diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/DOMLocationMacroTests.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/DOMLocationMacroTests.java
index a10e2c54dcf..b879a6a5936 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/DOMLocationMacroTests.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/ast2/DOMLocationMacroTests.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2004, 2006 IBM Corporation and others.
+ * Copyright (c) 2004, 2007 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -8,12 +8,15 @@
  * Contributors:
  * IBM - Initial API and implementation
  * Markus Schorn (Wind River Systems)
+ * Anton Leherbauer (Wind River Systems)
  *******************************************************************************/
 package org.eclipse.cdt.core.parser.tests.ast2;
 
 import org.eclipse.cdt.core.dom.ast.IASTDeclarator;
+import org.eclipse.cdt.core.dom.ast.IASTExpression;
 import org.eclipse.cdt.core.dom.ast.IASTFileLocation;
 import org.eclipse.cdt.core.dom.ast.IASTFunctionDefinition;
+import org.eclipse.cdt.core.dom.ast.IASTInitializerExpression;
 import org.eclipse.cdt.core.dom.ast.IASTMacroExpansion;
 import org.eclipse.cdt.core.dom.ast.IASTName;
 import org.eclipse.cdt.core.dom.ast.IASTNodeLocation;
@@ -344,4 +347,29 @@ public class DOMLocationMacroTests extends AST2BaseTest {
             assertNotNull( f.getFileLocation() ); 
         }
     }
+
+    public void testFunctionMacroExpansionWithNameSubstitution_Bug173637() throws Exception
+    {
+        StringBuffer buffer = new StringBuffer( "#define PLUS5(x) (x+5)\n"); //$NON-NLS-1$
+        buffer.append( "#define FUNCTION PLUS5 \n"); //$NON-NLS-1$
+        buffer.append( "int var= FUNCTION(1);"); //$NON-NLS-1$
+        String code = buffer.toString();
+        
+        for (ParserLanguage p = ParserLanguage.C; p != null; p = (p == ParserLanguage.C) ? ParserLanguage.CPP
+                : null) {
+            IASTTranslationUnit tu = parse(code, p);
+            IASTSimpleDeclaration var = (IASTSimpleDeclaration) tu.getDeclarations()[0];
+            IASTInitializerExpression initializer= (IASTInitializerExpression)var.getDeclarators()[0].getInitializer();
+            IASTExpression expr= initializer.getExpression();
+            assertNotNull(expr.getFileLocation()); 
+            IASTNodeLocation [] locations = expr.getNodeLocations();
+            assertEquals(1, locations.length);
+            IASTMacroExpansion macroExpansion = (IASTMacroExpansion) locations[0];
+            IASTNodeLocation[] expLocations= macroExpansion.getExpansionLocations();
+            assertEquals(1, expLocations.length);
+            assertEquals(code.indexOf("FUNCTION(1)"), expLocations[0].getNodeOffset());
+            assertEquals("FUNCTION(1)".length(), expLocations[0].getNodeLength());
+        }
+    }
+
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/BaseScanner.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/BaseScanner.java
index 32e21c68ca6..af92f567b0e 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/BaseScanner.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/BaseScanner.java
@@ -4026,9 +4026,13 @@ abstract class BaseScanner implements IScanner {
                     return null;
                 }
 
-                MacroData data = (MacroData) bufferData[stackpPos + 1];
-                for (int i = bufferStackPos; i > stackpPos; i--)
-                    popContext();
+                MacroData data;
+                IMacro popMacro= macro;
+                do {
+                	data= (MacroData) bufferData[bufferStackPos];
+                    popContextForFunctionMacroName(popMacro);
+                	popMacro= data.macro;
+                } while (bufferStackPos > stackpPos);
 
                 bufferPos[bufferStackPos] = idx;
                 buffer = bufferStack[bufferStackPos];
@@ -4158,7 +4162,18 @@ abstract class BaseScanner implements IScanner {
         return result;
     }
 
-    protected char[] replaceArgumentMacros(char[] arg) {
+    /**
+     * Called when the buffer limit is reached while expanding a function style macro.
+     * This special case might be handled differently by subclasses.
+     * 
+	 * @param macro
+	 */
+	protected void popContextForFunctionMacroName(IMacro macro) {
+		// do the default
+		popContext();
+	}
+
+	protected char[] replaceArgumentMacros(char[] arg) {
         int limit = arg.length;
         int start = -1, end = -1;
         Object expObject = null;
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/DOMScanner.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/DOMScanner.java
index 79e57396af5..ddbe854303b 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/DOMScanner.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/scanner2/DOMScanner.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2004, 2006 IBM Corporation and others.
+ * Copyright (c) 2004, 2007 IBM Corporation and others.
  * All rights reserved. This program and the accompanying materials
  * are made available under the terms of the Eclipse Public License v1.0
  * which accompanies this distribution, and is available at
@@ -8,6 +8,7 @@
  * Contributors:
  * IBM - Initial API and implementation
  * Markus Schorn (Wind River Systems)
+ * Anton Leherbauer (Wind River Systems)
  *******************************************************************************/
 package org.eclipse.cdt.internal.core.parser.scanner2;
 
@@ -250,6 +251,15 @@ public class DOMScanner extends BaseScanner {
         }
 	}
 
+	/*
+	 * @see org.eclipse.cdt.internal.core.parser.scanner2.BaseScanner#popContextForFunctionMacroName(org.eclipse.cdt.core.parser.IMacro)
+	 */
+	protected void popContextForFunctionMacroName(IMacro macro) {
+		// fix the delta before popping
+		bufferDelta[bufferStackPos] -= macro.getName().length;
+		popContext();
+	}
+	
     protected int fsmCount = 0;
 
     /*