diff --git a/e2e_test/source_inline/kafka/avro/ref.slt b/e2e_test/source_inline/kafka/avro/ref.slt
new file mode 100644
index 0000000000000..15f36cf4c0d5d
--- /dev/null
+++ b/e2e_test/source_inline/kafka/avro/ref.slt
@@ -0,0 +1,128 @@
+control substitution on
+
+
+system ok
+rpk topic create avro-ref
+
+
+system ok
+sr_register avro-ref-value AVRO <<EOF
+{
+  "type": "record",
+  "name": "Node",
+  "fields": [
+    {
+      "name": "value",
+      "type": "int"
+    },
+    {
+      "name": "next",
+      "type": ["null", "Node"]
+    }
+  ]
+}
+EOF
+
+
+statement error
+create source s WITH (${RISEDEV_KAFKA_WITH_OPTIONS_COMMON}, topic = 'avro-ref') FORMAT PLAIN ENCODE AVRO (schema.registry = '${RISEDEV_SCHEMA_REGISTRY_URL}');
+----
+db error: ERROR: Failed to run the query
+
+Caused by these errors (recent errors listed first):
+  1: connector error
+  2: circular reference detected in Avro schema: Node -> Node
+
+
+system ok
+curl -X DELETE "${RISEDEV_SCHEMA_REGISTRY_URL}/subjects/avro-ref-value"
+
+
+system ok
+curl -X DELETE "${RISEDEV_SCHEMA_REGISTRY_URL}/subjects/avro-ref-value?permanent=true"
+
+
+system ok
+sr_register avro-ref-value AVRO <<EOF
+{
+  "type": "record",
+  "name": "Root",
+  "fields": [
+    {
+      "name": "foo",
+      "type": {
+        "type": "record",
+        "name": "Seg",
+        "fields": [
+          {
+            "name": "a",
+            "type": {
+              "type": "record",
+              "name": "Point",
+              "fields": [
+                {
+                  "name": "x",
+                  "type": "int"
+                },
+                {
+                  "name": "y",
+                  "type": "int"
+                }
+              ]
+            }
+          },
+          {
+            "name": "b",
+            "type": "Point"
+          }
+        ]
+      }
+    },
+    {
+      "name": "bar",
+      "type": "Seg"
+    }
+  ]
+}
+EOF
+
+
+statement ok
+create source s WITH (${RISEDEV_KAFKA_WITH_OPTIONS_COMMON}, topic = 'avro-ref') FORMAT PLAIN ENCODE AVRO (schema.registry = '${RISEDEV_SCHEMA_REGISTRY_URL}');
+
+
+system ok
+rpk topic produce avro-ref --schema-id=topic <<EOF
+{"foo":{"a":{"x":3,"y":4},"b":{"x":5,"y":6}},"bar":{"a":{"x":6,"y":5},"b":{"x":4,"y":3}}}
+EOF
+
+
+query IIIIIIII
+select
+  (foo).a.x,
+  (foo).a.y,
+  (foo).b.x,
+  (foo).b.y,
+  (bar).a.x,
+  (bar).a.y,
+  (bar).b.x,
+  (bar).b.y
+from s;
+----
+3 4 5 6 6 5 4 3
+
+
+statement ok
+drop source s;
+
+
+system ok
+curl -X DELETE "${RISEDEV_SCHEMA_REGISTRY_URL}/subjects/avro-ref-value"
+
+
+system ok
+curl -X DELETE "${RISEDEV_SCHEMA_REGISTRY_URL}/subjects/avro-ref-value?permanent=true"
+
+
+system ok
+rpk topic delete 'avro-ref'
diff --git a/src/connector/codec/src/decoder/avro/schema.rs b/src/connector/codec/src/decoder/avro/schema.rs
index f523147d8175d..d226098f63d47 100644
--- a/src/connector/codec/src/decoder/avro/schema.rs
+++ b/src/connector/codec/src/decoder/avro/schema.rs
@@ -15,7 +15,7 @@
 use std::sync::{Arc, LazyLock};
 
 use anyhow::Context;
-use apache_avro::schema::{DecimalSchema, RecordSchema, ResolvedSchema, Schema};
+use apache_avro::schema::{DecimalSchema, NamesRef, RecordSchema, ResolvedSchema, Schema};
 use apache_avro::AvroResult;
 use itertools::Itertools;
 use risingwave_common::error::NotImplemented;
@@ -76,20 +76,28 @@ impl MapHandling {
     }
 }
 
