diff --git a/ZB.MOM.WW.Auth/Directory.Build.props b/ZB.MOM.WW.Auth/Directory.Build.props
index f03af92..46a66f9 100644
--- a/ZB.MOM.WW.Auth/Directory.Build.props
+++ b/ZB.MOM.WW.Auth/Directory.Build.props
@@ -5,7 +5,10 @@
     <Nullable>enable</Nullable>
     <ImplicitUsings>enable</ImplicitUsings>
     <LangVersion>latest</LangVersion>
-    <Version>0.2.0</Version>
+    <!-- 0.2.1: NovellLdapConnection.Search now skips AD continuation referrals instead of
+         letting them fail the search stage. Without it, a SearchBase at a domain root made
+         every login fail as ServiceAccountBindFailed against a healthy directory. -->
+    <Version>0.2.1</Version>
     <ManagePackageVersionsCentrally>true</ManagePackageVersionsCentrally>
   </PropertyGroup>
 
diff --git a/ZB.MOM.WW.Auth/src/ZB.MOM.WW.Auth.Ldap/Internal/NovellLdapConnection.cs b/ZB.MOM.WW.Auth/src/ZB.MOM.WW.Auth.Ldap/Internal/NovellLdapConnection.cs
index 3c684a7..839b188 100644
--- a/ZB.MOM.WW.Auth/src/ZB.MOM.WW.Auth.Ldap/Internal/NovellLdapConnection.cs
+++ b/ZB.MOM.WW.Auth/src/ZB.MOM.WW.Auth.Ldap/Internal/NovellLdapConnection.cs
@@ -99,23 +99,73 @@ internal sealed class NovellLdapConnection : ILdapConnection
             attributes.ToArray(),
             typesOnly: false);
 
+        return ReadEntries(results);
+    }
+
+    /// <summary>
+    /// Drains a result set into entries, <b>skipping continuation referrals</b>.
+    /// </summary>
+    /// <remarks>
+    /// <para>
+    /// Active Directory answers any search based at a domain root with one or more
+    /// continuation references (to <c>CN=Configuration</c>, <c>DC=ForestDnsZones</c> and
+    /// friends). With referral following disabled — the default, and what we want, since
+    /// chasing a referral would re-bind somewhere we did not authenticate — Novell surfaces
+    /// each one by throwing <see cref="LdapReferralException"/> from <see cref="ILdapSearchResults.Next"/>.
+    /// </para>
+    /// <para>
+    /// A continuation reference is a <em>pointer to another naming context</em>, not an error:
+    /// it says "there may be more results over there", never that this search failed. Letting
+    /// it escape made the whole search stage fail, which <c>LdapAuthService</c> maps to
+    /// <see cref="Abstractions.Ldap.LdapAuthFailure.ServiceAccountBindFailed"/> — so against a
+    /// real AD domain root, every login failed with a system-side error while the directory,
+    /// the credentials and both DCs were perfectly healthy. Verified against
+    /// <c>DC=nam,DC=zimmer,DC=com</c> on 2026-08-12.
+    /// </para>
+    /// <para>
+    /// Skipping is the correct behaviour rather than a workaround: the entries we can see are
+    /// exactly the ones in the naming context we bound to, which is the set the caller asked
+    /// about. Internal so the referral handling can be unit-tested through the
+    /// <see cref="ILdapSearchResults"/> seam without a live directory.
+    /// </para>
+    /// </remarks>
+    internal static List<LdapSearchEntry> ReadEntries(ILdapSearchResults results)
+    {
         var entries = new List<LdapSearchEntry>();
-        while (results.HasMore())
+        var referrals = 0;
+
+        while (true)
         {
-            var entry = results.Next();
-            var attrs = new Dictionary<string, IReadOnlyList<string>>(StringComparer.OrdinalIgnoreCase);
-
-            foreach (LdapAttribute attr in entry.GetAttributeSet())
+            try
             {
-                attrs[attr.Name] = attr.StringValueArray.ToList();
-            }
+                if (!results.HasMore()) break;
 
