diff --git a/src/DynamicModel.cc b/src/DynamicModel.cc
index 2b9e3efaeab02e8a1bf3d04e8b7f458bb015d97e..d5284fe7482d96172cd9f7bf9ac0d527e1732661 100644
--- a/src/DynamicModel.cc
+++ b/src/DynamicModel.cc
@@ -6446,6 +6446,13 @@ DynamicModel::substituteLeadLagInternal(AuxVarType type, bool deterministic_mode
 void
 DynamicModel::substituteAdl()
 {
+  /* Contrary to other substitution methods, we do the substitution in MLV
+     definitions here, instead of doing it at the ExprNode method level,
+     because otherwise this would substitute MLV in the original model (see
+     #65). */
+  for (auto &[id, definition] : local_variables_table)
+    definition = definition->substituteAdl();
+
   for (auto &equation : equations)
     equation = dynamic_cast<BinaryOpNode *>(equation->substituteAdl());
 }
diff --git a/src/ExprNode.cc b/src/ExprNode.cc
index 3358e73a8dd182b754292127bfb240477615c97b..b01bd5ba16b043e4816542f56ec8defc44da0ffe 100644
--- a/src/ExprNode.cc
+++ b/src/ExprNode.cc
@@ -1,5 +1,5 @@
 /*
- * Copyright © 2007-2020 Dynare Team
+ * Copyright © 2007-2021 Dynare Team
  *
  * This file is part of Dynare.
  *
@@ -1654,9 +1654,8 @@ VariableNode::getPacTargetSymbId(int lhs_symb_id, int undiff_lhs_symb_id) const
 expr_t
 VariableNode::substituteAdl() const
 {
-  if (get_type() == SymbolType::modelLocalVariable)
-    return datatree.getLocalVariable(symb_id)->substituteAdl();
-
+  /* Do not recurse into model-local variables definition, rather do it at the
+     DynamicModel method level (see the comment there) */
   return const_cast<VariableNode *>(this);
 }
 
@@ -2119,9 +2118,8 @@ VariableNode::findConstantEquations(map<VariableNode *, NumConstNode *> &table)
 expr_t
 VariableNode::replaceVarsInEquation(map<VariableNode *, NumConstNode *> &table) const
 {
-  if (get_type() == SymbolType::modelLocalVariable)
-    return datatree.getLocalVariable(symb_id)->replaceVarsInEquation(table);
-
+  /* Do not recurse into model-local variables definition, because otherwise
+     this would substitute MLV in the original model (see #65). */
   for (auto &it : table)
     if (it.first->symb_id == symb_id)
       return it.second;