644
--- a/ast/compile_test.go
+++ b/ast/compile_test.go
@@ -16,9 +16,10 @@ func TestModuleTree(t *testing.T) {
 
 	mods := getCompilerTestModules()
 	tree := NewModuleTree(mods)
+	expectedSize := 6
 
-	if tree.Size() != 5 {
-		t.Errorf("Expected size of 4 in module tree but got: %v", tree.Size())
+	if tree.Size() != expectedSize {
+		t.Errorf("Expected size of %v in module tree but got: %v", expectedSize, tree.Size())
 	}
 
 	if r1 := findRules(tree, MustParseRef("data.a.b.c")); len(r1) != 0 {
@@ -146,6 +147,7 @@ func TestCompilerCheckSafetyBodyReordering(t *testing.T) {
 		// trivial cases
 		{"noop", "x = 1, x != 0", "x = 1, x != 0"},
 		{"var/ref", "a[i] = x, a = [1,2,3,4]", "a = [1,2,3,4], a[i] = x"},
+		{"var/ref (nested)", "a = [1,2,3,4], a[b[i]] = x, b = [0,0,0,0]", "a = [1,2,3,4], b = [0,0,0,0], a[b[i]] = x"},
 		{"negation",
 			"a = [true, false], b = [true, false], not a[i], b[i]",
 			"a = [true, false], b = [true, false], b[i], not a[i]"},
@@ -302,6 +304,8 @@ func TestCompilerCheckSafetyBodyErrors(t *testing.T) {
 	unsafeClosure1 :- x = [x | x = 1]
 	unsafeClosure2 :- x = y, x = [y | y = 1]
 
+	unsafeNestedHead :- count(baz[i].attr[bar[dead.beef]], n)
+
 	negatedImport1 = true :- not foo
 	negatedImport2 = true :- not bar
 	negatedImport3 = true :- not baz
@@ -327,6 +331,7 @@ func TestCompilerCheckSafetyBodyErrors(t *testing.T) {
 		fmt.Errorf("unsafe variables in unboundArrayComprMixed1: [x z]"),
 		fmt.Errorf("unsafe variables in unsafeClosure1: [x]"),
 		fmt.Errorf("unsafe variables in unsafeClosure2: [y]"),
+		fmt.Errorf("unsafe variables in unsafeNestedHead: [dead]"),
 	}
 
 	if !reflect.DeepEqual(expected, c.Errors) {
@@ -350,6 +355,7 @@ func TestCompilerResolveAllRefs(t *testing.T) {
 
 	assertNotFailed(t, c)
 
+	// Basic test cases.
 	mod1 := c.Modules["mod1"]
 	p := mod1.Rules[0]
 	expr1 := p.Body[0]
@@ -403,6 +409,17 @@ func TestCompilerResolveAllRefs(t *testing.T) {
 	acTerm6 := ac(mod5.Rules[5])
 	assertTermEqual(t, acTerm6.Body[0].Terms.([]*Term)[2].Value.(*ArrayComprehension).Body[0].Terms.([]*Term)[1], MustParseTerm("a.b.c.q[i]"))
 
+	// Nested references.
+	mod6 := c.Modules["mod6"]
+	nested1 := mod6.Rules[0].Body[0].Terms.(*Term)
+	assertTermEqual(t, nested1, MustParseTerm("data.x[x[i].a[data.z.b[j]]]"))
+
+	nested2 := mod6.Rules[1].Body[1].Terms.(*Term)
+	assertTermEqual(t, nested2, MustParseTerm("v[x[i]]"))
+
+	nested3 := mod6.Rules[3].Body[0].Terms.(*Term)
+	assertTermEqual(t, nested3, MustParseTerm("data.x[data.a.b.nested.r]"))
+
 }
 
 func TestCompilerSetRuleGraph(t *testing.T) {
@@ -464,6 +481,11 @@ func TestCompilerCheckRecursion(t *testing.T) {
 						acp[x] :- acq[x]
 						acq[x] :- a = [x | acp[x]], a[i] = x
 						`),
+		"newMod7": MustParseModule(`
+						package rec6
+						np[x] = y :- data.a[data.b.c[nq[x]]] = y
+						nq[x] = y :- data.d[data.e[x].f[np[y]]]
+						`),
 	}
 
 	compileStages(c, "", "checkRecursion")
@@ -479,10 +501,12 @@ func TestCompilerCheckRecursion(t *testing.T) {
 		fmt.Errorf("recursion found in q: q, p, q"),
 		fmt.Errorf("recursion found in acq: acq, acp, acq"),
 		fmt.Errorf("recursion found in acp: acp, acq, acp"),
+		fmt.Errorf("recursion found in np: np, nq, np"),
+		fmt.Errorf("recursion found in nq: nq, np, nq"),
 	}
 
 	if len(c.Errors) != len(expected) {
-		t.Errorf("Expected exactly %v errors but got: %v", len(expected), c.Errors)
+		t.Errorf("Expected exactly %v errors but got %v: %v", len(expected), len(c.Errors), c.Errors)
 		return
 	}
 
