diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index e09166b59cf1..580f8cda3abb 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,5 +1,9 @@
 2012-07-02  Jason Merrill  <jason@redhat.com>
 
+	PR c++/53783
+	* pt.c (tsubst_copy_and_build) [LAMBDA_EXPR]: Use tsubst
+	for LAMBDA_EXPR_EXTRA_SCOPE.
+
 	PR c++/53788
 	* pt.c (build_non_dependent_expr): Don't wrap a dummy object.
 
diff --git a/gcc/cp/pt.c b/gcc/cp/pt.c
index 563a1ad294f9..d385ea7ee76c 100644
--- a/gcc/cp/pt.c
+++ b/gcc/cp/pt.c
@@ -14401,7 +14401,7 @@ tsubst_copy_and_build (tree t,
 	LAMBDA_EXPR_DISCRIMINATOR (r)
 	  = (LAMBDA_EXPR_DISCRIMINATOR (t));
 	LAMBDA_EXPR_EXTRA_SCOPE (r)
-	  = RECUR (LAMBDA_EXPR_EXTRA_SCOPE (t));
+	  = tsubst (LAMBDA_EXPR_EXTRA_SCOPE (t), args, complain, in_decl);
 	LAMBDA_EXPR_RETURN_TYPE (r)
 	  = tsubst (LAMBDA_EXPR_RETURN_TYPE (t), args, complain, in_decl);
 
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index 56b83e44eaa0..cb62b113a1ae 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,5 +1,8 @@
 2012-07-02  Jason Merrill  <jason@redhat.com>
 
+	PR c++/53783
+	* g++.dg/cpp0x/lambda/lambda-template7.C: New.
+
 	PR c++/53788
 	* g++.dg/cpp0x/decltype39.C: New.
 	* g++.dg/diagnostic/method1.C: Adjust.
diff --git a/gcc/testsuite/g++.dg/cpp0x/lambda/lambda-template7.C b/gcc/testsuite/g++.dg/cpp0x/lambda/lambda-template7.C
new file mode 100644
index 000000000000..5b098d0df332
--- /dev/null
+++ b/gcc/testsuite/g++.dg/cpp0x/lambda/lambda-template7.C
@@ -0,0 +1,5 @@
+// PR c++/53783
+// { dg-do compile { target c++11 } }
+
+template <class T> void foo() { [] { [] {}; }; }
+int main() { foo<void>(); }