diff --git a/libs/core/langchain_core/utils/json_schema.py b/libs/core/langchain_core/utils/json_schema.py
index 54c9a922d34..1baf93610b6 100644
--- a/libs/core/langchain_core/utils/json_schema.py
+++ b/libs/core/langchain_core/utils/json_schema.py
@@ -39,6 +39,31 @@ def _retrieve_ref(path: str, schema: dict) -> Union[list, dict]:
     return deepcopy(out)
 
 
+def _process_dict_properties(
+    properties: dict[str, Any],
+    full_schema: dict[str, Any],
+    processed_refs: set[str],
+    skip_keys: Sequence[str],
+    *,
+    shallow_refs: bool,
+) -> dict[str, Any]:
+    """Process dictionary properties, recursing into nested structures."""
+    result: dict[str, Any] = {}
+    for key, value in properties.items():
+        if key in skip_keys:
+            # Skip recursion for specified keys, just copy the value as-is
+            result[key] = deepcopy(value)
+        elif isinstance(value, (dict, list)):
+            # Recursively process nested objects and arrays
+            result[key] = _dereference_refs_helper(
+                value, full_schema, processed_refs, skip_keys, shallow_refs
+            )
+        else:
+            # Copy primitive values directly
+            result[key] = value
+    return result
+
+
 def _dereference_refs_helper(
     obj: Any,
     full_schema: dict[str, Any],
@@ -46,55 +71,87 @@ def _dereference_refs_helper(
     skip_keys: Sequence[str],
     shallow_refs: bool,  # noqa: FBT001
 ) -> Any:
-    """Inline every pure {'$ref':...}.
+    """Dereference JSON Schema $ref objects, handling both pure and mixed references.
 
-    But:
+    This function processes JSON Schema objects containing $ref properties by resolving
+    the references and merging any additional properties. It handles:
 
-    - if shallow_refs=True: only break cycles, do not inline nested refs
-    - if shallow_refs=False: deep-inline all nested refs
+    - Pure $ref objects: {"$ref": "#/path/to/definition"}
+    - Mixed $ref objects: {"$ref": "#/path", "title": "Custom Title", ...}
+    - Circular references by breaking cycles and preserving non-ref properties
 
-    Also skip recursion under any key in skip_keys.
+    Args:
+        obj: The object to process (can be dict, list, or primitive)
+        full_schema: The complete schema containing all definitions
+        processed_refs: Set tracking currently processing refs (for cycle detection)
+        skip_keys: Keys under which to skip recursion
+        shallow_refs: If True, only break cycles; if False, deep-inline all refs
 
     Returns:
-        The object with refs dereferenced.
+        The object with $ref properties resolved and merged with other properties.
     """
     if processed_refs is None:
         processed_refs = set()
 
-    # 1) Pure $ref node?
-    if isinstance(obj, dict) and "$ref" in set(obj.keys()):
+    # Case 1: Object contains a $ref property (pure or mixed with additional properties)
+    if isinstance(obj, dict) and "$ref" in obj:
         ref_path = obj["$ref"]
-        # cycle?
+        additional_properties = {
+            key: value for key, value in obj.items() if key != "$ref"
+        }
+
+        # Detect circular reference: if we're already processing this $ref,
+        # return only the additional properties to break the cycle
         if ref_path in processed_refs:
-            return {}
+            return _process_dict_properties(
+                additional_properties,
+                full_schema,
+                processed_refs,
+                skip_keys,
+                shallow_refs=shallow_refs,
+            )
+
+        # Mark this reference as being processed (for cycle detection)
         processed_refs.add(ref_path)
 
-        # grab + copy the target
-        target = deepcopy(_retrieve_ref(ref_path, full_schema))
-
-        # deep inlining: recurse into everything
-        result = _dereference_refs_helper(
-            target, full_schema, processed_refs, skip_keys, shallow_refs
+        # Fetch and recursively resolve the referenced object
+        referenced_object = deepcopy(_retrieve_ref(ref_path, full_schema))
+        resolved_reference = _dereference_refs_helper(
+            referenced_object, full_schema, processed_refs, skip_keys, shallow_refs
         )
 
+        # Clean up: remove from processing set before returning
         processed_refs.remove(ref_path)
-        return result
 