@@ -672,5 +696,25 @@ func getCompilerTestModules() map[string]*Module {
 	v :- [true | _ = [ true | q[i] = 1]]
 	`)
 
-	return map[string]*Module{"mod2": mod2, "mod3": mod3, "mod1": mod1, "mod4": mod4, "mod5": mod5}
+	mod6 := MustParseModule(`
+	package a.b.nested
+
+	import data.x
+	import x as y
+	import data.z
+
+	p :- x[y[i].a[z.b[j]]]
+	q :- x = v, v[y[i]]
+	r = 1 :- true
+	s :- x[r]
+	`)
+
+	return map[string]*Module{
+		"mod1": mod1,
+		"mod2": mod2,
+		"mod3": mod3,
+		"mod4": mod4,
+		"mod5": mod5,
+		"mod6": mod6,
+	}
 }
diff --git a/ast/parser_test.go b/ast/parser_test.go
index 5ca0882255..6cf3aaf9cc 100644
--- a/ast/parser_test.go
+++ b/ast/parser_test.go
@@ -72,12 +72,19 @@ func TestRefTerms(t *testing.T) {
 	assertParseOneTerm(t, "constants 2", "foo.bar[0].baz", RefTerm(VarTerm("foo"), StringTerm("bar"), NumberTerm(0), StringTerm("baz")))
 	assertParseOneTerm(t, "variables", "foo.bar[0].baz[i]", RefTerm(VarTerm("foo"), StringTerm("bar"), NumberTerm(0), StringTerm("baz"), VarTerm("i")))
 	assertParseOneTerm(t, "spaces", "foo[\"white space\"].bar", RefTerm(VarTerm("foo"), StringTerm("white space"), StringTerm("bar")))
+	assertParseOneTerm(t, "nested", "foo[baz[1][borge[i]]].bar", RefTerm(
+		VarTerm("foo"),
+		RefTerm(
+			VarTerm("baz"), NumberTerm(float64(1)), RefTerm(
+				VarTerm("borge"), VarTerm("i"),
+			),
+		),
+		StringTerm("bar"),
+	))
 	assertParseError(t, "missing component 1", "foo.")
 	assertParseError(t, "missing component 2", "foo[].bar")
 	assertParseError(t, "composite operand 1", "foo[[1,2,3]].bar")
 	assertParseError(t, "composite operand 2", "foo[{1: 2}].bar")
-	// TODO(tsandall): this may be allowed some day
-	assertParseError(t, "nested refs", "foo[baz.qux].bar")
 }
 
 func TestObjectWithScalars(t *testing.T) {
diff --git a/ast/rego.peg b/ast/rego.peg
index 2d6c778f3f..bd33d8ba0a 100644
--- a/ast/rego.peg
+++ b/ast/rego.peg
@@ -252,7 +252,7 @@ RefDot <- "." val:Var {
     return str, nil
 }
 
-RefBracket <- "[" val:(Scalar / Var) "]" {
+RefBracket <- "[" val:(Ref / Scalar / Var) "]" {
     return val, nil
 }
 
diff --git a/ast/term.go b/ast/term.go
index 7fa57e91c0..78379495af 100644
--- a/ast/term.go
+++ b/ast/term.go
@@ -7,13 +7,12 @@ package ast
 import (
 	"encoding/json"
 	"fmt"
+	"hash/fnv"
 	"regexp"
 	"strconv"
 	"strings"
 )
 
-import "hash/fnv"
-
 // Location records a position in source code
 type Location struct {
 	Text []byte // The original text fragment from the source.
@@ -50,6 +49,46 @@ type Value interface {
 	Hash() int
 }
 
