diff --git a/runtime/interpreter/value.go b/runtime/interpreter/value.go
index 6f36d14146..84e39ca244 100644
--- a/runtime/interpreter/value.go
+++ b/runtime/interpreter/value.go
@@ -20601,6 +20601,13 @@ func (v *StorageReferenceValue) dereference(interpreter *Interpreter, locationRa
 		return nil, nil
 	}
 
+	if reference, isReference := referenced.(ReferenceValue); isReference {
+		panic(NestedReferenceError{
+			Value:         reference,
+			LocationRange: locationRange,
+		})
+	}
+
 	if v.BorrowedType != nil {
 		staticType := referenced.StaticType(interpreter)
 
diff --git a/runtime/runtime_test.go b/runtime/runtime_test.go
index 5972980f49..8f6eeeacd7 100644
--- a/runtime/runtime_test.go
+++ b/runtime/runtime_test.go
@@ -10842,3 +10842,71 @@ func TestRuntimeAccountEntitlementEscalation(t *testing.T) {
 		})
 	require.ErrorAs(t, err, &interpreter.InvalidMemberReferenceError{})
 }
+
+func TestRuntimeAccountStorageBorrowEphemeralReferenceValue(t *testing.T) {
+
+	t.Parallel()
+
+	addressValue := Address{
+		0x0, 0x0, 0x0, 0x0, 0x0, 0x0, 0x0, 0x1,
+	}
+
+	runtime := NewTestInterpreterRuntime()
+
+	contract := []byte(`
+        access(all) contract C {
+
+            init() {
+                let pubAccount = getAccount(0x01)
+                self.account.storage.save(pubAccount as AnyStruct, to: /storage/account)
+                let authAccount = self.account.storage.borrow<auth(Storage) &(&Account)>(from: /storage/account)!
+            }
+        }
+    `)
+
+	deploy := DeploymentTransaction("C", contract)
+
+	accountCodes := map[Location][]byte{}
+	var events []cadence.Event
+
+	runtimeInterface := &TestRuntimeInterface{
+		OnGetCode: func(location Location) (bytes []byte, err error) {
+			return accountCodes[location], nil
+		},
+		Storage: NewTestLedger(nil, nil),
+		OnGetSigningAccounts: func() ([]Address, error) {
+			return []Address{addressValue}, nil
+		},
+		OnResolveLocation: NewSingleIdentifierLocationResolver(t),
+		OnGetAccountContractCode: func(location common.AddressLocation) (code []byte, err error) {
+			return accountCodes[location], nil
+		},
+		OnUpdateAccountContractCode: func(location common.AddressLocation, code []byte) error {
+			accountCodes[location] = code
+			return nil
+		},
+		OnCreateAccount: func(payer Address) (address Address, err error) {
+			return addressValue, nil
+		},
+		OnEmitEvent: func(event cadence.Event) error {
+			events = append(events, event)
+			return nil
+		},
+	}
+
+	nextTransactionLocation := NewTransactionLocationGenerator()
+
+	err := runtime.ExecuteTransaction(
+		Script{
+			Source: deploy,
+		},
+		Context{
+			Interface: runtimeInterface,
+			Location:  nextTransactionLocation(),
+		},
+	)
+	RequireError(t, err)
+
+	var nestedReferenceErr interpreter.NestedReferenceError
+	require.ErrorAs(t, err, &nestedReferenceErr)
+}