diff --git a/CHANGELOG.md b/CHANGELOG.md
index da7c3241..ab03984e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,10 +5,11 @@
 ### Added
 
 - Added `scheme.enableGPUValidationMode` #1294 @LouisLWang
-  
+
 ### Fixed
 
 - Fix external dependencies from being removed by Xcode #1354 @OdNairy
+- Stop creating orphaned object references when reusing references to external dependencies #1377 @liamnichols
 
 ## 2.35.0
 
diff --git a/Sources/XcodeGenKit/PBXProjGenerator.swift b/Sources/XcodeGenKit/PBXProjGenerator.swift
index 6e77c3f8..9ad0c918 100644
--- a/Sources/XcodeGenKit/PBXProjGenerator.swift
+++ b/Sources/XcodeGenKit/PBXProjGenerator.swift
@@ -407,13 +407,11 @@ public class PBXProjGenerator {
             )
         )
 
-        let productProxy = addObject(
-            PBXContainerItemProxy(
-                containerPortal: .fileReference(projectFileReference),
-                remoteGlobalID: targetObject.product.flatMap(PBXContainerItemProxy.RemoteGlobalID.object),
-                proxyType: .reference,
-                remoteInfo: target
-            )
+        let productProxy = PBXContainerItemProxy(
+            containerPortal: .fileReference(projectFileReference),
+            remoteGlobalID: targetObject.product.flatMap(PBXContainerItemProxy.RemoteGlobalID.object),
+            proxyType: .reference,
+            remoteInfo: target
         )
 
