diff --git a/src/path.c b/src/path.c
index 516fe5720..73883d754 100644
--- a/src/path.c
+++ b/src/path.c
@@ -1068,7 +1068,17 @@ ly_path_compile_deref(const struct ly_ctx *ctx, const struct lysc_node *ctx_node
     LY_CHECK_GOTO(ret = ly_path_compile_leafref(ctx, ctx_node, top_ext, &expr2, oper, target, format, prefix_data,
             &path2), cleanup);
     node2 = path2[LY_ARRAY_COUNT(path2) - 1].node;
+    if ((node2->nodetype != LYS_LEAF) && (node2->nodetype != LYS_LEAFLIST)) {
+        LOGVAL(ctx, LYVE_XPATH, "The deref function target node \"%s\" is not leaf nor leaflist", node2->name);
+        ret = LY_EVALID;
+        goto cleanup;
+    }
     deref_leaf_node = (const struct lysc_node_leaf *)node2;
+    if (deref_leaf_node->type->basetype != LY_TYPE_LEAFREF) {
+        LOGVAL(ctx, LYVE_XPATH, "The deref function target node \"%s\" is not leafref", node2->name);
+        ret = LY_EVALID;
+        goto cleanup;
+    }
     lref = (const struct lysc_type_leafref *)deref_leaf_node->type;
     LY_CHECK_GOTO(ret = ly_path_append(ctx, path2, path), cleanup);
     ly_path_free(ctx, path2);
@@ -1172,7 +1182,6 @@ _ly_path_compile(const struct ly_ctx *ctx, const struct lys_module *cur_mod, con
             (expr->tokens[tok_idx] == LYXP_TOKEN_FUNCNAME)) {
         /* deref function */
         ret = ly_path_compile_deref(ctx, ctx_node, top_ext, expr, oper, target, format, prefix_data, &tok_idx, path);
-        ctx_node = (*path)[LY_ARRAY_COUNT(*path) - 1].node;
         goto cleanup;
     } else if (expr->tokens[tok_idx] == LYXP_TOKEN_OPER_PATH) {
         /* absolute path */
diff --git a/tests/utests/types/leafref.c b/tests/utests/types/leafref.c
index 7005d08bf..21e91cd70 100644
--- a/tests/utests/types/leafref.c
+++ b/tests/utests/types/leafref.c
@@ -241,6 +241,38 @@ test_data_xpath_json(void **state)
     lyd_free_all(tree);
 }
 
+static void
+test_xpath_invalid_schema(void **state)
+{
+    const char *schema1, *schema2;
+
+    ly_ctx_set_options(UTEST_LYCTX, LY_CTX_LEAFREF_EXTENDED);
+    schema1 = MODULE_CREATE_YANG("xp_test",
+            "list l1 {key t1;"
+            "leaf t1 {type uint8;}"
+            "list l2 {key t2;"
+            "leaf t2 {type uint8;}"
+            "leaf-list l3 {type uint8;}"
+            "}}"
+            "leaf r1 {type leafref {path \"deref(../l1)/../l2/t2\";}}");
+
+    UTEST_INVALID_MODULE(schema1, LYS_IN_YANG, NULL, LY_EVALID)
+    CHECK_LOG_CTX("The deref function target node \"l1\" is not leaf nor leaflist", "Schema location \"/xp_test:r1\".");
+
+    schema2 = MODULE_CREATE_YANG("xp_test",
+            "list l1 {key t1;"
+            "leaf t1 {type uint8;}"
+            "list l2 {key t2;"
+            "leaf t2 {type uint8;}"
+            "leaf-list l3 {type uint8;}"
+            "}}"
+            "leaf r1 {type uint8;}"
+            "leaf r2 {type leafref {path \"deref(../r1)/../l2/t2\";}}");
+
+    UTEST_INVALID_MODULE(schema2, LYS_IN_YANG, NULL, LY_EVALID)
+    CHECK_LOG_CTX("The deref function target node \"r1\" is not leafref", "Schema location \"/xp_test:r2\".");
+}
+
 int
 main(void)
 {
@@ -249,6 +281,7 @@ main(void)
         UTEST(test_data_json),
         UTEST(test_plugin_lyb),
         UTEST(test_data_xpath_json),
+        UTEST(test_xpath_invalid_schema)
     };
 
     return cmocka_run_group_tests(tests, NULL, NULL);