diff --git a/AUTHORS b/AUTHORS
index 0d64a565..163ee8fe 100644
--- a/AUTHORS
+++ b/AUTHORS
@@ -186,3 +186,4 @@ that much better:
  * rfkrocktk (https://github.com/rfkrocktk)
  * Gustavo Andrés Angulo (https://github.com/woakas)
  * Dmytro Popovych (https://github.com/drudim)
+ * Tom (https://github.com/tomprimozic)
\ No newline at end of file
diff --git a/docs/changelog.rst b/docs/changelog.rst
index 76157220..fa01df85 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -4,6 +4,7 @@ Changelog
 
 Changes in 0.8.5
 ================
+- Fixed EmbeddedDocument with ReferenceField equality issue (#502)
 - Fixed GenericReferenceField serialization order (#499)
 - Fixed count and none bug (#498)
 - Fixed bug with .only() and DictField with digit keys (#496)
diff --git a/mongoengine/document.py b/mongoengine/document.py
index 1bbd7b73..59bea359 100644
--- a/mongoengine/document.py
+++ b/mongoengine/document.py
@@ -66,7 +66,7 @@ class EmbeddedDocument(BaseDocument):
 
     def __eq__(self, other):
         if isinstance(other, self.__class__):
-            return self._data == other._data
+            return self.to_mongo() == other.to_mongo()
         return False
 
     def __ne__(self, other):
diff --git a/tests/document/instance.py b/tests/document/instance.py
index a61c4396..06b884f5 100644
--- a/tests/document/instance.py
+++ b/tests/document/instance.py
@@ -2392,6 +2392,24 @@ class InstanceTest(unittest.TestCase):
         system = System.objects.first()
         self.assertEqual("UNDEFINED", system.nodes["node"].parameters["param"].macros["test"].value)
 
+    def test_embedded_document_equality(self):
+
+        class Test(Document):
+            field = StringField(required=True)
+
+        class Embedded(EmbeddedDocument):
+            ref = ReferenceField(Test)
+
+        Test.drop_collection()
+        test = Test(field='123').save()      # has id
+
+        e = Embedded(ref=test)
+        f1 = Embedded._from_son(e.to_mongo())
+        f2 = Embedded._from_son(e.to_mongo())
+
+        self.assertEqual(f1, f2)
+        f1.ref  # Dereferences lazily
+        self.assertEqual(f1, f2)
 
 if __name__ == '__main__':
     unittest.main()