diff --git a/__tests__/compose-decompose.ts b/__tests__/compose-decompose.ts
new file mode 100644
index 0000000..08e50ee
--- /dev/null
+++ b/__tests__/compose-decompose.ts
@@ -0,0 +1,246 @@
+/**
+ * Tests for lossless view compose() and decompose() bidirectional conversion
+ * Ensures that deltas can be composed into lossless views and decomposed back
+ * to the original deltas with all pointer relationships preserved.
+ */
+
+import { RhizomeNode } from '../src/node';
+import { Delta } from '../src/delta';
+
+describe('Lossless View Compose/Decompose', () => {
+  let node: RhizomeNode;
+
+  beforeEach(() => {
+    node = new RhizomeNode();
+  });
+
+  describe('Bidirectional Conversion', () => {
+    it('should compose and decompose simple entity deltas correctly', () => {
+      // Create simple entity deltas
+      const nameDeltas = [
+        new Delta({
+          creator: 'test-creator',
+          host: 'test-host',
+          pointers: [
+            { localContext: 'users', target: 'alice', targetContext: 'name' },
+            { localContext: 'name', target: 'Alice Smith' }
+          ]
+        }),
+        new Delta({
+          creator: 'test-creator',
+          host: 'test-host',
+          pointers: [
+            { localContext: 'users', target: 'alice', targetContext: 'email' },
+            { localContext: 'email', target: 'alice@example.com' }
+          ]
+        })
+      ];
+
+      // Ingest the deltas
+      nameDeltas.forEach(delta => node.lossless.ingestDelta(delta));
+
+      // Compose lossless view
+      const composed = node.lossless.compose(['alice']);
+      const aliceView = composed['alice'];
+
+      expect(aliceView).toBeDefined();
+      expect(aliceView.id).toBe('alice');
+      expect(aliceView.propertyDeltas.name).toHaveLength(1);
+      expect(aliceView.propertyDeltas.email).toHaveLength(1);
+
+      // Decompose back to deltas
+      const decomposed = node.lossless.decompose(aliceView);
+
+      expect(decomposed).toHaveLength(2);
+      
+      // Check that original deltas are preserved
+      const originalIds = nameDeltas.map(d => d.id).sort();
+      const decomposedIds = decomposed.map(d => d.id).sort();
+      expect(decomposedIds).toEqual(originalIds);
+
+      // Verify pointer structure is preserved
+      const nameDataDelta = decomposed.find(d => 
+        d.pointers.some(p => p.localContext === 'name' && p.target === 'Alice Smith')
+      );
+      expect(nameDataDelta).toBeDefined();
+      expect(nameDataDelta?.pointers).toHaveLength(2);
+      
+      const upPointer = nameDataDelta?.pointers.find(p => p.targetContext === 'name');
+      expect(upPointer).toBeDefined();
+      expect(upPointer?.target).toBe('alice');
+      expect(upPointer?.localContext).toBe('users');
+    });
+
+    it('should handle multi-pointer relationship deltas correctly', () => {
+      // Create a complex relationship delta
+      const relationshipDelta = new Delta({
+        creator: 'test-creator',
+        host: 'test-host',
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'relationships' },
+          { localContext: 'partner', target: 'bob' },
+          { localContext: 'type', target: 'friendship' },
+          { localContext: 'since', target: '2020-01-15' },
+          { localContext: 'intensity', target: 8 }
+        ]
+      });
+
+      node.lossless.ingestDelta(relationshipDelta);
+
+      // Compose and decompose
+      const composed = node.lossless.compose(['alice']);
+      const aliceView = composed['alice'];
+      const decomposed = node.lossless.decompose(aliceView);
+
+      expect(decomposed).toHaveLength(1);
+      const reconstituted = decomposed[0];
+
+      // Should have all 5 pointers
+      expect(reconstituted.pointers).toHaveLength(5);
+
+      // Check that all pointer types are preserved
+      const contexts = reconstituted.pointers.map(p => p.localContext).sort();
+      expect(contexts).toEqual(['users', 'partner', 'type', 'since', 'intensity'].sort());
+
+      // Check that the "up" pointer to alice is correctly reconstructed
+      const upPointer = reconstituted.pointers.find(p => p.targetContext === 'relationships');
+      expect(upPointer).toBeDefined();
+      expect(upPointer?.target).toBe('alice');
+      expect(upPointer?.localContext).toBe('users');
+
+      // Check scalar values are preserved
+      const intensityPointer = reconstituted.pointers.find(p => p.localContext === 'intensity');
+      expect(intensityPointer?.target).toBe(8);
+    });
+
+    it('should handle reference relationships correctly', () => {
+      // Create entities first
+      const aliceDelta = new Delta({
+        creator: 'test-creator',
+        host: 'test-host',
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'name' },
+          { localContext: 'name', target: 'Alice' }
+        ]
+      });
+
+      const bobDelta = new Delta({
+        creator: 'test-creator',
+        host: 'test-host',
+        pointers: [
+          { localContext: 'users', target: 'bob', targetContext: 'name' },
+          { localContext: 'name', target: 'Bob' }
+        ]
+      });
+
+      // Create friendship relationship
+      const friendshipDelta = new Delta({
+        creator: 'test-creator',
+        host: 'test-host',
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friend', target: 'bob', targetContext: 'friends' }
+        ]
+      });
+
+      [aliceDelta, bobDelta, friendshipDelta].forEach(d => node.lossless.ingestDelta(d));
+
+      // Compose Alice's view
+      const composed = node.lossless.compose(['alice']);
+      const aliceView = composed['alice'];
+
+      expect(aliceView.propertyDeltas.friends).toHaveLength(1);
+
+      // Decompose and verify the friendship delta is correctly reconstructed
+      const decomposed = node.lossless.decompose(aliceView);
+      const friendshipReconstituted = decomposed.find(d => 
+        d.pointers.some(p => p.localContext === 'friend')
+      );
+
+      expect(friendshipReconstituted).toBeDefined();
+      expect(friendshipReconstituted?.pointers).toHaveLength(2);
+
+      // Check both reference pointers are preserved
+      const alicePointer = friendshipReconstituted?.pointers.find(p => p.target === 'alice');
+      const bobPointer = friendshipReconstituted?.pointers.find(p => p.target === 'bob');
+
+      expect(alicePointer).toBeDefined();
+      expect(alicePointer?.targetContext).toBe('friends');
+      expect(bobPointer).toBeDefined();
+      expect(bobPointer?.targetContext).toBe('friends');
+    });
+
+    it('should preserve delta metadata correctly', () => {
+      const originalDelta = new Delta({
+        creator: 'test-creator',
+        host: 'test-host',
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'name' },
+          { localContext: 'name', target: 'Alice' }
+        ]
+      });
+
+      node.lossless.ingestDelta(originalDelta);
+
+      const composed = node.lossless.compose(['alice']);
+      const decomposed = node.lossless.decompose(composed['alice']);
+
+      expect(decomposed).toHaveLength(1);
+      const reconstituted = decomposed[0];
+
+      // Check metadata preservation
+      expect(reconstituted.id).toBe(originalDelta.id);
+      expect(reconstituted.creator).toBe(originalDelta.creator);
+      expect(reconstituted.host).toBe(originalDelta.host);
+      expect(reconstituted.timeCreated).toBe(originalDelta.timeCreated);
+    });
+
+    it('should handle multiple deltas for the same property', () => {
+      // Create multiple name changes for alice
+      const nameDeltas = [
+        new Delta({
+          creator: 'test-creator',
+          host: 'test-host',
+          pointers: [
+            { localContext: 'users', target: 'alice', targetContext: 'name' },
+            { localContext: 'name', target: 'Alice' }
+          ]
+        }),
+        new Delta({
+          creator: 'test-creator',
+          host: 'test-host',
+          pointers: [
+            { localContext: 'users', target: 'alice', targetContext: 'name' },
+            { localContext: 'name', target: 'Alice Smith' }
+          ]
+        }),
+        new Delta({
+          creator: 'test-creator',
+          host: 'test-host',
+          pointers: [
+            { localContext: 'users', target: 'alice', targetContext: 'name' },
+            { localContext: 'name', target: 'Alice Johnson' }
+          ]
+        })
+      ];
+
+      nameDeltas.forEach(d => node.lossless.ingestDelta(d));
+
+      const composed = node.lossless.compose(['alice']);
+      const aliceView = composed['alice'];
+
+      // Should have 3 deltas for the name property
+      expect(aliceView.propertyDeltas.name).toHaveLength(3);
+
+      const decomposed = node.lossless.decompose(aliceView);
+
+      // Should decompose back to 3 separate deltas
+      expect(decomposed).toHaveLength(3);
+
+      // All original delta IDs should be preserved
+      const originalIds = nameDeltas.map(d => d.id).sort();
+      const decomposedIds = decomposed.map(d => d.id).sort();
+      expect(decomposedIds).toEqual(originalIds);
+    });
+  });
+});
\ No newline at end of file
diff --git a/__tests__/multi-pointer-resolution.ts b/__tests__/multi-pointer-resolution.ts
new file mode 100644
index 0000000..4d66d1e
--- /dev/null
+++ b/__tests__/multi-pointer-resolution.ts
@@ -0,0 +1,307 @@
+/**
+ * Tests for nested object resolution with deltas containing 3+ pointers
+ * This tests the complex case where a single delta establishes relationships
+ * between multiple entities and includes scalar values.
