diff --git a/pkgs/build-support/dotnet/make-nuget-source/default.nix b/pkgs/build-support/dotnet/make-nuget-source/default.nix
index 6bda65f18d5..a23a143ab24 100644
--- a/pkgs/build-support/dotnet/make-nuget-source/default.nix
+++ b/pkgs/build-support/dotnet/make-nuget-source/default.nix
@@ -15,12 +15,10 @@ let
     buildCommand = ''
       mkdir -p $out/{lib,share}
 
-      (
-        shopt -s nullglob
-        for nupkg in ${lib.concatMapStringsSep " " (dep: "\"${dep}\"/*.nupkg") deps}; do
-          cp --no-clobber "$nupkg" $out/lib
-        done
-      )
+      # use -L to follow symbolic links. When `projectReferences` is used in
+      # buildDotnetModule, one of the deps will be a symlink farm.
+      find -L ${lib.concatStringsSep " " deps} -type f -name '*.nupkg' -exec \
+        cp --no-clobber '{}' $out/lib ';'
 
       # Generates a list of all licenses' spdx ids, if available.
       # Note that this currently ignores any license provided in plain text (e.g. "LICENSE.txt")
diff --git a/pkgs/test/default.nix b/pkgs/test/default.nix
index 9f684dcea72..b6793d25b6e 100644
--- a/pkgs/test/default.nix
+++ b/pkgs/test/default.nix
@@ -86,6 +86,8 @@ with pkgs;
 
   coq = callPackage ./coq {};
 
+  dotnet = recurseIntoAttrs (callPackages ./dotnet { });
+
   makeHardcodeGsettingsPatch = callPackage ./make-hardcode-gsettings-patch { };
 
   makeWrapper = callPackage ./make-wrapper { };
diff --git a/pkgs/test/dotnet/default.nix b/pkgs/test/dotnet/default.nix
new file mode 100644
index 00000000000..7592b09d76e
--- /dev/null
+++ b/pkgs/test/dotnet/default.nix
@@ -0,0 +1,5 @@
+{ callPackage }:
+
+{
+  project-references = callPackage ./project-references { };
+}
diff --git a/pkgs/test/dotnet/project-references/application/Application.cs b/pkgs/test/dotnet/project-references/application/Application.cs
new file mode 100644
index 00000000000..ae2c956a4df
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/application/Application.cs
@@ -0,0 +1 @@
+ProjectReferencesTest.Library.Hello();
diff --git a/pkgs/test/dotnet/project-references/application/Application.csproj b/pkgs/test/dotnet/project-references/application/Application.csproj
new file mode 100644
index 00000000000..6507637a553
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/application/Application.csproj
@@ -0,0 +1,10 @@
+<Project Sdk="Microsoft.NET.Sdk">
+    <PropertyGroup>
+        <OutputType>exe</OutputType>
+    </PropertyGroup>
+
+    <ItemGroup>
+        <ProjectReference Include="../library/Library.csproj" />
+        <PackageReference Include="ProjectReferencesTest.Library" Version="*" Condition=" '$(ContinuousIntegrationBuild)'=='true' " />
+    </ItemGroup>
+</Project>
diff --git a/pkgs/test/dotnet/project-references/default.nix b/pkgs/test/dotnet/project-references/default.nix
new file mode 100644
index 00000000000..f40b9196c20
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/default.nix
@@ -0,0 +1,38 @@
+# Tests the `projectReferences = [ ... ];` feature of buildDotnetModule.
+# The `library` derivation exposes a .nupkg, which is then consumed by the `application` derivation.
+# https://nixos.org/manual/nixpkgs/unstable/index.html#packaging-a-dotnet-application
+
+{ lib
+, dotnet-sdk
+, buildDotnetModule
+, runCommand
+}:
+
+let
+  nugetDeps = ./nuget-deps.nix;
+
+  # Specify the TargetFramework via an environment variable so that we don't
+  # have to update the .csproj files when updating dotnet-sdk
+  TargetFramework = "net${lib.versions.majorMinor (lib.getVersion dotnet-sdk)}";
+
+  library = buildDotnetModule {
+    name = "project-references-test-library";
+    src = ./library;
+    inherit nugetDeps TargetFramework;
+
+    packNupkg = true;
+  };
+
+  application = buildDotnetModule {
+    name = "project-references-test-application";
+    src = ./application;
+    inherit nugetDeps TargetFramework;
+
+    projectReferences = [ library ];
+  };
+in
+
+runCommand "project-references-test" { } ''
+  ${application}/bin/Application
+  touch $out
+''
diff --git a/pkgs/test/dotnet/project-references/library/Library.cs b/pkgs/test/dotnet/project-references/library/Library.cs
new file mode 100644
index 00000000000..a4af4a0fea2
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/library/Library.cs
@@ -0,0 +1,8 @@
+namespace ProjectReferencesTest;
+public static class Library
+{
+    public static void Hello()
+    {
+        System.Console.WriteLine("Hello, World!");
+    }
+}
diff --git a/pkgs/test/dotnet/project-references/library/Library.csproj b/pkgs/test/dotnet/project-references/library/Library.csproj
new file mode 100644
index 00000000000..b9a71276d24
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/library/Library.csproj
@@ -0,0 +1,5 @@
+<Project Sdk="Microsoft.NET.Sdk">
+    <PropertyGroup>
+        <PackageId>ProjectReferencesTest.Library</PackageId>
+    </PropertyGroup>
+</Project>
diff --git a/pkgs/test/dotnet/project-references/nuget-deps.nix b/pkgs/test/dotnet/project-references/nuget-deps.nix
new file mode 100644
index 00000000000..f3a17967e25
--- /dev/null
+++ b/pkgs/test/dotnet/project-references/nuget-deps.nix
@@ -0,0 +1,5 @@
+# This file was automatically generated by passthru.fetch-deps.
+# Please dont edit it manually, your changes might get overwritten!
+
+{ fetchNuGet }: [
+]