diff --git a/actions-languageservice/src/validate.ts b/actions-languageservice/src/validate.ts
index d46c779..ca91193 100644
--- a/actions-languageservice/src/validate.ts
+++ b/actions-languageservice/src/validate.ts
@@ -14,6 +14,7 @@ import {BasicExpressionToken} from "@github/actions-workflow-parser/templates/to
 import {StringToken} from "@github/actions-workflow-parser/templates/tokens/string-token";
 import {TemplateToken} from "@github/actions-workflow-parser/templates/tokens/template-token";
 import {File} from "@github/actions-workflow-parser/workflows/file";
+import {FileProvider} from "@github/actions-workflow-parser/workflows/file-provider";
 import {TextDocument} from "vscode-languageserver-textdocument";
 import {Diagnostic, DiagnosticSeverity, URI} from "vscode-languageserver-types";
 import {ActionInputs, ActionReference} from "./action";
@@ -35,6 +36,7 @@ export type ValidationConfig = {
   valueProviderConfig?: ValueProviderConfig;
   contextProviderConfig?: ContextProviderConfig;
   getActionInputs?(action: ActionReference): Promise<ActionInputs | undefined>;
+  fileProvider?: FileProvider;
 };
 
 /**
@@ -55,7 +57,15 @@ export async function validate(textDocument: TextDocument, config?: ValidationCo
     const result: ParseWorkflowResult = parseWorkflow(file, nullTrace);
     if (result.value) {
       // Errors will be updated in the context. Attempt to do the conversion anyway in order to give the user more information
-      const template = await convertWorkflowTemplate(result.context, result.value, ErrorPolicy.TryConversion);
+      const template = await convertWorkflowTemplate(
+        result.context,
+        result.value,
+        ErrorPolicy.TryConversion,
+        config?.fileProvider,
+        {
+          fetchReusableWorkflowDepth: config?.fileProvider ? 1 : 0
+        }
+      );
 
       // Validate expressions and value providers
       await additionalValidations(diagnostics, textDocument.uri, template, result.value, config);
diff --git a/actions-languageservice/src/validate.workflow-references.test.ts b/actions-languageservice/src/validate.workflow-references.test.ts
new file mode 100644
index 0000000..e9f256a
--- /dev/null
+++ b/actions-languageservice/src/validate.workflow-references.test.ts
@@ -0,0 +1,208 @@
+import {FileProvider} from "@github/actions-workflow-parser/workflows/file-provider";
+import {fileIdentifier} from "@github/actions-workflow-parser/workflows/file-reference";
+import {createDocument} from "./test-utils/document";
+import {validate} from "./validate";
+
+const testFileProvider: FileProvider = {
+  getFileContent: async ref => {
+    switch (fileIdentifier(ref)) {
+      case "monalisa/octocat/workflow.yaml@main":
+        return {
+          name: "monalisa/octocat/workflow.yaml",
+          content: `
+on: workflow_call
+jobs:
+  build:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v3
+`
+        };
+
+      case "monalisa/octocat/.github/workflows/non-reusable-workflow.yaml@main":
+        return {
+          name: "monalisa/octocat/.github/workflows/non-reusable-workflow.yaml",
+          content: `
+on: push
+jobs:
+  build:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v3
+`
+        };
+
+      case "./reusable-workflow.yaml":
+        return {
+          name: "reusable-workflow.yaml",
+          content: `
+on: workflow_call
+jobs:
+  build:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v3
+`
+        };
+
+      case "./reusable-workflow-with-inputs.yaml":
+        return {
+          name: "reusable-workflow-with-inputs.yaml",
+          content: `
+on:
+  workflow_call:
+    inputs:
+      username:
+        description: 'A username passed from the caller workflow'
+        required: true
+        type: string
+
+jobs:
+  build:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v3
+  `
+        };
+
+      default:
+        throw new Error("File not found");
+    }
+  }
+};
+
+describe("workflow references validation", () => {
+  it("invalid workflow reference", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: monalisa/octocat/.github/workflows/non-reusable-workflow.yaml@main
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([
+      {
+        message: "workflow_call key is not defined in the referenced workflow.",
+        range: {
+          start: {
+            character: 10,
+            line: 5
+          },
+          end: {
+            character: 76,
+            line: 5
+          }
+        }
+      }
+    ]);
+  });
+
+  it("reference to a non-reusable workflow", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: monalisa/octocat/workflow.yaml@not-a-branch
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([
+      {
+        message: "Unable to find reusable workflow",
+        range: {
+          start: {
+            character: 10,
+            line: 5
+          },
+          end: {
+            character: 53,
+            line: 5
+          }
+        }
+      }
+    ]);
+  });
+
+  it("valid reference to a reusable workflow", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: monalisa/octocat/workflow.yaml@main
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([]);
+  });
+
+  it("valid reference to a local workflow", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: ./reusable-workflow.yaml
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([]);
+  });
+
+  it("workflow reference without required inputs", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: ./reusable-workflow-with-inputs.yaml
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([
+      {
+        message: "Input username is required, but not provided while calling.",
+        range: {
+          start: {
+            character: 10,
+            line: 5
+          },
+          end: {
+            character: 46,
+            line: 5
+          }
+        }
+      }
+    ]);
+  });
+
+  it("workflow reference with required inputs", async () => {
+    const input = `
+on: push
+
+jobs:
+  build:
+    uses: ./reusable-workflow-with-inputs.yaml
+    with:
+      username: monalisa
+`;
+    const result = await validate(createDocument("wf.yaml", input), {
+      fileProvider: testFileProvider
+    });
+
+    expect(result).toEqual([]);
+  });
+});
diff --git a/actions-workflow-parser/src/model/converter/referencedWorkflow.ts b/actions-workflow-parser/src/model/converter/referencedWorkflow.ts
index b40f739..9de9b49 100644
--- a/actions-workflow-parser/src/model/converter/referencedWorkflow.ts
+++ b/actions-workflow-parser/src/model/converter/referencedWorkflow.ts
@@ -13,18 +13,21 @@ export function convertReferencedWorkflow(
 ) {
   const mapping = referencedWorkflow.assertMapping("root");
 