-/// This function expects resolved schema (no `Ref`).
-/// FIXME: require passing resolved schema here.
+/// This function expects original schema (with `Ref`).
 /// TODO: change `map_handling` to some `Config`, and also unify debezium.
 /// TODO: use `ColumnDesc` in common instead of PB.
 pub fn avro_schema_to_column_descs(
     schema: &Schema,
     map_handling: Option<MapHandling>,
 ) -> anyhow::Result<Vec<ColumnDesc>> {
+    let resolved = ResolvedSchema::try_from(schema)?;
     if let Schema::Record(RecordSchema { fields, .. }) = schema {
         let mut index = 0;
+        let mut ancestor_records: Vec<String> = vec![];
         let fields = fields
             .iter()
             .map(|field| {
-                avro_field_to_column_desc(&field.name, &field.schema, &mut index, map_handling)
+                avro_field_to_column_desc(
+                    &field.name,
+                    &field.schema,
+                    &mut index,
+                    &mut ancestor_records,
+                    resolved.get_names(),
+                    map_handling,
+                )
             })
             .collect::<anyhow::Result<_>>()?;
         Ok(fields)
@@ -105,10 +113,22 @@ fn avro_field_to_column_desc(
     name: &str,
     schema: &Schema,
     index: &mut i32,
+    ancestor_records: &mut Vec<String>,
+    refs: &NamesRef<'_>,
     map_handling: Option<MapHandling>,
 ) -> anyhow::Result<ColumnDesc> {
-    let data_type = avro_type_mapping(schema, map_handling)?;
+    let data_type = avro_type_mapping(schema, ancestor_records, refs, map_handling)?;
     match schema {
+        Schema::Ref { name: ref_name } => {
+            avro_field_to_column_desc(
+                name,
+                refs[ref_name], // `ResolvedSchema::try_from` already handles lookup failure
+                index,
+                ancestor_records,
+                refs,
+                map_handling,
+            )
+        }
         Schema::Record(RecordSchema {
             name: schema_name,
             fields,
@@ -116,7 +136,16 @@ fn avro_field_to_column_desc(
         }) => {
             let vec_column = fields
                 .iter()
-                .map(|f| avro_field_to_column_desc(&f.name, &f.schema, index, map_handling))
+                .map(|f| {
+                    avro_field_to_column_desc(
+                        &f.name,
+                        &f.schema,
+                        index,
+                        ancestor_records,
+                        refs,
+                        map_handling,
+                    )
+                })
                 .collect::<anyhow::Result<_>>()?;
             *index += 1;
             Ok(ColumnDesc {
@@ -146,9 +175,11 @@ fn avro_field_to_column_desc(
     }
 }
 
-/// This function expects resolved schema (no `Ref`).
+/// This function expects original schema (with `Ref`).
 fn avro_type_mapping(
     schema: &Schema,
+    ancestor_records: &mut Vec<String>,
+    refs: &NamesRef<'_>,
     map_handling: Option<MapHandling>,
 ) -> anyhow::Result<DataType> {
     let data_type = match schema {
@@ -190,16 +221,34 @@ fn avro_type_mapping(
                 return Ok(DataType::Decimal);
             }
 
