Does Entity Framework support circular references?

No, it's supported. Try it with a GUID key or an assignable sequence. The error means exactly what it says it does: The EF can't figure out how to do this in one step.

You can do it in two steps, though (two calls to SaveChanges() ).

I had this exact issue. The apparent "Circular reference" is simply good database design. Having a flag on the child table like "IsMainChild" is bad design, the attribute "MainChild" is a property of the parent not the child, so an FK in the parent is appropriate.

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