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 cf6a682bc55..381e0de232e 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
@@ -7130,4 +7130,33 @@ public class AST2CPPTests extends AST2BaseTest {
     	IScope scope= t.getScope();
     	assertEquals(EScopeKind.eGlobal, scope.getKind());
 	}
+	
+	//	class C {};
+	//	class D : public C {};
+	//	class E {
+	//	   public: E(D) {}
+	//	};
+	//	void test(C c) {}
+	//	void test(E e) {}
+	//
+	//	void xx() {
+	//	   D d1;
+	//	   const D d2= D();
+	//	   test(d1); // problem binding here although test(C c) has to be selected
+	//	   test(d2); // problem binding here although test(C c) has to be selected
+	//	}
+	public void testDerivedToBaseConversion_269318() throws Exception {
+		final String code = getAboveComment();
+		BindingAssertionHelper ba= new BindingAssertionHelper(code, true);
+		ICPPFunction t= ba.assertNonProblem("test(d1);", 4, ICPPFunction.class);
+		ICPPClassType ct= (ICPPClassType) t.getParameters()[0].getType();
+    	assertEquals("C", ct.getName());
+
+		t= ba.assertNonProblem("test(d2);", 4, ICPPFunction.class);
+		ct= (ICPPClassType) t.getParameters()[0].getType();
+    	assertEquals("C", ct.getName());
+
+    	parseAndCheckBindings(code, ParserLanguage.CPP);
+	}
+
 }
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 b0dce3442bf..c6cdc8ad0b9 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
@@ -162,6 +162,22 @@ public class Conversions {
 		} 
 		
 		// Non-reference binding
+		// [13.3.3.1-6] Subsume cv-qualifications
+		source= getNestedType(source, TDEF | REF | CVQ | PTR_CVQ);
+		target= getNestedType(target, TDEF | REF | CVQ | PTR_CVQ);
+		
+		// [13.3.3.1-6] Derived to base conversion
+		if (source instanceof ICPPClassType && target instanceof ICPPClassType) {
+			int depth= calculateInheritanceDepth(CPPSemantics.MAX_INHERITANCE_DEPTH, source, target);
+			if (depth > -1) {
+				if (depth == 0) {
+					return new Cost(source, target, Rank.IDENTITY);
+				}
+				Cost cost= new Cost(source, target, Rank.CONVERSION);
+				cost.setInheritanceDistance(depth);
+				return cost;
+			}
+		}
 		return nonReferenceConversion(source, target, udc, isImpliedObject);
 	}
 
@@ -799,23 +815,4 @@ public class Conversions {
 		
 		return true;
 	}
-
-//  mstodo must be part of implicit conversion
-//	/**
-//	 * [13.3.3.1-6] Derived to base conversion
-//	 * @param cost
-//	 * @throws DOMException
-//	 */
-//	private static final void derivedToBaseConversion(Cost cost) throws DOMException {
-//		IType s = getUltimateType(cost.source, true);
-//		IType t = getUltimateType(cost.target, true);
-//
-//		if (s instanceof ICPPClassType && t instanceof ICPPClassType) {
-//			int depth= calculateInheritanceDepth(CPPSemantics.MAX_INHERITANCE_DEPTH, s, t);
-//			if (depth > -1) {
-//				cost.rank = Cost.DERIVED_TO_BASE_CONVERSION;
-//				cost.conversion = depth;
-//			}
-//		}
-//	}
 }