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 79681a1d741..9391ce22172 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
@@ -2125,4 +2125,47 @@ public class IndexBugsTests extends BaseTestCase {
 			index.releaseReadLock();
 		}
 	}
+	
+	//  // a.h
+	//	class P {};
+	
+	//  // b.h
+	//	namespace P {class C {};}
+
+	//  // source1.cpp
+	// #include "a.h" 
+	// P p;
+
+	//  // source2.cpp
+	// #include "b.h" 
+	// P::C c;
+	public void testDisambiguateClassVsNamespace_297686() throws Exception {
+		waitForIndexer();
+		String[] testData = getContentsForTest(4);
+		TestSourceReader.createFile(fCProject.getProject(), "a.h", testData[0]);
+		TestSourceReader.createFile(fCProject.getProject(), "b.h", testData[1]);
+		IFile s1= TestSourceReader.createFile(fCProject.getProject(), "s1.cpp", testData[2]);
+		IFile s2= TestSourceReader.createFile(fCProject.getProject(), "s2.cpp", testData[3]);
+		final IIndexManager indexManager = CCorePlugin.getIndexManager();
+		indexManager.reindex(fCProject);
+		waitForIndexer();
+		IIndex index= indexManager.getIndex(fCProject);
+		index.acquireReadLock();
+		try {
+			IASTTranslationUnit tu = TestSourceReader.createIndexBasedAST(index, fCProject, s1);
+			IASTSimpleDeclaration sdecl= (IASTSimpleDeclaration) tu.getDeclarations()[0];
+			IVariable var= (IVariable) sdecl.getDeclarators()[0].getName().resolveBinding();
+			assertFalse(var.getType() instanceof IProblemBinding);
+			assertTrue(var.getType() instanceof ICPPClassType);
+
+			tu = TestSourceReader.createIndexBasedAST(index, fCProject, s2);
+			sdecl= (IASTSimpleDeclaration) tu.getDeclarations()[0];
+			var= (IVariable) sdecl.getDeclarators()[0].getName().resolveBinding();
+			assertFalse(var.getType() instanceof IProblemBinding);
+			assertTrue(var.getType() instanceof ICPPClassType);
+		} finally {
+			index.releaseReadLock();
+		}
+	}
+
 }
\ No newline at end of file
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 f6231e4ee3e..1338fdd8b56 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
@@ -1758,10 +1758,15 @@ public class CPPSemantics {
 	    }
 	        
 	    if (data.typesOnly) {
-	    	if (type != null)
+	    	if (type != null) {
+		    	if (obj instanceof ICPPNamespace && compareByRelevance(data, type, obj) < 0) {
+		    		return obj;
+		    	}
 	    		return type;
+	    	}
 	    	if (obj instanceof ICPPNamespace)
 	    		return obj;
+
 	    	return null;
 	    }
 	    
@@ -1780,6 +1785,11 @@ public class CPPSemantics {
 	    }
 	    
 	    if (obj != null) {
+	    	if (type != null && obj instanceof ICPPNamespace) {
+	    		if (compareByRelevance(data, type, obj) >= 0) {
+	    			return type;
+	    		}
+	    	}
 	    	return obj;
 	    }
 	    return type;