diff --git a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/CompleteParseASTTemplateTest.java b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/CompleteParseASTTemplateTest.java
index 36af31ebd0d..43959774cb5 100644
--- a/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/CompleteParseASTTemplateTest.java
+++ b/core/org.eclipse.cdt.core.tests/parser/org/eclipse/cdt/core/parser/tests/CompleteParseASTTemplateTest.java
@@ -33,7 +33,6 @@ import org.eclipse.cdt.core.parser.ast.IASTTemplateSpecialization;
 import org.eclipse.cdt.core.parser.ast.IASTTypedefDeclaration;
 import org.eclipse.cdt.core.parser.ast.IASTVariable;
 import org.eclipse.cdt.internal.core.parser.ParserException;
-import org.eclipse.cdt.internal.core.parser.pst.ParserSymbolTableError;
 
 /**
  * @author aniefer
@@ -974,7 +973,15 @@ public class CompleteParseASTTemplateTest extends CompleteParseBaseTest {
 		try{
 			parse( "template < class T > class A : public A< T * > {}; A<int> a;" ).getDeclarations(); //NON-NLS-1$
 			assertTrue( false );
-		} catch ( ParserSymbolTableError e ){
+		} catch ( ParserException e ){
+			assertTrue( e.getMessage().equals( "FAILURE" ) ); //$NON-NLS-1$
+		}
+		
+		try{
+			parse( "template < class T > class A { A<T*> f(); }; A< int > a;" ).getDeclarations(); //NON-NLS-1$
+			assertTrue( false );
+		} catch ( ParserException e ){
+			assertTrue( e.getMessage().equals( "FAILURE" ) ); //$NON-NLS-1$
 		}
 	}
 }
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/DerivableContainerSymbol.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/DerivableContainerSymbol.java
index 76a0651e77a..3155b0d10d3 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/DerivableContainerSymbol.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/DerivableContainerSymbol.java
@@ -97,6 +97,27 @@ public class DerivableContainerSymbol extends ContainerSymbol implements IDeriva
 		}
 	}
 	
+	/**
+	 * @param symbol
+	 * @param symbol2
+	 * @param map
+	 */
+	public void discardDeferredParent(IDeferredTemplateInstance parent, ITemplateSymbol template, Map map) {
+		List parents = getParents();
+		int size = parents.size();
+		ParentWrapper w = null;
+		ISymbol originalParent = parent.getTemplate().getTemplatedSymbol();
+		for( int i = 0; i < size; i++ ){
+			w = (ParentWrapper) parents.get(i);
+			ISymbol instance = w.getParent();
+			if( instance.getInstantiatedSymbol() == originalParent ){
+				parents.remove( i );
+				template.removeInstantiation( (IContainerSymbol) instance );
+				break;
+			}
+		}
+	}
+	
 	protected void collectInstantiatedConstructor( IParameterizedSymbol constructor ){
 		if( constructor.isType( TypeInfo.t_constructor ) )
 			addToConstructors( constructor );
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/ParameterizedSymbol.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/ParameterizedSymbol.java
index 8b0ea64e369..54999f21f86 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/ParameterizedSymbol.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/ParameterizedSymbol.java
@@ -105,6 +105,16 @@ public class ParameterizedSymbol extends ContainerSymbol implements IParameteriz
 		setReturnType( returnType.instantiate( template, argMap ) );
 	}
 	
+	/**
+	 * @param symbol
+	 * @param symbol2
+	 * @param map
+	 */
+	public void discardDeferredReturnType(ISymbol oldReturnType, TemplateSymbol template, Map map) {
+		ISymbol returnType = getReturnType();
+		setReturnType( null );
+		template.removeInstantiation( (IContainerSymbol) returnType );
+	}
 	
 	public void prepareForParameters( int numParams ){
 		if( _parameterList == Collections.EMPTY_LIST ){
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/SpecializedSymbol.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/SpecializedSymbol.java
index 7f181e46010..552aca66742 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/SpecializedSymbol.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/SpecializedSymbol.java
@@ -111,8 +111,15 @@ public class SpecializedSymbol extends TemplateSymbol implements ISpecializedSym
 			
 		instance = (IContainerSymbol) symbol.instantiate( this, argMap );
 		addInstantiation( instance, actualArgs );
-		processDeferredInstantiations();
-			
+		try{
+			processDeferredInstantiations();
+		} catch( ParserSymbolTableException e ){
+			if( e.reason == ParserSymbolTableException.r_RecursiveTemplate ){
+				//clean up some.
+				removeInstantiation( instance );
+			}
+			throw e;
+		}
 		return instance;
 		