+// InterfaceToValue converts a native Go value x to a Value.
+func InterfaceToValue(x interface{}) (Value, error) {
+	switch x := x.(type) {
+	case nil:
+		return Null{}, nil
+	case bool:
+		return Boolean(x), nil
+	case float64:
+		return Number(x), nil
+	case string:
+		return String(x), nil
+	case []interface{}:
+		r := Array{}
+		for _, e := range x {
+			e, err := InterfaceToValue(e)
+			if err != nil {
+				return nil, err
+			}
+			r = append(r, &Term{Value: e})
+		}
+		return r, nil
+	case map[string]interface{}:
+		r := Object{}
+		for k, v := range x {
+			k, err := InterfaceToValue(k)
+			if err != nil {
+				return nil, err
+			}
+			v, err := InterfaceToValue(v)
+			if err != nil {
+				return nil, err
+			}
+			r = append(r, Item(&Term{Value: k}, &Term{Value: v}))
+		}
+		return r, nil
+	default:
+		return nil, fmt.Errorf("illegal value: %v", x)
+	}
+}
+
 // Term is an argument to a function.
 type Term struct {
 	Value    Value     // the value of the Term as represented in Go
@@ -343,6 +382,16 @@ func (ref Ref) IsGround() bool {
 	return termSliceIsGround(ref[1:])
 }
 
+// IsNested returns true if this ref contains other Refs.
+func (ref Ref) IsNested() bool {
+	for _, x := range ref {
+		if _, ok := x.Value.(Ref); ok {
+			return true
+		}
+	}
+	return false
+}
+
 var varRegexp = regexp.MustCompile("^[[:alpha:]_][[:alpha:][:digit:]_]*$")
 
 func (ref Ref) String() string {
diff --git a/ast/term_test.go b/ast/term_test.go
index 0c717d05db..e69a7b27a1 100644
--- a/ast/term_test.go
+++ b/ast/term_test.go
@@ -12,6 +12,38 @@ import (
 	"testing"
 )
 
+func TestInterfaceToValue(t *testing.T) {
+	input := `
+	{
+		"x": [
+			1,
+			true,
+			false,
+			null,
+			"hello",
+			["goodbye", 1],
+			{"y": 3.1}
+		]
+	}
+	`
+	var x interface{}
+	if err := json.Unmarshal([]byte(input), &x); err != nil {
+		panic(err)
+	}
+
+	expected := MustParseTerm(input).Value
+
+	v, err := InterfaceToValue(x)
+	if err != nil {
+		t.Errorf("Unexpected error converting interface{} to ast.Value: %v", err)
+		return
+	}
+
+	if !v.Equal(expected) {
+		t.Errorf("Expected ast.Value to equal:\n%v\nBut got:\n%v", expected, v)
+	}
+}
+
 func TestObjectSetOperations(t *testing.T) {
 
 	a := MustParseTerm(`{"a": "b", "c": "d"}`).Value.(Object)
diff --git a/docs/docs/examples/repl.md b/docs/docs/examples/repl.md
index 3dab769a86..07be496d07 100644
--- a/docs/docs/examples/repl.md
+++ b/docs/docs/examples/repl.md
@@ -157,6 +157,39 @@ Steps
         | {"id":"s4","name":"dev","ports":["p1","p2"],"protocols":["http"]}             |
         +-------------------------------------------------------------------------------+
 
+    One powerful thing about Rego and the REPL is that you can run queries using the same syntax that you would use to lookup values.
+
+    For example if `i` has value 0 then `data.servers[i]` returns the first value in the `data.servers` array:
+
+        > i = 0
+        > data.servers[i]
+        {
+        "id": "s1",
+        "name": "app",
+        "ports": [
+            "p1",
+            "p2",
+            "p3"
+        ],
+        "protocols": [
+            "https",
+            "ssh"
+        ]
+        }
+
+    That same expression `data.servers[i]` when `i` has no value defines a query that returns all the values of `i` and `data.servers[i]`:
+
+        > unset i
+        > data.servers[i]
+        +---+-------------------------------------------------------------------------------+
+        | i |                                data.servers[i]                                |
+        +---+-------------------------------------------------------------------------------+
+        | 0 | {"id":"s1","name":"app","ports":["p1","p2","p3"],"protocols":["https","ssh"]} |
+        | 1 | {"id":"s2","name":"db","ports":["p3"],"protocols":["mysql"]}                  |
+        | 2 | {"id":"s3","name":"cache","ports":["p3"],"protocols":["memcache"]}            |
+        | 3 | {"id":"s4","name":"dev","ports":["p1","p2"],"protocols":["http"]}             |
+        +---+-------------------------------------------------------------------------------+
+
 1. The REPL also understands the [Import and Package](/docs/lang.html#modules) directives.
 