-            entries.Add(new LdapSearchEntry(entry.Dn, attrs));
+                var entry = results.Next();
+                var attrs = new Dictionary<string, IReadOnlyList<string>>(StringComparer.OrdinalIgnoreCase);
+
+                foreach (LdapAttribute attr in entry.GetAttributeSet())
+                {
+                    attrs[attr.Name] = attr.StringValueArray.ToList();
+                }
+
+                entries.Add(new LdapSearchEntry(entry.Dn, attrs));
+            }
+            catch (LdapException ex) when (ex is LdapReferralException || ex.ResultCode == LdapException.Referral)
+            {
+                // Novell dequeues the reference before throwing, so the enumeration advances and
+                // this terminates. The cap is a belt-and-braces guard: a client that threw without
+                // advancing would otherwise spin forever inside a fail-closed auth path, which is a
+                // far worse failure than under-reporting an implausible number of referrals.
+                if (++referrals > MaxReferrals) break;
+            }
         }
 
         return entries;
     }
 
+    /// <summary>Upper bound on continuation references tolerated in one search — see <see cref="ReadEntries"/>.</summary>
+    private const int MaxReferrals = 1_000;
+
     /// <inheritdoc/>
     public void Dispose()
     {
diff --git a/ZB.MOM.WW.Auth/tests/ZB.MOM.WW.Auth.Ldap.Tests/NovellSearchReferralTests.cs b/ZB.MOM.WW.Auth/tests/ZB.MOM.WW.Auth.Ldap.Tests/NovellSearchReferralTests.cs
new file mode 100644
index 0000000..1d0f683
--- /dev/null
+++ b/ZB.MOM.WW.Auth/tests/ZB.MOM.WW.Auth.Ldap.Tests/NovellSearchReferralTests.cs
@@ -0,0 +1,179 @@
+using Novell.Directory.Ldap;
+using Xunit;
+using ZB.MOM.WW.Auth.Ldap.Internal;
+
+namespace ZB.MOM.WW.Auth.Ldap.Tests;
+
+/// <summary>
+/// Covers <see cref="NovellLdapConnection.ReadEntries"/>' handling of AD continuation
+/// referrals. Active Directory returns one for any search based at a domain root, and
+/// Novell surfaces it by throwing from <c>Next()</c>. Before this was handled, the
+/// exception escaped the search stage and every login against
+/// <c>DC=nam,DC=zimmer,DC=com</c> failed as <c>ServiceAccountBindFailed</c> while the
+/// directory and credentials were healthy.
+/// </summary>
+public sealed class NovellSearchReferralTests
+{
+    [Fact]
+    public void Referral_before_the_only_entry_does_not_lose_it()
+    {
+        var results = new ScriptedResults(
+            Step.Referral(),
+            Step.Entry("CN=dohertj2,OU=Office Users,OU=Warsaw,DC=nam,DC=zimmer,DC=com"));
+
+        var entries = NovellLdapConnection.ReadEntries(results);
+
+        var entry = Assert.Single(entries);
+        Assert.Equal("CN=dohertj2,OU=Office Users,OU=Warsaw,DC=nam,DC=zimmer,DC=com", entry.Dn);
+    }
+
+    [Fact]
+    public void Referral_after_the_entry_does_not_discard_what_was_already_read()
+    {
+        var results = new ScriptedResults(
+            Step.Entry("CN=a,DC=nam,DC=zimmer,DC=com"),
+            Step.Referral());
+
+        var entries = NovellLdapConnection.ReadEntries(results);
+
+        Assert.Equal("CN=a,DC=nam,DC=zimmer,DC=com", Assert.Single(entries).Dn);
+    }
+
+    /// <summary>
+    /// The real shape observed against the NAM domain root: several references interleaved
+    /// with the one user entry. All three of AD's usual continuation points are present.
+    /// </summary>
+    [Fact]
+    public void Multiple_interleaved_referrals_still_yield_every_entry()
+    {
+        var results = new ScriptedResults(
+            Step.Referral(),
+            Step.Entry("CN=a,DC=nam,DC=zimmer,DC=com"),
+            Step.Referral(),
+            Step.Referral(),
+            Step.Entry("CN=b,DC=nam,DC=zimmer,DC=com"));
+
+        var entries = NovellLdapConnection.ReadEntries(results);
+
+        Assert.Equal(["CN=a,DC=nam,DC=zimmer,DC=com", "CN=b,DC=nam,DC=zimmer,DC=com"],
+            entries.Select(e => e.Dn));
+    }
+
+    /// <summary>
+    /// A referral-only result set is a legitimate "nothing here" answer, and must come back
+    /// empty rather than throwing — <c>LdapAuthService</c> reads empty as <c>UserNotFound</c>,
+    /// which is the honest verdict, where an exception would become a system-side failure.
