diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2TemplateTests.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2TemplateTests.java
index 2d9fc41e6aa..2e622a0cfc3 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2TemplateTests.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2TemplateTests.java
@@ -3770,4 +3770,18 @@ public class AST2TemplateTests extends AST2BaseTest {
 		BindingAssertionHelper bh= new BindingAssertionHelper(getAboveComment(), true);
 		bh.assertNonProblem("A<C> make_A(C* p) {", 4, ICPPTemplateInstance.class);
 	}
+	
+	//	template <typename T> class CT {
+	//		public:
+	//			template <typename U> CT(U u) {}
+	//	};
+	//	template <typename T> void any(T t) {}
+	//	void test() {
+	//		int* iptr;
+	//		any(CT<int>(iptr));
+	//	}
+	public void testConstructorTemplateInClassTemplate() throws Exception {
+		String code= getAboveComment();
+		parseAndCheckBindings(code, ParserLanguage.CPP);
+	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPTemplates.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPTemplates.java
index d62be368db4..ff38d362010 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPTemplates.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPTemplates.java
@@ -607,15 +607,6 @@ public class CPPTemplates {
 			parentOfName= parentOfName.getParent();
 		}
 
-		IASTNode parentOfDeclaration= parentOfName;
-		while (parentOfDeclaration != null) {
-			if (parentOfDeclaration instanceof IASTDeclaration) {
-				parentOfDeclaration= parentOfDeclaration.getParent();
-				break;
-			}
-			parentOfDeclaration= parentOfDeclaration.getParent();
-		}
-
 		return  parentOfName instanceof ICPPASTElaboratedTypeSpecifier ||
 				parentOfName instanceof ICPPASTCompositeTypeSpecifier ||
 				parentOfName instanceof ICPPASTNamedTypeSpecifier || 
@@ -1368,7 +1359,11 @@ public class CPPTemplates {
 			ICPPFunctionTemplate template = (ICPPFunctionTemplate) templates.keyAt(idx);
 			CPPTemplateParameterMap map= new CPPTemplateParameterMap(fnArgs.length);
 			try {
-				ICPPTemplateArgument[] args= deduceTemplateFunctionArguments(template, templateArguments, fnArgs, map);
+				ICPPTemplateArgument[] useArgs = templateArguments;
+				if (template instanceof ICPPConstructor)
+					useArgs= ICPPTemplateArgument.EMPTY_ARGUMENTS;
+				
+				ICPPTemplateArgument[] args= deduceTemplateFunctionArguments(template, useArgs, fnArgs, map);
 				if (args != null) {
 					IBinding temp= instantiateFunctionTemplate(template, args);
 					if (temp instanceof IFunction) {