         > import data.servers
diff --git a/storage/datastore.go b/storage/datastore.go
index bea20a3471..fcbe5f6562 100644
--- a/storage/datastore.go
+++ b/storage/datastore.go
@@ -118,9 +118,26 @@ func (ds *DataStore) GetRef(ref ast.Ref) (interface{}, error) {
 	if !ref[0].Equal(ast.DefaultRootDocument) {
 		return nil, fmt.Errorf("illegal root %v: %v", ref[0], ref)
 	}
-	path, err := ref[1:].Underlying()
-	if err != nil {
-		return nil, err
+	path := []interface{}{}
+	for _, x := range ref[1:] {
+		switch v := x.Value.(type) {
+		case ast.Ref:
+			n, err := ds.GetRef(v)
+			if err != nil {
+				return nil, err
+			}
+			path = append(path, n)
+		case ast.String:
+			path = append(path, string(v))
+		case ast.Number:
+			path = append(path, float64(v))
+		case ast.Boolean:
+			path = append(path, bool(v))
+		case ast.Null:
+			path = append(path, nil)
+		default:
+			return nil, fmt.Errorf("illegal reference element: %v", x)
+		}
 	}
 	return ds.Get(path)
 }
diff --git a/topdown/topdown.go b/topdown/topdown.go
index 156e0ad5de..e24126cc28 100644
--- a/topdown/topdown.go
+++ b/topdown/topdown.go
@@ -278,9 +278,6 @@ func PlugValue(v ast.Value, ctx *Context) ast.Value {
 		if b := ctx.Binding(v); b != nil {
 			return b
 		}
-		if v.IsGround() {
-			return v
-		}
 		var buf ast.Ref
 		buf = append(buf, v[0])
 		for _, p := range v[1:] {
@@ -564,6 +561,7 @@ func evalExpr(ctx *Context, iter Iterator) error {
 		v := tt.Value
 		if !v.Equal(ast.Boolean(false)) {
 			if v.IsGround() {
+				ctx.traceSuccess(expr)
 				return iter(ctx)
 			}
 		}
@@ -573,34 +571,96 @@ func evalExpr(ctx *Context, iter Iterator) error {
 	}
 }
 
-func evalRef(ctx *Context, ref ast.Ref, iter Iterator) error {
-	// If this reference refers to a local variable, evaluate against the binding.
-	// Otherwise, evaluate against the database.
-	if !ref[0].Equal(ast.DefaultRootDocument) {
-		v := ctx.Binding(ref[0].Value)
-		if v == nil {
-			return unboundGlobalVarErr(ref)
+// evalRef evaluates the ast.Ref ref and calls the Iterator iter once for each
+// instance of ref that would be defined. If an error occurs during the evaluation
+// process, the return value is non-nil. Also, if iter returns an error, the return
+// value is non-nil.
+func evalRef(ctx *Context, ref, path ast.Ref, iter Iterator) error {
+
+	if len(ref) == 0 {
+		// If this reference refers to a local variable, evaluate against the binding.
+		// Otherwise, evaluate against the database.
+		if !path[0].Equal(ast.DefaultRootDocument) {
+			v := ctx.Binding(path[0].Value)
+			if v == nil {
+				return unboundGlobalVarErr(path)
+			}
+			return evalRefRuleResult(ctx, path, path[1:], v, iter)
 		}
-		return evalRefRuleResult(ctx, ref, ref[1:], v, iter)
+		return evalRefRec(ctx, ast.Ref{path[0]}, path[1:], iter)
 	}
 
-	return evalRefRec(ctx, ast.Ref{ref[0]}, ref[1:], iter)
+	head, tail := ref[0], ref[1:]
+	n, ok := head.Value.(ast.Ref)
+	if !ok {
+		path = append(path, head)
+		return evalRef(ctx, tail, path, iter)
+	}
+
+	return evalRef(ctx, n, ast.Ref{}, func(ctx *Context) error {
+		if b := ctx.Binding(n); b == nil {
+			p := PlugValue(n, ctx).(ast.Ref)
+			v, err := lookupValue(ctx.DataStore, p)
+			if err != nil {
+				return err
+			}
+			ctx = ctx.BindValue(n, v)
+		}
+		tmp := append(path, head)
+		return evalRef(ctx, tail, tmp, iter)
+	})
 }
 
 func evalRefRec(ctx *Context, path, tail ast.Ref, iter Iterator) error {
-
 	if len(tail) == 0 {
 		return evalRefRecFinish(ctx, path, iter)
 	}
-
 	if tail[0].IsGround() {
 		return evalRefRecGround(ctx, path, tail, iter)
 	}
-
 	return evalRefRecNonGround(ctx, path, tail, iter)
 }
 
