diff --git a/package.json b/package.json
index 533bec5..1098d4c 100644
--- a/package.json
+++ b/package.json
@@ -23,7 +23,8 @@
     "node": ">=18"
   },
   "scripts": {
-    "validate": "node src/validate.mjs"
+    "validate": "node src/validate.mjs",
+    "test": "node --test \"test/*.test.mjs\""
   },
   "dependencies": {
     "@apidevtools/json-schema-ref-parser": "^11.0.0",
diff --git a/src/schema_to_frame.mjs b/src/schema_to_frame.mjs
index e3ef6eb..1dca145 100644
--- a/src/schema_to_frame.mjs
+++ b/src/schema_to_frame.mjs
@@ -35,32 +35,36 @@ export function contextTerms(context, out = {}) {
   return out;
 }
 
-// Properties that embed an object: their @context term carries a scoped @context.
+// An embed is an *object* value: type "object" with its own properties. A $ref alone is not
+// enough - it may point at a scalar DataType leaf (a literal, not an embed) - and after
+// dereferencing a real embed is inlined as such an object anyway.
+const isEmbed = (node) => {
+  if (!node || typeof node !== "object") return false;
+  if (node.type === "object" && node.properties) return true;
+  if (node.items) return isEmbed(node.items);
+  for (const kw of ["anyOf", "oneOf", "allOf"]) {
+    if (Array.isArray(node[kw]) && node[kw].some(isEmbed)) return true;
+  }
+  return false;
+};
+
+// Properties may live in allOf members (a dereferenced subclass chain inlines each
+// superclass as an allOf entry), so collect the full composed property map.
+const collectProps = (node, out = {}) => {
+  if (!node || typeof node !== "object") return out;
+  for (const [k, v] of Object.entries(node.properties || {})) if (!(k in out)) out[k] = v;
+  for (const sub of node.allOf || []) collectProps(sub, out);
+  return out;
+};
+
+// The IRI/URI-family formats OOLD-EXT-6ea3 recommends for an IRI-valued property.
+const IRI_FORMATS = new Set(["iri", "iri-reference", "uri", "uri-reference"]);
+
 // Properties that embed an object, detected from the JSON Schema shape - a property whose
 // value (or array items, or an anyOf/oneOf branch) is an object with its own properties or a
 // $ref to a type. A scoped @context is a strong signal too, but it is not mandatory (an
 // embed can be mapped by the ambient/top-level context), so shape is the primary signal.
 export function embeddedProperties(schema) {
-  // An embed is an *object* value: type "object" with its own properties. A $ref alone is not
-  // enough - it may point at a scalar DataType leaf (a literal, not an embed) - and after
-  // dereferencing a real embed is inlined as such an object anyway.
-  const isEmbed = (node) => {
-    if (!node || typeof node !== "object") return false;
-    if (node.type === "object" && node.properties) return true;
-    if (node.items) return isEmbed(node.items);
-    for (const kw of ["anyOf", "oneOf", "allOf"]) {
-      if (Array.isArray(node[kw]) && node[kw].some(isEmbed)) return true;
-    }
-    return false;
-  };
-  // Properties may live in allOf members (a dereferenced subclass chain inlines each
-  // superclass as an allOf entry), so collect the full composed property map.
-  const collectProps = (node, out = {}) => {
-    if (!node || typeof node !== "object") return out;
-    for (const [k, v] of Object.entries(node.properties || {})) if (!(k in out)) out[k] = v;
-    for (const sub of node.allOf || []) collectProps(sub, out);
-    return out;
-  };
   const props = collectProps(schema);
   const structural = Object.keys(props).filter((k) => isEmbed(props[k]));
   const terms = contextTerms(schema["@context"]);
@@ -92,6 +96,72 @@ export function instanceRdfTypes(schema) {
   return null;
 }
 
+// Properties whose value is a reference, so framing must leave it an IRI rather than
+// pull the referenced node's triples into this document. Three signals, per
+// OOLD-EXT-68fa: an x-oold-range on a string-typed value, an IRI-family format, or a
+// context term mapped "@type": "@id".
+//
+// Without this, a referenced node that happens to carry triples in the same graph is
+// embedded as an object, and the framed document no longer validates against the schema
+// the frame was derived from - the schema declares a string there. Embedding wins where
+// both signals appear: a property shaped like an object is an embed whatever its term says.
