diff --git a/pkg/appfile/dryrun/diff.go b/pkg/appfile/dryrun/diff.go
index 1faebd189..cab39e8f1 100644
--- a/pkg/appfile/dryrun/diff.go
+++ b/pkg/appfile/dryrun/diff.go
@@ -146,9 +146,19 @@ func (l *LiveDiffOption) RenderlessDiff(ctx context.Context, base, comparor Live
 		}
 		if af.ExternalWorkflow != nil {
 			if bs, err = marshalObject(af.ExternalWorkflow); err == nil {
-				m.Subs = append(m.Subs, &manifest{Name: af.Name, Kind: WorkflowKind, Data: string(bs)})
+				m.Subs = append(m.Subs, &manifest{Name: af.ExternalWorkflow.Name, Kind: WorkflowKind, Data: string(bs)})
 			} else {
-				m.Subs = append(m.Subs, &manifest{Name: af.Name, Kind: WorkflowKind, Data: "Error: " + errors.Wrapf(err, "failed to marshal external workflow %s", af.ExternalWorkflow.Name).Error()})
+				m.Subs = append(m.Subs, &manifest{Name: af.ExternalWorkflow.Name, Kind: WorkflowKind, Data: "Error: " + errors.Wrapf(err, "failed to marshal external workflow %s", af.ExternalWorkflow.Name).Error()})
+			}
+		}
+		if af.ReferredObjects != nil {
+			for _, refObj := range af.ReferredObjects {
+				manifestName := fmt.Sprintf("%s %s %s", refObj.GetAPIVersion(), refObj.GetKind(), client.ObjectKeyFromObject(refObj).String())
+				if bs, err = marshalObject(refObj); err == nil {
+					m.Subs = append(m.Subs, &manifest{Name: manifestName, Kind: ReferredObject, Data: string(bs)})
+				} else {
+					m.Subs = append(m.Subs, &manifest{Name: manifestName, Kind: ReferredObject, Data: "Error: " + errors.Wrapf(err, "failed to marshal referred object").Error()})
+				}
 			}
 		}
 		return m, nil
diff --git a/pkg/appfile/dryrun/diff_test.go b/pkg/appfile/dryrun/diff_test.go
index b71d0fdb4..4ace15d8e 100644
--- a/pkg/appfile/dryrun/diff_test.go
+++ b/pkg/appfile/dryrun/diff_test.go
@@ -197,20 +197,27 @@ var _ = Describe("Test Live-Diff", func() {
 		applyFile("td-myscaler.yaml", "vela-system")
 		applyFile("cd-myworker.yaml", "vela-system")
 		applyFile("wd-deploy.yaml", "vela-system")
+		applyFile("wd-ref-objects.yaml", "vela-system")
 		Expect(runDiff()).Should(ContainSubstring("\"deploy-livediff-demo\" not found"))
 		applyFile("external-workflow.yaml", "default")
 		Expect(runDiff()).Should(ContainSubstring("topology-local not found"))
 		applyFile("external-policy.yaml", "default")
+		Expect(runDiff()).Should(ContainSubstring("deployments.apps \"livediff-demo\" not found"))
+		applyFile("livediff-demo-deploy.yaml", "default")
+		e := runDiff()
+		_ = e
 		Expect(runDiff()).Should(SatisfyAll(
 			ContainSubstring("Application (livediff-demo) has been modified(*)"),
 			ContainSubstring("External Policy (topology-local) has been added(+)"),
-			ContainSubstring("External Workflow (livediff-demo) has been added(+)"),
+			ContainSubstring("External Workflow (deploy-livediff-demo) has been added(+)"),
+			ContainSubstring("Referred Object (apps/v1 Deployment default/livediff-demo) has been added(+)"),
 		))
 		reverse = true
 		Expect(runDiff()).Should(SatisfyAll(
 			ContainSubstring("Application (livediff-demo) has been modified(*)"),
 			ContainSubstring("External Policy (topology-local) has been removed(-)"),
-			ContainSubstring("External Workflow (livediff-demo) has been removed(-)"),
+			ContainSubstring("External Workflow (deploy-livediff-demo) has been removed(-)"),
+			ContainSubstring("Referred Object (apps/v1 Deployment default/livediff-demo) has been removed(-)"),
 		))
 	})
 
diff --git a/pkg/appfile/dryrun/testdata/diff-input-app-with-externals.yaml b/pkg/appfile/dryrun/testdata/diff-input-app-with-externals.yaml
index 2f8361a89..cc8fd40fa 100644
--- a/pkg/appfile/dryrun/testdata/diff-input-app-with-externals.yaml
