diff --git a/pyang/statements.py b/pyang/statements.py
index 80249eaa..4852e1d2 100644
--- a/pyang/statements.py
+++ b/pyang/statements.py
@@ -438,13 +438,18 @@ def v_init_module(ctx, stmt):
     if stmt.keyword == 'module':
         prefix = stmt.search_one('prefix')
         stmt.i_modulename = stmt.arg
+        mod = stmt
     else:
         belongs_to = stmt.search_one('belongs-to')
         if belongs_to is not None and belongs_to.arg is not None:
             prefix = belongs_to.search_one('prefix')
             stmt.i_modulename = belongs_to.arg
+            mod = ctx.get_module(stmt.i_modulename)
+            if mod is None:
+                mod = stmt
         else:
             stmt.i_modulename = ""
+            mod = None
 
     if prefix is not None and prefix.arg is not None:
         stmt.i_prefixes[prefix.arg] = (stmt.arg, None)
@@ -484,11 +489,14 @@ def v_init_module(ctx, stmt):
     stmt.i_undefined_augment_nodes = {}
     # next, set the attribute 'i_module' in each statement to point to the
     # module where the statement is defined.  if the module is a submodule,
-    # 'i_module' will point to the main module.
+    # 'i_main_module' will point to the main module, except if a submodule is
+    #    validated stand-alone (then in points to the submodule)
     # 'i_orig_module' will point to the real module / submodule.
+    # 'i_module' will point to the main module.
     def set_i_module(s):
         s.i_orig_module = s.top
         s.i_module = s.top
+        s.i_main_module = mod
         return
     iterate_stmt(stmt, set_i_module)
 
@@ -2972,6 +2980,7 @@ class Statement(object):
         'i_config',                  # True or False
         'i_module',
         'i_orig_module',
+        'i_main_module',
 
         'i_not_implemented', # if set (True) this statement is not implemented,
                              # either a false if-feature or status
diff --git a/pyang/util.py b/pyang/util.py
index b7542b9e..8143405d 100644
--- a/pyang/util.py
+++ b/pyang/util.py
@@ -69,11 +69,12 @@ def get_latest_revision(module):
     return max(revisions) if revisions else 'unknown'
 
 
+# module is the (sub)module where the statement is defined
 def prefix_to_modulename_and_revision(module, prefix, pos, errors):
-    if prefix == '':
-        return module.arg, None
-    if prefix == module.i_prefix:
-        return module.arg, None
+    if prefix == '' or prefix == module.i_prefix:
+        if module.i_version == '1':
+            return module.arg, None
+        return module.i_main_module.arg, None
     try:
         (modulename, revision) = module.i_prefixes[prefix]
     except KeyError:
@@ -86,12 +87,12 @@ def prefix_to_modulename_and_revision(module, prefix, pos, errors):
         del module.i_unused_prefixes[prefix]
     return modulename, revision
 
-
+# module is the (sub)module where the statement is defined
 def prefix_to_module(module, prefix, pos, errors):
-    if prefix == '':
-        return module
-    if prefix == module.i_prefix:
-        return module
+    if prefix == '' or prefix == module.i_prefix:
+        if module.i_version == '1':
+            return module
+        return module.i_main_module
     modulename, revision = \
         prefix_to_modulename_and_revision(module, prefix, pos, errors)
     if modulename is None:
diff --git a/test/test_issues/test_i193/Makefile b/test/test_issues/test_i193/Makefile
new file mode 100644
index 00000000..28be3390