 	}
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateEngine.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateEngine.java
index d2875848299..4b14414bcc0 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateEngine.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateEngine.java
@@ -69,6 +69,18 @@ public final class TemplateEngine {
 		info.setTypeSymbol( info.getTypeSymbol().instantiate( template, argMap ) );
 	}
 	
+	/**
+	 * @param info
+	 * @param symbol
+	 * @param map
+	 */
+	public static void discardDeferredTypeInfo(TypeInfo info, TemplateSymbol template, Map map) {
+		ISymbol instance = info.getTypeSymbol();
+		if( !(instance instanceof IDeferredTemplateInstance ) )
+			template.removeInstantiation( (IContainerSymbol) instance );
+		info.setTypeSymbol( null );
+	}
+	
 	static protected ITemplateSymbol matchTemplatePartialSpecialization( ITemplateSymbol template, List args ) throws ParserSymbolTableException{
 		if( template == null ){
 			return null;
diff --git a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateSymbol.java b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateSymbol.java
index 1048dcd96bf..bd45b640489 100644
--- a/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateSymbol.java
+++ b/core/org.eclipse.cdt.core/parser/org/eclipse/cdt/internal/core/parser/pst/TemplateSymbol.java
@@ -150,7 +150,15 @@ public class TemplateSymbol	extends ParameterizedSymbol	implements ITemplateSymb
 		instance = (IContainerSymbol) symbol.instantiate( template, map );
 		addInstantiation( instance, actualArgs );
 		
-		processDeferredInstantiations();
+		try{
+			processDeferredInstantiations();
+		} catch( ParserSymbolTableException e ){
+			if( e.reason == ParserSymbolTableException.r_RecursiveTemplate ){
+				//clean up some.
+				removeInstantiation( instance );
+			}
+			throw e;
+		}
 		
 		return instance;		
 	}
@@ -434,10 +442,11 @@ public class TemplateSymbol	extends ParameterizedSymbol	implements ITemplateSymb
 		}
 		_processingDeferred = true;
 		int numDeferred = _deferredInstantiations.size();
+		int numProcessed = 0;
 		int loopCount = 0;
-		while( numDeferred > 0 ){
-			while( numDeferred > 0 ) {
-				Object [] objs = (Object [])_deferredInstantiations.get(0);
+		while( numDeferred > numProcessed ){
+			for( int i = numProcessed; i < numDeferred; i++ ){
+				Object [] objs = (Object [])_deferredInstantiations.get(i);
 				
 				DeferredKind kind = (DeferredKind) objs[2];
 				
@@ -450,17 +459,38 @@ public class TemplateSymbol	extends ParameterizedSymbol	implements ITemplateSymb
 				} else if( kind == DeferredKind.TYPE_SYMBOL ){
 					TemplateEngine.instantiateDeferredTypeInfo( (TypeInfo) objs[0], this, (Map) objs[3] );
 				}
-				
-				_deferredInstantiations.remove( 0 );
-				numDeferred--;
+				numProcessed++;
 			}
 			numDeferred = _deferredInstantiations.size();
-			if( ++loopCount > ParserSymbolTable.TEMPLATE_LOOP_THRESHOLD )
+			if( ++loopCount > ParserSymbolTable.TEMPLATE_LOOP_THRESHOLD ){
+				discardDeferredInstantiations();
+				_processingDeferred = false;
 				throw new ParserSymbolTableException( ParserSymbolTableException.r_RecursiveTemplate );
+			}
 		}
 		_processingDeferred = false;
 	}
 	
+	private void discardDeferredInstantiations(){
+		int size = _deferredInstantiations.size();
+		for( int i = 0; i < size; i++ ){
+			Object [] objs = (Object []) _deferredInstantiations.get(i);
+			
+			DeferredKind kind = (DeferredKind) objs[2];
+			
+			if( kind == DeferredKind.PARENT ){
+				DerivableContainerSymbol d = (DerivableContainerSymbol) objs[0];
+				d.discardDeferredParent( (IDeferredTemplateInstance) objs[1], this, (Map) objs[3] );
+			} else if( kind == DeferredKind.RETURN_TYPE ){
+				ParameterizedSymbol p = (ParameterizedSymbol) objs[0];
+				p.discardDeferredReturnType( (ISymbol) objs[1], this, (Map) objs[3] );
+			} else if( kind == DeferredKind.TYPE_SYMBOL ){
+				TemplateEngine.discardDeferredTypeInfo( (TypeInfo) objs[0], this, (Map) objs[3] );
+			}
+		}
+		_deferredInstantiations.clear();
+	}
+	
 	private		List  _specializations         = Collections.EMPTY_LIST;	//template specializations
 	private     Map	  _explicitSpecializations = Collections.EMPTY_MAP;		//explicit specializations
 	private		Map	  _defnParameterMap        = Collections.EMPTY_MAP;		//members could be defined with different template parameter names