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 d9635920e35..c7ca12fdcf9 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
@@ -10242,4 +10242,17 @@ public class AST2TemplateTests extends AST2TestBase {
 	public void testOverloadingOnTypeOfNonTypeTemplateParameter_512932() throws Exception {
 		parseAndCheckBindings();
 	}
+	
+	//	template <typename T>
+	//	void waldo(T&);
+	//
+	//	class A {};
+	//	typedef const A CA;
+	//
+	//	int main() {
+	//	    waldo(CA());
+	//	}
+	public void testReferenceBinding_Regression_516284() throws Exception {
+		parseAndCheckBindings();
+	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/EvalTypeId.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/EvalTypeId.java
index 79c966a8e22..8d9cc05f756 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/EvalTypeId.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/EvalTypeId.java
@@ -80,7 +80,7 @@ public class EvalTypeId extends CPPDependentEvaluation {
 			throw new NullPointerException("arguments"); //$NON-NLS-1$
 
 		if (!CPPTemplates.isDependentType(type))
-			type = SemanticUtil.getNestedType(type, TDEF | CVTYPE);
+			type = SemanticUtil.getNestedType(type, TDEF);
 		fInputType= type;
 		fArguments= arguments;
 		fRepresentsNewExpression = forNewExpression;
@@ -146,8 +146,9 @@ public class EvalTypeId extends CPPDependentEvaluation {
 		if (fRepresentsNewExpression)
 			return IntegralValue.UNKNOWN;
 
-		if (fInputType instanceof ICPPClassType) {
-			ICPPClassType classType = (ICPPClassType) fInputType;
+		IType inputType = SemanticUtil.getNestedType(fInputType, CVTYPE);
+		if (inputType instanceof ICPPClassType) {
+			ICPPClassType classType = (ICPPClassType) inputType;
 			IBinding ctor = getConstructor(point);
 			if (EvalUtil.isCompilerGeneratedCtor(ctor)) {
 				return CompositeValue.create(classType, point);
@@ -164,8 +165,8 @@ public class EvalTypeId extends CPPDependentEvaluation {
 			}
 		}
 		if (fArguments.length == 0 || isEmptyInitializerList(fArguments)) {
-			if (fInputType instanceof ICPPBasicType) {
-				switch (((ICPPBasicType) fInputType).getKind()) {
+			if (inputType instanceof ICPPBasicType) {
+				switch (((ICPPBasicType) inputType).getKind()) {
 					case eInt:
 					case eInt128:
 					case eDouble:
@@ -254,7 +255,7 @@ public class EvalTypeId extends CPPDependentEvaluation {
 		if (isTypeDependent())
 			return null;
 
-		IType simplifiedType = SemanticUtil.getNestedType(fInputType, SemanticUtil.TDEF);
+		IType simplifiedType = SemanticUtil.getNestedType(fInputType, TDEF | CVTYPE);
 		if (simplifiedType instanceof ICPPClassType) {
 			ICPPClassType classType = (ICPPClassType) simplifiedType;
 			ICPPEvaluation[] arguments = fArguments;