--- /dev/null
+++ b/test/test_issues/test_i193/Makefile
@@ -0,0 +1,14 @@
+test: test1 test2 test3 test4
+
+test1:
+	$(PYANG) -Werror x-base.yang
+
+test2:
+	$(PYANG) -Werror y-base.yang
+
+test3:
+	$(PYANG) -Werror z-base.yang
+
+test4:
+	$(PYANG) -Werror --print-error-code y1-base.yang 2>&1 \
+	  | grep XPATH_NODE_NOT_FOUND2 >/dev/null || exit 1
diff --git a/test/test_issues/test_i193/x-base.yang b/test/test_issues/test_i193/x-base.yang
new file mode 100644
index 00000000..bf1c2039
--- /dev/null
+++ b/test/test_issues/test_i193/x-base.yang
@@ -0,0 +1,7 @@
+module x-base {
+  yang-version 1.1;
+  namespace "http://example.com/x-base";
+  prefix x-b;
+  include x-base2;
+  include x-profiles;
+}
diff --git a/test/test_issues/test_i193/x-base2.yang b/test/test_issues/test_i193/x-base2.yang
new file mode 100644
index 00000000..c6eac12d
--- /dev/null
+++ b/test/test_issues/test_i193/x-base2.yang
@@ -0,0 +1,10 @@
+submodule x-base2 {
+  yang-version 1.1;
+  belongs-to x-base {
+    prefix x-b;
+  }
+  container configs {
+    container profiles {
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/x-profiles.yang b/test/test_issues/test_i193/x-profiles.yang
new file mode 100644
index 00000000..7c8c6b77
--- /dev/null
+++ b/test/test_issues/test_i193/x-profiles.yang
@@ -0,0 +1,14 @@
+submodule x-profiles {
+  yang-version 1.1;
+  belongs-to x-base {
+    prefix x-b;
+  }
+  augment "/x-b:configs/x-b:profiles" {
+    list profile {
+      key name;
+      leaf name {
+        type string;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/y-base.yang b/test/test_issues/test_i193/y-base.yang
new file mode 100644
index 00000000..99727032
--- /dev/null
+++ b/test/test_issues/test_i193/y-base.yang
@@ -0,0 +1,7 @@
+module y-base {
+  yang-version 1.1;
+  namespace "http://example.com/y-base";
+  prefix y-b;
+  include y-base2;
+  include y-profiles;
+}
diff --git a/test/test_issues/test_i193/y-base2.yang b/test/test_issues/test_i193/y-base2.yang
new file mode 100644
index 00000000..d14b82cf
--- /dev/null
+++ b/test/test_issues/test_i193/y-base2.yang
@@ -0,0 +1,10 @@
+submodule y-base2 {
+  yang-version 1.1;
+  belongs-to y-base {
+    prefix y-b;
+  }
+  container configs {
+    container profiles {
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/y-profiles.yang b/test/test_issues/test_i193/y-profiles.yang
new file mode 100644
index 00000000..86fc03fd
--- /dev/null
+++ b/test/test_issues/test_i193/y-profiles.yang
@@ -0,0 +1,16 @@
+submodule y-profiles {
+  yang-version 1.1;
+  belongs-to y-base {
+    prefix y-b;
+  }
+
+  container y {
+    must "/y-b:configs/y-b:profiles";
+    list profile {
+      key name;
+      leaf name {
+        type string;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/y1-base.yang b/test/test_issues/test_i193/y1-base.yang
new file mode 100644
index 00000000..59453046
--- /dev/null
+++ b/test/test_issues/test_i193/y1-base.yang
@@ -0,0 +1,6 @@
+module y1-base {
+  namespace "http://example.com/y1-base";
+  prefix y-b;
+  include y1-base2;
+  include y1-profiles;
+}
diff --git a/test/test_issues/test_i193/y1-base2.yang b/test/test_issues/test_i193/y1-base2.yang
new file mode 100644
index 00000000..741a6c42
--- /dev/null
+++ b/test/test_issues/test_i193/y1-base2.yang
@@ -0,0 +1,9 @@
+submodule y1-base2 {
+  belongs-to y1-base {
+    prefix y-b;
+  }
+  container configs {
+    container profiles {