         var path = targetObject.productNameWithExtension()
@@ -437,6 +435,7 @@ public class PBXProjGenerator {
         if let existingValue = existingValue {
             productReferenceProxy = existingValue
         } else {
+            addObject(productProxy)
             productReferenceProxy = addObject(
                 PBXReferenceProxy(
                     fileType: productReferenceProxyFileType,
diff --git a/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj b/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
index 8d52e4a3..b8637f82 100644
--- a/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
+++ b/Tests/Fixtures/TestProject/Project.xcodeproj/project.pbxproj
@@ -72,6 +72,7 @@
 		3788E1382B38DF4ACE3D2BB1 /* MyFramework.h in Headers */ = {isa = PBXBuildFile; fileRef = 6A58A16491CDDF968B0D56DE /* MyFramework.h */; settings = {ATTRIBUTES = (Public, ); }; };
 		3BBCA6F76E5F212E9C55FB78 /* BundleX.bundle in Copy Bundle Resources */ = {isa = PBXBuildFile; fileRef = 45C12576F5AA694DD0CE2132 /* BundleX.bundle */; settings = {ATTRIBUTES = (CodeSignOnCopy, RemoveHeadersOnCopy, ); }; };
 		3C5134EE524310ACF7B7CD6E /* ExtensionDelegate.swift in Sources */ = {isa = PBXBuildFile; fileRef = 8CAF6C55B555E3E1352645B6 /* ExtensionDelegate.swift */; };
+		3DF22C477446669094AC7C8C /* ExternalTarget.framework in Embed Frameworks */ = {isa = PBXBuildFile; fileRef = F6ADE654A3459AFDA2CC0CD3 /* ExternalTarget.framework */; settings = {ATTRIBUTES = (CodeSignOnCopy, RemoveHeadersOnCopy, ); }; };
 		447D59BE2E0993D7245EA247 /* Assets.xcassets in Resources */ = {isa = PBXBuildFile; fileRef = 3797E591F302ECC0AA2FC607 /* Assets.xcassets */; };
 		45E6702CD9C088FF1FC25F34 /* App_watchOS.app in Embed Watch Content */ = {isa = PBXBuildFile; fileRef = A680BE9F68A255B0FB291AE6 /* App_watchOS.app */; settings = {ATTRIBUTES = (RemoveHeadersOnCopy, ); }; };
 		470D3493CDBFE56E2083A5FD /* BundleY.bundle in Copy Bundle Resources */ = {isa = PBXBuildFile; fileRef = E3958AB20082EA12D4D5E60C /* BundleY.bundle */; settings = {ATTRIBUTES = (RemoveHeadersOnCopy, ); }; };
@@ -165,6 +166,7 @@
 		CCA17097382757012B58C17C /* Assets.xcassets in Resources */ = {isa = PBXBuildFile; fileRef = 1BC32A813B80A53962A1F365 /* Assets.xcassets */; };
 		D058D241BDF5FB0C919BBECA /* CrossOverlayFramework.swiftcrossimport in CopyFiles */ = {isa = PBXBuildFile; fileRef = 8DD7A61B07AD2F91BDECC255 /* CrossOverlayFramework.swiftcrossimport */; };
 		D5458D67C3596943114C3205 /* Standalone.swift in Sources */ = {isa = PBXBuildFile; fileRef = 0F5BD97AF0F94A15A5B7DDB7 /* Standalone.swift */; };
+		D5D493E4A7AD63860E1399DD /* ExternalTarget.framework in Frameworks */ = {isa = PBXBuildFile; fileRef = F6ADE654A3459AFDA2CC0CD3 /* ExternalTarget.framework */; };
 		D61BEABD5B26B2DE67D0C2EC /* FrameworkFile.swift in Sources */ = {isa = PBXBuildFile; fileRef = 2A5F527F2590C14956518174 /* FrameworkFile.swift */; };
 		D62AB3A85B32F353ABBD57BC /* iMessageExtension.appex in Embed Foundation Extensions */ = {isa = PBXBuildFile; fileRef = D629E142AB87C681D4EC90F7 /* iMessageExtension.appex */; settings = {ATTRIBUTES = (RemoveHeadersOnCopy, ); }; };
 		D8ED40ED61AD912385CFF5F0 /* StaticLibrary_ObjC.m in Sources */ = {isa = PBXBuildFile; fileRef = 1D0C79A8C750EC0DE748C463 /* StaticLibrary_ObjC.m */; };
@@ -366,6 +368,13 @@
 			remoteGlobalIDString = 0867B0DACEF28C11442DE8F7;
 			remoteInfo = App_iOS;
 		};
+		CA16090DFCA7842CB4E20265 /* PBXContainerItemProxy */ = {
+			isa = PBXContainerItemProxy;
+			containerPortal = F192E783CCA898FBAA5C34EA /* AnotherProject */;
+			proxyType = 1;
+			remoteGlobalIDString = E76A5F5E363E470416D3B487;
+			remoteInfo = ExternalTarget;
+		};
 		CB8F4B3FDD84A2A6F3CA7F4C /* PBXContainerItemProxy */ = {
 			isa = PBXContainerItemProxy;
 			containerPortal = 0FBAE303E3CFC2ABAC876A77 /* Project object */;
@@ -552,6 +561,7 @@
 			dstPath = "";
 			dstSubfolderSpec = 10;
 			files = (
+				3DF22C477446669094AC7C8C /* ExternalTarget.framework in Embed Frameworks */,
 				9C92B7C89E5F0A10A34F5AA4 /* Framework.framework in Embed Frameworks */,
 			);
 			name = "Embed Frameworks";
@@ -970,6 +980,7 @@
 			isa = PBXFrameworksBuildPhase;
 			buildActionMask = 2147483647;
 			files = (
+				D5D493E4A7AD63860E1399DD /* ExternalTarget.framework in Frameworks */,
 				A1588BF3BFFE1DF7409CBA10 /* Framework.framework in Frameworks */,
 				65EBD2D87F1F5FDA63F8C027 /* Result.framework in Frameworks */,
 				71A2AAC5934BDC9EDB6F0D9E /* libStaticLibrary_ObjC.a in Frameworks */,
@@ -2240,6 +2251,7 @@
 			buildRules = (
 			);
 			dependencies = (
+				FD2D68EC95DC231C4007FB08 /* PBXTargetDependency */,
 				BE9300E427142E634A8A91B8 /* PBXTargetDependency */,
 				CFEACC1CED73B52EA1CCD054 /* PBXTargetDependency */,
 			);
@@ -3207,6 +3219,11 @@
 			target = AD28397BCC984F769EE8A937 /* NetworkSystemExtension */;
 			targetProxy = D4A7C57F6272F44F2E69A5DB /* PBXContainerItemProxy */;
 		};
+		FD2D68EC95DC231C4007FB08 /* PBXTargetDependency */ = {
+			isa = PBXTargetDependency;
+			name = ExternalTarget;
+			targetProxy = CA16090DFCA7842CB4E20265 /* PBXContainerItemProxy */;
+		};
 /* End PBXTargetDependency section */
 
 /* Begin PBXVariantGroup section */
diff --git a/Tests/Fixtures/TestProject/project.yml b/Tests/Fixtures/TestProject/project.yml
index 8e3ee235..67138ddb 100644
--- a/Tests/Fixtures/TestProject/project.yml
+++ b/Tests/Fixtures/TestProject/project.yml
@@ -421,6 +421,7 @@ targets:
     dependencies:
       - target: Framework_iOS
       - target: StaticLibrary_ObjC_iOS
+      - target: AnotherProject/ExternalTarget
     scheme:
       testTargets:
         - App_Clip_Tests