+ */
+
+import { RhizomeNode } from '../src/node';
+import { Delta } from '../src/delta';
+import { DefaultSchemaRegistry } from '../src/schema-registry';
+import { SchemaBuilder, PrimitiveSchemas, ReferenceSchemas, SchemaAppliedViewWithNesting } from '../src/schema';
+import { TypedCollectionImpl } from '../src/collection-typed';
+
+describe('Multi-Pointer Delta Resolution', () => {
+  let node: RhizomeNode;
+  let schemaRegistry: DefaultSchemaRegistry;
+
+  beforeEach(() => {
+    node = new RhizomeNode();
+    schemaRegistry = new DefaultSchemaRegistry();
+  });
+
+  describe('Three-Entity Relationship Deltas', () => {
+    it('should handle movie casting deltas with actor, movie, role, and scalars', async () => {
+      // Create schemas for a movie casting scenario
+      const actorSchema = SchemaBuilder
+        .create('actor')
+        .name('Actor')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('filmography', ReferenceSchemas.to('casting-summary', 3))
+        .required('name')
+        .build();
+
+      const movieSchema = SchemaBuilder
+        .create('movie')
+        .name('Movie')
+        .property('title', PrimitiveSchemas.requiredString())
+        .property('cast', ReferenceSchemas.to('casting-summary', 3))
+        .required('title')
+        .build();
+
+      const roleSchema = SchemaBuilder
+        .create('role')
+        .name('Role')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('portrayals', ReferenceSchemas.to('casting-summary', 3))
+        .required('name')
+        .build();
+
+      const castingSummarySchema = SchemaBuilder
+        .create('casting-summary')
+        .name('Casting Summary')
+        .property('name', PrimitiveSchemas.string())
+        .property('title', PrimitiveSchemas.string())
+        .property('salary', PrimitiveSchemas.number())
+        .property('contract_date', PrimitiveSchemas.string())
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(actorSchema);
+      schemaRegistry.register(movieSchema);
+      schemaRegistry.register(roleSchema);
+      schemaRegistry.register(castingSummarySchema);
+
+      // Create collections
+      const actorCollection = new TypedCollectionImpl<{ name: string }>('actors', actorSchema, schemaRegistry);
+      const movieCollection = new TypedCollectionImpl<{ title: string }>('movies', movieSchema, schemaRegistry);
+      const roleCollection = new TypedCollectionImpl<{ name: string }>('roles', roleSchema, schemaRegistry);
+
+      actorCollection.rhizomeConnect(node);
+      movieCollection.rhizomeConnect(node);
+      roleCollection.rhizomeConnect(node);
+
+      // Create entities
+      await actorCollection.put('keanu', { name: 'Keanu Reeves' });
+      await movieCollection.put('matrix', { title: 'The Matrix' });
+      await roleCollection.put('neo', { name: 'Neo' });
+
+      // Create a complex casting delta with multiple entity references and scalar values
+      const castingDelta = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'actors', target: 'keanu', targetContext: 'filmography' },
+          { localContext: 'movies', target: 'matrix', targetContext: 'cast' },
+          { localContext: 'roles', target: 'neo', targetContext: 'portrayals' },
+          { localContext: 'salary', target: 15000000 },
+          { localContext: 'contract_date', target: '1999-03-31' }
+        ]
+      });
+      node.lossless.ingestDelta(castingDelta);
+
+      // Test from Keanu's perspective
+      const keanuViews = node.lossless.view(['keanu']);
+      const keanuView = keanuViews['keanu'];
+
+      expect(keanuView.propertyDeltas.filmography).toBeDefined();
+      expect(keanuView.propertyDeltas.filmography.length).toBe(1);
+
+      const nestedKeanuView = schemaRegistry.applySchemaWithNesting(
+        keanuView,
+        'actor',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedKeanuView.id).toBe('keanu');
+      
+      // Should resolve references to matrix and neo, but not keanu (self)
+      expect(nestedKeanuView.nestedObjects.filmography).toBeDefined();
+      if (nestedKeanuView.nestedObjects.filmography) {
+        const castingEntry = nestedKeanuView.nestedObjects.filmography[0];
+        expect(castingEntry).toBeDefined();
+        
+        // The casting entry should be resolved with casting-summary schema
+        expect(castingEntry.schemaId).toBe('casting-summary');
+        
+        // Should not contain a reference to keanu (the parent)
+        expect(castingEntry.id).not.toBe('keanu');
+      }
+
+      // Test from Matrix's perspective
+      const matrixViews = node.lossless.view(['matrix']);
+      const matrixView = matrixViews['matrix'];
+
+      const nestedMatrixView = schemaRegistry.applySchemaWithNesting(
+        matrixView,
+        'movie',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedMatrixView.id).toBe('matrix');
+      expect(nestedMatrixView.nestedObjects.cast).toBeDefined();
+    });
+
+    it('should handle deltas with mixed scalar and reference values correctly', async () => {
+      // Create a simpler schema for testing mixed values
+      const personSchema = SchemaBuilder
+        .create('person')
+        .name('Person')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('relationships', ReferenceSchemas.to('relationship-summary', 3))
+        .required('name')
+        .build();
+
+      const relationshipSummarySchema = SchemaBuilder
+        .create('relationship-summary')
+        .name('Relationship Summary')
+        .property('partner_name', PrimitiveSchemas.string())
+        .property('type', PrimitiveSchemas.string())
+        .property('since', PrimitiveSchemas.string())
+        .property('intensity', PrimitiveSchemas.number())
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(personSchema);
+      schemaRegistry.register(relationshipSummarySchema);
+
+      const personCollection = new TypedCollectionImpl<{ name: string }>('people', personSchema, schemaRegistry);
+      personCollection.rhizomeConnect(node);
+
+      // Create people
+      await personCollection.put('alice', { name: 'Alice' });
+      await personCollection.put('bob', { name: 'Bob' });
+
+      // Create a relationship delta with one entity reference and multiple scalars
+      const relationshipDelta = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'people', target: 'alice', targetContext: 'relationships' },
+          { localContext: 'partner', target: 'bob' }, // Entity reference
+          { localContext: 'type', target: 'friendship' }, // Scalar
+          { localContext: 'since', target: '2020-01-15' }, // Scalar
+          { localContext: 'intensity', target: 8 } // Scalar number
+        ]
+      });
+      node.lossless.ingestDelta(relationshipDelta);
+
+      // Test from Alice's perspective
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      const nestedAliceView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'person',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedAliceView.id).toBe('alice');
+      expect(nestedAliceView.nestedObjects.relationships).toBeDefined();
+      
+      if (nestedAliceView.nestedObjects.relationships) {
+        expect(nestedAliceView.nestedObjects.relationships.length).toBe(1);
+        const relationshipEntry = nestedAliceView.nestedObjects.relationships[0];
+        
+        // Should be resolved with relationship-summary schema
+        expect(relationshipEntry.schemaId).toBe('relationship-summary');
+        
+        // Should contain scalar values and reference to bob but not alice
+        expect(relationshipEntry.id).not.toBe('alice');
+        
+        // The relationship should contain the scalar values from the delta
+        // Note: The exact structure depends on how the resolution logic handles mixed values
+      }
+    });
+
+    it('should correctly identify multiple entity references within a single delta', async () => {
+      // Test a scenario with multiple entity references that should all be resolved
+      const projectSchema = SchemaBuilder
+        .create('project')
+        .name('Project')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('collaborations', ReferenceSchemas.to('collaboration-summary', 3))
+        .required('name')
+        .build();
+
+      const collaborationSummarySchema = SchemaBuilder
+        .create('collaboration-summary')
+        .name('Collaboration Summary')
+        .property('project_name', PrimitiveSchemas.string())
+        .property('developer_name', PrimitiveSchemas.string())
+        .property('designer_name', PrimitiveSchemas.string())
+        .property('budget', PrimitiveSchemas.number())
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(projectSchema);
+      schemaRegistry.register(collaborationSummarySchema);
+
