diff --git a/README.md b/README.md
index f21d491e..0a09dde2 100644
--- a/README.md
+++ b/README.md
@@ -20,6 +20,14 @@ Contentstack is a headless CMS with an API-first approach. It is a CMS that deve
 |referenceDepth|number|2|**Optional** The default nested-reference-field depth that'd be considered when calling .includeReferences(). This can be overridden by passing a numerical argument to .includeReferences(4)|
 |projections|object|{_content_type_uid: 0}|**Optional** Keys that by default would be removed from results. Pass `key: 0` to remove, `key: 1` to override the existing..|
 
+### Environment Variables
+
+The SDK supports the following environment variables for advanced configuration:
+
+| Variable    | Description |
+|-------------|-------------|
+| `APP_ROOT`  | (Optional) Sets the root directory for content storage. If not set, defaults to the current working directory. |
+
 ### Config Overview
 
 Here's an overview of the SDK's configurable properties
diff --git a/package-lock.json b/package-lock.json
index d3d7fa86..25bf74c3 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "@contentstack/datasync-filesystem-sdk",
-  "version": "1.1.0",
+  "version": "1.2.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "@contentstack/datasync-filesystem-sdk",
-      "version": "1.1.0",
+      "version": "1.2.0",
       "license": "MIT",
       "dependencies": {
         "json-mask": "2.0.0",
diff --git a/package.json b/package.json
index b9ec898d..b4c2c1b2 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@contentstack/datasync-filesystem-sdk",
-  "version": "1.1.0",
+  "version": "1.2.0",
   "description": "JavaScript filesystem SDK to query data synced via @contentstack/datasync-content-store-filesystem",
   "main": "dist/index.js",
   "scripts": {
diff --git a/src/stack.ts b/src/stack.ts
index 295f3c3e..5e83f6f2 100755
--- a/src/stack.ts
+++ b/src/stack.ts
@@ -1090,10 +1090,10 @@ export class Stack {
         } else if (this.q.includeSpecificReferences) {
           await this
             .includeSpecificReferences(data, this.q.content_type_uid, locale, this.q
-              .includeSpecificReferences)
+              .includeSpecificReferences, true)
         } else if (this.q.includeAllReferences) {
           // need re-writes
-          await this.bindReferences(data, this.q.content_type_uid, locale)
+          await this.bindReferences(data, this.q.content_type_uid, locale, false)
         } else {
 
           await this.includeAssetsOnly(data, locale, this.q.content_type_uid)
@@ -1292,7 +1292,7 @@ export class Stack {
     return { output }
   }
 
-  private async includeSpecificReferences(entries: any[], contentTypeUid: string, locale: string, include: string[]) {
+  private async includeSpecificReferences(entries: any[], contentTypeUid: string, locale: string, include: string[], preserveUnpublished = false) {
     const ctQuery = {
       _content_type_uid: this.types.content_types,
       uid: contentTypeUid,
@@ -1324,13 +1324,12 @@ export class Stack {
     // else, self-recursively iterate and fetch references
     // Note: Shelf is the one holding `pointers` to the actual entry
     // Once the pointer has been used, for GC, point the object to null
-    await this.includeReferenceIteration(queries, schemaList, locale, pendingPath, shelf)
+    await this.includeReferenceIteration(queries, schemaList, locale, pendingPath, shelf, preserveUnpublished)
 
     return
   }
 
-  private async includeReferenceIteration(eQuery: any, ctQuery: any, locale: string, include: string[], oldShelf:
-    IShelf[]) {
+  private async includeReferenceIteration(eQuery: any, ctQuery: any, locale: string, include: string[], oldShelf: IShelf[], preserveUnpublished = false) {
     if (oldShelf.length === 0) {
       return
     } else if (ctQuery.$or.length === 0 && eQuery.$or.length > 0) {
@@ -1370,12 +1369,18 @@ export class Stack {
 
