diff --git a/packages/schema/src/language-server/validator/attribute-application-validator.ts b/packages/schema/src/language-server/validator/attribute-application-validator.ts
index a820620d1..e25563cd2 100644
--- a/packages/schema/src/language-server/validator/attribute-application-validator.ts
+++ b/packages/schema/src/language-server/validator/attribute-application-validator.ts
@@ -16,7 +16,7 @@ import {
     isReferenceExpr,
 } from '@zenstackhq/language/ast';
 import { isFutureExpr, resolved } from '@zenstackhq/sdk';
-import { ValidationAcceptor, streamAllContents } from 'langium';
+import { ValidationAcceptor, streamAst } from 'langium';
 import pluralize from 'pluralize';
 import { AstValidator } from '../types';
 import { getStringLiteral, mapBuiltinTypeToExpressionType, typeAssignable } from './utils';
@@ -134,7 +134,7 @@ export default class AttributeApplicationValidator implements AstValidator<Attri
         this.validatePolicyKinds(kind, ['read', 'update', 'all'], attr, accept);
 
         const expr = attr.args[1].value;
-        if ([expr, ...streamAllContents(expr)].some((node) => isFutureExpr(node))) {
+        if (streamAst(expr).some((node) => isFutureExpr(node))) {
             accept('error', `"future()" is not allowed in field-level policy rules`, { node: expr });
         }
     }
diff --git a/packages/schema/src/language-server/validator/expression-validator.ts b/packages/schema/src/language-server/validator/expression-validator.ts
index 3d6343a9e..21548c89f 100644
--- a/packages/schema/src/language-server/validator/expression-validator.ts
+++ b/packages/schema/src/language-server/validator/expression-validator.ts
@@ -2,7 +2,6 @@ import {
     BinaryExpr,
     Expression,
     ExpressionType,
-    isBinaryExpr,
     isDataModel,
     isEnum,
     isNullExpr,
@@ -10,7 +9,7 @@ import {
 } from '@zenstackhq/language/ast';
 import { isDataModelFieldReference } from '@zenstackhq/sdk';
 import { ValidationAcceptor } from 'langium';
-import { isAuthInvocation } from '../../utils/ast-utils';
+import { isAuthInvocation, isCollectionPredicate } from '../../utils/ast-utils';
 import { AstValidator } from '../types';
 
 /**
@@ -23,7 +22,7 @@ export default class ExpressionValidator implements AstValidator<Expression> {
             if (isAuthInvocation(expr)) {
                 // check was done at link time
                 accept('error', 'auth() cannot be resolved because no "User" model is defined', { node: expr });
-            } else if (this.isCollectionPredicate(expr)) {
+            } else if (isCollectionPredicate(expr)) {
                 accept('error', 'collection predicate can only be used on an array of model type', { node: expr });
             } else {
                 accept('error', 'expression cannot be resolved', {
@@ -142,8 +141,4 @@ export default class ExpressionValidator implements AstValidator<Expression> {
             }
         }
     }
-
-    private isCollectionPredicate(expr: Expression) {
-        return isBinaryExpr(expr) && ['?', '!', '^'].includes(expr.operator);
-    }
 }
diff --git a/packages/schema/src/plugins/access-policy/policy-guard-generator.ts b/packages/schema/src/plugins/access-policy/policy-guard-generator.ts
index b6ac99576..d76954b43 100644
--- a/packages/schema/src/plugins/access-policy/policy-guard-generator.ts
+++ b/packages/schema/src/plugins/access-policy/policy-guard-generator.ts
@@ -5,7 +5,6 @@ import {
     DataModelFieldAttribute,
     Enum,
     Expression,
-    MemberAccessExpr,
     Model,
     isBinaryExpr,
     isDataModel,
@@ -49,12 +48,12 @@ import {
     resolved,
     saveProject,
 } from '@zenstackhq/sdk';
-import { streamAllContents } from 'langium';
+import { streamAllContents, streamAst, streamContents } from 'langium';
 import { lowerCaseFirst } from 'lower-case-first';
 import path from 'path';
 import { FunctionDeclaration, SourceFile, VariableDeclarationKind, WriterFunction } from 'ts-morph';
 import { name } from '.';
-import { getIdFields, isAuthInvocation } from '../../utils/ast-utils';
+import { getIdFields, isAuthInvocation, isCollectionPredicate } from '../../utils/ast-utils';
 import {
     TypeScriptExpressionTransformer,
     TypeScriptExpressionTransformerError,
@@ -237,7 +236,7 @@ export default class PolicyGenerator {
     }
 
     private hasFutureReference(expr: Expression) {
-        for (const node of this.allNodes(expr)) {
+        for (const node of streamAst(expr)) {
             if (isInvocationExpr(node) && node.function.ref?.name === 'future' && isFromStdlib(node.function.ref)) {
                 return true;
             }
@@ -434,7 +433,7 @@ export default class PolicyGenerator {
 
     private canCheckCreateBasedOnInput(model: DataModel, allows: Expression[], denies: Expression[]) {
         return [...allows, ...denies].every((rule) => {
-            return [...this.allNodes(rule)].every((expr) => {
+            return streamAst(rule).every((expr) => {
                 if (isThisExpr(expr)) {
                     return false;
                 }
@@ -487,6 +486,8 @@ export default class PolicyGenerator {
             });
         };
 
