diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2CPPTests.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2CPPTests.java
index fb1ffb6482d..2d34c5bf385 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2CPPTests.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/AST2CPPTests.java
@@ -7688,5 +7688,16 @@ public class AST2CPPTests extends AST2BaseTest {
         final String code = getAboveComment();
         parseAndCheckBindings(code, ParserLanguage.CPP);
 	}	
+	
+	//	struct A {
+	//		template<typename T> void m() {
+	//			C<T> c;
+	//		}
+	//		template<typename T> struct C {};
+	//	};
+	public void testLookupInClassScopeForTemplateIDs_294904() throws Exception {
+        final 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/LookupData.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/LookupData.java
index ade6d840846..fb802d5b36c 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/LookupData.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/LookupData.java
@@ -322,6 +322,11 @@ public class LookupData {
 
         boolean inInitializer= false;
         IASTNode parent = name.getParent();
+        while (parent instanceof IASTName) {
+        	name= (IASTName) parent;
+        	parent= name.getParent();
+        }
+        
         while (parent != null && !(parent instanceof IASTFunctionDefinition)) {
          	if (parent instanceof IASTInitializer) {
         		inInitializer= true;
@@ -342,8 +347,6 @@ public class LookupData {
                 return false;
 
             ASTNodeProperty prop = name.getPropertyInParent();
-            if (prop == ICPPASTQualifiedName.SEGMENT_NAME)
-                prop = name.getParent().getPropertyInParent();
             if (prop == IASTIdExpression.ID_NAME ||
 					prop == IASTFieldReference.FIELD_NAME ||
 					prop == ICASTFieldDesignator.FIELD_NAME ||