       if (flag) {
         for (let e = 0, f = oldShelf[i].path.length; e < f; e++) {
-          // tslint:disable-next-line: max-line-length
           if (
             oldShelf[i].path[e]?.hasOwnProperty("_content_type_uid") &&
             Object.keys(oldShelf[i].path[e]).length === 2
           ) {
-            (oldShelf[i].path as any).splice(e, 1);
+            const ref = oldShelf[i].path[e];
+            if (preserveUnpublished) {
+              ((oldShelf[i].path as any) as any[])[e] = typeof ref === "string"
+                ? { uid: ref, _content_type_uid: null }
+                : { uid: (ref as any).uid, _content_type_uid: (ref as any)._content_type_uid };
+            } else {
+              ((oldShelf[i].path as any) as any[]).splice(e, 1);
+            }
             break;
           }
         }
@@ -1387,7 +1392,7 @@ export class Stack {
     result = null
 
     // Iterative loops, that traverses paths and binds them onto entries
-    await this.includeReferenceIteration(queries, schemaList, locale, pendingPath, shelf)
+    await this.includeReferenceIteration(queries, schemaList, locale, pendingPath, shelf, preserveUnpublished)
 
     return
   }
@@ -1667,7 +1672,7 @@ export class Stack {
     return
   }
 
-  private async bindReferences(entries: any[], contentTypeUid: string, locale: string) {
+  private async bindReferences(entries: any[], contentTypeUid: string, locale: string, preserveUnpublished = false) {
     const ctQuery: IQuery = {
       $or: [{
         _content_type_uid: this.types.content_types,
@@ -1699,7 +1704,7 @@ export class Stack {
     // Note: Shelf is the one holding `pointers` to the actual entry
     // Once the pointer has been used, for GC, point the object to null
 
-    return this.includeAllReferencesIteration(queries, ctQueries, locale, objectPointerList)
+    return this.includeAllReferencesIteration(queries, ctQueries, locale, objectPointerList, 0, preserveUnpublished)
   }
 
   private async bindLeftoverAssets(queries: IQuery, locale: string, pointerList: IShelf[]) {
@@ -1727,7 +1732,7 @@ export class Stack {
   }
 
   // tslint:disable-next-line: max-line-length
-  private async includeAllReferencesIteration(oldEntryQueries: IQuery, oldCtQueries: IQuery, locale: string, oldObjectPointerList: IShelf[], depth = 0) {
+  private async includeAllReferencesIteration(oldEntryQueries: IQuery, oldCtQueries: IQuery, locale: string, oldObjectPointerList: IShelf[], depth = 0, preserveUnpublished = false) {
     if (depth > this.q.referenceDepth || oldObjectPointerList.length === 0) {
       return
     } else if (oldCtQueries.$or.length === 0 && oldObjectPointerList.length > 0 && oldEntryQueries.$or.length > 0) {
@@ -1767,10 +1772,16 @@ export class Stack {
 
       if (flag) {
         for (let e = 0, f = oldObjectPointerList[i].path.length; e < f; e++) {
-          // tslint:disable-next-line: max-line-length
           if (oldObjectPointerList[i].path[e]?.hasOwnProperty('_content_type_uid') && Object.keys(oldObjectPointerList[i].path[e]).length === 2) {
-            (oldObjectPointerList[i].path as any).splice(e, 1)
-            break
+            const ref = oldObjectPointerList[i].path[e];
+            if (preserveUnpublished) {
+              ((oldObjectPointerList[i].path as any) as any[])[e] = typeof ref === "string"
+                ? { uid: ref, _content_type_uid: null }
+                : { uid: (ref as any).uid, _content_type_uid: (ref as any)._content_type_uid };
+            } else {
+              ((oldObjectPointerList[i].path as any) as any[]).splice(e, 1);
+            }
+            break;
           }
         }
       }
@@ -1781,7 +1792,7 @@ export class Stack {
 
     ++depth
     // Iterative loops, that traverses paths and binds them onto entries
-    await this.includeAllReferencesIteration(queries, ctQueries, locale, shelf, depth)
+    await this.includeAllReferencesIteration(queries, ctQueries, locale, shelf, depth, preserveUnpublished)
 
     return
   }