diff --git a/CHANGES.current b/CHANGES.current
index 613c26851..dc328dd6b 100644
--- a/CHANGES.current
+++ b/CHANGES.current
@@ -6,6 +6,11 @@ the issue number to the end of the URL: https://github.com/swig/swig/issues/
 
 Version 4.0.0 (in progress)
 ===========================
+2017-10-09: olly
+	    [PHP] Fix incorrect wrapper code generated when there's a
+	    combination of overloading, parameters with a default value
+	    and %newobject.  Fixes https://sourceforge.net/p/swig/bugs/1350/
+
 2017-10-09: olly
 	    Remove GCJ support.  It isn't in a good state and doesn't seem to
 	    be used, and GCC7 dropped GCJ.  Closes
diff --git a/Examples/test-suite/common.mk b/Examples/test-suite/common.mk
index 2d177aa74..07937acfe 100644
--- a/Examples/test-suite/common.mk
+++ b/Examples/test-suite/common.mk
@@ -316,6 +316,7 @@ CPP_TEST_CASES += \
 	nested_template_base \
 	nested_workaround \
 	newobject1 \
+	newobject3 \
 	null_pointer \
 	operator_overload \
 	operator_overload_break \
diff --git a/Examples/test-suite/newobject3.i b/Examples/test-suite/newobject3.i
new file mode 100644
index 000000000..e408fade2
--- /dev/null
+++ b/Examples/test-suite/newobject3.i
@@ -0,0 +1,25 @@
+/**
+ * Regression test for PHP bug: https://sourceforge.net/p/swig/bugs/1350/
+ */
+
+%module newobject3
+
+%newobject factory::create;
+%inline %{
+class product {};
+class factory {
+public:
+    product * create(short id, short type = 0);
+    product * create(const char * name, short type = 0);
+};
+%}
+
+%{
+product * factory::create(short id, short type) {
+    return (id && type >= 0) ? new product : NULL;
+}
+
+product * factory::create(const char * name, short type) {
+    return (name && type >= 0) ? new product : NULL;
+}
+%}
diff --git a/Examples/test-suite/php/newobject3_runme.php b/Examples/test-suite/php/newobject3_runme.php
new file mode 100644
index 000000000..a95b777d1
--- /dev/null
+++ b/Examples/test-suite/php/newobject3_runme.php
@@ -0,0 +1,18 @@
+<?php
+
+require "tests.php";
+require "newobject3.php";
+
+$factory = new factory();
+
+check::classname("product", $factory->create(7));
+check::classname("product", $factory->create(7, 6));
+check::classname("product", $factory->create("test"));
+check::classname("product", $factory->create("test", 2));
+
+check::isnull($factory->create(0), "create(0) should be NULL");
+check::isnull($factory->create(7, -1), "create(7, -1) should be NULL");
+check::isnull($factory->create(0, -1), "create(0, -1) should be NULL");
+check::isnull($factory->create("bad", -1), "create(\"bad\", -1) should be NULL");
+
+?>