+    /// </summary>
+    [Fact]
+    public void Referrals_only_returns_empty_rather_than_throwing()
+    {
+        var results = new ScriptedResults(Step.Referral(), Step.Referral());
+
+        Assert.Empty(NovellLdapConnection.ReadEntries(results));
+    }
+
+    /// <summary>
+    /// A base <see cref="LdapException"/> carrying the Referral result code is treated the
+    /// same as the derived type — the catch filter must not depend on the exact class.
+    /// </summary>
+    [Fact]
+    public void Referral_result_code_on_a_base_exception_is_also_skipped()
+    {
+        var results = new ScriptedResults(
+            Step.Throwing(new LdapException("referral", LdapException.Referral, null)),
+            Step.Entry("CN=a,DC=nam,DC=zimmer,DC=com"));
+
+        Assert.Single(NovellLdapConnection.ReadEntries(results));
+    }
+
+    /// <summary>
+    /// Only referrals are swallowed. A genuine directory fault must still propagate so the
+    /// caller maps it to a system-side failure — silently returning a short result set would
+    /// turn "the directory is broken" into "no such user", which is the wrong answer to give
+    /// about someone's credentials.
+    /// </summary>
+    [Fact]
+    public void A_non_referral_fault_still_propagates()
+    {
+        var results = new ScriptedResults(
+            Step.Throwing(new LdapException("busy", LdapException.Busy, null)),
+            Step.Entry("CN=a,DC=nam,DC=zimmer,DC=com"));
+
+        var ex = Assert.Throws<LdapException>(() => NovellLdapConnection.ReadEntries(results));
+        Assert.Equal(LdapException.Busy, ex.ResultCode);
+    }
+
+    /// <summary>
+    /// A pathological client that throws a referral without advancing must not spin forever
+    /// inside a fail-closed authentication path.
+    /// </summary>
+    [Fact]
+    public void An_endless_referral_stream_terminates()
+    {
+        var results = new EndlessReferrals();
+
+        var entries = NovellLdapConnection.ReadEntries(results);
+
+        Assert.Empty(entries);
+        Assert.InRange(results.Calls, 1, 2_000);
+    }
+
+    // ---------------------------------------------------------------------
+
+    private sealed record Step(LdapEntry? Value, Exception? Throw)
+    {
+        public static Step Entry(string dn) => new(new LdapEntry(dn, new LdapAttributeSet()), null);
+        public static Step Referral() => new(null, new LdapReferralException("continuation reference"));
+        public static Step Throwing(Exception ex) => new(null, ex);
+    }
+
+    /// <summary>Replays a fixed script of entries and faults through the Novell result seam.</summary>
+    private sealed class ScriptedResults : ILdapSearchResults
+    {
+        private readonly Step[] _steps;
+        private int _index;
+
+        public ScriptedResults(params Step[] steps) => _steps = steps;
+
+        public int Count => _steps.Length;
+
+        public LdapControl[] ResponseControls => [];
+
+        public bool HasMore() => _index < _steps.Length;
+
+        public LdapEntry Next()
+        {
+            var step = _steps[_index++];
+            if (step.Throw is not null) throw step.Throw;
+            return step.Value!;
+        }
+
+        // The production reader drives HasMore()/Next() directly; enumeration is part of the
+        // interface but not part of the path under test.
+        public IEnumerator<LdapEntry> GetEnumerator() => throw new NotSupportedException();
+
+        System.Collections.IEnumerator System.Collections.IEnumerable.GetEnumerator() => GetEnumerator();
+    }
+
+    /// <summary>Always claims more results and always throws a referral, never advancing.</summary>
+    private sealed class EndlessReferrals : ILdapSearchResults
+    {
+        public int Calls { get; private set; }
+
+        public int Count => int.MaxValue;
+
+        public LdapControl[] ResponseControls => [];
+
+        public bool HasMore() => true;
+
+        public LdapEntry Next()
+        {
+            Calls++;
+            throw new LdapReferralException("continuation reference");
+        }
+
+        public IEnumerator<LdapEntry> GetEnumerator() => throw new NotSupportedException();
+
+        System.Collections.IEnumerator System.Collections.IEnumerable.GetEnumerator() => GetEnumerator();
+    }
+}