diff --git a/src/DynamicModel.cc b/src/DynamicModel.cc
index b3a7d690ae4d1f017db8ab3aa4df66cfcc218a84..2cb2c10893e25a99f77e148843a2a7c222e65d04 100644
--- a/src/DynamicModel.cc
+++ b/src/DynamicModel.cc
@@ -5579,6 +5579,13 @@ 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 5d4180ca2401f4c64226856cd20e3c2ae87ddc94..9df220c2297ef53794fcaee7ada242682c78402d 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.
  *
@@ -1541,9 +1541,8 @@ VariableNode::VarMaxLag(const set<expr_t> &lhs_lag_equiv) 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);
 }
 
@@ -1988,9 +1987,8 @@ VariableNode::getEndosAndMaxLags(map<string, int> &model_endos_and_lags) const
 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;