diff --git a/packages/@aws-cdk/core/test/test.cross-environment-token.ts b/packages/@aws-cdk/core/test/test.cross-environment-token.ts
index 20cdf98dd0829..c18ea934e382f 100644
--- a/packages/@aws-cdk/core/test/test.cross-environment-token.ts
+++ b/packages/@aws-cdk/core/test/test.cross-environment-token.ts
@@ -1,5 +1,5 @@
 import { Test } from 'nodeunit';
-import { App, CfnOutput, Construct, PhysicalName, Resource, Stack } from '../lib';
+import { App, CfnOutput, CfnResource, Construct, PhysicalName, Resource, Stack } from '../lib';
 import { toCloudFormation } from './util';
 
 // tslint:disable:object-literal-key-quotes
@@ -195,6 +195,53 @@ export = {
 
     test.done();
   },
+
+  'cross environment when stack is a substack'(test: Test) {
+    const app = new App();
+
+    const parentStack = new Stack(app, 'ParentStack', {
+      env: { account: '112233', region: 'us-east-1' }
+    });
+
+    const childStack = new Stack(parentStack, 'ChildStack', {
+      env: { account: '998877', region: 'eu-west-2' }
+    });
+
+    const childResource = new MyResource(childStack, 'ChildResource', PhysicalName.GENERATE_IF_NEEDED);
+
+    new CfnResource(parentStack, 'ParentResource', {
+      type: 'Parent::Resource',
+      properties: {
+        RefToChildResource: childResource.name
+      }
+    });
+
+    const assembly = app.synth();
+
+    test.deepEqual(assembly.getStack(parentStack.stackName).template, {
+      Resources: {
+        ParentResource: {
+          Type: 'Parent::Resource',
+          Properties: {
+            RefToChildResource: 'parentstackchildstack83c5ackchildresource852877eeb919bda2008e'
+          }
+        }
+      }
+    });
+
+    test.deepEqual(assembly.getStack(childStack.stackName).template, {
+      Resources: {
+        ChildResource8C37244D: {
+          Type: 'My::Resource',
+          Properties: {
+            resourceName: 'parentstackchildstack83c5ackchildresource852877eeb919bda2008e'
+          }
+        }
+      }
+    });
+
+    test.done();
+  }
 };
 
 class MyResource extends Resource {
@@ -212,5 +259,12 @@ class MyResource extends Resource {
       service: 'myservice',
     });
     this.name = this.getResourceNameAttribute('simple-name');
+
+    new CfnResource(this, 'Resource', {
+      type: 'My::Resource',
+      properties: {
+        resourceName: this.physicalName
+      }
+    });
   }
 }
diff --git a/packages/@aws-cdk/core/test/test.stack.ts b/packages/@aws-cdk/core/test/test.stack.ts
index 725eca0f958d5..7ab0d8778c07e 100644
--- a/packages/@aws-cdk/core/test/test.stack.ts
+++ b/packages/@aws-cdk/core/test/test.stack.ts
@@ -284,6 +284,103 @@ export = {
     test.done();
   },
 