+        // visit a reference or member access expression to build a
+        // selection path
         const visit = (node: Expression): string[] | undefined => {
             if (isReferenceExpr(node)) {
                 const target = resolved(node.target);
@@ -509,35 +510,50 @@ export default class PolicyGenerator {
             return undefined;
         };
 
-        for (const rule of [...allows, ...denies]) {
-            for (const expr of [...this.allNodes(rule)].filter((node): node is Expression => isExpression(node))) {
-                if (isThisExpr(expr) && !isMemberAccessExpr(expr.$container)) {
-                    // a standalone `this` expression, include all id fields
-                    const model = expr.$resolvedType?.decl as DataModel;
-                    const idFields = getIdFields(model);
-                    idFields.forEach((field) => addPath([field.name]));
-                    continue;
-                }
-
-                // only care about member access and reference expressions
-                if (!isMemberAccessExpr(expr) && !isReferenceExpr(expr)) {
-                    continue;
-                }
-
-                if (expr.$container.$type === MemberAccessExpr) {
-                    // only visit top-level member access
-                    continue;
-                }
+        // collect selection paths from the given expression
+        const collectReferencePaths = (expr: Expression): string[][] => {
+            if (isThisExpr(expr) && !isMemberAccessExpr(expr.$container)) {
+                // a standalone `this` expression, include all id fields
+                const model = expr.$resolvedType?.decl as DataModel;
+                const idFields = getIdFields(model);
+                return idFields.map((field) => [field.name]);
+            }
 
+            if (isMemberAccessExpr(expr) || isReferenceExpr(expr)) {
                 const path = visit(expr);
                 if (path) {
                     if (isDataModel(expr.$resolvedType?.decl)) {
-                        // member selection ended at a data model field, include its 'id'
-                        path.push('id');
+                        // member selection ended at a data model field, include its id fields
+                        const idFields = getIdFields(expr.$resolvedType?.decl as DataModel);
+                        return idFields.map((field) => [...path, field.name]);
+                    } else {
+                        return [path];
                     }
-                    addPath(path);
+                } else {
+                    return [];
                 }
+            } else if (isCollectionPredicate(expr)) {
+                const path = visit(expr.left);
+                if (path) {
+                    // recurse into RHS
+                    const rhs = collectReferencePaths(expr.right);
+                    // combine path of LHS and RHS
+                    return rhs.map((r) => [...path, ...r]);
+                } else {
+                    return [];
+                }
+            } else {
+                // recurse
+                const children = streamContents(expr)
+                    .filter((child): child is Expression => isExpression(child))
+                    .toArray();
+                return children.flatMap((child) => collectReferencePaths(child));
             }
+        };
+
+        for (const rule of [...allows, ...denies]) {
+            const paths = collectReferencePaths(rule);
+            paths.forEach((p) => addPath(p));
         }
 
         return Object.keys(result).length === 0 ? undefined : result;
@@ -556,7 +572,7 @@ export default class PolicyGenerator {
         this.generateNormalizedAuthRef(model, allows, denies, statements);
 
         const hasFieldAccess = [...denies, ...allows].some((rule) =>
-            [...this.allNodes(rule)].some(
+            streamAst(rule).some(
                 (child) =>
                     // this.???
                     isThisExpr(child) ||
@@ -724,7 +740,7 @@ export default class PolicyGenerator {
     ) {
         // check if any allow or deny rule contains 'auth()' invocation
         const hasAuthRef = [...allows, ...denies].some((rule) =>
-            [...this.allNodes(rule)].some((child) => isAuthInvocation(child))
+            streamAst(rule).some((child) => isAuthInvocation(child))
         );
 