-    # 2) Not a pure-$ref: recurse, skipping any keys in skip_keys
+        # Pure $ref case: no additional properties, return resolved reference directly
+        if not additional_properties:
+            return resolved_reference
+
+        # Mixed $ref case: merge resolved reference with additional properties
+        # Additional properties take precedence over resolved properties
+        merged_result = {}
+        if isinstance(resolved_reference, dict):
+            merged_result.update(resolved_reference)
+
+        # Process additional properties and merge them (they override resolved ones)
+        processed_additional = _process_dict_properties(
+            additional_properties,
+            full_schema,
+            processed_refs,
+            skip_keys,
+            shallow_refs=shallow_refs,
+        )
+        merged_result.update(processed_additional)
+
+        return merged_result
+
+    # Case 2: Regular dictionary without $ref - process all properties
     if isinstance(obj, dict):
-        out: dict[str, Any] = {}
-        for k, v in obj.items():
-            if k in skip_keys:
-                # do not recurse under this key
-                out[k] = deepcopy(v)
-            elif isinstance(v, (dict, list)):
-                out[k] = _dereference_refs_helper(
-                    v, full_schema, processed_refs, skip_keys, shallow_refs
-                )
-            else:
-                out[k] = v
-        return out
+        return _process_dict_properties(
+            obj, full_schema, processed_refs, skip_keys, shallow_refs=shallow_refs
+        )
 
+    # Case 3: List - recursively process each item
     if isinstance(obj, list):
         return [
             _dereference_refs_helper(
@@ -103,6 +160,7 @@ def _dereference_refs_helper(
             for item in obj
         ]
 
+    # Case 4: Primitive value (string, number, boolean, null) - return unchanged
     return obj
 
 
@@ -112,19 +170,67 @@ def dereference_refs(
     full_schema: Optional[dict] = None,
     skip_keys: Optional[Sequence[str]] = None,
 ) -> dict:
-    """Try to substitute $refs in JSON Schema.
+    """Resolve and inline JSON Schema $ref references in a schema object.
+
+    This function processes a JSON Schema and resolves all $ref references by replacing
+    them with the actual referenced content. It handles both simple references and
+    complex cases like circular references and mixed $ref objects that contain
+    additional properties alongside the $ref.
 
     Args:
-      schema_obj: The fragment to dereference.
-      full_schema: The complete schema (defaults to schema_obj).
-      skip_keys:
-        - If None (the default), we skip recursion under '$defs' *and* only
-          shallow-inline refs.
-        - If provided (even as an empty list), we will recurse under every key and
-          deep-inline all refs.
+        schema_obj: The JSON Schema object or fragment to process. This can be a
+            complete schema or just a portion of one.
+        full_schema: The complete schema containing all definitions that $refs might
+            point to. If not provided, defaults to schema_obj (useful when the
+            schema is self-contained).
+        skip_keys: Controls recursion behavior and reference resolution depth:
+            - If None (default): Only recurse under '$defs' and use shallow reference
+              resolution (break cycles but don't deep-inline nested refs)
+            - If provided (even as []): Recurse under all keys and use deep reference
+              resolution (fully inline all nested references)
 
     Returns:
-        The schema with refs dereferenced.
+        A new dictionary with all $ref references resolved and inlined. The original
+        schema_obj is not modified.
+
+    Examples:
+        Basic reference resolution:
+        >>> schema = {
+        ...     "type": "object",
+        ...     "properties": {"name": {"$ref": "#/$defs/string_type"}},
+        ...     "$defs": {"string_type": {"type": "string"}},
+        ... }
+        >>> result = dereference_refs(schema)
+        >>> result["properties"]["name"]  # {"type": "string"}
+
+        Mixed $ref with additional properties:
+        >>> schema = {
+        ...     "properties": {
+        ...         "name": {"$ref": "#/$defs/base", "description": "User name"}
+        ...     },
+        ...     "$defs": {"base": {"type": "string", "minLength": 1}},
+        ... }
+        >>> result = dereference_refs(schema)
+        >>> result["properties"]["name"]
+        # {"type": "string", "minLength": 1, "description": "User name"}
+
+        Handling circular references:
+        >>> schema = {
+        ...     "properties": {"user": {"$ref": "#/$defs/User"}},
+        ...     "$defs": {
+        ...         "User": {
+        ...             "type": "object",
+        ...             "properties": {"friend": {"$ref": "#/$defs/User"}},
+        ...         }
+        ...     },
+        ... }
+        >>> result = dereference_refs(schema)  # Won't cause infinite recursion
+
+    Note:
+        - Circular references are handled gracefully by breaking cycles
+        - Mixed $ref objects (with both $ref and other properties) are supported
+        - Additional properties in mixed $refs override resolved properties
+        - The $defs section is preserved in the output by default
     """
     full = full_schema or schema_obj
     keys_to_skip = list(skip_keys) if skip_keys is not None else ["$defs"]
diff --git a/libs/core/tests/unit_tests/utils/test_json_schema.py b/libs/core/tests/unit_tests/utils/test_json_schema.py
index 994d62064f6..b618e0d4b52 100644
--- a/libs/core/tests/unit_tests/utils/test_json_schema.py
+++ b/libs/core/tests/unit_tests/utils/test_json_schema.py
@@ -444,3 +444,338 @@ def test_dereference_refs_list_index() -> None:
 
