diff --git a/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CIndenterTest.java b/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CIndenterTest.java
index c0e3178f300..c0d5ad56c9c 100644
--- a/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CIndenterTest.java
+++ b/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CIndenterTest.java
@@ -1043,4 +1043,15 @@ public class CIndenterTest extends BaseUITestCase {
 						DefaultCodeFormatterConstants.INDENT_ON_COLUMN));
 		assertIndenterResult();
 	}
+
+	//vector<int> f()
+	//{
+	//}
+
+	//vector<int> f()
+	//{
+	//}
+	public void testIndentationAfterFunctionHeaderWithReturnTypeTemplateSpecification_Bug537568() throws Exception {
+		assertIndenterResult();
+	}
 }
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/text/CIndenter.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/text/CIndenter.java
index 177b1954643..85ba6a75d32 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/text/CIndenter.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/text/CIndenter.java
@@ -2229,6 +2229,12 @@ public final class CIndenter {
 			while (skipPointerOperators()) {
 				nextToken();
 			}
+			// skip template type specification of function return type
+			if (fToken == Symbols.TokenGREATERTHAN) {
+				if (!skipScope())
+					return false;
+				nextToken();
+			}
 			switch (fToken) {
 			case Symbols.TokenIDENT:
 				return true;