         if (hasAuthRef) {
@@ -747,9 +763,4 @@ export default class PolicyGenerator {
             );
         }
     }
-
-    private *allNodes(expr: Expression) {
-        yield expr;
-        yield* streamAllContents(expr);
-    }
 }
diff --git a/packages/schema/src/utils/ast-utils.ts b/packages/schema/src/utils/ast-utils.ts
index b2c0771be..cd6853daa 100644
--- a/packages/schema/src/utils/ast-utils.ts
+++ b/packages/schema/src/utils/ast-utils.ts
@@ -1,8 +1,10 @@
 import {
+    BinaryExpr,
     DataModel,
     DataModelField,
     Expression,
     isArrayExpr,
+    isBinaryExpr,
     isDataModel,
     isDataModelField,
     isInvocationExpr,
@@ -150,3 +152,7 @@ export function getAllDeclarationsFromImports(documents: LangiumDocuments, model
     const imports = resolveTransitiveImports(documents, model);
     return model.declarations.concat(...imports.map((imp) => imp.declarations));
 }
+
+export function isCollectionPredicate(expr: Expression): expr is BinaryExpr {
+    return isBinaryExpr(expr) && ['?', '!', '^'].includes(expr.operator);
+}
diff --git a/packages/schema/src/utils/typescript-expression-transformer.ts b/packages/schema/src/utils/typescript-expression-transformer.ts
index 17be22406..74bb9d766 100644
--- a/packages/schema/src/utils/typescript-expression-transformer.ts
+++ b/packages/schema/src/utils/typescript-expression-transformer.ts
@@ -17,6 +17,7 @@ import {
     UnaryExpr,
 } from '@zenstackhq/language/ast';
 import { ExpressionContext, getLiteral, isFromStdlib, isFutureExpr } from '@zenstackhq/sdk';
+import { match, P } from 'ts-pattern';
 import { getIdFields } from './ast-utils';
 
 export class TypeScriptExpressionTransformerError extends Error {
@@ -53,7 +54,7 @@ export class TypeScriptExpressionTransformer {
      *
      * @param isPostGuard indicates if we're writing for post-update conditions
      */
-    constructor(private readonly options?: Options) {}
+    constructor(private readonly options: Options) {}
 
     /**
      * Transforms the given expression to a TypeScript expression.
@@ -302,33 +303,57 @@ export class TypeScriptExpressionTransformer {
     }
 
