diff --git a/packages/lu/src/parser/luis/luisCollate.js b/packages/lu/src/parser/luis/luisCollate.js
index 27a38d75a..d8b566f55 100644
--- a/packages/lu/src/parser/luis/luisCollate.js
+++ b/packages/lu/src/parser/luis/luisCollate.js
@@ -245,14 +245,17 @@ const buildPrebuiltEntities = function(blob, FinalLUISJSON){
 }
 
 const buildModelFeatures = function(blob, FinalLUISJSON){
-    // do we have model_features?
-    if (blob.model_features === undefined || blob.model_features.length === 0) {
-        return
-    }
-    blob.model_features.forEach(function (modelFeature) {
-        let modelFeatureInMaster = helpers.filterMatch(FinalLUISJSON.model_features, 'name', modelFeature.name);
+    // Find what scope to use in blob
+    let blobScope = blob.model_features || blob.phraselists || [];
+    if (blobScope.length === 0) return;
+
+    // Find the finalLuisJson scope to use
+    let finalScope = FinalLUISJSON.model_features || FinalLUISJSON.phraselists;
+
+    blobScope.forEach(function (modelFeature) {
+        let modelFeatureInMaster = helpers.filterMatch(finalScope, 'name', modelFeature.name);
         if (modelFeatureInMaster.length === 0) {
-            FinalLUISJSON.model_features.push(modelFeature);
+            finalScope.push(modelFeature);
         } else {
             if (modelFeatureInMaster[0].mode !== modelFeature.mode) {
                 // error.
diff --git a/packages/lu/test/parser/lufile/luQnAFileReference.test.js b/packages/lu/test/parser/lufile/luQnAFileReference.test.js
index d62c55d23..91af9cee3 100644
--- a/packages/lu/test/parser/lufile/luQnAFileReference.test.js
+++ b/packages/lu/test/parser/lufile/luQnAFileReference.test.js
@@ -167,12 +167,39 @@ describe('Deep reference tests', function() {
                 done()
             })
     })
+
+    it('Fix for BF-CLI #797 - deep references to phrase lists are handled correctly', function(done) {
+        let luContent = `
+@ phraselist pl_1(interchangeable) =
+    - pl 1
+    - pl 1 1
+    
+## l_Test
+- [l_Test](./Test.lu#Test.Weather)
+`;
+
+        luMerger.Build([new luObj(luContent, new luOptions('main.lu', true))], false, undefined, findLuFiles)
+        .then(res => done())
+        .catch(err => done(err))
+    })
 })
     
 const findLuFiles = async function(srcId, idsToFind){
     let retPayload = [];
     idsToFind.forEach(ask => {
         switch(ask.filePath) {
+            case './Test.lu': 
+                retPayload.push(new luObj(`
+[Phrase list definitions](./phrases.lumodule)
+
+> # Intent definitions
+## Test.Weather
+- what is the weather`, new luOptions(ask.filePath, false)));
+                retPayload.push(new luObj(`
+@ phraselist pl_2(interchangeable) =
+- pl 2
+- pl 2 2`, new luOptions(`phrases.lumodule`, true)))
+                break;
             case 'qna1': 
                 retPayload.push(new luObj(`
 # ? q1