-func evalRefRecEnumColl(ctx *Context, path, tail ast.Ref, iter Iterator) error {
+func evalRefRecFinish(ctx *Context, path ast.Ref, iter Iterator) error {
+	ok, err := lookupExists(ctx.DataStore, path)
+	if err == nil && ok {
+		return iter(ctx)
+	}
+	return err
+}
+
+func evalRefRecGround(ctx *Context, path, tail ast.Ref, iter Iterator) error {
+	// Check if the node exists. If the node does not exist, stop.
+	// If the node exists and is a rule, evaluate the rule to produce a virtual doc.
+	// Otherwise, process the rest of the reference.
+	path = append(path, PlugTerm(tail[0], ctx))
+	rules, err := lookupRule(ctx.DataStore, path)
+	if err != nil {
+		if storage.IsNotFound(err) {
+			return nil
+		}
+		return err
+	}
+	if rules != nil {
+		ref := append(path, tail[1:]...)
+		return evalRefRule(ctx, ref, path, rules, iter)
+	}
+	return evalRefRec(ctx, path, tail[1:], iter)
+}
+
+func evalRefRecNonGround(ctx *Context, path, tail ast.Ref, iter Iterator) error {
+	// Check if the variable has a binding.
+	// If there is a binding, process the rest of the reference normally.
+	// If there is no binding, enumerate the collection referred to by the path.
+	plugged := PlugTerm(tail[0], ctx)
+	if plugged.IsGround() {
+		path = append(path, plugged)
+		return evalRefRec(ctx, path, tail[1:], iter)
+	}
+	return evalRefRecWalkColl(ctx, path, tail, iter)
+}
+
+func evalRefRecWalkColl(ctx *Context, path, tail ast.Ref, iter Iterator) error {
 
 	node, err := ctx.DataStore.GetRef(path)
 	if err != nil {
@@ -641,45 +701,6 @@ func evalRefRecEnumColl(ctx *Context, path, tail ast.Ref, iter Iterator) error {
 	}
 }
 
-func evalRefRecFinish(ctx *Context, path ast.Ref, iter Iterator) error {
-	ok, err := lookupExists(ctx.DataStore, path)
-	if err == nil && ok {
-		return iter(ctx)
-	}
-	return err
-}
-
-func evalRefRecGround(ctx *Context, path, tail ast.Ref, iter Iterator) error {
-	// Check if the node exists. If the node does not exist, stop.
-	// If the node exists and is a rule, evaluate the rule to produce a virtual doc.
-	// Otherwise, process the rest of the reference.
-	path = append(path, tail[0])
-	rules, err := lookupRule(ctx.DataStore, path)
-	if err != nil {
-		if storage.IsNotFound(err) {
-			return nil
-		}
-		return err
-	}
-	if rules != nil {
-		ref := append(path, tail[1:]...)
-		return evalRefRule(ctx, ref, path, rules, iter)
-	}
-	return evalRefRec(ctx, path, tail[1:], iter)
-}
-
-func evalRefRecNonGround(ctx *Context, path, tail ast.Ref, iter Iterator) error {
-	// Check if the variable has a binding.
-	// If there is a binding, process the rest of the reference normally.
-	// If there is no binding, enumerate the collection referred to by the path.
-	plugged := PlugTerm(tail[0], ctx)
-	if plugged.IsGround() {
-		path = append(path, plugged)
-		return evalRefRec(ctx, path, tail[1:], iter)
-	}
-	return evalRefRecEnumColl(ctx, path, tail, iter)
-}
-
 func evalRefRule(ctx *Context, ref ast.Ref, path ast.Ref, rules []*ast.Rule, iter Iterator) error {
 
 	suffix := ref[len(path):]
@@ -1049,7 +1070,7 @@ func evalTermsRec(ctx *Context, iter Iterator, ts []*ast.Term) error {
 