+  'Stacks can be children of other stacks (substack) and they will be synthesized separately'(test: Test) {
+    // GIVEN
+    const app = new App();
+
+    // WHEN
+    const parentStack = new Stack(app, 'parent');
+    const childStack = new Stack(parentStack, 'child');
+    new CfnResource(parentStack, 'MyParentResource', { type: 'Resource::Parent' });
+    new CfnResource(childStack, 'MyChildResource', { type: 'Resource::Child' });
+
+    // THEN
+    const assembly = app.synth();
+    test.deepEqual(assembly.getStack(parentStack.stackName).template, { Resources: { MyParentResource: { Type: 'Resource::Parent' } } });
+    test.deepEqual(assembly.getStack(childStack.stackName).template, { Resources: { MyChildResource: { Type: 'Resource::Child' } } });
+    test.done();
+  },
+
+  'cross-stack reference (substack references parent stack)'(test: Test) {
+    // GIVEN
+    const app = new App();
+    const parentStack = new Stack(app, 'parent');
+    const childStack = new Stack(parentStack, 'child');
+
+    // WHEN (a resource from the child stack references a resource from the parent stack)
+    const parentResource = new CfnResource(parentStack, 'MyParentResource', { type: 'Resource::Parent' });
+    new CfnResource(childStack, 'MyChildResource', {
+      type: 'Resource::Child',
+      properties: {
+        ChildProp: parentResource.getAtt('AttOfParentResource')
+      }
+    });
+
+    // THEN
+    const assembly = app.synth();
+    test.deepEqual(assembly.getStack(parentStack.stackName).template, {
+      Resources: { MyParentResource: { Type: 'Resource::Parent' } },
+      Outputs: { ExportsOutputFnGetAttMyParentResourceAttOfParentResourceC2D0BB9E: {
+        Value: { 'Fn::GetAtt': [ 'MyParentResource', 'AttOfParentResource' ] },
+        Export: { Name: 'parent:ExportsOutputFnGetAttMyParentResourceAttOfParentResourceC2D0BB9E' } }
+      }
+    });
+    test.deepEqual(assembly.getStack(childStack.stackName).template, {
+      Resources: {
+        MyChildResource: {
+          Type: 'Resource::Child',
+          Properties: {
+            ChildProp: {
+              'Fn::ImportValue': 'parent:ExportsOutputFnGetAttMyParentResourceAttOfParentResourceC2D0BB9E'
+            }
+          }
+        }
+      }
+    });
+    test.done();
+  },
+
+  'cross-stack reference (parent stack references substack)'(test: Test) {
+    // GIVEN
+    const app = new App();
+    const parentStack = new Stack(app, 'parent');
+    const childStack = new Stack(parentStack, 'child');
+
+    // WHEN (a resource from the child stack references a resource from the parent stack)
+    const childResource = new CfnResource(childStack, 'MyChildResource', { type: 'Resource::Child' });
+    new CfnResource(parentStack, 'MyParentResource', {
+      type: 'Resource::Parent',
+      properties: {
+        ParentProp: childResource.getAtt('AttributeOfChildResource')
+      }
+    });
+
+    // THEN
+    const assembly = app.synth();
+    test.deepEqual(assembly.getStack(parentStack.stackName).template, {
+      Resources: {
+        MyParentResource: {
+          Type: 'Resource::Parent',
+          Properties: {
+            ParentProp: { 'Fn::ImportValue': 'parentchild13F9359B:childExportsOutputFnGetAttMyChildResourceAttributeOfChildResource420052FC' }
+          }
+        }
+      }
+    });
+
+    test.deepEqual(assembly.getStack(childStack.stackName).template, {
+      Resources: {
+        MyChildResource: { Type: 'Resource::Child' } },
+      Outputs: {
+        ExportsOutputFnGetAttMyChildResourceAttributeOfChildResource52813264: {
+          Value: { 'Fn::GetAtt': [ 'MyChildResource', 'AttributeOfChildResource' ] },
+          Export: { Name: 'parentchild13F9359B:childExportsOutputFnGetAttMyChildResourceAttributeOfChildResource420052FC' }
+        }
+      }
+    });
+    test.done();
+  },
+
   'cannot create cyclic reference between stacks'(test: Test) {
     // GIVEN
     const app = new App();
@@ -439,6 +536,26 @@ export = {
     test.done();
   },
 
+  'Stack.of() works for substacks'(test: Test) {
+    // GIVEN
+    const app = new App();
+
+    // WHEN
+    const parentStack = new Stack(app, 'ParentStack');
+    const parentResource = new CfnResource(parentStack, 'ParentResource', { type: 'parent::resource' });
+
+    // we will define a substack under the /resource/... just for giggles.
+    const childStack = new Stack(parentResource, 'ChildStack');
+    const childResource = new CfnResource(childStack, 'ChildResource', { type: 'child::resource' });
+
+    // THEN
+    test.same(Stack.of(parentStack), parentStack);
+    test.same(Stack.of(parentResource), parentStack);
+    test.same(Stack.of(childStack), childStack);
+    test.same(Stack.of(childResource), childStack);
+    test.done();
+  },
+
   'stack.availabilityZones falls back to Fn::GetAZ[0],[2] if region is not specified'(test: Test) {
     // GIVEN
     const app = new App();