+// Property names that alias a JSON-LD keyword, such as `id` for `@id`. These are not
+// predicates: `id` names the node, it does not point at another one. A subframe under such a
+// key writes { "@id": {...} } into the frame, which a processor rejects outright.
+//
+// Searched across the composed schema: a dereferenced subclass chain keeps each superclass's
+// own @context on its allOf member, and the convention is usually declared by the base schema
+// rather than repeated by every subclass.
+export function keywordAliasKeys(schema) {
+  const found = new Set();
+
+  const scanContext = (context) => {
+    if (Array.isArray(context)) {
+      for (const entry of context) scanContext(entry);
+      return;
+    }
+    if (!context || typeof context !== "object") return;
+    for (const [term, def] of Object.entries(context)) {
+      if (term.startsWith("@")) continue;
+      const target = def && typeof def === "object" ? def["@id"] : def;
+      if (typeof target === "string" && target.startsWith("@")) found.add(term);
+    }
+  };
+
+  const walk = (node) => {
+    if (!node || typeof node !== "object") return;
+    scanContext(node["@context"]);
+    for (const sub of node.allOf || []) walk(sub);
+  };
+
+  walk(schema);
+  return found;
+}
+
+export function referenceProperties(schema) {
+  const props = collectProps(schema);
+  const terms = contextTerms(schema["@context"]);
+  const aliases = keywordAliasKeys(schema);
+
+  const isReference = (node) => {
+    if (!node || typeof node !== "object") return false;
+    if (node.items) return isReference(node.items);
+    if ("x-oold-range" in node) return true;
+    if (typeof node.format === "string" && IRI_FORMATS.has(node.format)) return true;
+    for (const kw of ["anyOf", "oneOf", "allOf"]) {
+      if (Array.isArray(node[kw]) && node[kw].some(isReference)) return true;
+    }
+    return false;
+  };
+
+  return Object.keys(props).filter(
+    (k) =>
+      !aliases.has(k) &&
+      !isEmbed(props[k]) &&
+      (isReference(props[k]) || terms[k]?.["@type"] === "@id"),
+  );
+}
+
 // Derive the minimal frame. contextRef, when given, is used as the frame's @context in
 // place of the schema's inline @context (pass the schema URL so a document loader
 // resolves inherited/scoped contexts).
@@ -101,5 +171,6 @@ export function schemaToFrame(schema, contextRef) {
   const types = instanceRdfTypes(schema);
   if (types) frame["@type"] = types.length === 1 ? types[0] : types;
   for (const p of embeddedProperties(schema)) frame[p] = {};
+  for (const p of referenceProperties(schema)) frame[p] = { "@embed": "@never" };
   return frame;
 }
diff --git a/test/schema_to_frame.test.mjs b/test/schema_to_frame.test.mjs
new file mode 100644
index 0000000..22e7a04
--- /dev/null
+++ b/test/schema_to_frame.test.mjs
@@ -0,0 +1,135 @@
+// Frame derivation, checked against the worked example in the specification's
+// #framing section and against the failure that example did not cover.
+import assert from 'node:assert/strict';
+import test from 'node:test';
+import jsonld from 'jsonld';
+import Ajv from 'ajv';
+import addFormats from 'ajv-formats';
+import {
+  embeddedProperties,
+  keywordAliasKeys,
+  referenceProperties,
+  schemaToFrame,
+} from '../src/schema_to_frame.mjs';
+
+// The specification's Organization example, dereferenced: address inlines the Address
+// schema, employees is an array of IRI strings carrying x-oold-range.
