diff --git a/compiler/res/prog8lib/cx16/palette.p8 b/compiler/res/prog8lib/cx16/palette.p8
index 52efbe991..c3fba336d 100644
--- a/compiler/res/prog8lib/cx16/palette.p8
+++ b/compiler/res/prog8lib/cx16/palette.p8
@@ -152,27 +152,26 @@ palette {
         set_rgb(colors, len(colors))
     }
 
-    uword[] default_colors_16 = [
-        $000,   ; 0 = black
-        $fff,   ; 1 = white
-        $800,   ; 2 = red
-        $afe,   ; 3 = cyan
-        $c4c,   ; 4 = purple
-        $0c5,   ; 5 = green
-        $00a,   ; 6 = blue
-        $ee7,   ; 7 = yellow
-        $d85,   ; 8 = orange
-        $640,   ; 9 = brown
-        $f77,   ; 10 = light red
-        $333,   ; 11 = dark grey
-        $777,   ; 12 = medium grey
-        $af6,   ; 13 = light green
-        $08f,   ; 14 = light blue
-        $bbb    ; 15 = light grey
-    ]
-
     sub set_default16() {
         ; set first 16 colors to the defaults on the X16
-        set_rgb(default_colors_16, len(default_colors_16))
+        uword[] colors = [
+            $000,   ; 0 = black
+            $fff,   ; 1 = white
+            $800,   ; 2 = red
+            $afe,   ; 3 = cyan
+            $c4c,   ; 4 = purple
+            $0c5,   ; 5 = green
+            $00a,   ; 6 = blue
+            $ee7,   ; 7 = yellow
+            $d85,   ; 8 = orange
+            $640,   ; 9 = brown
+            $f77,   ; 10 = light red
+            $333,   ; 11 = dark grey
+            $777,   ; 12 = medium grey
+            $af6,   ; 13 = light green
+            $08f,   ; 14 = light blue
+            $bbb    ; 15 = light grey
+        ]
+        set_rgb(colors, len(colors))
     }
 }
diff --git a/compiler/test/TestCallgraph.kt b/compiler/test/TestCallgraph.kt
index fff7830da..a4ff1706f 100644
--- a/compiler/test/TestCallgraph.kt
+++ b/compiler/test/TestCallgraph.kt
@@ -2,6 +2,7 @@ package prog8tests
 
 import io.kotest.assertions.withClue
 import io.kotest.core.spec.style.FunSpec
+import io.kotest.matchers.collections.shouldContain
 import io.kotest.matchers.ints.shouldBeGreaterThanOrEqual
 import io.kotest.matchers.maps.shouldNotContainKey
 import io.kotest.matchers.shouldBe
@@ -11,6 +12,7 @@ import prog8.ast.statements.Block
 import prog8.ast.statements.Subroutine
 import prog8.code.core.SourceCode
 import prog8.code.target.C64Target
+import prog8.code.target.VMTarget
 import prog8.compiler.CallGraph
 import prog8.parser.Prog8Parser.parseModule
 import prog8tests.helpers.*
@@ -222,4 +224,28 @@ class TestCallgraph: FunSpec({
         errors.errors.size shouldBe 0
         errors.warnings.size shouldBe 0
     }
+    
+    test("subs that aren't called but only used as scope aren't unused") {
+        val src="""
+main {
+    sub start() {
+        cx16.r0L = main.scopesub.variable
+        cx16.r0L = main.scopesub.array[1]
+        cx16.r0++
+    }
+
+    sub scopesub() {
+        ubyte variable
+        ubyte[] array = [1,2,3]
+
+        cx16.r0++
+    }
+}"""
+        val result = compileText(VMTarget(), true, src)!!
+        val callgraph = CallGraph(result.compilerAst)
+        val scopeSub = result.compilerAst.entrypoint.lookup(listOf("main", "scopesub")) as Subroutine
+        scopeSub.name shouldBe "scopesub"
+        callgraph.notCalledButReferenced shouldContain scopeSub
+        callgraph.unused(scopeSub) shouldBe false
+    }
 })
diff --git a/compiler/test/TestOptimization.kt b/compiler/test/TestOptimization.kt
index 1ee854741..926324614 100644
--- a/compiler/test/TestOptimization.kt
+++ b/compiler/test/TestOptimization.kt
@@ -709,7 +709,7 @@ main {
             ubyte counter
             counter++
         }
-        test2(main.test.nested.counter)      ; shouldn't crash but just give nice error
+        test2(main.test.nested.counter)
     }
 
     sub test2(ubyte value) {
@@ -717,8 +717,7 @@ main {
     }
 }"""
         val errors = ErrorReporterForTests()
-        compileText(Cx16Target(), true, src, writeAssembly = false, errors = errors) shouldBe null
-        errors.errors.single() shouldContain  "undefined symbol"
+        compileText(Cx16Target(), true, src, writeAssembly = false, errors = errors) shouldNotBe null
     }
 
     test("var to const") {
diff --git a/compilerAst/src/prog8/compiler/CallGraph.kt b/compilerAst/src/prog8/compiler/CallGraph.kt
index 7628ba97a..4c6cb234c 100644
--- a/compilerAst/src/prog8/compiler/CallGraph.kt
+++ b/compilerAst/src/prog8/compiler/CallGraph.kt
@@ -100,6 +100,16 @@ class CallGraph(private val program: Program) : IAstVisitor {
         val target = identifier.targetStatement(program)
         if(target!=null)
             allIdentifiersAndTargets[identifier] = target
+
+        // if it's a scoped identifier, the subroutines in the name are also referenced!
+        val scope = identifier.definingScope
+        val name = identifier.nameInSource.toMutableList()
+        while(name.size>1) {
+            name.removeLast()
+            val scopeTarget = scope.lookup(name)
+            if(scopeTarget is Subroutine)
+                notCalledButReferenced += scopeTarget
+        }
     }
 
     override fun visit(inlineAssembly: InlineAssembly) {
diff --git a/examples/test.p8 b/examples/test.p8
index a4bf0ed77..99f2b47ad 100644
--- a/examples/test.p8
+++ b/examples/test.p8
@@ -1,26 +1,19 @@
 %import textio
+%import palette
 %zeropage basicsafe
 %option no_sysinit
 
 main {
     sub start() {
-        ubyte xx = wobwob()
-        txt.print_ub(xx)
-        uword yy = wobwob2()
-        txt.print_uw(yy)
+        cx16.r0L = main.dummy.variable
+        cx16.r0L = main.dummy.array[1]
+        cx16.r0++
+    }
 
-        asmsub wobwob() -> bool @Pc {
-            %asm {{
-                sec
-                rts
-            }}
-        }
+    sub dummy() {
+        ubyte variable
+        ubyte[] array = [1,2,3]
 
-        asmsub wobwob2() -> bool @Pc {
-            %asm {{
-                clc
-                rts
-            }}
-        }
+        cx16.r0++
     }
 }