diff --git a/src/parser_yin.c b/src/parser_yin.c
index 6982268..130ba3f 100644
--- a/src/parser_yin.c
+++ b/src/parser_yin.c
@@ -1205,7 +1205,6 @@
     case LY_TYPE_INST:
         /* RFC 6020 9.13.2 - require-instance */
         LY_TREE_FOR(yin->child, node) {
-
             if (!strcmp(node->name, "require-instance")) {
                 if (type->info.inst.req) {
                     LOGVAL(ctx, LYE_TOOMANY, LY_VLOG_NONE, NULL, node->name, yin->name);
@@ -1231,6 +1230,11 @@
             }
         }
 
+        if (type->der->type.der && !type->info.inst.req) {
+            /* inherit require-instance property */
+            type->info.inst.req = type->der->type.info.inst.req;
+        }
+
         break;
 
     case LY_TYPE_BINARY:
@@ -1304,7 +1308,7 @@
         LY_TREE_FOR(yin->child, node) {
             if (!strcmp(node->name, "path") && !type->der->type.der) {
                 /* keep path for later */
-            } else if (module->version >= 2 && !strcmp(node->name, "require-instance") && !type->der->type.der) {
+            } else if (module->version >= 2 && !strcmp(node->name, "require-instance")) {
                 if (type->info.lref.req) {
                     LOGVAL(ctx, LYE_TOOMANY, LY_VLOG_NONE, NULL, node->name, yin->name);
                     goto error;
@@ -1371,7 +1375,9 @@
             } else {
                 /* copy leafref definition into the derived type */
                 type->info.lref.path = lydict_insert(ctx, type->der->type.info.lref.path, 0);
-                type->info.lref.req = type->der->type.info.lref.req;
+                if (!type->info.lref.req) {
+                    type->info.lref.req = type->der->type.info.lref.req;
+                }
                 /* and resolve the path at the place we are (if not in grouping/typedef) */
                 if (!parenttype && unres_schema_add_node(module, unres, type, UNRES_TYPE_LEAFREF, parent) == -1) {
                     goto error;