 	switch head := head.Value.(type) {
 	case ast.Ref:
-		return evalRef(ctx, head, func(ctx *Context) error {
+		return evalRef(ctx, head, ast.Ref{}, func(ctx *Context) error {
 			return evalTermsRec(ctx, iter, tail)
 		})
 	case ast.Array:
@@ -1075,7 +1096,7 @@ func evalTermsRecArray(ctx *Context, arr ast.Array, idx int, iter Iterator) erro
 	}
 	switch v := arr[idx].Value.(type) {
 	case ast.Ref:
-		return evalRef(ctx, v, func(ctx *Context) error {
+		return evalRef(ctx, v, ast.Ref{}, func(ctx *Context) error {
 			return evalTermsRecArray(ctx, arr, idx+1, iter)
 		})
 	case ast.Array:
@@ -1101,10 +1122,10 @@ func evalTermsRecObject(ctx *Context, obj ast.Object, idx int, iter Iterator) er
 	}
 	switch k := obj[idx][0].Value.(type) {
 	case ast.Ref:
-		return evalRef(ctx, k, func(ctx *Context) error {
+		return evalRef(ctx, k, ast.Ref{}, func(ctx *Context) error {
 			switch v := obj[idx][1].Value.(type) {
 			case ast.Ref:
-				return evalRef(ctx, v, func(ctx *Context) error {
+				return evalRef(ctx, v, ast.Ref{}, func(ctx *Context) error {
 					return evalTermsRecObject(ctx, obj, idx+1, iter)
 				})
 			case ast.Array:
@@ -1126,7 +1147,7 @@ func evalTermsRecObject(ctx *Context, obj ast.Object, idx int, iter Iterator) er
 	default:
 		switch v := obj[idx][1].Value.(type) {
 		case ast.Ref:
-			return evalRef(ctx, v, func(ctx *Context) error {
+			return evalRef(ctx, v, ast.Ref{}, func(ctx *Context) error {
 				return evalTermsRecObject(ctx, obj, idx+1, iter)
 			})
 		case ast.Array:
@@ -1166,14 +1187,14 @@ func indexAvailable(ctx *Context, expr *ast.Expr) bool {
 	a := ts[1].Value
 	b := ts[2].Value
 
-	_, isRefA := a.(ast.Ref)
-	_, isRefB := b.(ast.Ref)
+	aRef, isRefA := a.(ast.Ref)
+	bRef, isRefB := b.(ast.Ref)
 
-	if isRefA && !a.IsGround() {
+	if isRefA && !a.IsGround() && !aRef.IsNested() {
 		return b.IsGround() || isRefB
 	}
 
-	if isRefB && !b.IsGround() {
+	if isRefB && !b.IsGround() && !bRef.IsNested() {
 		return a.IsGround() || isRefA
 	}
 
@@ -1185,7 +1206,7 @@ func indexAvailable(ctx *Context, expr *ast.Expr) bool {
 // built on the fly.
 func indexBuildLazy(ctx *Context, ref ast.Ref) (bool, error) {
 
-	if ref.IsGround() {
+	if ref.IsGround() || ref.IsNested() {
 		return false, nil
 	}
 
@@ -1250,6 +1271,14 @@ func lookupRule(ds *storage.DataStore, ref ast.Ref) ([]*ast.Rule, error) {
 	}
 }
 
+func lookupValue(ds *storage.DataStore, ref ast.Ref) (ast.Value, error) {
+	r, err := ds.GetRef(ref)
+	if err != nil {
+		return nil, err
+	}
+	return ast.InterfaceToValue(r)
+}
+
 func topDownQueryCompleteDoc(params *QueryParams, rules []*ast.Rule) (interface{}, error) {
 
