diff --git a/core/vm/eof.go b/core/vm/eof.go
index 48414716a1..51bf2a8ef0 100644
--- a/core/vm/eof.go
+++ b/core/vm/eof.go
@@ -338,7 +338,7 @@ func (c *Container) validateSubContainer(jt *JumpTable, isInitCode bool, refBy i
 			code  = c.Code[index]
 		)
 		if _, ok := visited[index]; !ok {
-			res, err := validateCode(code, index, c, jt, isInitCode)
+			res, err := validateCode(code, index, c, jt, isInitCode || refBy == RefByEOFCreate)
 			if err != nil {
 				return err
 			}
diff --git a/core/vm/validate.go b/core/vm/validate.go
index 7cb0b0600a..434751b171 100644
--- a/core/vm/validate.go
+++ b/core/vm/validate.go
@@ -127,6 +127,9 @@ func validateCode(code []byte, section int, container *Container, jt *JumpTable,
 					return nil, fmt.Errorf("%w: arg %d, last %d, pos %d", ErrInvalidDataloadNArgument, arg, len(container.Data), i)
 				}
 			case op == RETURNCONTRACT:
+				if !isInitCode {
+					return nil, ErrIncompatibleContainerKind
+				}
 				arg := int(code[i+1])
 				if arg >= len(container.ContainerSections) {
 					return nil, fmt.Errorf("%w: arg %d, last %d, pos %d", ErrUnreachableCode, arg, len(container.ContainerSections), i)