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/y1-profiles.yang b/test/test_issues/test_i193/y1-profiles.yang
new file mode 100644
index 00000000..2a87bcef
--- /dev/null
+++ b/test/test_issues/test_i193/y1-profiles.yang
@@ -0,0 +1,15 @@
+submodule y1-profiles {
+  belongs-to y1-base {
+    prefix y-b;
+  }
+
+  container y {
+    must "/y-b:configs/y-b:profiles";
+    list profile {
+      key name;
+      leaf name {
+        type string;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/z-base.yang b/test/test_issues/test_i193/z-base.yang
new file mode 100644
index 00000000..f0c827b7
--- /dev/null
+++ b/test/test_issues/test_i193/z-base.yang
@@ -0,0 +1,7 @@
+module z-base {
+  yang-version 1.1;
+  namespace "http://example.com/z-base";
+  prefix z-b;
+  include z-base2;
+  include z-profiles;
+}
diff --git a/test/test_issues/test_i193/z-base2.yang b/test/test_issues/test_i193/z-base2.yang
new file mode 100644
index 00000000..0aa5034a
--- /dev/null
+++ b/test/test_issues/test_i193/z-base2.yang
@@ -0,0 +1,13 @@
+submodule z-base2 {
+  yang-version 1.1;
+  belongs-to z-base {
+    prefix z-b;
+  }
+  container configs {
+    container profiles {
+      leaf foo {
+        type string;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i193/z-profiles.yang b/test/test_issues/test_i193/z-profiles.yang
new file mode 100644
index 00000000..2754a2d5
--- /dev/null
+++ b/test/test_issues/test_i193/z-profiles.yang
@@ -0,0 +1,16 @@
+submodule z-profiles {
+  yang-version 1.1;
+  belongs-to z-base {
+    prefix z-b;
+  }
+  augment "/z-b:configs/z-b:profiles" {
+    list profile {
+      key name;
+      leaf name {
+        type leafref {
+          path "../../foo";
+        }
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i729/Makefile b/test/test_issues/test_i729/Makefile
new file mode 100644
index 00000000..1faba374
--- /dev/null
+++ b/test/test_issues/test_i729/Makefile
@@ -0,0 +1,14 @@
+test: test1 test2 test3 test4
+
+test1:
+	$(PYANG) -Werror -p v1.1 v1.1/native.yang
+
+test2:
+	$(PYANG) -Werror -p v1.1 v1.1/bgp.yang
+
+test3:
+	$(PYANG) -Werror -p v1 v1/native.yang
+
+test4:
+	$(PYANG) -Werror -p v1 --print-error-code  v1/bgp.yang 2>&1 \
+	  | grep LEAFREF_IDENTIFIER_NOT_FOUND >/dev/null || exit 1
diff --git a/test/test_issues/test_i729/v1.1/bgp.yang b/test/test_issues/test_i729/v1.1/bgp.yang
new file mode 100644
index 00000000..ccf86d0c
--- /dev/null
+++ b/test/test_issues/test_i729/v1.1/bgp.yang
@@ -0,0 +1,27 @@
+module bgp {
+  yang-version 1.1;
+  namespace "http://example.com/bgp";
+  prefix ios-bgp;
+
+  import native {
+    prefix ios;
+  }
+
+  
+  grouping config-bgp-grouping {
+    list bgp {
+      key "id";
+      leaf id {
+        type string;
+      }
+
+      container interface {
+        uses ios:interface-with-dependency-grouping;
+      }
+    }
+  }
+
+  augment "/ios:native/ios:router" {
+    uses config-bgp-grouping;
+  }
+}
diff --git a/test/test_issues/test_i729/v1.1/native-sub.yang b/test/test_issues/test_i729/v1.1/native-sub.yang
new file mode 100644
index 00000000..7398784b
--- /dev/null
+++ b/test/test_issues/test_i729/v1.1/native-sub.yang
@@ -0,0 +1,42 @@
+submodule native-sub {
+  yang-version 1.1;
+  belongs-to native {
+    prefix ii;
+  }
+
+  grouping interface-with-dependency-grouping {
+    choice interface-choice {
+      leaf GigabitEthernet {
+        description
+          "Service-Context Virtual Interface Compress";
+        type leafref {
+          path "/ii:native/ii:interface/ii:GigabitEthernet/ii:name";