+      const projectCollection = new TypedCollectionImpl<{ name: string }>('projects', projectSchema, schemaRegistry);
+      const developerCollection = new TypedCollectionImpl<{ name: string }>('developers', projectSchema, schemaRegistry);
+      const designerCollection = new TypedCollectionImpl<{ name: string }>('designers', projectSchema, schemaRegistry);
+
+      projectCollection.rhizomeConnect(node);
+      developerCollection.rhizomeConnect(node);
+      designerCollection.rhizomeConnect(node);
+
+      // Create entities
+      await projectCollection.put('website', { name: 'Company Website' });
+      await developerCollection.put('alice', { name: 'Alice Developer' });
+      await designerCollection.put('bob', { name: 'Bob Designer' });
+
+      // Create a collaboration delta with multiple entity references
+      const collaborationDelta = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'projects', target: 'website', targetContext: 'collaborations' },
+          { localContext: 'developer', target: 'alice' }, // Entity reference
+          { localContext: 'designer', target: 'bob' },   // Entity reference  
+          { localContext: 'budget', target: 50000 },     // Scalar
+          { localContext: 'deadline', target: '2024-06-01' } // Scalar
+        ]
+      });
+      node.lossless.ingestDelta(collaborationDelta);
+
+      // Test from project's perspective
+      const projectViews = node.lossless.view(['website']);
+      const projectView = projectViews['website'];
+
+      const nestedProjectView = schemaRegistry.applySchemaWithNesting(
+        projectView,
+        'project',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedProjectView.id).toBe('website');
+      expect(nestedProjectView.nestedObjects.collaborations).toBeDefined();
+      
+      if (nestedProjectView.nestedObjects.collaborations) {
+        
+        // Verify we get exactly 1 composite object (not 2 separate objects)
+        expect(nestedProjectView.nestedObjects.collaborations.length).toBe(1);
+        const collaboration = nestedProjectView.nestedObjects.collaborations[0];
+        
+        expect(collaboration.schemaId).toBe('collaboration-summary');
+        expect(collaboration.id).toMatch(/^composite-/); // Should be a synthetic composite ID
+        
+        // Verify the composite object contains scalar properties
+        expect(collaboration.properties.budget).toBe(50000);
+        expect(collaboration.properties.deadline).toBe('2024-06-01');
+        
+        // Verify the composite object contains nested entity references
+        expect(collaboration.nestedObjects.developer).toBeDefined();
+        expect(collaboration.nestedObjects.designer).toBeDefined();
+        
+        // The nested entities should be resolved as arrays with single objects
+        const developers = collaboration.nestedObjects.developer as SchemaAppliedViewWithNesting[];
+        const designers = collaboration.nestedObjects.designer as SchemaAppliedViewWithNesting[];
+        
+        // Each should have exactly one entity
+        expect(developers.length).toBe(1);
+        expect(designers.length).toBe(1);
+        
+        // Verify each entity reference resolves to the correct entity
+        expect(developers[0].id).toBe('alice');
+        expect(developers[0].schemaId).toBe('collaboration-summary');
+        
+        expect(designers[0].id).toBe('bob');
+        expect(designers[0].schemaId).toBe('collaboration-summary');
+      }
+    });
+  });
+});
\ No newline at end of file
diff --git a/__tests__/nested-resolution-performance.ts b/__tests__/nested-resolution-performance.ts
new file mode 100644
index 0000000..192eb3f
--- /dev/null
+++ b/__tests__/nested-resolution-performance.ts
@@ -0,0 +1,358 @@
+/**
+ * Performance tests for nested object resolution with large object graphs
+ * 
+ * Tests performance characteristics of:
+ * - Large networks of interconnected entities
+ * - Deep nesting chains
+ * - Wide arrays of references  
+ * - Circular reference handling at scale
+ */
+
+import { RhizomeNode } from '../src/node';
+import { Delta } from '../src/delta';
+import { DefaultSchemaRegistry } from '../src/schema-registry';
+import { SchemaBuilder, PrimitiveSchemas, ReferenceSchemas, ArraySchemas } from '../src/schema';
+import { TypedCollectionImpl } from '../src/collection-typed';
+
+describe('Nested Object Resolution Performance', () => {
+  let node: RhizomeNode;
+  let schemaRegistry: DefaultSchemaRegistry;
+
+  beforeEach(() => {
+    node = new RhizomeNode();
+    schemaRegistry = new DefaultSchemaRegistry();
+  });
+
+  describe('Large Network Performance', () => {
+    it('should handle large networks of interconnected users efficiently', async () => {
+      // Create a schema for users with multiple relationship types
+      const networkUserSchema = SchemaBuilder
+        .create('network-user')
+        .name('Network User')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('friends', ArraySchemas.of(ReferenceSchemas.to('network-user-summary', 2)))
+        .property('followers', ArraySchemas.of(ReferenceSchemas.to('network-user-summary', 2)))
+        .property('mentor', ReferenceSchemas.to('network-user-summary', 2))
+        .required('name')
+        .build();
+
+      const networkUserSummarySchema = SchemaBuilder
+        .create('network-user-summary')
+        .name('Network User Summary')
+        .property('name', PrimitiveSchemas.requiredString())
+        .required('name')
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(networkUserSchema);
+      schemaRegistry.register(networkUserSummarySchema);
+
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        friends?: string[];
+        followers?: string[];
+        mentor?: string;
+      }>('users', networkUserSchema, schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      const startSetup = performance.now();
+
+      // Create 100 users
+      const userCount = 100;
+      const userIds: string[] = [];
+      for (let i = 0; i < userCount; i++) {
+        const userId = `user${i}`;
+        userIds.push(userId);
+        await userCollection.put(userId, { name: `User ${i}` });
+      }
+
+      // Create a network where each user has 5-10 friends, 10-20 followers, and 1 mentor
+      for (let i = 0; i < userCount; i++) {
+        const userId = userIds[i];
+        
+        // Add friends (5-10 random connections)
+        const friendCount = 5 + Math.floor(Math.random() * 6);
+        for (let j = 0; j < friendCount; j++) {
+          const friendIndex = Math.floor(Math.random() * userCount);
+          if (friendIndex !== i) {
+            const friendId = userIds[friendIndex];
+            const friendshipDelta = new Delta({
+              creator: node.config.creator,
+              host: node.config.peerId,
+              pointers: [
+                { localContext: 'users', target: userId, targetContext: 'friends' },
+                { localContext: 'friends', target: friendId }
+              ]
+            });
+            node.lossless.ingestDelta(friendshipDelta);
+          }
+        }
+
+        // Add followers (10-20 random connections)
+        const followerCount = 10 + Math.floor(Math.random() * 11);
+        for (let j = 0; j < followerCount; j++) {
+          const followerIndex = Math.floor(Math.random() * userCount);
+          if (followerIndex !== i) {
+            const followerId = userIds[followerIndex];
+            const followDelta = new Delta({
+              creator: node.config.creator,
+              host: node.config.peerId,
+              pointers: [
+                { localContext: 'users', target: userId, targetContext: 'followers' },
+                { localContext: 'followers', target: followerId }
+              ]
+            });
+            node.lossless.ingestDelta(followDelta);
+          }
+        }
+
+        // Add mentor (one per user, creating a hierarchy)
+        if (i > 0) {
+          const mentorIndex = Math.floor(i / 2); // Create a tree-like mentor structure
+          const mentorId = userIds[mentorIndex];
+          const mentorshipDelta = new Delta({
+            creator: node.config.creator,
+            host: node.config.peerId,
+            pointers: [
+              { localContext: 'users', target: userId, targetContext: 'mentor' },
+              { localContext: 'mentor', target: mentorId }
+            ]
+          });
+          node.lossless.ingestDelta(mentorshipDelta);
+        }
+      }
+
+      const setupTime = performance.now() - startSetup;
+      console.log(`Setup time for ${userCount} users with relationships: ${setupTime.toFixed(2)}ms`);
+
+      // Test resolution performance for a user with many connections
+      const testUserId = userIds[50]; // Pick a user in the middle
+      const userViews = node.lossless.view([testUserId]);