+++ b/pkg/appfile/dryrun/testdata/diff-input-app-with-externals.yaml
@@ -23,14 +23,10 @@ spec:
         - type: myscaler
           properties:
             replicas: 2
-    - name: myweb-3
-      type: myworker
+    - name: livediff-demo
+      type: ref-objects
       properties:
-        image: "busybox"
-        cmd:
-          - sleep
-          - "1000"
-        lives: "3"
-        enemies: "alien"
+        objects:
+          - resource: deployment
   workflow:
     ref: deploy-livediff-demo
\ No newline at end of file
diff --git a/pkg/appfile/dryrun/testdata/livediff-demo-deploy.yaml b/pkg/appfile/dryrun/testdata/livediff-demo-deploy.yaml
new file mode 100644
index 000000000..c1fd1a70d
--- /dev/null
+++ b/pkg/appfile/dryrun/testdata/livediff-demo-deploy.yaml
@@ -0,0 +1,17 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: livediff-demo
+spec:
+  replicas: 0
+  selector:
+    matchLabels:
+      app: livediff-demo
+  template:
+    metadata:
+      labels:
+        app: livediff-demo
+    spec:
+      containers:
+        - image: busybox
+          name: livediff-demo
\ No newline at end of file
diff --git a/pkg/appfile/dryrun/testdata/wd-ref-objects.yaml b/pkg/appfile/dryrun/testdata/wd-ref-objects.yaml
new file mode 100644
index 000000000..ef6fd7789
--- /dev/null
+++ b/pkg/appfile/dryrun/testdata/wd-ref-objects.yaml
@@ -0,0 +1,31 @@
+apiVersion: core.oam.dev/v1beta1
+kind: ComponentDefinition
+metadata:
+  annotations:
+    definition.oam.dev/description: Ref-objects allow users to specify ref objects to use. Notice that this component type have special handle logic.
+  name: ref-objects
+spec:
+  schematic:
+    cue:
+      template: |
+        #K8sObject: {
+        	apiVersion: string
+        	kind:       string
+        	metadata: {
+        		name: string
+        		...
+        	}
+        	...
+        }
+        output: parameter.objects[0]
+        outputs: {
+        	for i, v in parameter.objects {
+        		if i > 0 {
+        			"objects-\(i)": v
+        		}
+        	}
+        }
+        parameter: objects: [...#K8sObject]
+  workload:
+    type: autodetects.core.oam.dev
+
diff --git a/pkg/appfile/parser.go b/pkg/appfile/parser.go
index 283c27a28..e1923f3b9 100644
--- a/pkg/appfile/parser.go
+++ b/pkg/appfile/parser.go
@@ -310,7 +310,7 @@ func (p *Parser) parseReferredObjectsFromRevision(af *Appfile) error {
 func (p *Parser) parseReferredObjects(ctx context.Context, af *Appfile) error {
 	for _, comp := range af.Components {
 		if comp.Type != v1alpha1.RefObjectsComponentType {
-			return nil
+			continue
 		}
 		spec := &v1alpha1.RefObjectsComponentSpec{}
 		if err := utils.StrictUnmarshal(comp.Properties.Raw, spec); err != nil {
diff --git a/test/e2e-multicluster-test/multicluster_standalone_test.go b/test/e2e-multicluster-test/multicluster_standalone_test.go
index 322debb04..ab3b0e539 100644
--- a/test/e2e-multicluster-test/multicluster_standalone_test.go
+++ b/test/e2e-multicluster-test/multicluster_standalone_test.go
@@ -186,7 +186,8 @@ var _ = Describe("Test multicluster standalone scenario", func() {
 		By("Apply application successfully")
 		applyFile("topology-policy.yaml")
 		applyFile("workflow-deploy-worker.yaml")
-		applyFile("app-with-publish-version-native.yaml")
+		applyFile("deployment-busybox.yaml")
+		applyFile("app-with-publish-version-busybox.yaml")
 		app := &v1beta1.Application{}
 		appKey := types.NamespacedName{Namespace: namespace, Name: "busybox"}
 		Eventually(func(g Gomega) {
@@ -229,20 +230,30 @@ var _ = Describe("Test multicluster standalone scenario", func() {
 			g.Expect(k8sClient.Update(hubCtx, policy)).Should(Succeed())
 		}, 30*time.Second).Should(Succeed())
 
+		By("Change referred objects")
