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 58a8e5af278..ee85cd65de3 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
@@ -3844,4 +3844,18 @@ public class AST2TemplateTests extends AST2BaseTest {
 		String code= getAboveComment();
 		parseAndCheckBindings(code, ParserLanguage.CPP);
 	}
+	
+	//	template<typename T> class CT {};
+	//	template<class T> CT<T>& getline1(CT<T>& __in);
+	//	template<class T> CT<T>& getline2(CT<T>& __in);
+	//	void test() {
+	//		CT<int> i;
+	//		getline2(i);
+	//	}
+	public void testAmbiguousDeclaratorInFunctionTemplate_265342() throws Exception {
+		final String code = getAboveComment();
+		BindingAssertionHelper bh= new BindingAssertionHelper(code, true);
+		bh.assertNonProblem("getline2(i)", 8, ICPPTemplateInstance.class);
+		parseAndCheckBindings(code, ParserLanguage.CPP);
+	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguityResolver.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguityResolver.java
index 641c8fe53b8..36fbb94b256 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguityResolver.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguityResolver.java
@@ -166,7 +166,7 @@ final class CPPASTAmbiguityResolver extends ASTVisitor {
 	}
 
 	private void repopulateScope(IASTDeclaration declaration) {
-		IScope scope= CPPVisitor.getContainingScope(declaration);
+		IScope scope= CPPVisitor.getContainingNonTemplateScope(declaration);
 		if (scope instanceof ICPPASTInternalScope) {
 			CPPSemantics.populateCache((ICPPASTInternalScope) scope, declaration);
 		}
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousCondition.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousCondition.java
index 49fd7bf2e5b..9257b512f16 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousCondition.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousCondition.java
@@ -44,7 +44,7 @@ public class CPPASTAmbiguousCondition extends ASTAmbiguousNode implements IASTAm
 	@Override
 	protected void beforeResolution() {
 		// populate containing scope, so that it will not be affected by the alternative branches.
-		IScope scope= CPPVisitor.getContainingScope(this);
+		IScope scope= CPPVisitor.getContainingNonTemplateScope(this);
 		if (scope instanceof ICPPASTInternalScope) {
 			((ICPPASTInternalScope) scope).populateCache();
 		}
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousDeclarator.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousDeclarator.java
index 1b516bda6ce..458d3d13d16 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousDeclarator.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/CPPASTAmbiguousDeclarator.java
@@ -44,7 +44,7 @@ public class CPPASTAmbiguousDeclarator extends ASTAmbiguousNode implements IASTA
 	@Override
 	protected void beforeResolution() {
 		// populate containing scope, so that it will not be affected by the alternative branches.
-		IScope scope= CPPVisitor.getContainingScope(this);
+		IScope scope= CPPVisitor.getContainingNonTemplateScope(this);
 		if (scope instanceof ICPPASTInternalScope) {
 			((ICPPASTInternalScope) scope).populateCache();
 		}
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPVisitor.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPVisitor.java
index 581e8d32863..ed06f530b7b 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPVisitor.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPVisitor.java
@@ -578,11 +578,8 @@ public class CPPVisitor extends ASTQueries {
 		IBinding binding= null;
 		final boolean template= tmplDecl != null;
 		boolean isFriendDecl= false;
-		ICPPScope scope = (ICPPScope) getContainingScope((IASTNode) name);
+		ICPPScope scope = (ICPPScope) getContainingNonTemplateScope(name);
 		try {
-			while (scope instanceof ICPPTemplateScope) {
-				scope= (ICPPScope) scope.getParent();
-			}
 			if (parent instanceof IASTSimpleDeclaration && scope instanceof ICPPClassScope) {
 				ICPPASTDeclSpecifier declSpec = (ICPPASTDeclSpecifier) ((IASTSimpleDeclaration) parent).getDeclSpecifier();
 				if (declSpec.isFriend()) {