diff --git a/CHANGES.current b/CHANGES.current
index 9304d636a..941e575a7 100644
--- a/CHANGES.current
+++ b/CHANGES.current
@@ -5,6 +5,11 @@ See the RELEASENOTES file for a summary of changes in each release.
 Version 3.0.3 (in progress)
 ===========================
 
+2014-12-09: wsfulton
+            Fix #245 - regression (since swig-3.0.0) in templated constructors.
+            Templated constructors could not be instantiated - they were incorrectly ignored with a warning 504:
+            "Function: xyz must have a return type. Ignored."
+
 2014-12-07: wsfulton
             Add support for C++11 strongly typed enumerations.
 
diff --git a/Examples/test-suite/common.mk b/Examples/test-suite/common.mk
index c1cef0bcc..d4f34a707 100644
--- a/Examples/test-suite/common.mk
+++ b/Examples/test-suite/common.mk
@@ -382,6 +382,7 @@ CPP_TEST_CASES += \
 	template_classes \
 	template_const_ref \
 	template_construct \
+	template_templated_constructors \
 	template_default \
 	template_default2 \
 	template_default_arg \
diff --git a/Examples/test-suite/java/template_templated_constructors_runme.java b/Examples/test-suite/java/template_templated_constructors_runme.java
new file mode 100644
index 000000000..cd3f31d21
--- /dev/null
+++ b/Examples/test-suite/java/template_templated_constructors_runme.java
@@ -0,0 +1,26 @@
+
+import template_templated_constructors.*;
+
+public class template_templated_constructors_runme {
+
+  static {
+    try {
+	System.loadLibrary("template_templated_constructors");
+    } catch (UnsatisfiedLinkError e) {
+      System.err.println("Native code library failed to load. See the chapter on Dynamic Linking Problems in the SWIG Java documentation for help.\n" + e);
+      System.exit(1);
+    }
+  }
+
+  public static void main(String argv[]) {
+    TConstructor1 t1 = new TConstructor1(123);
+    TConstructor2 t2a = new TConstructor2();
+    TConstructor2 t2b = new TConstructor2(123);
+
+    TClass1Int tc1 = new TClass1Int(123.4);
+    TClass2Int tc2a = new TClass2Int();
+    TClass2Int tc2b = new TClass2Int(123.4);
+
+  }
+}
+
diff --git a/Examples/test-suite/template_templated_constructors.i b/Examples/test-suite/template_templated_constructors.i
new file mode 100644
index 000000000..ee9df94bb
--- /dev/null
+++ b/Examples/test-suite/template_templated_constructors.i
@@ -0,0 +1,47 @@
+%module template_templated_constructors
+
+%inline %{
+namespace ConstructSpace {
+
+class TConstructor1 {
+public:
+  template<typename T> TConstructor1(T val) {}
+  ~TConstructor1() {}
+};
+
+class TConstructor2 {
+public:
+  TConstructor2() {}
+  template<typename T> TConstructor2(T val) {}
+  ~TConstructor2() {}
+};
+
+template<typename T> class TClass1 {
+public:
+  template<typename Y> TClass1(Y t) {}
+};
+
+template<typename T> class TClass2 {
+public:
+  TClass2() {}
+  template<typename Y> TClass2(Y t) {}
+};
+
+}
+%}
+
+%extend ConstructSpace::TConstructor1 {
+  %template(TConstructor1) TConstructor1<int>;
+}
+
+%template(TConstructor2) ConstructSpace::TConstructor2::TConstructor2<int>;
+
+%template(TClass1Int) ConstructSpace::TClass1<int>;
+%extend ConstructSpace::TClass1<int> {
+  %template(TClass1Int) TClass1<double>;
+}
+
+%template(TClass2Int) ConstructSpace::TClass2<int>;
+%extend ConstructSpace::TClass2<int> {
+  %template(TClass2Int) TClass2<double>;
+}
diff --git a/Source/Modules/lang.cxx b/Source/Modules/lang.cxx
index c90e3dece..3efd4e425 100644
--- a/Source/Modules/lang.cxx
+++ b/Source/Modules/lang.cxx
@@ -2694,7 +2694,8 @@ int Language::constructorDeclaration(Node *n) {
       String *scope = Swig_scopename_check(ClassName) ? Swig_scopename_prefix(ClassName) : 0;
       String *actual_name = scope ? NewStringf("%s::%s", scope, name) : NewString(name);
       Delete(scope);
-      if (!Equal(actual_name, expected_name) && !SwigType_istemplate(expected_name)) {
+      if (!Equal(actual_name, expected_name) && !SwigType_istemplate(expected_name) && !SwigType_istemplate(actual_name)) {
+	// Checking templates is skipped but they ought to be checked... they are just somewhat more tricky to check correctly
 	bool illegal_name = true;
 	if (Extend) {
 	  // Check for typedef names used as a constructor name in %extend. This is deprecated except for anonymous