+        }
+      }
+    }
+  }
+
+  grouping config-interface-grouping {
+    container interface {
+      description
+        "Configure Interfaces";
+      list GigabitEthernet {
+        description
+          "Service-Context Virtual Interface Compress";
+        key "name";
+        leaf name {
+          type uint16;
+        }
+        uses interface-common-grouping;
+      }
+    }
+  }
+
+  grouping interface-common-grouping {
+    container switchport-conf {
+      leaf switchport {
+        type boolean;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i729/v1.1/native.yang b/test/test_issues/test_i729/v1.1/native.yang
new file mode 100644
index 00000000..46e72b63
--- /dev/null
+++ b/test/test_issues/test_i729/v1.1/native.yang
@@ -0,0 +1,19 @@
+module native {
+  yang-version 1.1;
+  namespace "http://example.com/native";
+  prefix ios;
+
+  include native-sub;
+
+  container native {
+    container router;
+    container ip {
+      container routing-conf {
+        leaf routing {
+          type string;
+        }
+      }
+    }
+    uses config-interface-grouping;
+  }
+}
diff --git a/test/test_issues/test_i729/v1/bgp.yang b/test/test_issues/test_i729/v1/bgp.yang
new file mode 100644
index 00000000..68491376
--- /dev/null
+++ b/test/test_issues/test_i729/v1/bgp.yang
@@ -0,0 +1,26 @@
+module bgp {
+  namespace "http://example.com/bgp";
+  prefix ios-bgp;
+
+  import native {
+    prefix ios;
+  }
+
+  
+  grouping config-bgp-grouping {
+    list bgp {
+      key "id";
+      leaf id {
+        type string;
+      }
+
+      container interface {
+        uses ios:interface-with-dependency-grouping;
+      }
+    }
+  }
+
+  augment "/ios:native/ios:router" {
+    uses config-bgp-grouping;
+  }
+}
diff --git a/test/test_issues/test_i729/v1/native-sub.yang b/test/test_issues/test_i729/v1/native-sub.yang
new file mode 100644
index 00000000..abd19fac
--- /dev/null
+++ b/test/test_issues/test_i729/v1/native-sub.yang
@@ -0,0 +1,41 @@
+submodule native-sub {
+  belongs-to native {
+    prefix ii;
+  }
+
+  grouping interface-with-dependency-grouping {
+    choice interface-choice {
+      leaf GigabitEthernet {
+        description
+          "Service-Context Virtual Interface Compress";
+        type leafref {
+          path "/ii:native/ii:interface/ii:GigabitEthernet/ii:name";
+        }
+      }
+    }
+  }
+
+  grouping config-interface-grouping {
+    container interface {
+      description
+        "Configure Interfaces";
+      list GigabitEthernet {
+        description
+          "Service-Context Virtual Interface Compress";
+        key "name";
+        leaf name {
+          type uint16;
+        }
+        uses interface-common-grouping;
+      }
+    }
+  }
+
+  grouping interface-common-grouping {
+    container switchport-conf {
+      leaf switchport {
+        type boolean;
+      }
+    }
+  }
+}
diff --git a/test/test_issues/test_i729/v1/native.yang b/test/test_issues/test_i729/v1/native.yang
new file mode 100644
index 00000000..cf9418be
--- /dev/null
+++ b/test/test_issues/test_i729/v1/native.yang
@@ -0,0 +1,18 @@
+module native {
+  namespace "http://example.com/native";
+  prefix ios;
+
+  include native-sub;
+
+  container native {
+    container router;
+    container ip {
+      container routing-conf {
+        leaf routing {
+          type string;
+        }
+      }
+    }
+    uses config-interface-grouping;
+  }
+}