 	var result ast.Value
@@ -1354,37 +1383,3 @@ func topDownQueryPartialSetDoc(params *QueryParams, rules []*ast.Rule) (interfac
 	}
 	return result, nil
 }
-
-// walkValue invokes the iterator for each AST value contained inside the supplied AST value.
-// If walkValue is called with a scalar, the iterator is invoked exactly once.
-// If walkValue is called with a reference, the iterator is invoked for each element in the reference.
-func walkValue(value ast.Value, iter func(ast.Value) bool) bool {
-	switch value := value.(type) {
-	case ast.Ref:
-		for _, x := range value {
-			if walkValue(x.Value, iter) {
-				return true
-			}
-		}
-		return false
-	case ast.Array:
-		for _, x := range value {
-			if walkValue(x.Value, iter) {
-				return true
-			}
-		}
-		return false
-	case ast.Object:
-		for _, i := range value {
-			if walkValue(i[0].Value, iter) {
-				return true
-			}
-			if walkValue(i[1].Value, iter) {
-				return true
-			}
-		}
-		return false
-	default:
-		return iter(value)
-	}
-}
diff --git a/topdown/topdown_test.go b/topdown/topdown_test.go
index 29016f54c9..494a17b6e7 100644
--- a/topdown/topdown_test.go
+++ b/topdown/topdown_test.go
@@ -23,32 +23,32 @@ func TestEvalRef(t *testing.T) {
 		expected interface{}
 	}{
 		{"data.c[i][j]", `[
-            {"i": 0, "j": "x"},
-            {"i": 0, "j": "y"},
-            {"i": 0, "j": "z"}
-         ]`},
+		    {"i": 0, "j": "x"},
+		    {"i": 0, "j": "y"},
+		    {"i": 0, "j": "z"}
+		 ]`},
 		{"data.c[i][j][k]", `[
-            {"i": 0, "j": "x", "k": 0},
-            {"i": 0, "j": "x", "k": 1},
-            {"i": 0, "j": "x", "k": 2},
-            {"i": 0, "j": "y", "k": 0},
-            {"i": 0, "j": "y", "k": 1},
-            {"i": 0, "j": "z", "k": "p"},
-            {"i": 0, "j": "z", "k": "q"}
-        ]`},
+		    {"i": 0, "j": "x", "k": 0},
+		    {"i": 0, "j": "x", "k": 1},
+		    {"i": 0, "j": "x", "k": 2},
+		    {"i": 0, "j": "y", "k": 0},
+		    {"i": 0, "j": "y", "k": 1},
+		    {"i": 0, "j": "z", "k": "p"},
+		    {"i": 0, "j": "z", "k": "q"}
+		]`},
 		{"data.d[x][y]", `[
-            {"x": "e", "y": 0},
-            {"x": "e", "y": 1}
-        ]`},
+		    {"x": "e", "y": 0},
+		    {"x": "e", "y": 1}
+		]`},
 		{`data.c[i]["x"][k]`, `[
-            {"i": 0, "k": 0},
-            {"i": 0, "k": 1},
-            {"i": 0, "k": 2}
-        ]`},
+		    {"i": 0, "k": 0},
+		    {"i": 0, "k": 1},
+		    {"i": 0, "k": 2}
+		]`},
 		{"data.c[i][j][i]", `[
-            {"i": 0, "j": "x"},
-            {"i": 0, "j": "y"}
-        ]`},
+		    {"i": 0, "j": "x"},
+		    {"i": 0, "j": "y"}
+		]`},
 		{`data.c[i]["deadbeef"][k]`, nil},
 		{`data.c[999]`, nil},
 	}
@@ -66,7 +66,7 @@ func TestEvalRef(t *testing.T) {
 		switch e := tc.expected.(type) {
 		case nil:
 			var tmp *Context
-			err := evalRef(ctx, ast.MustParseRef(tc.ref), func(ctx *Context) error {
+			err := evalRef(ctx, ast.MustParseRef(tc.ref), ast.Ref{}, func(ctx *Context) error {
 				tmp = ctx
 				return nil
 			})
@@ -79,7 +79,7 @@ func TestEvalRef(t *testing.T) {
 			}
 		case string:
 			expected := loadExpectedBindings(e)
-			err := evalRef(ctx, ast.MustParseRef(tc.ref), func(ctx *Context) error {
+			err := evalRef(ctx, ast.MustParseRef(tc.ref), ast.Ref{}, func(ctx *Context) error {
 				if len(expected) > 0 {
 					for j, exp := range expected {
 						if exp.Equal(ctx.Locals) {
@@ -135,6 +135,11 @@ func TestEvalTerms(t *testing.T) {
             {"x": "e", "y": 1}
         ]`},
 		{"data.d[x][y] = data.z[i]", `[]`},
+		{"data.a[data.a[i]] = 3", `[
+			{"i": 0, "data.a[i]": 1},
+			{"i": 1, "data.a[i]": 2},
+			{"i": 2, "data.a[i]": 3}
+		]`},
 	}
 
 	data := loadSmallTestData()
@@ -212,6 +217,20 @@ func TestPlugValue(t *testing.T) {
 	if !expected.Equal(r2) {
 		t.Errorf("Expected %v but got %v", expected, r2)
 	}
+
+	n := ast.MustParseTerm("a.b[x.y[i]]").Value
+
+	ctx3 := &Context{Locals: storage.NewBindings(), Globals: storage.NewBindings()}
+	ctx3 = ctx3.BindVar(ast.Var("i"), ast.Number(1))
+	ctx3 = ctx3.BindValue(ast.MustParseTerm("x.y[i]").Value, ast.Number(1))
+
+	expected = ast.MustParseTerm("a.b[1]").Value
+
+	r3 := PlugValue(n, ctx3)
+
+	if !expected.Equal(r3) {
+		t.Errorf("Expected %v but got: %v", expected, r3)
+	}
 }
 
 func TestTopDownCompleteDoc(t *testing.T) {
@@ -512,6 +531,60 @@ func TestTopDownVirtualDocs(t *testing.T) {
 	}
 }
 
