diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexCPPBindingResolutionBugsTest.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexCPPBindingResolutionBugsTest.java
index 75c2e29af3c..41b09277131 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexCPPBindingResolutionBugsTest.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/internal/index/tests/IndexCPPBindingResolutionBugsTest.java
@@ -1397,4 +1397,21 @@ public abstract class IndexCPPBindingResolutionBugsTest extends IndexBindingReso
 		ast = workingCopy.getAST(strategy.getIndex(), ITranslationUnit.AST_SKIP_INDEXED_HEADERS);
 		checkBindings(ast);
 	}
+
+	// struct MyClass {
+	//   MyClass();
+	//   struct MyInnerClass;
+	// };
+
+	// struct MyClass::MyInnerClass {
+	// 	MyInnerClass(bool a, bool b) {
+	// 	}
+	// };
+	//
+	// MyClass::MyClass() {
+	// 	new MyInnerClass(true, true);
+	// }
+	public void testIssue_254() throws Exception {
+		checkBindings();
+	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPSemantics.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPSemantics.java
index 5d7c92b7cb5..fe32496e653 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPSemantics.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/dom/parser/cpp/semantics/CPPSemantics.java
@@ -2125,7 +2125,14 @@ public class CPPSemantics {
 				}
 				IASTTranslationUnit tu = node.getTranslationUnit();
 				IIndexFileSet indexFileSet = tu.getIndexFileSet();
-				return (indexFileSet != null && indexFileSet.containsDeclaration(indexBinding));
+				if (indexFileSet != null && indexFileSet.containsDeclaration(indexBinding)) {
+					return true;
+				} else if (indexBinding instanceof ICPPConstructor) {
+					IIndexFileSet astFileSet = tu.getASTFileSet();
+					return astFileSet != null && astFileSet.containsDeclaration(indexBinding);
+				} else {
+					return false;
+				}
 			}
 		}
 		return pointOfDecl < pointOfRef;