+      const userView = userViews[testUserId];
+
+      const startResolution = performance.now();
+      
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        userView,
+        'network-user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      const resolutionTime = performance.now() - startResolution;
+      console.log(`Resolution time for user with many connections: ${resolutionTime.toFixed(2)}ms`);
+
+      // Verify the resolution worked
+      expect(nestedView.id).toBe(testUserId);
+      expect(nestedView.schemaId).toBe('network-user');
+      
+      // Performance assertions (adjust thresholds based on acceptable performance)
+      expect(setupTime).toBeLessThan(5000); // Setup should take less than 5 seconds
+      expect(resolutionTime).toBeLessThan(1000); // Resolution should take less than 1 second
+
+      // Verify we got some nested objects
+      const totalNestedObjects = Object.values(nestedView.nestedObjects).reduce(
+        (total, arr) => total + (arr?.length || 0), 0
+      );
+      console.log('Total nested objects resolved:', totalNestedObjects);
+      
+      // The test user should have friends, followers, and possibly a mentor
+      expect(Object.keys(nestedView.nestedObjects).length).toBeGreaterThan(0);
+    });
+
+    it('should handle deep nesting chains efficiently', async () => {
+      // Create a simple schema for chain testing
+      const chainUserSchema = SchemaBuilder
+        .create('chain-user')
+        .name('Chain User')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('next', ReferenceSchemas.to('chain-user-summary', 3))
+        .required('name')
+        .build();
+
+      const chainUserSummarySchema = SchemaBuilder
+        .create('chain-user-summary')
+        .name('Chain User Summary')
+        .property('name', PrimitiveSchemas.requiredString())
+        .required('name')
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(chainUserSchema);
+      schemaRegistry.register(chainUserSummarySchema);
+
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        next?: string;
+      }>('users', chainUserSchema, schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      const startSetup = performance.now();
+
+      // Create a chain of 50 users
+      const chainLength = 50;
+      const userIds: string[] = [];
+      
+      for (let i = 0; i < chainLength; i++) {
+        const userId = `chain-user${i}`;
+        userIds.push(userId);
+        await userCollection.put(userId, { name: `Chain User ${i}` });
+      }
+
+      // Link them in a chain
+      for (let i = 0; i < chainLength - 1; i++) {
+        const currentId = userIds[i];
+        const nextId = userIds[i + 1];
+        
+        const linkDelta = new Delta({
+          creator: node.config.creator,
+          host: node.config.peerId,
+          pointers: [
+            { localContext: 'users', target: currentId, targetContext: 'next' },
+            { localContext: 'next', target: nextId }
+          ]
+        });
+        node.lossless.ingestDelta(linkDelta);
+      }
+
+      const setupTime = performance.now() - startSetup;
+      console.log(`Setup time for chain of ${chainLength} users: ${setupTime.toFixed(2)}ms`);
+
+      // Test resolution from the start of the chain
+      const firstUserId = userIds[0];
+      const userViews = node.lossless.view([firstUserId]);
+      const userView = userViews[firstUserId];
+
+      const startResolution = performance.now();
+      
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        userView,
+        'chain-user',
+        node.lossless,
+        { maxDepth: 5 } // Should resolve 5 levels deep
+      );
+
+      const resolutionTime = performance.now() - startResolution;
+      console.log(`Resolution time for deep chain (maxDepth=5): ${resolutionTime.toFixed(2)}ms`);
+
+      // Verify the resolution worked and respected depth limits
+      expect(nestedView.id).toBe(firstUserId);
+      expect(nestedView.schemaId).toBe('chain-user');
+      
+      // Performance assertions
+      expect(setupTime).toBeLessThan(2000); // Setup should take less than 2 seconds
+      expect(resolutionTime).toBeLessThan(500); // Resolution should take less than 500ms
+
+      // Verify depth was respected
+      let currentView = nestedView;
+      let depth = 0;
+      while (currentView.nestedObjects.next && currentView.nestedObjects.next.length > 0) {
+        currentView = currentView.nestedObjects.next[0];
+        depth++;
+        if (depth >= 5) break; // Prevent infinite loop
+      }
+      
+      expect(depth).toBeLessThanOrEqual(5);
+      console.log(`Actual resolved depth: ${depth}`);
+    });
+
+    it('should handle circular references in large graphs without performance degradation', async () => {
+      const circularUserSchema = SchemaBuilder
+        .create('circular-user')
+        .name('Circular User')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('connections', ArraySchemas.of(ReferenceSchemas.to('circular-user-summary', 3)))
+        .required('name')
+        .build();
+
+      const circularUserSummarySchema = SchemaBuilder
+        .create('circular-user-summary')
+        .name('Circular User Summary')
+        .property('name', PrimitiveSchemas.requiredString())
+        .required('name')
+        .additionalProperties(false)
+        .build();
+
+      schemaRegistry.register(circularUserSchema);
+      schemaRegistry.register(circularUserSummarySchema);
+
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        connections?: string[];
+      }>('users', circularUserSchema, schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      const startSetup = performance.now();
+
+      // Create 20 users
+      const userCount = 20;
+      const userIds: string[] = [];
+      for (let i = 0; i < userCount; i++) {
+        const userId = `circular-user${i}`;
+        userIds.push(userId);
+        await userCollection.put(userId, { name: `Circular User ${i}` });
+      }
+
+      // Create many circular connections - each user connects to 3 others
+      for (let i = 0; i < userCount; i++) {
+        const userId = userIds[i];
+        
+        // Connect to next 3 users (wrapping around)
+        for (let j = 1; j <= 3; j++) {
+          const connectedIndex = (i + j) % userCount;
+          const connectedId = userIds[connectedIndex];
+          
+          const connectionDelta = new Delta({
+            creator: node.config.creator,
+            host: node.config.peerId,
+            pointers: [
+              { localContext: 'users', target: userId, targetContext: 'connections' },
+              { localContext: 'connections', target: connectedId }
+            ]
+          });
+          node.lossless.ingestDelta(connectionDelta);
+        }
+      }
+
+      const setupTime = performance.now() - startSetup;
+      console.log(`Setup time for circular graph with ${userCount} users: ${setupTime.toFixed(2)}ms`);
+
+      // Test resolution performance with circular references
+      const testUserId = userIds[0];
+      const userViews = node.lossless.view([testUserId]);
+      const userView = userViews[testUserId];
+
+      const startResolution = performance.now();
+      
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        userView,
+        'circular-user',
+        node.lossless,
+        { maxDepth: 3 }
+      );
+
+      const resolutionTime = performance.now() - startResolution;
+      console.log(`Resolution time for circular graph (maxDepth=3): ${resolutionTime.toFixed(2)}ms`);
+
+      // Verify the resolution completed without hanging
+      expect(nestedView.id).toBe(testUserId);
+      expect(nestedView.schemaId).toBe('circular-user');
+      
+      // Performance assertions - should handle circular references efficiently
+      expect(setupTime).toBeLessThan(2000);
+      expect(resolutionTime).toBeLessThan(1000); // Should complete in reasonable time despite cycles
+
+      // Verify we got some nested objects but didn't get stuck in infinite loops
+      expect(nestedView.nestedObjects.connections).toBeDefined();
+      if (nestedView.nestedObjects.connections) {
+        expect(nestedView.nestedObjects.connections.length).toBeGreaterThan(0);
+        expect(nestedView.nestedObjects.connections.length).toBeLessThanOrEqual(3);
+      }
+      
+      console.log(`Connections resolved: ${nestedView.nestedObjects.connections?.length || 0}`);
+    });
+  });
+});
\ No newline at end of file
diff --git a/__tests__/nested-resolution.ts b/__tests__/nested-resolution.ts
new file mode 100644
index 0000000..62bb809
--- /dev/null
+++ b/__tests__/nested-resolution.ts
@@ -0,0 +1,443 @@
+/**
+ * Test suite for nested object resolution with schema-controlled depth limiting
+ * and circular reference detection.
