diff --git a/lib/blocks.js b/lib/blocks.js
index 0c6a0295..0d2a8ec1 100644
--- a/lib/blocks.js
+++ b/lib/blocks.js
@@ -497,14 +497,27 @@ var blockStarts = [
             container.type === 'paragraph' &&
                    ((match = parser.currentLine.slice(parser.nextNonspace).match(reSetextHeadingLine)))) {
             parser.closeUnmatchedBlocks();
-            var heading = new Node('heading', container.sourcepos);
-            heading.level = match[0][0] === '=' ? 1 : 2;
-            heading._string_content = container._string_content;
-            container.insertAfter(heading);
-            container.unlink();
-            parser.tip = heading;
-            parser.advanceOffset(parser.currentLine.length - parser.offset, false);
-            return 2;
+            // resolve reference link definitiosn
+            var pos;
+            while (peek(container._string_content, 0) === C_OPEN_BRACKET &&
+                   (pos =
+                    parser.inlineParser.parseReference(
+                        container._string_content, parser.refmap))) {
+                container._string_content =
+                    container._string_content.slice(pos);
+            }
+            if (container._string_content.length > 0) {
+              var heading = new Node('heading', container.sourcepos);
+              heading.level = match[0][0] === '=' ? 1 : 2;
+              heading._string_content = container._string_content;
+              container.insertAfter(heading);
+              container.unlink();
+              parser.tip = heading;
+              parser.advanceOffset(parser.currentLine.length - parser.offset, false);
+              return 2;
+            } else {
+              return 0;
+            }
         } else {
             return 0;
         }