diff --git a/src/plugins_types.c b/src/plugins_types.c
index 88625c1..372c783 100644
--- a/src/plugins_types.c
+++ b/src/plugins_types.c
@@ -155,9 +155,11 @@
     } else {
         switch (format) {
         case LY_VALUE_SCHEMA:
+            /* use local module */
+            return ly_schema_resolve_prefix(ctx, prefix, prefix_len, prefix_data);
         case LY_VALUE_SCHEMA_RESOLVED:
-            /* use context node module, handles augments */
-            return ctx_node->module;
+            /* use local module */
+            return ly_schema_resolved_resolve_prefix(ctx, prefix, prefix_len, prefix_data);
         case LY_VALUE_CANON:
         case LY_VALUE_JSON:
         case LY_VALUE_LYB:
diff --git a/tests/utests/schema/test_tree_schema_compile.c b/tests/utests/schema/test_tree_schema_compile.c
index ca70ced..fd148a9 100644
--- a/tests/utests/schema/test_tree_schema_compile.c
+++ b/tests/utests/schema/test_tree_schema_compile.c
@@ -2354,6 +2354,17 @@
             "  list mylist {key \"name\"; unique \"value\"; uses z2:leafs_group;}"
             "}"
             "augment /z1:root { uses list_group;} }", LYS_IN_YANG, NULL));
+
+    /* identity */
+    assert_int_equal(LY_SUCCESS, lys_parse_mem(UTEST_LYCTX, "module y1 {namespace urn:y1;prefix y1;"
+            "identity base_identity;"
+            "identity id1 {base \"base_identity\";}"
+            "grouping attrs_group {"
+            "  leaf name {type identityref {base \"base_identity\";} default \"id1\";}"
+            "}}", LYS_IN_YANG, NULL));
+    assert_int_equal(LY_SUCCESS, lys_parse_mem(UTEST_LYCTX, "module y2 {namespace urn:y2;prefix y2;"
+            "import y1 {prefix y1;}"
+            "container root {uses y1:attrs_group;}}", LYS_IN_YANG, NULL));
 }
 
 static void