+		Eventually(func(g Gomega) {
+			deploy := &v1.Deployment{}
+			g.Expect(k8sClient.Get(hubCtx, types.NamespacedName{Namespace: namespace, Name: "busybox-ref"}, deploy)).Should(Succeed())
+			deploy.Spec.Replicas = pointer.Int32(1)
+			g.Expect(k8sClient.Update(hubCtx, deploy)).Should(Succeed())
+		}, 30*time.Second).Should(Succeed())
+
 		By("Live-diff application")
 		outputs, err := execCommand("live-diff", "-r", "busybox-v3,busybox-v1", "-n", namespace)
 		Expect(err).Should(Succeed())
 		Expect(outputs).Should(SatisfyAll(
 			ContainSubstring("Application (busybox) has been modified(*)"),
 			ContainSubstring("External Policy (topology-worker) has no change"),
-			ContainSubstring("External Workflow (busybox) has no change"),
+			ContainSubstring("External Workflow (deploy-worker) has no change"),
+			ContainSubstring(fmt.Sprintf("Referred Object (apps/v1 Deployment %s/busybox-ref) has no change", namespace)),
 		))
 		outputs, err = execCommand("live-diff", "busybox", "-n", namespace)
 		Expect(err).Should(Succeed())
 		Expect(outputs).Should(SatisfyAll(
 			ContainSubstring("Application (busybox) has no change"),
 			ContainSubstring("External Policy (topology-worker) has been modified(*)"),
-			ContainSubstring("External Workflow (busybox) has no change"),
+			ContainSubstring("External Workflow (deploy-worker) has no change"),
+			ContainSubstring(fmt.Sprintf("Referred Object (apps/v1 Deployment %s/busybox-ref) has been modified", namespace)),
 		))
 
 		By("Rollback application")
@@ -257,6 +268,8 @@ var _ = Describe("Test multicluster standalone scenario", func() {
 			deploy := &v1.Deployment{}
 			g.Expect(k8sClient.Get(workerCtx, types.NamespacedName{Namespace: namespace, Name: "busybox"}, deploy)).Should(Succeed())
 			g.Expect(deploy.Spec.Template.Spec.Containers[0].Image).Should(Equal("busybox"))
+			g.Expect(k8sClient.Get(workerCtx, types.NamespacedName{Namespace: namespace, Name: "busybox-ref"}, deploy)).Should(Succeed())
+			g.Expect(deploy.Spec.Replicas).Should(Equal(pointer.Int32(0)))
 			revs, err := application.GetSortedAppRevisions(hubCtx, k8sClient, app.Name, namespace)
 			g.Expect(err).Should(Succeed())
 			g.Expect(len(revs)).Should(Equal(1))
diff --git a/test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-native.yaml b/test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-busybox.yaml
similarity index 72%
rename from test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-native.yaml
rename to test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-busybox.yaml
index 2ab77c6a5..bcdbb9f8b 100644
--- a/test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-native.yaml
+++ b/test/e2e-multicluster-test/testdata/app/standalone/app-with-publish-version-busybox.yaml
@@ -11,5 +11,10 @@ spec:
       properties:
         image: busybox
         cmd: [ "sleep", "86400" ]
+    - name: busybox-ref
+      type: ref-objects
+      properties:
+        objects:
+          - resource: deployment
   workflow:
     ref: deploy-worker
\ No newline at end of file
diff --git a/test/e2e-multicluster-test/testdata/app/standalone/deployment-busybox.yaml b/test/e2e-multicluster-test/testdata/app/standalone/deployment-busybox.yaml
new file mode 100644
index 000000000..51289237b
--- /dev/null
+++ b/test/e2e-multicluster-test/testdata/app/standalone/deployment-busybox.yaml
@@ -0,0 +1,17 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: busybox-ref
+spec:
+  replicas: 0
+  selector:
+    matchLabels:
+      app: busybox
+  template:
+    metadata:
+      labels:
+        app: busybox
+    spec:
+      containers:
+        - image: busybox
+          name: busybox
\ No newline at end of file