diff --git a/index.js b/index.js
index 34d44cda..9a0ba030 100644
--- a/index.js
+++ b/index.js
@@ -47,7 +47,10 @@ function mergeLocation (source, dest) {
   }
 }
 
+const referenceSerializersMap = new Map()
+
 function build (schema, options) {
+  referenceSerializersMap.clear()
   options = options || {}
   isValidSchema(schema)
   if (options.schema) {
@@ -144,6 +147,8 @@ function build (schema, options) {
     return dependenciesName
   }
 
+  referenceSerializersMap.clear()
+
   return (Function.apply(null, dependenciesName).apply(null, dependencies))
 }
 
@@ -969,8 +974,18 @@ function buildArray (location, code, name, key = null) {
       schema = location.schema
       schema[fjsCloned] = true
     }
+
     location = refFinder(schema.items.$ref, location)
     schema.items = location.schema
+
+    if (referenceSerializersMap.has(schema.items)) {
+      code += `
+      return ${referenceSerializersMap.get(schema.items)}(obj)
+      }
+      `
+      return code
+    }
+    referenceSerializersMap.set(schema.items, name)
   }
 
   let result = { code: '', laterCode: '' }
diff --git a/test/recursion.test.js b/test/recursion.test.js
new file mode 100644
index 00000000..f89dd365
--- /dev/null
+++ b/test/recursion.test.js
@@ -0,0 +1,137 @@
+'use strict'
+
+const test = require('tap').test
+const build = require('..')
+
+test('can stringify recursive directory tree (issue #181)', (t) => {
+  t.plan(1)
+
+  const schema = {
+    definitions: {
+      directory: {
+        type: 'object',
+        properties: {
+          name: { type: 'string' },
+          subDirectories: {
+            type: 'array',
+            items: { $ref: '#/definitions/directory' },
+            default: []
+          }
+        }
+      }
+    },
+    type: 'array',
+    items: { $ref: '#/definitions/directory' }
+  }
+  const stringify = build(schema)
+
+  t.equal(stringify([
+    { name: 'directory 1', subDirectories: [] },
+    {
+      name: 'directory 2',
+      subDirectories: [
+        { name: 'directory 2.1', subDirectories: [] },
+        { name: 'directory 2.2', subDirectories: [] }
+      ]
+    }
+  ]), '[{"name":"directory 1","subDirectories":[]},{"name":"directory 2","subDirectories":[{"name":"directory 2.1","subDirectories":[]},{"name":"directory 2.2","subDirectories":[]}]}]')
+})
+
+test('can stringify when recursion in external schema', t => {
+  t.plan(1)
+
+  const referenceSchema = {
+    $id: 'person',
+    type: 'object',
+    properties: {
+      name: { type: 'string' },
+      children: {
+        type: 'array',
+        items: { $ref: '#' }
+      }
+    }
+  }
+
+  const schema = {
+    $id: 'mainSchema',
+    type: 'object',
+    properties: {
+      people: {
+        $ref: 'person'
+      }
+    }
+  }
+  const stringify = build(schema, {
+    schema: {
+      [referenceSchema.$id]: referenceSchema
+    }
+  })
+
+  const value = stringify({ people: { name: 'Elizabeth', children: [{ name: 'Charles' }] } })
+  t.equal(value, '{"people":{"name":"Elizabeth","children":[{"name":"Charles"}]}}')
+})
+
+test('use proper serialize function', t => {
+  t.plan(1)
+
+  const personSchema = {
+    $id: 'person',
+    type: 'object',
+    properties: {
+      name: { type: 'string' },
+      children: {
+        type: 'array',
+        items: { $ref: '#' }
+      }
+    }
+  }
+
+  const directorySchema = {
+    $id: 'directory',
+    type: 'object',
+    properties: {
+      name: { type: 'string' },
+      subDirectories: {
+        type: 'array',
+        items: { $ref: '#' },
+        default: []
+      }
+    }
+  }
+
+  const schema = {
+    $id: 'mainSchema',
+    type: 'object',
+    properties: {
+      people: { $ref: 'person' },
+      directory: { $ref: 'directory' }
+    }
+  }
+  const stringify = build(schema, {
+    schema: {
+      [personSchema.$id]: personSchema,
+      [directorySchema.$id]: directorySchema
+    }
+  })
+
+  const value = stringify({
+    people: {
+      name: 'Elizabeth',
+      children: [{
+        name: 'Charles',
+        children: [{ name: 'William', children: [{ name: 'George' }, { name: 'Charlotte' }] }, { name: 'Harry' }]
+      }]
+    },
+    directory: {
+      name: 'directory 1',
+      subDirectories: [
+        { name: 'directory 1.1', subDirectories: [] },
+        {
+          name: 'directory 1.2',
+          subDirectories: [{ name: 'directory 1.2.1' }, { name: 'directory 1.2.2' }]
+        }
+      ]
+    }
+  })
+  t.equal(value, '{"people":{"name":"Elizabeth","children":[{"name":"Charles","children":[{"name":"William","children":[{"name":"George"},{"name":"Charlotte"}]},{"name":"Harry"}]}]},"directory":{"name":"directory 1","subDirectories":[{"name":"directory 1.1","subDirectories":[]},{"name":"directory 1.2","subDirectories":[{"name":"directory 1.2.1","subDirectories":[]},{"name":"directory 1.2.2","subDirectories":[]}]}]}}')
+})