diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexBugsTests.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexBugsTests.java
index ad83a0ec84b..8d2936d361c 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexBugsTests.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexBugsTests.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2006, 2008 Wind River Systems, Inc. and others.
+ * Copyright (c) 2006, 2009 Wind River Systems, Inc. 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
@@ -41,6 +41,7 @@ import org.eclipse.cdt.core.dom.ast.IProblemBinding;
 import org.eclipse.cdt.core.dom.ast.IType;
 import org.eclipse.cdt.core.dom.ast.ITypedef;
 import org.eclipse.cdt.core.dom.ast.IVariable;
+import org.eclipse.cdt.core.dom.ast.cpp.ICPPBase;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPClassType;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPFunction;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPMethod;
@@ -1622,4 +1623,32 @@ public class IndexBugsTests extends BaseTestCase {
 			fIndex.releaseReadLock();
 		}
 	}
+	
+	//	namespace ns {
+	//		template<typename T> class X {};
+	//	}
+	//	class Y : public ns::X<int> {
+	//	};
+	public void testInstanceInheritance_258745() throws Exception {
+		String code= getContentsForTest(1)[0];
+		final IIndexManager indexManager = CCorePlugin.getIndexManager();
+		IFile file= TestSourceReader.createFile(fCProject.getProject(), "test.cpp", code);
+		waitUntilFileIsIndexed(file, 4000);
+		fIndex.acquireReadLock();
+		try {
+			IIndexBinding[] bindings = fIndex.findBindings("Y".toCharArray(), false, IndexFilter.ALL_DECLARED, NPM);
+			assertEquals(1, bindings.length);
+			ICPPClassType ct= (ICPPClassType) bindings[0];
+			final ICPPBase[] bases = ct.getBases();
+			assertEquals(1, bases.length);
+			IBinding inst = bases[0].getBaseClass();
+			assertTrue(inst instanceof ICPPTemplateInstance);
+
+			IIndexName name= (IIndexName) bases[0].getBaseClassSpecifierName();
+			IBinding inst2= fIndex.findBinding(name);
+			assertEquals(inst, inst2);
+		} finally {
+			fIndex.releaseReadLock();
+		}
+	}
 }
\ No newline at end of file
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/PDOMWriter.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/PDOMWriter.java
index 7298c6be8ae..03454069705 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/PDOMWriter.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/PDOMWriter.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2007, 2008 Wind River Systems, Inc. and others.
+ * Copyright (c) 2007, 2009 Wind River Systems, Inc. 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
@@ -36,6 +36,7 @@ import org.eclipse.cdt.core.dom.ast.ICompositeType;
 import org.eclipse.cdt.core.dom.ast.IEnumeration;
 import org.eclipse.cdt.core.dom.ast.IProblemBinding;
 import org.eclipse.cdt.core.dom.ast.ITypedef;
+import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTQualifiedName;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTTemplateId;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTUsingDirective;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPClassTemplate;
@@ -388,14 +389,17 @@ abstract public class PDOMWriter {
 	
 	protected final boolean isRequiredReference(IASTName name) {
 		IASTNode parentNode= name.getParent();
+		if (parentNode instanceof ICPPASTQualifiedName) {
+			if (name != ((ICPPASTQualifiedName) parentNode).getLastName())
+				return false;
+			parentNode= parentNode.getParent();
+		}
 		if (parentNode instanceof ICPPASTBaseSpecifier) {
 			return true;
-		}
-		else if (parentNode instanceof IASTDeclSpecifier) {
+		} else if (parentNode instanceof IASTDeclSpecifier) {
 			IASTDeclSpecifier ds= (IASTDeclSpecifier) parentNode;
 			return ds.getStorageClass() == IASTDeclSpecifier.sc_typedef;
-		}
-		else if (parentNode instanceof ICPPASTUsingDirective) {
+		} else if (parentNode instanceof ICPPASTUsingDirective) {
 			return true;
 		}
 		return false;
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/dom/cpp/PDOMCPPLinkage.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/dom/cpp/PDOMCPPLinkage.java
index 3d66440ac05..7311e8afdc6 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/dom/cpp/PDOMCPPLinkage.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/pdom/dom/cpp/PDOMCPPLinkage.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2005, 2008 QNX Software Systems and others.
+ * Copyright (c) 2005, 2009 QNX Software Systems 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
@@ -36,7 +36,6 @@ import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTElaboratedTypeSpecifier;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTFunctionDeclarator;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTNamespaceDefinition;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTQualifiedName;
-import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTTemplateId;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPASTUsingDirective;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPBasicType;
 import org.eclipse.cdt.core.dom.ast.cpp.ICPPClassScope;
@@ -830,16 +829,9 @@ class PDOMCPPLinkage extends PDOMLinkage implements IIndexCPPBindingConstants {
 		super.onCreateName(file, name, pdomName);
 		
 		IASTNode parentNode= name.getParent();
-		IASTNode nameNode = name;
-		if (name.getPropertyInParent() == ICPPASTTemplateId.TEMPLATE_NAME &&
-				parentNode.getParent() instanceof ICPPASTQualifiedName) {
-			nameNode = parentNode;
-			parentNode = parentNode.getParent();
-		}
 		if (parentNode instanceof ICPPASTQualifiedName) {
-		    if (nameNode != ((ICPPASTQualifiedName) parentNode).getLastName()) {
-		    	return;
-		    }
+			if (name != ((ICPPASTQualifiedName) parentNode).getLastName())
+				return;
 	    	parentNode = parentNode.getParent();
 		}
 		if (parentNode instanceof ICPPASTBaseSpecifier) {
@@ -861,8 +853,7 @@ class PDOMCPPLinkage extends PDOMLinkage implements IIndexCPPBindingConstants {
 					pdomName.setIsBaseSpecifier(true);
 				}
 			}
-		}
-		else if (parentNode instanceof ICPPASTUsingDirective) {
+		} else if (parentNode instanceof ICPPASTUsingDirective) {
 			IScope container= CPPVisitor.getContainingScope(name);
 			try {
 				boolean doit= false;
@@ -892,8 +883,7 @@ class PDOMCPPLinkage extends PDOMLinkage implements IIndexCPPBindingConstants {
 			} catch (DOMException e) {
 				CCorePlugin.log(e);
 			}
-		}
-		else if (parentNode instanceof ICPPASTElaboratedTypeSpecifier) {
+		} else if (parentNode instanceof ICPPASTElaboratedTypeSpecifier) {
 			ICPPASTElaboratedTypeSpecifier elaboratedSpecifier = (ICPPASTElaboratedTypeSpecifier)parentNode;
 			if (elaboratedSpecifier.isFriend()) {
 				pdomName.setIsFriendSpecifier(true);
@@ -903,8 +893,7 @@ class PDOMCPPLinkage extends PDOMLinkage implements IIndexCPPBindingConstants {
 					((PDOMCPPClassType)enclClassBinding).addFriend(new PDOMCPPFriend(pdom, pdomName));
 				}
 			}
-		}
-		else if (parentNode instanceof ICPPASTFunctionDeclarator) {			
+		} else if (parentNode instanceof ICPPASTFunctionDeclarator) {			
 			if (parentNode.getParent() instanceof IASTSimpleDeclaration) {
 				IASTSimpleDeclaration grandparentNode = (IASTSimpleDeclaration) parentNode.getParent();
 				if (grandparentNode.getDeclSpecifier() instanceof ICPPASTDeclSpecifier) {