+const organization = {
+  '@context': {
+    schema: 'http://schema.org/',
+    type: '@type',
+    id: '@id',
+    address: { '@id': 'schema:address', '@context': 'Address.schema.json' },
+    employees: { '@reverse': 'schema:worksFor', '@type': '@id' },
+  },
+  $id: 'Organization.schema.json',
+  'x-oold-instance-rdf-type': ['schema:Organization'],
+  type: 'object',
+  properties: {
+    address: {
+      '@context': { schema: 'http://schema.org/', postalCode: 'schema:postalCode' },
+      $id: 'Address.schema.json',
+      'x-oold-instance-rdf-type': ['schema:PostalAddress'],
+      type: 'object',
+      properties: { postalCode: { type: 'string' } },
+    },
+    employees: {
+      type: 'array',
+      items: { type: 'string', 'x-oold-range': 'Person.schema.json' },
+    },
+  },
+};
+
+test('the worked example derives the frame the specification prints', () => {
+  const frame = schemaToFrame(organization, 'Organization.schema.json');
+
+  assert.equal(frame['@context'], 'Organization.schema.json');
+  assert.equal(frame['@type'], 'schema:Organization');
+  assert.deepEqual(frame.address, {}, 'an inlined object property embeds');
+  assert.deepEqual(
+    frame.employees,
+    { '@embed': '@never' },
+    'a reference-valued property keeps its targets as IRIs (OOLD-EXT-68fa)',
+  );
+});
+
+test('embedding wins where a property carries both signals', () => {
+  // address is shaped like an object and its term carries a scoped @context; it must
+  // not be demoted to a reference by the term-based signal.
+  assert.ok(embeddedProperties(organization).includes('address'));
+  assert.ok(!referenceProperties(organization).includes('address'));
+});
+
+test('a keyword alias never gets a subframe', () => {
+  // `id` names the node, it is not a predicate. It carries an IRI format, so the reference
+  // signals match, but a subframe there writes { "@id": {...} }, which a processor rejects.
+  // The alias is declared by the base schema, so it has to be found through allOf.
+  const schema = {
+    '@context': { schema: 'http://schema.org/' },
+    allOf: [{
+      '@context': { id: '@id', type: '@type' },
+      properties: { id: { type: 'string', format: 'iri' } },
+    }],
+    properties: { ref: { type: 'string', format: 'iri-reference' } },
+  };
+  assert.deepEqual([...keywordAliasKeys(schema)].sort(), ['id', 'type']);
+  assert.deepEqual(referenceProperties(schema), ['ref']);
+  assert.ok(!('id' in schemaToFrame(schema, 'X.schema.json')));
+});
+
+test.describe('a reference whose target carries triples in the same graph', () => {
+  // OO-LD/oold-schema#160. works_for is declared a string, so framing must leave it one.
+  const person = {
+    '@context': {
+      schema: 'http://schema.org/',
+      type: '@type',
+      id: '@id',
+      works_for: { '@id': 'schema:worksFor', '@type': '@id' },
+      name: 'schema:name',
+    },
+    'x-oold-instance-rdf-type': ['schema:Person'],
+    type: 'object',
+    properties: {
+      name: { type: 'string' },
+      works_for: { type: 'string', format: 'iri-reference' },
+    },
+  };
+
+  const nq = [
+    '<https://example.org/jane> <http://www.w3.org/1999/02/22-rdf-syntax-ns#type> <http://schema.org/Person> .',
+    '<https://example.org/jane> <http://schema.org/worksFor> <https://example.org/acme> .',
+    '<https://example.org/joe> <http://www.w3.org/1999/02/22-rdf-syntax-ns#type> <http://schema.org/Person> .',
+    '<https://example.org/joe> <http://schema.org/worksFor> <https://example.org/acme> .',
+    '<https://example.org/acme> <http://www.w3.org/1999/02/22-rdf-syntax-ns#type> <http://schema.org/Organization> .',
+    '<https://example.org/acme> <http://schema.org/name> "ACME" .',
+    '',
+  ].join('\n');
+
+  const framedPeople = async () => {
+    const rdf = await jsonld.fromRDF(nq, { format: 'application/n-quads' });
+    const out = await jsonld.frame(rdf, schemaToFrame(person), { omitDefault: true });
+    return out['@graph'] ?? [out];
+  };
+
+  test('stays an IRI rather than being embedded', async () => {
+    for (const p of await framedPeople()) {
+      assert.equal(
+        typeof p.works_for,
+        'string',
+        `${p.id}: a reference-valued property must not absorb the target's triples`,
+      );
+    }
+  });
+
+  test('framed output validates against the schema the frame came from', async () => {
+    const ajv = new Ajv({ strict: false });
+    addFormats(ajv);
+    const { '@context': _c, 'x-oold-instance-rdf-type': _t, ...validatable } = person;
+    const validate = ajv.compile(validatable);
+
+    for (const p of await framedPeople()) {
+      const { '@context': _, ...doc } = p;
+      assert.ok(validate(doc), `${p.id}: ${ajv.errorsText(validate.errors)}`);
+    }
+  });
+});