diff --git a/calyx-opt/src/passes/synthesis_papercut.rs b/calyx-opt/src/passes/synthesis_papercut.rs
index 186ad25ccb..d215122baf 100644
--- a/calyx-opt/src/passes/synthesis_papercut.rs
+++ b/calyx-opt/src/passes/synthesis_papercut.rs
@@ -84,7 +84,7 @@ impl Visitor for SynthesisPapercut {
                     if self.memories.contains(parent) {
                         let has_external =
                             cell.get_attribute(ir::BoolAttr::External);
-                        if has_external.is_none() {
+                        if has_external.is_none() && !cell.is_reference() {
                             return Some(cell.name());
                         }
                     }
diff --git a/tests/passes/papercut-ref-read-only.expect b/tests/passes/papercut-ref-read-only.expect
new file mode 100644
index 0000000000..ba1db3aa9b
--- /dev/null
+++ b/tests/passes/papercut-ref-read-only.expect
@@ -0,0 +1,31 @@
+import "primitives/memories/comb.futil";
+component main(@go go: 1, @clk clk: 1, @reset reset: 1) -> (@done done: 1) {
+  cells {
+    @external mem_0 = comb_mem_d1(32, 4, 2);
+    read_only_instance = read_only();
+  }
+  wires {}
+  control {
+    seq {
+      invoke read_only_instance[ref_mem_0 = mem_0]()();
+    }
+  }
+}
+component read_only(@go go: 1, @clk clk: 1, @reset reset: 1) -> (@done done: 1) {
+  cells {
+    ref ref_mem_0 = comb_mem_d1(32, 4, 2);
+  }
+  wires {
+    group read_data {
+      ref_mem_0.write_en = 1'd1;
+      ref_mem_0.write_data = 32'd3;
+      ref_mem_0.addr0 = 2'd0;
+      read_data[done] = ref_mem_0.done;
+    }
+  }
+  control {
+    seq {
+      read_data;
+    }
+  }
+}
diff --git a/tests/passes/papercut-ref-read-only.futil b/tests/passes/papercut-ref-read-only.futil
new file mode 100644
index 0000000000..e76a3adc76
--- /dev/null
+++ b/tests/passes/papercut-ref-read-only.futil
@@ -0,0 +1,36 @@
+// -p papercut
+
+import "primitives/memories/comb.futil";
+
+component main(@go go: 1, @clk clk: 1, @reset reset: 1) -> (@done done: 1) {
+    cells {
+        @external mem_0 = comb_mem_d1(32, 4, 2);
+        read_only_instance = read_only();
+    }
+    wires {
+    }
+    control {
+        seq {
+            invoke read_only_instance[ref_mem_0 = mem_0]()();
+        }
+    }
+}
+
+component read_only(@go go: 1, @clk clk: 1, @reset reset: 1) -> (@done done: 1) {
+    cells {
+        ref ref_mem_0 = comb_mem_d1(32, 4, 2);
+    }
+    wires {
+        group read_data {
+            ref_mem_0.write_en = 1'b1;
+            ref_mem_0.write_data = 32'd3;
+            ref_mem_0.addr0 = 2'b0;
+            read_data[done] = ref_mem_0.done;
+        }
+    }
+    control {
+        seq {
+            read_data;
+        }
+    }
+}
\ No newline at end of file