-  let onToken: TemplateToken | undefined;
+  // The language service doesn't currently handles on other documents,
+  // So use the ref in the original workflow as the error location
+  const tokenForErrors = job.ref;
+
   for (const pair of mapping) {
     const key = pair.key.assertString("root key");
     switch (key.value) {
       case "on": {
-        handleTemplateTokenErrors(mapping, context, undefined, () =>
+        handleTemplateTokenErrors(tokenForErrors, context, undefined, () =>
           convertReferencedWorkflowOn(context, pair.value, job)
         );
         break;
       }
       case "jobs": {
-        job.jobs = handleTemplateTokenErrors(mapping, context, [], () => convertJobs(context, pair.value));
+        job.jobs = handleTemplateTokenErrors(tokenForErrors, context, [], () => convertJobs(context, pair.value));
         break;
       }
     }
@@ -32,11 +35,12 @@ export function convertReferencedWorkflow(
 }
 
 function convertReferencedWorkflowOn(context: TemplateContext, on: TemplateToken, job: ReusableWorkflowJob) {
+  const tokenForErrors = job.ref;
   switch (on.templateTokenType) {
     case TokenType.String: {
       const event = on.assertString("Reference workflow on value").value;
       if (event === "workflow_call") {
-        handleTemplateTokenErrors(on, context, undefined, () => convertWorkflowJobInputs(context, job));
+        handleTemplateTokenErrors(tokenForErrors, context, undefined, () => convertWorkflowJobInputs(context, job));
         return;
       }
       break;
@@ -47,7 +51,7 @@ function convertReferencedWorkflowOn(context: TemplateContext, on: TemplateToken
       for (const eventToken of events) {
         const event = eventToken.assertString(`Reference workflow on value ${eventToken}`).value;
         if (event === "workflow_call") {
-          handleTemplateTokenErrors(on, context, undefined, () => convertWorkflowJobInputs(context, job));
+          handleTemplateTokenErrors(tokenForErrors, context, undefined, () => convertWorkflowJobInputs(context, job));
           return;
         }
       }
@@ -64,7 +68,7 @@ function convertReferencedWorkflowOn(context: TemplateContext, on: TemplateToken
         }
 
         if (pair.value.templateTokenType === TokenType.Null) {
-          handleTemplateTokenErrors(on, context, undefined, () => convertWorkflowJobInputs(context, job));
+          handleTemplateTokenErrors(tokenForErrors, context, undefined, () => convertWorkflowJobInputs(context, job));
           return;
         }
 
@@ -82,12 +86,12 @@ function convertReferencedWorkflowOn(context: TemplateContext, on: TemplateToken
           }
         }
 
-        handleTemplateTokenErrors(on, context, undefined, () => convertWorkflowJobInputs(context, job));
+        handleTemplateTokenErrors(tokenForErrors, context, undefined, () => convertWorkflowJobInputs(context, job));
         return;
       }
       break;
     }
   }
 
-  context.error(on, "workflow_call key is not defined in the referenced workflow.");
+  context.error(tokenForErrors, "workflow_call key is not defined in the referenced workflow.");
 }