diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 38e6b7aaa2..5d07f5aa56 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -45,12 +45,6 @@ export const okString = localize('okString', "Ok");
 export const extractTargetInput = localize('extractTargetInput', "Select folder structure for SQL files");
 export const extractDatabaseSelection = localize('extractDatabaseSelection', "Select database to create project from");
 export const selectString = localize('selectString', "Select");
-export const addDatabaseReferenceInput = localize('addDatabaseReferenceInput', "Add database reference for:");
-export const systemDatabaseReferenceInput = localize('systemDatabaseReferenceInput', "System Database:");
-export const databaseReferenceLocation = localize('databaseReferenceLocation', "Database location");
-export const databaseReferenceSameDatabase = localize('databaseReferenceSameDatabase', "Same database");
-export const databaseReferenceDifferentDabaseSameServer = localize('databaseReferenceDifferentDabaseSameServer', "Different database, same server");
-export const databaseReferenceDatabaseName = localize('databaseReferenceDatabaseName', "Database name");
 export const dacpacFiles = localize('dacpacFiles', "dacpac Files");
 export const publishSettingsFiles = localize('publishSettingsFiles', "Publish Settings File");
 export const systemDatabase = localize('systemDatabase', "System Database");
@@ -111,7 +105,7 @@ export const sameDatabase = localize('sameDatabase', "Same database");
 export const differentDbSameServer = localize('differentDbSameServer', "Different database, same server");
 export const differentDbDifferentServer = localize('differentDbDifferentServer', "Different database, different server");
 export const systemDbLocationDropdownValues = [differentDbSameServer];
-export const locationDropdownValues = [differentDbSameServer, differentDbDifferentServer];
+export const locationDropdownValues = [sameDatabase, differentDbSameServer, differentDbDifferentServer];
 export const databaseName = localize('databaseName', "Database name");
 export const databaseVariable = localize('databaseVariable', "Database variable");
 export const serverName = localize('serverName', "Server name");
diff --git a/extensions/sql-database-projects/src/common/utils.ts b/extensions/sql-database-projects/src/common/utils.ts
index 68cf04a10c..ac7738d5ea 100644
--- a/extensions/sql-database-projects/src/common/utils.ts
+++ b/extensions/sql-database-projects/src/common/utils.ts
@@ -8,6 +8,7 @@ import * as os from 'os';
 import * as constants from './constants';
 import * as path from 'path';
 import * as glob from 'fast-glob';
+import * as mssql from '../../../mssql';
 import { promises as fs } from 'fs';
 
 /**
@@ -228,3 +229,13 @@ export async function getSqlProjectFilesInFolder(folderPath: string): Promise<st
 
 	return results;
 }
+
+/**
+ * Returns the default deployment options from DacFx
+ */
+export async function GetDefaultDeploymentOptions(): Promise<mssql.DeploymentOptions> {
+	const service = (vscode.extensions.getExtension(mssql.extension.name)!.exports as mssql.IExtension).schemaCompare;
+	const result = await service.schemaCompareGetDefaultOptions();
+
+	return result.defaultDeploymentOptions;
+}
diff --git a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
index b6c90824d3..4a652705fd 100644
--- a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
@@ -183,7 +183,7 @@ export class PublishDatabaseDialog {
 			upgradeExisting: true,
 			connectionUri: await this.getConnectionUri(),
 			sqlCmdVariables: sqlCmdVars,
-			deploymentOptions: this.deploymentOptions
+			deploymentOptions: await this.getDeploymentOptions()
 		};
 
 		azdata.window.closeDialog(this.dialog);
@@ -198,7 +198,7 @@ export class PublishDatabaseDialog {
 			databaseName: this.getTargetDatabaseName(),
 			connectionUri: await this.getConnectionUri(),
 			sqlCmdVariables: sqlCmdVars,
-			deploymentOptions: this.deploymentOptions
+			deploymentOptions: await this.getDeploymentOptions()
 		};
 
 		azdata.window.closeDialog(this.dialog);
@@ -210,6 +210,21 @@ export class PublishDatabaseDialog {
 		this.dispose();
 	}
 
+	private async getDeploymentOptions(): Promise<DeploymentOptions> {
+		// eventually, database options will be configurable in this dialog
+		// but for now,  just send the default DacFx deployment options if no options were loaded from a publish profile
+		if (!this.deploymentOptions) {
+			this.deploymentOptions = await utils.GetDefaultDeploymentOptions();
+
+			// this option needs to be true for same database references validation to work
+			if (this.project.databaseReferences.length > 0) {
+				this.deploymentOptions.includeCompositeObjects = true;
+			}
+		}
+
+		return this.deploymentOptions;
+	}
+
 	private getSqlCmdVariablesForPublish(): Record<string, string> {
 		// get SQLCMD variables from table
 		let sqlCmdVariables = { ...this.sqlCmdVars };