+ * 
+ * Tests the implementation of:
+ * - Schema-controlled depth limiting
+ * - Circular reference detection and prevention
+ * - "Summary" schema type for references
+ * - Deep nesting scenarios
+ */
+
+import { RhizomeNode } from '../src/node';
+import { Delta } from '../src/delta';
+import { DefaultSchemaRegistry } from '../src/schema-registry';
+import { CommonSchemas, SchemaBuilder, PrimitiveSchemas, ReferenceSchemas } from '../src/schema';
+import { TypedCollectionImpl } from '../src/collection-typed';
+
+describe('Nested Object Resolution', () => {
+  let node: RhizomeNode;
+  let schemaRegistry: DefaultSchemaRegistry;
+
+  beforeEach(() => {
+    node = new RhizomeNode();
+    schemaRegistry = new DefaultSchemaRegistry();
+    
+    // Register the common schemas
+    schemaRegistry.register(CommonSchemas.User());
+    schemaRegistry.register(CommonSchemas.UserSummary());
+    schemaRegistry.register(CommonSchemas.Document());
+  });
+
+  afterEach(() => {
+    // No cleanup needed for nodes that don't call start()
+  });
+
+  describe('Basic Reference Resolution', () => {
+    it('should resolve single-level user references with UserSummary schema', async () => {
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        email?: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      // Create test users
+      await userCollection.put('alice', { 
+        name: 'Alice', 
+        email: 'alice@test.com'
+      });
+      await userCollection.put('bob', { 
+        name: 'Bob', 
+        email: 'bob@test.com'
+      });
+      
+      // Create friendship relationship
+      const friendshipDelta = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'bob' }
+        ]
+      });
+      node.lossless.ingestDelta(friendshipDelta);
+
+      // Get Alice's lossless view
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+      
+      expect(aliceView).toBeDefined();
+      expect(aliceView.propertyDeltas.friends).toBeDefined();
+      expect(aliceView.propertyDeltas.friends.length).toBeGreaterThan(0);
+
+      // Apply schema with nesting
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedView.id).toBe('alice');
+      expect(nestedView.schemaId).toBe('user');
+      expect(nestedView.metadata?.depth).toBe(0);
+      expect(nestedView.metadata?.truncated).toBe(false);
+
+      // Check if friends are resolved as nested objects
+      if (nestedView.nestedObjects.friends) {
+        expect(nestedView.nestedObjects.friends.length).toBe(1);
+        const bobSummary = nestedView.nestedObjects.friends[0];
+        expect(bobSummary.id).toBe('bob');
+        expect(bobSummary.schemaId).toBe('user-summary');
+        expect(bobSummary.metadata?.depth).toBe(1);
+      }
+    });
+
+    it('should handle missing references gracefully', async () => {
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      // Create user with reference to non-existent friend
+      await userCollection.put('alice', { name: 'Alice' });
+      
+      const friendshipDelta = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'nonexistent' }
+        ]
+      });
+      node.lossless.ingestDelta(friendshipDelta);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+      
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      // Should not crash and should handle missing reference gracefully
+      expect(nestedView.id).toBe('alice');
+      // The friends array might be empty or have no resolved objects
+      if (nestedView.nestedObjects.friends) {
+        expect(Array.isArray(nestedView.nestedObjects.friends)).toBe(true);
+      }
+    });
+  });
+
+  describe('Depth Limiting', () => {
+    it('should respect maxDepth parameter and truncate deep nesting', async () => {
+      // Create a custom schema with deeper nesting for testing
+      const deepUserSchema = SchemaBuilder
+        .create('deep-user')
+        .name('Deep User')
+        .property('name', PrimitiveSchemas.requiredString())
+        .property('mentor', ReferenceSchemas.to('deep-user', 2)) // Self-reference with depth 2
+        .required('name')
+        .build();
+      
+      schemaRegistry.register(deepUserSchema);
+
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        mentor?: string;
+      }>('deep-users', deepUserSchema, schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      // Create a chain: alice -> bob -> charlie
+      await userCollection.put('alice', { name: 'Alice' });
+      await userCollection.put('bob', { name: 'Bob' });
+      await userCollection.put('charlie', { name: 'Charlie' });
+
+      // Alice's mentor is Bob
+      const mentorshipDelta1 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'deep-users', target: 'alice', targetContext: 'mentor' },
+          { localContext: 'mentor', target: 'bob' }
+        ]
+      });
+      node.lossless.ingestDelta(mentorshipDelta1);
+
+      // Bob's mentor is Charlie
+      const mentorshipDelta2 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'deep-users', target: 'bob', targetContext: 'mentor' },
+          { localContext: 'mentor', target: 'charlie' }
+        ]
+      });
+      node.lossless.ingestDelta(mentorshipDelta2);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      // Test with maxDepth = 1 (should only resolve Alice and Bob)
+      const shallowView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'deep-user',
+        node.lossless,
+        { maxDepth: 1 }
+      );
+
+      expect(shallowView.id).toBe('alice');
+      expect(shallowView.metadata?.depth).toBe(0);
+      expect(shallowView.metadata?.truncated).toBe(false);
+
+      if (shallowView.nestedObjects.mentor) {
+        expect(shallowView.nestedObjects.mentor.length).toBe(1);
+        const bobView = shallowView.nestedObjects.mentor[0];
+        expect(bobView.id).toBe('bob');
+        expect(bobView.metadata?.depth).toBe(1);
+        expect(bobView.metadata?.truncated).toBe(true); // Should be truncated at depth 1
+        
+        // Bob's mentor should not be resolved due to depth limit
+        expect(bobView.nestedObjects.mentor || []).toHaveLength(0);
+      }
+
+      // Test with maxDepth = 2 (should resolve Alice, Bob, and Charlie)
+      const deepView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'deep-user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      if (deepView.nestedObjects.mentor) {
+        const bobView = deepView.nestedObjects.mentor[0];
+        expect(bobView.metadata?.truncated).toBe(false);
+        
+        if (bobView.nestedObjects.mentor) {
+          expect(bobView.nestedObjects.mentor.length).toBe(1);
+          const charlieView = bobView.nestedObjects.mentor[0];
+          expect(charlieView.id).toBe('charlie');
+          expect(charlieView.metadata?.depth).toBe(2);
+          expect(charlieView.metadata?.truncated).toBe(true); // Truncated at max depth
+        }
+      }
+    });
+  });
+
+  describe('Circular Reference Prevention', () => {
+    it('should detect and prevent circular references', async () => {
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      // Create users
+      await userCollection.put('alice', { name: 'Alice' });
+      await userCollection.put('bob', { name: 'Bob' });
+
+      // Create circular friendship: Alice -> Bob -> Alice
+      const friendship1 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'bob' }
+        ]
+      });
+      node.lossless.ingestDelta(friendship1);
+
+      const friendship2 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'bob', targetContext: 'friends' },
+          { localContext: 'friends', target: 'alice' }
+        ]
+      });
+      node.lossless.ingestDelta(friendship2);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      // Should handle circular reference without infinite recursion
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 3 }
+      );
+
+      expect(nestedView.id).toBe('alice');
+      
+      // The resolution should complete without hanging or crashing
+      // The exact behavior may vary, but it should not cause infinite recursion
+      expect(nestedView.metadata?.truncated).toBeDefined();
+    });
+
+    it('should handle self-references correctly', async () => {
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      await userCollection.put('alice', { name: 'Alice' });
+
+      // Alice is friends with herself
+      const selfFriendship = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'alice' }
+        ]
+      });