     actual_dict_key = dereference_refs(schema_dict_key)
     assert actual_dict_key == expected_dict_key
+
+
+def test_dereference_refs_mixed_ref_with_properties() -> None:
+    """Test dereferencing refs that have $ref plus other properties."""
+    # This pattern can cause infinite recursion if not handled correctly
+    schema = {
+        "type": "object",
+        "properties": {
+            "data": {
+                "$ref": "#/$defs/BaseType",
+                "description": "Additional description",
+                "example": "some example",
+            }
+        },
+        "$defs": {"BaseType": {"type": "string", "minLength": 1}},
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "data": {
+                "type": "string",
+                "minLength": 1,
+                "description": "Additional description",
+                "example": "some example",
+            }
+        },
+        "$defs": {"BaseType": {"type": "string", "minLength": 1}},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_complex_pattern() -> None:
+    """Test pattern that caused infinite recursion in MCP server schemas."""
+    schema = {
+        "type": "object",
+        "properties": {
+            "query": {"$ref": "#/$defs/Query", "additionalProperties": False}
+        },
+        "$defs": {
+            "Query": {
+                "type": "object",
+                "properties": {"user": {"$ref": "#/$defs/User"}},
+            },
+            "User": {
+                "type": "object",
+                "properties": {
+                    "id": {"type": "string"},
+                    "profile": {"$ref": "#/$defs/UserProfile", "nullable": True},
+                },
+            },
+            "UserProfile": {
+                "type": "object",
+                "properties": {"bio": {"type": "string"}},
+            },
+        },
+    }
+
+    # This should not cause infinite recursion
+    actual = dereference_refs(schema)
+
+    expected = {
+        "$defs": {
+            "Query": {
+                "properties": {"user": {"$ref": "#/$defs/User"}},
+                "type": "object",
+            },
+            "User": {
+                "properties": {
+                    "id": {"type": "string"},
+                    "profile": {"$ref": "#/$defs/UserProfile", "nullable": True},
+                },
+                "type": "object",
+            },
+            "UserProfile": {
+                "properties": {"bio": {"type": "string"}},
+                "type": "object",
+            },
+        },
+        "properties": {
+            "query": {
+                "additionalProperties": False,
+                "properties": {
+                    "user": {
+                        "properties": {
+                            "id": {"type": "string"},
+                            "profile": {
+                                "nullable": True,
+                                "properties": {"bio": {"type": "string"}},
+                                "type": "object",
+                            },
+                        },
+                        "type": "object",
+                    }
+                },
+                "type": "object",
+            }
+        },
+        "type": "object",
+    }
+
+    assert actual == expected
+
+
+def test_dereference_refs_cyclical_mixed_refs() -> None:
+    """Test cyclical references with mixed $ref properties don't cause loops."""
+    schema = {
+        "type": "object",
+        "properties": {"node": {"$ref": "#/$defs/Node"}},
+        "$defs": {
+            "Node": {
+                "type": "object",
+                "properties": {
+                    "id": {"type": "string"},
+                    "parent": {"$ref": "#/$defs/Node", "nullable": True},
+                    "children": {"type": "array", "items": {"$ref": "#/$defs/Node"}},
+                },
+            }
+        },
+    }
+
+    # This should handle cycles gracefully
+    actual = dereference_refs(schema)
+
+    assert actual == {
+        "$defs": {
+            "Node": {
+                "properties": {
+                    "children": {"items": {"$ref": "#/$defs/Node"}, "type": "array"},
+                    "id": {"type": "string"},
+                    "parent": {"$ref": "#/$defs/Node", "nullable": True},
+                },
+                "type": "object",
+            }
+        },
+        "properties": {
+            "node": {
+                "properties": {
+                    "children": {"items": {}, "type": "array"},
+                    "id": {"type": "string"},
+                    "parent": {"nullable": True},
+                },
+                "type": "object",
+            }
+        },
+        "type": "object",
+    }
+
+
+def test_dereference_refs_empty_mixed_ref() -> None:
+    """Test mixed $ref with empty other properties."""
+    schema = {
+        "type": "object",