+func TestTopDownNestedReferences(t *testing.T) {
+	tests := []struct {
+		note     string
+		rules    []string
+		expected interface{}
+	}{
+		// nested base document references
+		{"ground ref", []string{"p :- a[h[0][0]] = 2"}, "true"},
+		{"non-ground ref", []string{"p[x] :- x = a[h[i][j]]"}, "[2,3,4,3,4]"},
+		{"two deep", []string{"p[x] :- x = a[a[a[i]]]"}, "[3,4]"},
+		{"two deep", []string{"p[x] :- x = a[h[i][a[j]]]"}, "[3,4,4]"},
+		{"two deep repeated var", []string{"p[x] :- x = a[h[i][a[i]]]"}, "[3]"},
+		{"no suffix", []string{"p :- 4 = a[three]"}, "true"},
+		{"var ref", []string{"p[y] :- x = [1,2,3], y = a[x[_]]"}, "[2,3,4]"},
+		{"undefined", []string{"p :- a[three.deadbeef] = x"}, ""},
+
+		// nested virtual document references
+		{"vdoc ref: complete", []string{"p[x] :- x = a[q[_]]", "q = [2,3] :- true"}, "[3,4]"},
+		{"vdoc ref: complete: ground", []string{"p[x] :- x = a[q[1]]", "q = [2,3] :- true"}, "[4]"},
+		{"vdoc ref: complete: no suffix", []string{"p :- 2 = a[q]", "q = 1 :- true"}, "true"},
+		{"vdoc ref: partial object", []string{
+			"p[x] :- x = a[q[_]]",
+			`q[k] = v :- o = {"a": 2, "b": 3, "c": 100}, o[k] = v`},
+			"[3,4]"},
+		{"vdoc ref: partial object: ground", []string{
+			`p[x] :- x = a[q["b"]]`,
+			`q[k] = v :- o = {"a": 2, "b": 3, "c": 100}, o[k] = v`},
+			"[4]"},
+
+		// mixed cases
+		{"vdoc ref: complete: nested bdoc ref", []string{
+			"p[x] :- x = a[q[b[_]]]",
+			`q = {"hello": 1, "goodbye": 3, "deadbeef": 1000} :- true`}, "[2,4]"},
+		{"vdoc ref: partial object: nested bdoc ref", []string{
+			"p[x] :- x = a[q[b[_]]]",
+			// bind to value
+			`q[k] = v :- o = {"hello": 1, "goodbye": 3, "deadbeef": 1000}, o[k] = v`}, "[2,4]"},
+		{"vdoc ref: partial object: nested bdoc ref-2", []string{
+			"p[x] :- x = a[q[d.e[_]]]",
+			// bind to reference
+			`q[k] = v :- strings[k] = v`}, "[3,4]"},
+		{"vdoc ref: multiple", []string{
+			"p[x] :- x = q[a[_]].v[r[a[_]]]",
+			`q = [{"v": {}}, {"v": [0,0,1,2]}, {"v": [0,0,3,4]}, {"v": [0,0]}, {}] :- true`,
+			"r = [1,2,3,4] :- true"}, "[1,2,3,4]"},
+	}
+
+	data := loadSmallTestData()
+
+	for i, tc := range tests {
+		runTopDownTestCase(t, data, i, tc.note, tc.rules, tc.expected)
+	}
+}
+
 func TestTopDownVarReferences(t *testing.T) {
 
 	tests := []struct {
@@ -885,9 +958,9 @@ func loadExpectedBindings(input string) []*storage.Bindings {
 		for k, v := range bindings {
 			switch v := v.(type) {
 			case string:
-				buf.Put(ast.Var(k), ast.String(v))
+				buf.Put(ast.MustParseTerm(k).Value, ast.String(v))
 			case float64:
-				buf.Put(ast.Var(k), ast.Number(v))
+				buf.Put(ast.MustParseTerm(k).Value, ast.Number(v))
 			default:
 				panic("unreachable")
 			}
@@ -968,6 +1041,12 @@ func loadSmallTestData() map[string]interface{} {
                 "d": null
             }
         ],
+		"strings": {
+			"foo": 1,
+			"bar": 2,
+			"baz": 3
+		},
+		"three": 3,
         "m": []
     }`), &data)
 	if err != nil {