diff --git a/src/Kiota.Builder/Extensions/OpenApiSchemaExtensions.cs b/src/Kiota.Builder/Extensions/OpenApiSchemaExtensions.cs
index 004084d40e..375d4f6ae7 100644
--- a/src/Kiota.Builder/Extensions/OpenApiSchemaExtensions.cs
+++ b/src/Kiota.Builder/Extensions/OpenApiSchemaExtensions.cs
@@ -29,7 +29,7 @@ public static IEnumerable<string> GetSchemaNames(this OpenApiSchema schema, bool
     internal static IEnumerable<OpenApiSchema> FlattenSchemaIfRequired(this IList<OpenApiSchema> schemas, Func<OpenApiSchema, IList<OpenApiSchema>> subsequentGetter)
     {
         if (schemas is null) return [];
-        return schemas.Count == 1 && !schemas[0].HasAnyProperty() ?
+        return schemas.Count == 1 && !schemas[0].HasAnyProperty() && string.IsNullOrEmpty(schemas[0].Reference?.Id) ?
                     schemas.FlattenEmptyEntries(subsequentGetter, 1) :
                     schemas;
     }
diff --git a/src/Kiota.Builder/KiotaBuilder.cs b/src/Kiota.Builder/KiotaBuilder.cs
index f13d8238de..ef05625247 100644
--- a/src/Kiota.Builder/KiotaBuilder.cs
+++ b/src/Kiota.Builder/KiotaBuilder.cs
@@ -1816,7 +1816,7 @@ private CodeElement AddModelDeclarationIfDoesntExist(OpenApiUrlTreeNode currentN
             if (AddEnumDeclaration(currentNode, schema, declarationName, currentNamespace) is CodeEnum enumDeclaration)
                 return enumDeclaration;
 
-            if (schema.IsIntersection() && schema.MergeIntersectionSchemaEntries() is {} mergedSchema &&
+            if (schema.IsIntersection() && schema.MergeIntersectionSchemaEntries() is { } mergedSchema &&
                 AddModelDeclarationIfDoesntExist(currentNode, currentOperation, mergedSchema, declarationName, currentNamespace, inheritsFrom) is CodeClass createdClass)
             {
                 // multiple allOf entries that do not translate to inheritance
diff --git a/tests/Kiota.Builder.Tests/KiotaBuilderTests.cs b/tests/Kiota.Builder.Tests/KiotaBuilderTests.cs
index 84decd6e6f..19c2d8a249 100644
--- a/tests/Kiota.Builder.Tests/KiotaBuilderTests.cs
+++ b/tests/Kiota.Builder.Tests/KiotaBuilderTests.cs
@@ -7469,6 +7469,9 @@ public async Task InlineSchemaWithSingleAllOfReference()
         var memberClass = codeModel.FindChildByName<CodeClass>("member");
         Assert.NotNull(memberClass);
         Assert.Equal(2, memberClass.Properties.Count());// single prop plus additionalData
+        var memberProperty = memberClass.Properties.FirstOrDefault(static x => x.Name.Equals("group", StringComparison.OrdinalIgnoreCase));
+        Assert.NotNull(memberProperty);
+        Assert.Equal("group", memberProperty.Type.Name);
         Assert.Null(memberClass.StartBlock.Inherits);//no base
         var userClass = codeModel.FindChildByName<CodeClass>("user");
         Assert.NotNull(userClass);