+        "properties": {"data": {"$ref": "#/$defs/Base"}},
+        "$defs": {"Base": {"type": "string"}},
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {"data": {"type": "string"}},
+        "$defs": {"Base": {"type": "string"}},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_nested_mixed_refs() -> None:
+    """Test nested objects with mixed $ref properties."""
+    schema = {
+        "type": "object",
+        "properties": {
+            "outer": {
+                "type": "object",
+                "properties": {
+                    "inner": {"$ref": "#/$defs/Base", "title": "Custom Title"}
+                },
+            }
+        },
+        "$defs": {"Base": {"type": "string", "minLength": 1}},
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "outer": {
+                "type": "object",
+                "properties": {
+                    "inner": {"type": "string", "minLength": 1, "title": "Custom Title"}
+                },
+            }
+        },
+        "$defs": {"Base": {"type": "string", "minLength": 1}},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_array_with_mixed_refs() -> None:
+    """Test arrays containing mixed $ref objects."""
+    schema = {
+        "type": "object",
+        "properties": {
+            "items": {
+                "type": "array",
+                "items": {"$ref": "#/$defs/Item", "description": "An item"},
+            }
+        },
+        "$defs": {"Item": {"type": "string", "enum": ["a", "b", "c"]}},
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "items": {
+                "type": "array",
+                "items": {
+                    "type": "string",
+                    "enum": ["a", "b", "c"],
+                    "description": "An item",
+                },
+            }
+        },
+        "$defs": {"Item": {"type": "string", "enum": ["a", "b", "c"]}},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_mixed_ref_overrides_property() -> None:
+    """Test that mixed $ref properties override resolved properties correctly."""
+    schema = {
+        "type": "object",
+        "properties": {
+            "data": {
+                "$ref": "#/$defs/Base",
+                "type": "number",  # Override the resolved type
+                "description": "Overridden description",
+            }
+        },
+        "$defs": {"Base": {"type": "string", "description": "Original description"}},
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "data": {
+                "type": "number",  # Mixed property should override
+                # Mixed property should override
+                "description": "Overridden description",
+            }
+        },
+        "$defs": {"Base": {"type": "string", "description": "Original description"}},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_mixed_ref_cyclical_with_properties() -> None:
+    """Test cyclical mixed $refs preserve non-ref properties correctly."""
+    schema = {
+        "type": "object",
+        "properties": {"root": {"$ref": "#/$defs/Node", "required": True}},
+        "$defs": {
+            "Node": {
+                "type": "object",
+                "properties": {
+                    "id": {"type": "string"},
+                    "child": {"$ref": "#/$defs/Node", "nullable": True},
+                },
+            }
+        },
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "root": {
+                "type": "object",
+                "properties": {
+                    "id": {"type": "string"},
+                    "child": {"nullable": True},  # Cycle broken but nullable preserved
+                },
+                "required": True,  # Mixed property preserved
+            }
+        },
+        "$defs": {
+            "Node": {
+                "type": "object",
+                "properties": {
+                    "id": {"type": "string"},
+                    "child": {"$ref": "#/$defs/Node", "nullable": True},
+                },
+            }
+        },
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected
+
+
+def test_dereference_refs_non_dict_ref_target() -> None:
+    """Test $ref that resolves to non-dict values."""
+    schema = {
+        "type": "object",
+        "properties": {
+            "simple_ref": {"$ref": "#/$defs/SimpleString"},
+            "mixed_ref": {
+                "$ref": "#/$defs/SimpleString",
+                "description": "With description",
+            },
+        },
+        "$defs": {
+            "SimpleString": "string"  # Non-dict definition
+        },
+    }
+
+    expected = {
+        "type": "object",
+        "properties": {
+            "simple_ref": "string",
+            "mixed_ref": {
+                "description": "With description"
+            },  # Can't merge with non-dict
+        },
+        "$defs": {"SimpleString": "string"},
+    }
+
+    actual = dereference_refs(schema)
+    assert actual == expected