diff --git a/src/Microsoft.OpenApi.OData.Reader/Common/EdmModelHelper.cs b/src/Microsoft.OpenApi.OData.Reader/Common/EdmModelHelper.cs
index 84955dfc..45e22c69 100644
--- a/src/Microsoft.OpenApi.OData.Reader/Common/EdmModelHelper.cs
+++ b/src/Microsoft.OpenApi.OData.Reader/Common/EdmModelHelper.cs
@@ -393,25 +393,26 @@ internal static string StripOrAliasNamespacePrefix(IEdmSchemaElement element, Op
 
             return segmentName;
         }
-    
+
         /// <summary>
         /// Checks whether an operation is allowed on a model element.
         /// </summary>
         /// <param name="model">The Edm model.</param>
         /// <param name="edmOperation">The target operation.</param>
         /// <param name="annotatable">The model element.</param>
+        /// <param name="operationAllowed">Optional: Default is true.
+        /// The operation will be allowed by default if the annotation Org.OData.Core.V1.RequiresExplicitBinding is undefined for the given operation. </param>
         /// <returns>true if the operation is allowed, otherwise false.</returns>
-        internal static bool IsOperationAllowed(IEdmModel model, IEdmOperation edmOperation, IEdmVocabularyAnnotatable annotatable)
+        internal static bool IsOperationAllowed(IEdmModel model, IEdmOperation edmOperation, IEdmVocabularyAnnotatable annotatable, bool operationAllowed = true)
         {
             Utils.CheckArgumentNull(model, nameof(model));
             Utils.CheckArgumentNull(edmOperation, nameof(edmOperation));
             Utils.CheckArgumentNull(annotatable, nameof(annotatable));
 
             var requiresExplicitBinding = model.FindVocabularyAnnotations(edmOperation).FirstOrDefault(x => x.Term.Name == CapabilitiesConstants.RequiresExplicitBindingName);
-
             if (requiresExplicitBinding == null)
             {
-                return true;
+                return operationAllowed;
             }
             
             var boundOperations = model.GetCollection(annotatable, CapabilitiesConstants.ExplicitOperationBindings)?.ToList();
diff --git a/src/Microsoft.OpenApi.OData.Reader/Edm/ODataPathProvider.cs b/src/Microsoft.OpenApi.OData.Reader/Edm/ODataPathProvider.cs
index c516f055..8c81f4b3 100644
--- a/src/Microsoft.OpenApi.OData.Reader/Edm/ODataPathProvider.cs
+++ b/src/Microsoft.OpenApi.OData.Reader/Edm/ODataPathProvider.cs
@@ -802,7 +802,7 @@ secondLastPathSegment is not ODataKeySegment &&
                             if (annotatable != null && !EdmModelHelper.IsOperationAllowed(_model, edmOperation, annotatable))
                             {
                                 continue;
-                            }                            
+                            }                          
                         }
 
                         ODataPath newPath = subPath.Clone();
@@ -824,13 +824,8 @@ private void AppendBoundOperationOnNavigationPropertyPath(IEdmOperation edmOpera
                 foreach (var path in value.Where(x => !_pathKindToSkipForNavigationProperties.Contains(x.Kind)))
                 {
                     ODataNavigationPropertySegment npSegment = path.Segments.Last(s => s is ODataNavigationPropertySegment) as ODataNavigationPropertySegment;
-
-                    if (!npSegment.NavigationProperty.ContainsTarget)
-                    {
-                        continue;
-                    }
                     
-                    if (!EdmModelHelper.IsOperationAllowed(_model, edmOperation, npSegment.NavigationProperty))
+                    if (!EdmModelHelper.IsOperationAllowed(_model, edmOperation, npSegment.NavigationProperty, npSegment.NavigationProperty.ContainsTarget))
                     {
                         continue;
                     }
@@ -954,12 +949,7 @@ private void AppendBoundOperationOnDerivedNavigationPropertyPath(
                             continue;
                         }
 
-                        if (!npSegment.NavigationProperty.ContainsTarget)
-                        {
-                            continue;
-                        }
-
-                        if (!EdmModelHelper.IsOperationAllowed(_model, edmOperation, npSegment.NavigationProperty))
+                        if (!EdmModelHelper.IsOperationAllowed(_model, edmOperation, npSegment.NavigationProperty, npSegment.NavigationProperty.ContainsTarget))
                         {
                             continue;
                         }
diff --git a/src/Microsoft.OpenApi.OData.Reader/Microsoft.OpenAPI.OData.Reader.csproj b/src/Microsoft.OpenApi.OData.Reader/Microsoft.OpenAPI.OData.Reader.csproj
index 036ea5a6..4c537ad9 100644
--- a/src/Microsoft.OpenApi.OData.Reader/Microsoft.OpenAPI.OData.Reader.csproj
+++ b/src/Microsoft.OpenApi.OData.Reader/Microsoft.OpenAPI.OData.Reader.csproj
@@ -15,7 +15,7 @@
     <TargetFrameworks>netstandard2.0</TargetFrameworks>
     <PackageId>Microsoft.OpenApi.OData</PackageId>
     <SignAssembly>true</SignAssembly>
-    <Version>1.5.0-preview4</Version>
+    <Version>1.5.0-preview5</Version>
     <Description>This package contains the codes you need to convert OData CSDL to Open API Document of Model.</Description>
     <Copyright>© Microsoft Corporation. All rights reserved.</Copyright>
     <PackageTags>Microsoft OpenApi OData EDM</PackageTags>
@@ -25,6 +25,7 @@
 - Updates README #13, #253, #40
 - Fixes casing in default propertyName for `innerError` in the `ErrorMainSchema`
 - Adds support for `x-ms-enum-flags` extension for flagged enums
+- Use containment together with RequiresExplicitBinding annotation to check whether to append bound operations to navigation properties #430
     </PackageReleaseNotes>
     <AssemblyName>Microsoft.OpenApi.OData.Reader</AssemblyName>
     <AssemblyOriginatorKeyFile>..\..\tool\Microsoft.OpenApi.OData.snk</AssemblyOriginatorKeyFile>