diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index 8c2e6a3b636..1bc4fed5a5a 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,5 +1,9 @@
 2003-08-01  Nathan Sidwell  <nathan@codesourcery.com>
 
+	PR c++/11525
+	* parser.c (cp_parser_primary_expression): Do not set
+	non-constant-p merely because it is a dependent scope.
+
 	PR c++/9447
 	* decl2.c (do_class_using_decl): Set type to NULL_TREE.
 	* semantics.c (finish_expr_stmt): Do not convert to void in a
diff --git a/gcc/cp/parser.c b/gcc/cp/parser.c
index 64d260d5b27..c4b40b20d04 100644
--- a/gcc/cp/parser.c
+++ b/gcc/cp/parser.c
@@ -2394,11 +2394,6 @@ cp_parser_primary_expression (cp_parser *parser,
 	      {
 		if (TYPE_P (TREE_OPERAND (decl, 0)))
 		  *qualifying_class = TREE_OPERAND (decl, 0);
-		/* Since this name was dependent, the expression isn't
-		   constant -- yet.  No error is issued because it
-		   might be constant when things are instantiated.  */
-		if (parser->constant_expression_p)
-		  parser->non_constant_expression_p = true;
 		return decl;
 	      }
 	    /* Check to see if DECL is a local variable in a context
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 57e9802dc33..f78f24ecb7d 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,5 +1,8 @@
 2003-08-01  Nathan Sidwell  <nathan@codesourcery.com>
 
+	PR c++/11525
+	* g++.dg/parse/constant4.C: New test.
+
 	PR c++/9447
 	* g++.dg/template/using5.C: New test.
 
diff --git a/gcc/testsuite/g++.dg/parse/constant4.C b/gcc/testsuite/g++.dg/parse/constant4.C
new file mode 100644
index 00000000000..65c84d94a13
--- /dev/null
+++ b/gcc/testsuite/g++.dg/parse/constant4.C
@@ -0,0 +1,40 @@
+// { dg-do compile }
+
+// Copyright (C) 2003 Free Software Foundation, Inc.
+// Contributed by Nathan Sidwell 31 Jul 2003 <nathan@codesourcery.com>
+
+// PR c++/11525 incorrect error about non-constant initalizer
+
+template<typename> class X;
+template<unsigned> class Y {};
+
+
+template<typename T>
+void Foo ()
+{
+  static const unsigned I = X<T>::I;
+  
+  Y<I> i;
+  
+  static const unsigned J = X<T>::J;
+  
+  Y<J> j; // { dg-error "non-constant" "" }
+}
+
+struct A 
+{
+  operator unsigned () const;
+};
+
+template <typename> struct X 
+{
+  enum {I};
+  static A const J;
+};
+
+void Baz ()
+{
+  Foo<int> (); // { dg-error "instantiated" "" }
+}
+
+