Yes, you are right you need to use an embedded report. The only trick when using such a report is to define the correct query for the embedded report so that it finds references of the parent object.
For example, if you have a Patient object and a Procedure object and a Patient has multiple references to a Procedure object in an attribute called Procedures the query may look like this:
FIND Procedure WHERE Procedure IN Patient.Procedures
Please also see the sample Library application where Member Details report has several embedded reports. Note the queries defined for these embedded reports