diff --git a/pyteal/ast/abi/__init__.py b/pyteal/ast/abi/__init__.py
index 983cf7685..c789c3556 100644
--- a/pyteal/ast/abi/__init__.py
+++ b/pyteal/ast/abi/__init__.py
@@ -49,6 +49,7 @@
     make,
     size_of,
     type_spec_from_annotation,
+    contains_type_spec,
 )
 
 __all__ = [
@@ -103,4 +104,5 @@
     "size_of",
     "algosdk_from_annotation",
     "algosdk_from_type_spec",
+    "contains_type_spec",
 ]
diff --git a/pyteal/ast/abi/util.py b/pyteal/ast/abi/util.py
index 5b39509df..b01675b6d 100644
--- a/pyteal/ast/abi/util.py
+++ b/pyteal/ast/abi/util.py
@@ -1,4 +1,4 @@
-from typing import TypeVar, Any, Literal, get_origin, get_args, cast
+from typing import Sequence, TypeVar, Any, Literal, get_origin, get_args, cast
 
 import algosdk.abi
 
@@ -235,6 +235,29 @@ def type_spec_from_annotation(annotation: Any) -> TypeSpec:
 T = TypeVar("T", bound=BaseType)
 
 
+def contains_type_spec(ts: TypeSpec, targets: Sequence[TypeSpec]) -> bool:
+    from pyteal.ast.abi.array_dynamic import DynamicArrayTypeSpec
+    from pyteal.ast.abi.array_static import StaticArrayTypeSpec
+    from pyteal.ast.abi.tuple import TupleTypeSpec
+
+    stack: list[TypeSpec] = [ts]
+
+    while stack:
+        current = stack.pop()
+        if current in targets:
+            return True
+
+        match current:
+            case TupleTypeSpec():
+                stack.extend(current.value_type_specs())
+            case DynamicArrayTypeSpec():
+                stack.append(current.value_type_spec())
+            case StaticArrayTypeSpec():
+                stack.append(current.value_type_spec())
+
+    return False
+
+
 def size_of(t: type[T]) -> int:
     """Get the size in bytes of an ABI type. Must be a static type"""
 
diff --git a/pyteal/ast/subroutine.py b/pyteal/ast/subroutine.py
index 75c98ae76..221de6306 100644
--- a/pyteal/ast/subroutine.py
+++ b/pyteal/ast/subroutine.py
@@ -595,6 +595,17 @@ def method_signature(self, overriding_name: str = None) -> str:
                 "Only registrable methods may return a method signature"
             )
 
+        ret_type = self.type_of()
+        if isinstance(ret_type, abi.TypeSpec) and abi.contains_type_spec(
+            ret_type,
+            [
+                abi.AccountTypeSpec(),
+                abi.AssetTypeSpec(),
+                abi.ApplicationTypeSpec(),
+            ],
+        ):
+            raise TealInputError("Reference types may not be used as return values")
+
         args = [str(v) for v in self.subroutine.abi_args.values()]
         if overriding_name is None:
             overriding_name = self.name()
diff --git a/pyteal/ast/subroutine_test.py b/pyteal/ast/subroutine_test.py
index 3d1934cdf..a58df675f 100644
--- a/pyteal/ast/subroutine_test.py
+++ b/pyteal/ast/subroutine_test.py
@@ -5,7 +5,7 @@
 from dataclasses import dataclass
 
 import pyteal as pt
-from pyteal.ast.subroutine import evaluate_subroutine
+from pyteal.ast.subroutine import ABIReturnSubroutine, evaluate_subroutine
 
 options = pt.CompileOptions(version=5)
 
@@ -237,6 +237,37 @@ def fn_w_tuple1arg(
                 case.definition.method_signature()
 
 
+def test_subroutine_return_reference():
+    @ABIReturnSubroutine
+    def invalid_ret_type(*, output: pt.abi.Account):
+        return output.set(0)
+
+    with pytest.raises(pt.TealInputError):
+        invalid_ret_type.method_signature()
+
+    @ABIReturnSubroutine
+    def invalid_ret_type_collection(
+        *, output: pt.abi.Tuple2[pt.abi.Account, pt.abi.Uint64]
+    ):
+        return output.set(pt.abi.Account(), pt.abi.Uint64())
+
+    with pytest.raises(pt.TealInputError):
+        invalid_ret_type_collection.method_signature()
+
+    @ABIReturnSubroutine
+    def invalid_ret_type_collection_nested(
+        *, output: pt.abi.DynamicArray[pt.abi.Tuple2[pt.abi.Account, pt.abi.Uint64]]
+    ):
+        return output.set(
+            pt.abi.make(
+                pt.abi.DynamicArray[pt.abi.Tuple2[pt.abi.Account, pt.abi.Uint64]]
+            )
+        )
+
+    with pytest.raises(pt.TealInputError):
+        invalid_ret_type_collection_nested.method_signature()
+
+
 def test_subroutine_definition_validate():
     """
     DFS through SubroutineDefinition.validate()'s logic