diff --git a/gcc/cp/name-lookup.cc b/gcc/cp/name-lookup.cc
index d1abb205bc7..742e5d289dc 100644
--- a/gcc/cp/name-lookup.cc
+++ b/gcc/cp/name-lookup.cc
@@ -5101,10 +5101,8 @@ set_identifier_type_value_with_scope (tree id, tree decl, cp_binding_level *b)
   if (b->kind == sk_namespace)
     /* At namespace scope we should not see an identifier type value.  */
     gcc_checking_assert (!REAL_IDENTIFIER_TYPE_VALUE (id)
-			 /* We could be pushing a friend underneath a template
-			    parm (ill-formed).  */
-			 || (TEMPLATE_PARM_P
-			     (TYPE_NAME (REAL_IDENTIFIER_TYPE_VALUE (id)))));
+			 /* But we might end up here with ill-formed input.  */
+			 || seen_error ());
   else
     {
       /* Push the current type value, so we can restore it later  */
diff --git a/gcc/testsuite/g++.dg/parse/crash80.C b/gcc/testsuite/g++.dg/parse/crash80.C
new file mode 100644
index 00000000000..cd9216adf5c
--- /dev/null
+++ b/gcc/testsuite/g++.dg/parse/crash80.C
@@ -0,0 +1,7 @@
+// PR c++/116740
+// { dg-do "compile" }
+
+class K {
+  int a(struct b; // { dg-error "expected '\\)'" }
+};
+struct b {};