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 7b0caad42a7..e7d22b0aeda 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
@@ -123,7 +123,6 @@ import org.eclipse.cdt.internal.core.parser.ParserException;
 
 public class AST2CPPTests extends AST2BaseTest {
 	
-	
 	public AST2CPPTests() {
 	}
 	
@@ -6013,4 +6012,18 @@ public class AST2CPPTests extends AST2BaseTest {
 	public void testScopeOfCatchHandler_Bug209579() throws Exception {
 		parseAndCheckBindings(getAboveComment(), ParserLanguage.CPP);
 	}
+
+	//	void func(const char& c);
+	//	void func(char& c);
+	//
+	//	void test(const char& x, char& y) {
+	//	  func(x);
+	//	  func(y);
+	//	}
+	public void testOverloadedFunction_248774() throws Exception {
+		BindingAssertionHelper helper= new BindingAssertionHelper(getAboveComment(), true);
+		ICPPFunction func1= helper.assertNonProblem("func(x)", 4, ICPPFunction.class);
+		ICPPFunction func2= helper.assertNonProblem("func(y)", 4, ICPPFunction.class);
+		assertNotSame(func1, func2);
+	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/Conversions.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/Conversions.java
index 9546d29f263..4dbb14862f7 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/Conversions.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/Conversions.java
@@ -611,6 +611,9 @@ public class Conversions {
 			firstPointer= false;
 		}
 
+		if (cost.targetHadReference && s instanceof ICPPReferenceType) {
+			s = ((ICPPReferenceType) s).getType();
+		}
 		if (s instanceof IQualifierType ^ t instanceof IQualifierType) {
 			if (t instanceof IQualifierType) {
 				if (!constInEveryCV2k) {
@@ -623,11 +626,10 @@ public class Conversions {
 			} else {
 				//4.2-2 a string literal can be converted to pointer to char
 				if (t instanceof IBasicType && ((IBasicType)t).getType() == IBasicType.t_char &&
-						s instanceof IQualifierType)
-				{
-					IType qt = ((IQualifierType)s).getType();
+						s instanceof IQualifierType) {
+					IType qt = ((IQualifierType) s).getType();
 					if (qt instanceof IBasicType) {
-						IASTExpression val = ((IBasicType)qt).getValue();
+						IASTExpression val = ((IBasicType) qt).getValue();
 						canConvert = (val != null && 
 								val instanceof IASTLiteralExpression && 
 								((IASTLiteralExpression)val).getKind() == IASTLiteralExpression.lk_string_literal);
@@ -641,7 +643,8 @@ public class Conversions {
 				}
 			}
 		} else if (s instanceof IQualifierType && t instanceof IQualifierType) {
-			IQualifierType qs = (IQualifierType) s, qt = (IQualifierType) t;
+			IQualifierType qs = (IQualifierType) s;
+			IQualifierType qt = (IQualifierType) t;
 			if (qs.isConst() == qt.isConst() && qs.isVolatile() == qt.isVolatile()) {
 				requiredConversion = Cost.IDENTITY_RANK;
 			} else if ((qs.isConst() && !qt.isConst()) || (qs.isVolatile() && !qt.isVolatile()) || !constInEveryCV2k) {
@@ -654,18 +657,18 @@ public class Conversions {
 			canConvert = true;
 			requiredConversion = Cost.CONVERSION_RANK;
 			int i = 1;
-			for (IType type = s; canConvert == true && i == 1; type = t, i++) {
+			for (IType type = s; canConvert && i == 1; type = t, i++) {
 				while (type instanceof ITypeContainer) {
 					if (type instanceof IQualifierType) {
 						canConvert = false;
 				    } else if (type instanceof IPointerType) {
-						canConvert = !((IPointerType)type).isConst() && !((IPointerType)type).isVolatile();
+						canConvert = !((IPointerType) type).isConst() && !((IPointerType) type).isVolatile();
 					}
 					if (!canConvert) {
 						requiredConversion = Cost.NO_MATCH_RANK;
 						break;
 					}
-					type = ((ITypeContainer)type).getType();
+					type = ((ITypeContainer) type).getType();
 				}
 			}
 		}