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Summary In this article, we have devised a new reference smoothness indicator for third-order weighted essentially non-oscillatory (WENO) scheme to achieve desired order of convergence at critical points. In the context of the weighted essentially non-oscillatory scheme, reference smoothness indicator is constructed in such a way that it satisfies the sufficient condition on the weights for the third-order convergence. The goal is to construct a reference smoothness indicator such that the resulted scheme have to achieve the required order of accuracy even if the first two derivatives vanish but not the third derivative. The construction of such reference smoothness indicator is not possible through a linear combination of local smoothness indicators only. We have proposed a reference smoothness indicator to be of the fourth order of accuracy on three-point stencil that contains the linear combination of the first derivative information of the local and global stencils. The performance enhancement of the WENO scheme through this reference smoothness indicator is verified through the standard numerical experiments. Numerical results indicate that the new scheme provides better results in comparison with the earlier third-order WENO schemes like WENO-JS and WENO-Z. Copyright © 2017 John Wiley & Sons, Ltd.