+      node.lossless.ingestDelta(selfFriendship);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedView.id).toBe('alice');
+      // Should detect the self-reference and handle it appropriately
+    });
+  });
+
+  describe('Array References', () => {
+    it('should resolve arrays of references correctly', async () => {
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      // Create multiple users
+      await userCollection.put('alice', { name: 'Alice' });
+      await userCollection.put('bob', { name: 'Bob' });
+      await userCollection.put('charlie', { name: 'Charlie' });
+
+      // Alice has multiple friends
+      const friendship1 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'bob' }
+        ]
+      });
+      node.lossless.ingestDelta(friendship1);
+
+      const friendship2 = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'charlie' }
+        ]
+      });
+      node.lossless.ingestDelta(friendship2);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 2 }
+      );
+
+      expect(nestedView.id).toBe('alice');
+      
+      if (nestedView.nestedObjects.friends) {
+        expect(nestedView.nestedObjects.friends.length).toBe(2);
+        
+        const friendIds = nestedView.nestedObjects.friends.map((friend: { id: string }) => friend.id);
+        expect(friendIds).toContain('bob');
+        expect(friendIds).toContain('charlie');
+        
+        // All friends should use the user-summary schema
+        nestedView.nestedObjects.friends.forEach((friend: { schemaId: string; metadata?: { depth: number } }) => {
+          expect(friend.schemaId).toBe('user-summary');
+          expect(friend.metadata?.depth).toBe(1);
+        });
+      }
+    });
+  });
+
+  describe('Summary Schema Pattern', () => {
+    it('should use Summary schema to break infinite recursion', async () => {
+      // The User schema references user-summary for friends
+      // This tests the pattern mentioned in the spec
+      const userCollection = new TypedCollectionImpl<{
+        name: string;
+        email?: string;
+        friends?: string[];
+      }>('users', CommonSchemas.User(), schemaRegistry);
+      
+      userCollection.rhizomeConnect(node);
+
+      await userCollection.put('alice', { 
+        name: 'Alice', 
+        email: 'alice@test.com' 
+      });
+      await userCollection.put('bob', { 
+        name: 'Bob', 
+        email: 'bob@test.com' 
+      });
+
+      // Create friendship
+      const friendship = new Delta({
+        creator: node.config.creator,
+        host: node.config.peerId,
+        pointers: [
+          { localContext: 'users', target: 'alice', targetContext: 'friends' },
+          { localContext: 'friends', target: 'bob' }
+        ]
+      });
+      node.lossless.ingestDelta(friendship);
+
+      const aliceViews = node.lossless.view(['alice']);
+      const aliceView = aliceViews['alice'];
+
+      const nestedView = schemaRegistry.applySchemaWithNesting(
+        aliceView,
+        'user',
+        node.lossless,
+        { maxDepth: 3 }
+      );
+
+      if (nestedView.nestedObjects.friends) {
+        const bobSummary = nestedView.nestedObjects.friends[0];
+        
+        // Bob should be resolved with user-summary schema
+        expect(bobSummary.schemaId).toBe('user-summary');
+        
+        // user-summary schema should have limited properties (only name and email)
+        expect(bobSummary.properties.name).toBeDefined();
+        expect(bobSummary.properties.email).toBeDefined();
+        
+        // user-summary should NOT have friends property to break recursion
+        expect(bobSummary.properties.friends).toBeUndefined();
+        expect(bobSummary.nestedObjects.friends).toBeUndefined();
+      }
+    });
+  });
+});
\ No newline at end of file
diff --git a/src/lossless.ts b/src/lossless.ts
index 5762cf3..9ce0d76 100644
--- a/src/lossless.ts
+++ b/src/lossless.ts
@@ -178,11 +178,57 @@ export class Lossless {
       if (!deltaFilter) return true;
       return deltaFilter(delta);
     };
-    const res = this.view([entityId], (delta) => combinedFilter(delta));
+    const res = this.compose([entityId], (delta) => combinedFilter(delta));
     return res[entityId];
   }
 
+  decompose(view: LosslessViewOne): Delta[] {
+    const allDeltas: Delta[] = [];
+    const seenDeltaIds = new Set<DeltaID>();
+    
+    // Collect all deltas from all properties
+    for (const [propertyId, deltas] of Object.entries(view.propertyDeltas)) {
+      for (const delta of deltas) {
+        if (!seenDeltaIds.has(delta.id)) {
+          seenDeltaIds.add(delta.id);
+          // Convert CollapsedDelta back to Delta
+          const fullDelta = new Delta({
+            id: delta.id,
+            creator: delta.creator,
+            host: delta.host,
+            timeCreated: delta.timeCreated,
+            pointers: delta.pointers.map(pointer => {
+              // Convert back to V1 pointer format for Delta constructor
+              const pointerEntries = Object.entries(pointer);
+              if (pointerEntries.length === 1) {
+                const [localContext, target] = pointerEntries[0];
+                if (typeof target === 'string' && this.domainEntities.has(target)) {
+                  // This is a reference pointer to an entity
+                  // The targetContext is the property ID this delta appears under
+                  return { localContext, target, targetContext: propertyId };
+                } else {
+                  // Scalar pointer
+                  return { localContext, target: target as PropertyTypes };
+                }
+              }
+              // Fallback for unexpected pointer structure
+              return { localContext: 'unknown', target: 'unknown' };
+            })
+          });
+          allDeltas.push(fullDelta);
+        }
+      }
+    }
+    
+    return allDeltas;
+  }
+
+  // Backward compatibility alias
   view(entityIds?: DomainEntityID[], deltaFilter?: DeltaFilter): LosslessViewMany {
+    return this.compose(entityIds, deltaFilter);
+  }
+
+  compose(entityIds?: DomainEntityID[], deltaFilter?: DeltaFilter): LosslessViewMany {
     const view: LosslessViewMany = {};
     entityIds = entityIds ?? Array.from(this.domainEntities.keys());
 
diff --git a/src/schema-registry.ts b/src/schema-registry.ts
index acc203b..8567a16 100644
--- a/src/schema-registry.ts
+++ b/src/schema-registry.ts
@@ -10,10 +10,12 @@ import {
   ReferenceSchema,
   ArraySchema,
   SchemaAppliedView,
-  SchemaApplicationOptions
+  SchemaAppliedViewWithNesting,
+  SchemaApplicationOptions,
+  ResolutionContext
 } from './schema';
-import { LosslessViewOne } from './lossless';
-import { DomainEntityID, PropertyID } from './types';
+import { LosslessViewOne, Lossless } from './lossless';
+import { DomainEntityID, PropertyID, PropertyTypes } from './types';
 import { CollapsedDelta } from './lossless';
 
 const debug = Debug('rz:schema-registry');
@@ -286,7 +288,7 @@ export class DefaultSchemaRegistry implements SchemaRegistry {
       throw new Error(`Schema '${schemaId}' not found`);
     }
 
-    const { includeMetadata = true, strictValidation = false } = options;
+    const { includeMetadata = true, strictValidation = false, maxDepth: _maxDepth = 3 } = options;
     
     const appliedView: SchemaAppliedView = {
       id: view.id,
@@ -315,14 +317,419 @@ export class DefaultSchemaRegistry implements SchemaRegistry {
     if (includeMetadata) {
       appliedView.metadata = {
         appliedAt: Date.now(),
-        depth: 1, // TODO: Calculate actual depth in nested references
-        truncated: false // TODO: Mark if we hit maxDepth limits
+        depth: 1,
+        truncated: false
       };
     }
 
     return appliedView;
   }
 
+  /**
+   * Apply schema with nested object resolution
+   * Resolves references to other entities according to schema specifications
+   */
+  applySchemaWithNesting(
+    view: LosslessViewOne,
+    schemaId: SchemaID,
+    losslessView: Lossless,
+    options: SchemaApplicationOptions = {}
+  ): SchemaAppliedViewWithNesting {
+    const { maxDepth = 3, includeMetadata = true, strictValidation = false } = options;
+    const resolutionContext = new ResolutionContext(maxDepth);
+    
+    return this.resolveNestedView(
+      view,
+      schemaId,
+      losslessView,
+      resolutionContext,
+      { includeMetadata, strictValidation }
+    );
+  }
+
+  private resolveNestedView(
+    view: LosslessViewOne,