-            StructType::new(
+            let unique_name = name.fullname(None);
+            if ancestor_records.contains(&unique_name) {
+                bail!(
+                    "circular reference detected in Avro schema: {} -> {}",
+                    ancestor_records.join(" -> "),
+                    unique_name
+                );
+            }
+
+            ancestor_records.push(unique_name);
+            let ty = StructType::new(
                 fields
                     .iter()
-                    .map(|f| Ok((&f.name, avro_type_mapping(&f.schema, map_handling)?)))
+                    .map(|f| {
+                        Ok((
+                            &f.name,
+                            avro_type_mapping(&f.schema, ancestor_records, refs, map_handling)?,
+                        ))
+                    })
                     .collect::<anyhow::Result<Vec<_>>>()?,
             )
-            .into()
+            .into();
+            ancestor_records.pop();
+            ty
         }
         Schema::Array(item_schema) => {
-            let item_type = avro_type_mapping(item_schema.as_ref(), map_handling)?;
+            let item_type =
+                avro_type_mapping(item_schema.as_ref(), ancestor_records, refs, map_handling)?;
             DataType::List(Box::new(item_type))
         }
         Schema::Union(union_schema) => {
@@ -219,7 +268,7 @@ fn avro_type_mapping(
                 "Union contains duplicate types: {union_schema:?}",
             );
             match get_nullable_union_inner(union_schema) {
-                Some(inner) => avro_type_mapping(inner, map_handling)?,
+                Some(inner) => avro_type_mapping(inner, ancestor_records, refs, map_handling)?,
                 None => {
                     // Convert the union to a struct, each field of the struct represents a variant of the union.
                     // Refer to https://github.com/risingwavelabs/risingwave/issues/16273#issuecomment-2179761345 to see why it's not perfect.
@@ -232,10 +281,11 @@ fn avro_type_mapping(
                         // null will mean the whole struct is null
                         .filter(|variant| !matches!(variant, &&Schema::Null))
                         .map(|variant| {
-                            avro_type_mapping(variant, map_handling).and_then(|t| {
-                                let name = avro_schema_to_struct_field_name(variant)?;
-                                Ok((name, t))
-                            })
+                            avro_type_mapping(variant, ancestor_records, refs, map_handling)
+                                .and_then(|t| {
+                                    let name = avro_schema_to_struct_field_name(variant)?;
+                                    Ok((name, t))
+                                })
                         })
                         .try_collect::<_, Vec<_>, _>()
                         .context("failed to convert Avro union to struct")?;
@@ -250,7 +300,12 @@ fn avro_type_mapping(
             {
                 DataType::Decimal
             } else {
-                bail_not_implemented!("Avro type: {:?}", schema);
+                avro_type_mapping(
+                    refs[name], // `ResolvedSchema::try_from` already handles lookup failure
+                    ancestor_records,
+                    refs,
+                    map_handling,
+                )?
             }
         }
         Schema::Map(value_schema) => {
@@ -268,8 +323,13 @@ fn avro_type_mapping(
                     }
                 }
                 Some(MapHandling::Map) | None => {
-                    let value = avro_type_mapping(value_schema.as_ref(), map_handling)
-                        .context("failed to convert Avro map type")?;
+                    let value = avro_type_mapping(
+                        value_schema.as_ref(),
+                        ancestor_records,
+                        refs,
+                        map_handling,
+                    )
+                    .context("failed to convert Avro map type")?;
                     DataType::Map(MapType::from_kv(DataType::Varchar, value))
                 }
             }
diff --git a/src/connector/codec/tests/integration_tests/avro.rs b/src/connector/codec/tests/integration_tests/avro.rs
index d916dc1aba426..2221917cc2b05 100644
--- a/src/connector/codec/tests/integration_tests/avro.rs
+++ b/src/connector/codec/tests/integration_tests/avro.rs
@@ -56,7 +56,7 @@ fn avro_schema_str_to_risingwave_schema(
         ResolvedAvroSchema::create(avro_schema.into()).context("failed to resolve Avro schema")?;
 
     let rw_schema =
-        avro_schema_to_column_descs(&resolved_schema.resolved_schema, config.map_handling)
+        avro_schema_to_column_descs(&resolved_schema.original_schema, config.map_handling)
             .context("failed to convert Avro schema to RisingWave schema")?
             .iter()
             .map(ColumnDesc::from)
diff --git a/src/connector/src/parser/avro/parser.rs b/src/connector/src/parser/avro/parser.rs
index ac93ab3e69807..e817267778a50 100644
--- a/src/connector/src/parser/avro/parser.rs
+++ b/src/connector/src/parser/avro/parser.rs
@@ -229,7 +229,7 @@ impl AvroParserConfig {
     }
 
     pub fn map_to_columns(&self) -> ConnectorResult<Vec<ColumnDesc>> {
-        avro_schema_to_column_descs(&self.schema.resolved_schema, self.map_handling)
+        avro_schema_to_column_descs(&self.schema.original_schema, self.map_handling)
             .map_err(Into::into)
     }
 }