diff --git a/cue/ast.go b/cue/ast.go
index f134276..263cee6 100644
--- a/cue/ast.go
+++ b/cue/ast.go
@@ -263,9 +263,11 @@
 					return v1.errf(x, "can only embed structs (found %v)", e.kind())
 				}
 				ret = mkBin(v1.ctx(), x.Pos(), opUnifyUnchecked, ret, e)
-				obj = &structLit{}
-				v1.object = obj
-				ret = mkBin(v1.ctx(), x.Pos(), opUnifyUnchecked, ret, obj)
+				// TODO: preserve order of embedded fields. We cannot split into
+				// separate unifications here, as recursive references point to
+				// obj and would have to be dereferenced and copied.
+				// Solving this is best done with a generic topological sort
+				// mechanism.
 
 			case *ast.Field, *ast.Alias:
 				v1.walk(e)
diff --git a/cue/ast_test.go b/cue/ast_test.go
index 1517236..83e3b7d 100644
--- a/cue/ast_test.go
+++ b/cue/ast_test.go
@@ -270,6 +270,27 @@
 			a: int @b('' ,b) // invalid
 		`,
 		out: "attribute missing ')':\n    test:2:16\nmissing ',' in struct literal:\n    test:3:3\n<0>{}",
+	}, {
+		in: `
+		a d: {
+			base
+			info :: {
+				...
+			}
+			Y: info.X
+		}
+
+		base :: {
+			info :: {...}
+		}
+
+		a <Name>: { info :: {
+			X: "foo"
+		}}
+		`,
+		out: `<0>{` +
+			`a: (<1>{d: <2>{info :: <3>{...}, Y: <2>.info.X}, <0>.base} & <4>{<>: <5>(Name: string)-><6>{info :: <7>C{X: "foo"}}, }), ` +
+			`base :: <8>C{info :: <9>{...}}}`,
 	}}
 	for _, tc := range testCases {
 		t.Run("", func(t *testing.T) {
diff --git a/cue/export_test.go b/cue/export_test.go
index f486c69..507b345 100644
--- a/cue/export_test.go
+++ b/cue/export_test.go
@@ -326,6 +326,8 @@
 			}
 		}`),
 	}, {
+		// TODO: positions of embedded structs is not preserved. Use some kind
+		// of topological sort to preserve order.
 		raw: true,
 		in: `{
 			emb :: {
@@ -358,13 +360,13 @@
 				a: 10
 			}
 			def :: {
-				emb
 				b: 2
+				emb
 			}
 			e :: {
-				f
 				<_>: <100
 				b:   int
+				f
 			}
 		}`),
 	}, {
diff --git a/cue/resolve_test.go b/cue/resolve_test.go
index 9572a63..3e1aab0 100644
--- a/cue/resolve_test.go
+++ b/cue/resolve_test.go
@@ -2426,6 +2426,24 @@
 			`comp: <2>{txt: 2, regular: 4}, ` +
 			`select: <3>{opt: <4>.foo.opt, txt: 2, def :: 3, regular: 4, _hidden: 5}, ` +
 			`index: <5>{opt: <4>.foo["opt"], txt: 2, def :: _|_(<4>.foo["def"]:field "def" is a definition), regular: 4, _hidden: <4>.foo["_hidden"]}}`,
+	}, {
+		desc: "retain references with interleaved embedding",
+		in: `
+		a d: {
+			base
+			info :: {...}
+			Y: info.X
+		}
+
+		base :: {
+			info :: {...}
+		}
+
+		a <Name>: { info :: {
+			X: "foo"
+		}}
+		`,
+		out: `<0>{a: <1>{<>: <2>(Name: string)-><3>{info :: <4>C{X: "foo"}}, d: <5>C{info :: <6>C{X: "foo"}, Y: "foo"}}, base :: <7>C{info :: <8>{...}}}`,
 	}}
 	rewriteHelper(t, testCases, evalFull)
 }
@@ -2436,10 +2454,6 @@
 	// Don't remove. For debugging.
 	testCases := []testCase{{
 		in: `
-		Foo :: { a: int }
-
-		Foo
-		b: int
 		`,
 	}}
 	rewriteHelper(t, testCases, evalFull)