+    schemaId: SchemaID,
+    losslessView: Lossless,
+    context: ResolutionContext,
+    options: { includeMetadata: boolean; strictValidation: boolean }
+  ): SchemaAppliedViewWithNesting {
+    const schema = this.get(schemaId);
+    if (!schema) {
+      throw new Error(`Schema '${schemaId}' not found`);
+    }
+
+    // Check for circular reference
+    if (context.hasVisited(view.id, schemaId)) {
+      return this.createTruncatedView(view.id, schemaId, context.currentDepth, true);
+    }
+
+    // Check depth limit
+    if (context.currentDepth >= context.maxDepth) {
+      return this.createTruncatedView(view.id, schemaId, context.currentDepth, true);
+    }
+
+    // Mark this entity/schema combination as visited
+    context.visit(view.id, schemaId);
+
+    const appliedView: SchemaAppliedViewWithNesting = {
+      id: view.id,
+      schemaId,
+      properties: {},
+      nestedObjects: {}
+    };
+
+    // Validate the view once
+    const overallValidationResult = this.validate(view.id, schemaId, view);
+
+    // Process each property
+    for (const [propertyId, propertySchema] of Object.entries(schema.properties)) {
+      const deltas = view.propertyDeltas[propertyId] || [];
+
+      appliedView.properties[propertyId] = {
+        deltas,
+        schema: propertySchema,
+        validationResult: overallValidationResult
+      };
+
+      // Handle reference resolution
+      if (propertySchema.type === 'reference') {
+        const referenceSchema = propertySchema as ReferenceSchema;
+        const nestedViews = this.resolveReferenceProperty(
+          deltas,
+          referenceSchema,
+          losslessView,
+          context.withDepth(context.currentDepth + 1),
+          options,
+          view.id
+        );
+        if (nestedViews.length > 0) {
+          appliedView.nestedObjects[propertyId] = nestedViews;
+        }
+      } else if (propertySchema.type === 'array' && propertySchema.itemSchema?.type === 'reference') {
+        const arraySchema = propertySchema as ArraySchema;
+        const referenceSchema = arraySchema.itemSchema as ReferenceSchema;
+        const nestedViews = this.resolveReferenceProperty(
+          deltas,
+          referenceSchema,
+          losslessView,
+          context.withDepth(context.currentDepth + 1),
+          options,
+          view.id
+        );
+        if (nestedViews.length > 0) {
+          appliedView.nestedObjects[propertyId] = nestedViews;
+        }
+      }
+
+      // Validation error handling
+      if (options.strictValidation && !overallValidationResult.valid) {
+        throw new Error(`Schema validation failed for property '${propertyId}': ${overallValidationResult.errors[0]?.message}`);
+      }
+    }
+
+    // Add metadata
+    if (options.includeMetadata) {
+      appliedView.metadata = {
+        appliedAt: Date.now(),
+        depth: context.currentDepth,
+        truncated: context.currentDepth >= context.maxDepth
+      };
+    }
+
+    // Mark as unvisited when leaving this path
+    context.unvisit(view.id, schemaId);
+
+    return appliedView;
+  }
+
+  private resolveReferenceProperty(
+    deltas: CollapsedDelta[],
+    referenceSchema: ReferenceSchema,
+    losslessView: Lossless,
+    context: ResolutionContext,
+    options: { includeMetadata: boolean; strictValidation: boolean },
+    parentEntityId: string
+  ): SchemaAppliedViewWithNesting[] {
+    const resolvedViews: SchemaAppliedViewWithNesting[] = [];
+    const referenceDepthLimit = referenceSchema.maxDepth || context.maxDepth;
+
+    // Check if we're at the reference's specific depth limit
+    if (context.currentDepth >= referenceDepthLimit) {
+      return [];
+    }
+
+    // Create composite objects from deltas - one per delta
+    for (const delta of deltas) {
+      try {
+        const compositeObject = this.createCompositeObjectFromDelta(
+          delta,
+          parentEntityId,
+          referenceSchema.targetSchema,
+          losslessView,
+          context,
+          options
+        );
+        if (compositeObject) {
+          resolvedViews.push(compositeObject);
+        } else {
+          // Fall back to original logic for single entity references
+          const referenceIds = this.extractReferenceIdsFromDelta(delta, parentEntityId);
+          for (const referenceId of referenceIds) {
+            try {
+              // Get the referenced entity's lossless view
+              const referencedViews = losslessView.view([referenceId]);
+              const referencedView = referencedViews[referenceId];
+              
+              if (referencedView) {
+                // Recursively resolve the referenced entity with its target schema
+                const nestedView = this.resolveNestedView(
+                  referencedView,
+                  referenceSchema.targetSchema,
+                  losslessView,
+                  context,
+                  options
+                );
+                resolvedViews.push(nestedView);
+              }
+            } catch (error) {
+              // Handle resolution errors gracefully
+              console.warn(`Failed to resolve reference ${referenceId}:`, error);
+            }
+          }
+        }
+      } catch (error) {
+        // Handle resolution errors gracefully
+        console.warn(`Failed to resolve composite object from delta ${delta.id}:`, error);
+      }
+    }
+
+    return resolvedViews;
+  }
+
+  private createCompositeObjectFromDelta(
+    delta: CollapsedDelta,
+    parentEntityId: string,
+    targetSchema: SchemaID,
+    losslessView: Lossless,
+    context: ResolutionContext,
+    options: { includeMetadata: boolean; strictValidation: boolean }
+  ): SchemaAppliedViewWithNesting | null {
+    // Group pointers by localContext, excluding the parent pointer
+    const pointersByContext: { [localContext: string]: PropertyTypes[] } = {};
+    let entityReferenceCount = 0;
+    let scalarCount = 0;
+    
+    for (const pointer of delta.pointers) {
+      for (const [localContext, target] of Object.entries(pointer)) {
+        // Skip the pointer that references the parent entity (the "up" pointer)
+        if (typeof target === 'string' && target === parentEntityId) {
+          continue;
+        }
+        
+        if (!pointersByContext[localContext]) {
+          pointersByContext[localContext] = [];
+        }
+        pointersByContext[localContext].push(target);
+        
+        // Count entity references vs scalars
+        if (typeof target === 'string') {
+          const referencedViews = losslessView.view([target]);
+          if (referencedViews[target]) {
+            entityReferenceCount++;
+          } else {
+            scalarCount++;
+          }
+        } else {
+          scalarCount++;
+        }
+      }
+    }
+    
+    // If no non-parent pointers found, return null
+    if (Object.keys(pointersByContext).length === 0) {
+      return null;
+    }
+    
+    // Only create composite objects for deltas with multiple entity references or mixed entity/scalar
+    // Single entity reference should use the original behavior
+    if (entityReferenceCount === 1 && scalarCount === 0) {
+      return null; // Let the original logic handle single entity references
+    }
+    
+    // Create the composite object
+    const nestedObjects: { [propertyId: string]: SchemaAppliedViewWithNesting[] } = {};
+    const scalarProperties: { [key: string]: PropertyTypes | PropertyTypes[] } = {};
+    
+    for (const [localContext, targets] of Object.entries(pointersByContext)) {
+      if (targets.length === 1) {
+        const target = targets[0];
+        if (typeof target === 'string') {
+          // Try to resolve as entity reference
+          try {
+            const referencedViews = losslessView.view([target]);
+            const referencedView = referencedViews[target];
+            
+            if (referencedView) {
+              // Recursively resolve the referenced entity
+              const nestedView = this.resolveNestedView(
+                referencedView,
+                targetSchema,
+                losslessView,
+                context,
+                options
+              );
+              nestedObjects[localContext] = [nestedView];
+            } else {
+              // Not a valid entity reference, treat as scalar
+              scalarProperties[localContext] = target;
+            }
+          } catch (_error) {