     private binary(expr: BinaryExpr, normalizeUndefined: boolean): string {
-        if (expr.operator === 'in') {
-            return `(${this.transform(expr.right, false)}?.includes(${this.transform(
-                expr.left,
-                normalizeUndefined
-            )}) ?? false)`;
-        } else if (
-            (expr.operator === '==' || expr.operator === '!=') &&
-            (isThisExpr(expr.left) || isThisExpr(expr.right))
-        ) {
-            // map equality comparison with `this` to id comparison
-            const _this = isThisExpr(expr.left) ? expr.left : expr.right;
-            const model = _this.$resolvedType?.decl as DataModel;
-            const idFields = getIdFields(model);
-            if (!idFields || idFields.length === 0) {
-                throw new TypeScriptExpressionTransformerError(`model "${model.name}" does not have an id field`);
-            }
-            let result = `allFieldsEqual(${this.transform(expr.left, false)}, 
+        const _default = `(${this.transform(expr.left, normalizeUndefined)} ${expr.operator} ${this.transform(
+            expr.right,
+            normalizeUndefined
+        )})`;
+
+        return match(expr.operator)
+            .with(
+                'in',
+                () =>
+                    `(${this.transform(expr.right, false)}?.includes(${this.transform(
+                        expr.left,
+                        normalizeUndefined
+                    )}) ?? false)`
+            )
+            .with(P.union('==', '!='), () => {
+                if (isThisExpr(expr.left) || isThisExpr(expr.right)) {
+                    // map equality comparison with `this` to id comparison
+                    const _this = isThisExpr(expr.left) ? expr.left : expr.right;
+                    const model = _this.$resolvedType?.decl as DataModel;
+                    const idFields = getIdFields(model);
+                    if (!idFields || idFields.length === 0) {
+                        throw new TypeScriptExpressionTransformerError(
+                            `model "${model.name}" does not have an id field`
+                        );
+                    }
+                    let result = `allFieldsEqual(${this.transform(expr.left, false)}, 
                 ${this.transform(expr.right, false)}, [${idFields.map((f) => "'" + f.name + "'").join(', ')}])`;
-            if (expr.operator === '!=') {
-                result = `!${result}`;
-            }
-            return result;
-        } else {
-            return `(${this.transform(expr.left, normalizeUndefined)} ${expr.operator} ${this.transform(
-                expr.right,
-                normalizeUndefined
-            )})`;
-        }
+                    if (expr.operator === '!=') {
+                        result = `!${result}`;
+                    }
+                    return result;
+                } else {
+                    return _default;
+                }
+            })
+            .with(P.union('?', '!', '^'), (op) => this.collectionPredicate(expr, op, normalizeUndefined))
+            .otherwise(() => _default);
+    }
+
+    private collectionPredicate(expr: BinaryExpr, operator: '?' | '!' | '^', normalizeUndefined: boolean) {
+        const operand = this.transform(expr.left, normalizeUndefined);
+        const innerTransformer = new TypeScriptExpressionTransformer({
+            ...this.options,
+            fieldReferenceContext: '_item',
+        });
+        const predicate = innerTransformer.transform(expr.right, normalizeUndefined);
+
+        return match(operator)
+            .with('?', () => `!!((${operand})?.some((_item: any) => ${predicate}))`)
+            .with('!', () => `!!((${operand})?.every((_item: any) => ${predicate}))`)
+            .with('^', () => `!((${operand})?.some((_item: any) => ${predicate}))`)
+            .exhaustive();
     }
 }
diff --git a/tests/integration/tests/enhancements/with-policy/field-level-policy.test.ts b/tests/integration/tests/enhancements/with-policy/field-level-policy.test.ts
index 209876f25..e43fd370d 100644
--- a/tests/integration/tests/enhancements/with-policy/field-level-policy.test.ts
+++ b/tests/integration/tests/enhancements/with-policy/field-level-policy.test.ts
@@ -746,4 +746,99 @@ describe('With Policy: field-level policy', () => {
         r = await withPolicy({ id: 2 }).user.findFirst();
         expect(r.username).toBeUndefined();
     });
+
+    it('collection predicate', async () => {
+        const { prisma, withPolicy } = await loadSchema(
+            `
+        model User {
+            id Int @id @default(autoincrement())
+            foos Foo[]
+            a Int @allow('read', foos?[x > 0 && bars![y > 0]])
+            b Int @allow('read', foos^[x == 1])
+
+            @@allow('all', true)
+        }
+
+        model Foo {
+            id Int @id @default(autoincrement())
+            x Int
+            owner User @relation(fields: [ownerId], references: [id])
+            ownerId Int
+            bars Bar[]
+
+            @@allow('all', true)
+        }
+
+        model Bar {
+            id Int @id @default(autoincrement())
+            y Int
+            foo Foo @relation(fields: [fooId], references: [id])
+            fooId Int
+
+            @@allow('all', true)
+        }
+        `
+        );
+
+        const db = withPolicy();
+
+        await prisma.user.create({
+            data: {
+                id: 1,
+                a: 1,
+                b: 2,
+                foos: {
+                    create: [
+                        { x: 0, bars: { create: [{ y: 1 }] } },
+                        { x: 1, bars: { create: [{ y: 0 }, { y: 1 }] } },
+                    ],
+                },
+            },
+        });
+
+        let r = await db.user.findUnique({ where: { id: 1 } });
+        expect(r.a).toBeUndefined();
+        expect(r.b).toBeUndefined();
+
+        await prisma.user.create({
+            data: {
+                id: 2,
+                a: 1,
+                b: 2,
+                foos: {
+                    create: [{ x: 2, bars: { create: [{ y: 0 }, { y: 1 }] } }],
+                },
+            },
+        });
+        r = await db.user.findUnique({ where: { id: 2 } });
+        expect(r.a).toBeUndefined();
+        expect(r.b).toBe(2);
+
+        await prisma.user.create({
+            data: {
+                id: 3,
+                a: 1,
+                b: 2,
+                foos: {
+                    create: [{ x: 2 }],
+                },
+            },
+        });
+        r = await db.user.findUnique({ where: { id: 3 } });
+        expect(r.a).toBe(1);
+
+        await prisma.user.create({
+            data: {
+                id: 4,
+                a: 1,
+                b: 2,
+                foos: {
+                    create: [{ x: 2, bars: { create: [{ y: 1 }, { y: 2 }] } }],
+                },
+            },
+        });
+        r = await db.user.findUnique({ where: { id: 4 } });
+        expect(r.a).toBe(1);
+        expect(r.b).toBe(2);
+    });
 });
diff --git a/tests/integration/tests/regression/issue-703.test.ts b/tests/integration/tests/regression/issue-703.test.ts
new file mode 100644
index 000000000..203100496
--- /dev/null
+++ b/tests/integration/tests/regression/issue-703.test.ts
@@ -0,0 +1,26 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('Regression: issue 703', () => {
+    it('regression', async () => {
+        await loadSchema(
+            `
+        model User {
+            id Int @id @default(autoincrement())
+            name String?
+            admin Boolean @default(false)
+        
+            companiesWorkedFor Company[]
+        
+            username String @unique @allow("all", auth() == this) @allow('read', companiesWorkedFor?[owner == auth()]) @allow("all", auth().admin)
+        }
+        
+        model Company {
+            id Int @id @default(autoincrement())
+            name String?
+            owner User @relation(fields: [ownerId], references: [id])
+            ownerId Int
+        }      
+        `
+        );
+    });
+});