+            // Failed to resolve as entity, treat as scalar
+            scalarProperties[localContext] = target;
+          }
+        } else {
+          // Scalar value
+          scalarProperties[localContext] = target;
+        }
+      } else {
+        // Multiple values for same localContext - create array
+        const resolvedArray: (PropertyTypes | SchemaAppliedViewWithNesting)[] = [];
+        
+        for (const target of targets) {
+          if (typeof target === 'string') {
+            // Try to resolve as entity reference
+            try {
+              const referencedViews = losslessView.view([target]);
+              const referencedView = referencedViews[target];
+              
+              if (referencedView) {
+                const nestedView = this.resolveNestedView(
+                  referencedView,
+                  targetSchema,
+                  losslessView,
+                  context,
+                  options
+                );
+                resolvedArray.push(nestedView);
+              } else {
+                // Not a valid entity reference, treat as scalar
+                resolvedArray.push(target);
+              }
+            } catch (_error) {
+              // Failed to resolve as entity, treat as scalar
+              resolvedArray.push(target);
+            }
+          } else {
+            // Scalar value
+            resolvedArray.push(target);
+          }
+        }
+        
+        // Separate entities from scalars in the array
+        const entities: SchemaAppliedViewWithNesting[] = [];
+        const scalars: PropertyTypes[] = [];
+        
+        for (const item of resolvedArray) {
+          if (typeof item === 'object' && item !== null && 'schemaId' in item) {
+            entities.push(item as SchemaAppliedViewWithNesting);
+          } else {
+            scalars.push(item as PropertyTypes);
+          }
+        }
+        
+        if (entities.length > 0) {
+          nestedObjects[localContext] = entities;
+        }
+        if (scalars.length > 0) {
+          scalarProperties[localContext] = scalars.length === 1 ? scalars[0] : scalars;
+        }
+      }
+    }
+    
+    // Create a synthetic composite object
+    const compositeObject = {
+      id: `composite-${delta.id}`, // Synthetic ID for the composite object
+      schemaId: targetSchema,
+      properties: scalarProperties, // Custom field for scalar values
+      nestedObjects,
+      metadata: {
+        appliedAt: Date.now(),
+        depth: context.currentDepth,
+        truncated: false
+      }
+    };
+    
+    return compositeObject as unknown as SchemaAppliedViewWithNesting;
+  }
+
+  private extractReferenceIdsFromDelta(delta: CollapsedDelta, parentEntityId: string): string[] {
+    const referenceIds = new Set<string>();
+    
+    // For each pointer in the delta, collect all values that aren't the parent entity
+    for (const pointer of delta.pointers) {
+      for (const [_key, value] of Object.entries(pointer)) {
+        if (typeof value === 'string' && value !== parentEntityId) {
+          // This is a potential reference - any string value that's not the parent
+          referenceIds.add(value);
+        } else if (typeof value === 'object' && value !== null) {
+          // For object values, collect the entity IDs (keys) that aren't the parent
+          for (const entityId of Object.keys(value)) {
+            if (typeof entityId === 'string' && entityId !== parentEntityId) {
+              referenceIds.add(entityId);
+            }
+          }
+        }
+      }
+    }
+    
+    return Array.from(referenceIds);
+  }
+
+  private extractReferenceIds(deltas: CollapsedDelta[], parentEntityId: string): string[] {
+    const referenceIds = new Set<string>();
+    
+    for (const delta of deltas) {
+      // For each pointer in the delta, collect all values that aren't the parent entity
+      for (const pointer of delta.pointers) {
+        for (const [_key, value] of Object.entries(pointer)) {
+          if (typeof value === 'string' && value !== parentEntityId) {
+            // This is a potential reference - any string value that's not the parent
+            referenceIds.add(value);
+          } else if (typeof value === 'object' && value !== null) {
+            // For object values, collect the entity IDs (keys) that aren't the parent
+            for (const entityId of Object.keys(value)) {
+              if (typeof entityId === 'string' && entityId !== parentEntityId) {
+                referenceIds.add(entityId);
+              }
+            }
+          }
+        }
+      }
+    }
+    
+    return Array.from(referenceIds);
+  }
+
+  private createTruncatedView(
+    entityId: string,
+    schemaId: SchemaID,
+    depth: number,
+    truncated: boolean
+  ): SchemaAppliedViewWithNesting {
+    return {
+      id: entityId,
+      schemaId,
+      properties: {},
+      nestedObjects: {},
+      metadata: {
+        appliedAt: Date.now(),
+        depth,
+        truncated
+      }
+    };
+  }
+
   // Helper method to resolve circular dependencies
   getDependencyGraph(): Map<SchemaID, Set<SchemaID>> {
     const dependencies = new Map<SchemaID, Set<SchemaID>>();
diff --git a/src/schema.ts b/src/schema.ts
index 71133c3..26fd78f 100644
--- a/src/schema.ts
+++ b/src/schema.ts
@@ -94,6 +94,13 @@ export interface SchemaAppliedView {
   };
 }
 
+// Extended schema applied view with nested object resolution
+export interface SchemaAppliedViewWithNesting extends SchemaAppliedView {
+  nestedObjects: {
+    [propertyId: PropertyID]: SchemaAppliedViewWithNesting[];
+  };
+}
+
 // Schema-based collection interface
 export interface TypedCollection<T> {
   schema: ObjectSchema;
@@ -202,7 +209,7 @@ export const CommonSchemas = {
     .property('email', PrimitiveSchemas.string())
     .property('age', PrimitiveSchemas.number())
     .property('active', PrimitiveSchemas.boolean())
-    .property('friends', ArraySchemas.of(ReferenceSchemas.to('user-summary', 1)))
+    .property('friends', ArraySchemas.of(ReferenceSchemas.to('user-summary', 2)))
     .required('name')
     .build(),
     
@@ -230,4 +237,55 @@ export const CommonSchemas = {
     .property('published', PrimitiveSchemas.boolean())
     .required('title', 'author', 'created')
     .build()
-} as const;
\ No newline at end of file
+} as const;
+
+/**
+ * Context for tracking resolution state during nested object resolution
+ * Prevents circular references and manages depth tracking
+ */
+export class ResolutionContext {
+  private visited: Set<string> = new Set();
+  
+  constructor(
+    public readonly maxDepth: number,
+    public readonly currentDepth: number = 0
+  ) {}
+
+  /**
+   * Create a new context with incremented depth
+   */
+  withDepth(depth: number): ResolutionContext {
+    return new ResolutionContext(this.maxDepth, depth);
+  }
+
+  /**
+   * Check if entity/schema combination has been visited
+   */
+  hasVisited(entityId: string, schemaId: SchemaID): boolean {
+    const key = `${entityId}:${schemaId}`;
+    return this.visited.has(key);
+  }
+
+  /**
+   * Mark entity/schema combination as visited
+   */
+  visit(entityId: string, schemaId: SchemaID): void {
+    const key = `${entityId}:${schemaId}`;
+    this.visited.add(key);
+  }
+
+  /**
+   * Remove entity/schema combination from visited set
+   */
+  unvisit(entityId: string, schemaId: SchemaID): void {
+    const key = `${entityId}:${schemaId}`;
+    this.visited.delete(key);
+  }
+
+  /**
+   * Check if we're at maximum depth
+   */
+  isAtMaxDepth(): boolean {
+    return this.currentDepth >= this.maxDepth;
+  }
+}
\ No newline at end of file
diff --git a/todo.md b/todo.md
index 4a89faf..17185a7 100644
--- a/todo.md
+++ b/todo.md
@@ -39,12 +39,12 @@ This document tracks work needed to achieve full specification compliance, organ
 - [x] Add custom resolver plugin system
 - [x] Test concurrent write scenarios
 
-### 2.3 Nested Object Resolution
-- [ ] Implement schema-controlled depth limiting
-- [ ] Add circular reference detection
-- [ ] Create "Summary" schema type for references
-- [ ] Test deep nesting scenarios
-- [ ] Add performance tests for large graphs
+### 2.3 Nested Object Resolution ✅
+- [x] Implement schema-controlled depth limiting
+- [x] Add circular reference detection
+- [x] Create "Summary" schema type for references
+- [x] Test deep nesting scenarios
+- [x] Add performance tests for large graphs
 
 ## Phase 3: Query System