diff --git a/lib/Sema/SemaExpr.cpp b/lib/Sema/SemaExpr.cpp
index 440382bb5a..67b60fad51 100644
--- a/lib/Sema/SemaExpr.cpp
+++ b/lib/Sema/SemaExpr.cpp
@@ -10040,7 +10040,8 @@ diagnoseUncapturableValueReference(Sema &S, SourceLocation loc,
 static ExprResult captureInLambda(Sema &S, LambdaScopeInfo *LSI,
                                   VarDecl *Var, QualType FieldType, 
                                   QualType DeclRefType,
-                                  SourceLocation Loc) {
+                                  SourceLocation Loc,
+                                  bool RefersToEnclosingLocal) {
   CXXRecordDecl *Lambda = LSI->Lambda;
 
   // Build the non-static data member.
@@ -10069,8 +10070,8 @@ static ExprResult captureInLambda(Sema &S, LambdaScopeInfo *LSI,
   // C++ [expr.prim.labda]p12:
   //   An entity captured by a lambda-expression is odr-used (3.2) in
   //   the scope containing the lambda-expression.
-  Expr *Ref = new (S.Context) DeclRefExpr(Var, true, DeclRefType,
-                                          VK_LValue, Loc);
+  Expr *Ref = new (S.Context) DeclRefExpr(Var, RefersToEnclosingLocal, 
+                                          DeclRefType, VK_LValue, Loc);
   Var->setReferenced(true);
   Var->setUsed(true);
 
@@ -10413,7 +10414,8 @@ bool Sema::tryCaptureVariable(VarDecl *Var, SourceLocation Loc,
     Expr *CopyExpr = 0;
     if (BuildAndDiagnose) {
       ExprResult Result = captureInLambda(*this, LSI, Var, CaptureType,
-                                          DeclRefType, Loc);
+                                          DeclRefType, Loc,
+                                          I == N-1);
       if (!Result.isInvalid())
         CopyExpr = Result.take();
     }
diff --git a/test/CXX/expr/expr.prim/expr.prim.lambda/blocks-irgen.mm b/test/CXX/expr/expr.prim/expr.prim.lambda/blocks-irgen.mm
new file mode 100644
index 0000000000..9adecd0ee3
--- /dev/null
+++ b/test/CXX/expr/expr.prim/expr.prim.lambda/blocks-irgen.mm
@@ -0,0 +1,29 @@
+// RUN: %clang_cc1 -std=c++11 -fblocks -emit-llvm -o - -triple x86_64-apple-darwin11.3 %s | FileCheck %s
+
+namespace PR12746 {
+  // CHECK: define zeroext i1 @_ZN7PR127462f1EPi
+  bool f1(int *x) {
+    // CHECK: store i8* bitcast (i1 (i8*)* @__f1_block_invoke_0 to i8*)
+    bool (^outer)() = ^ {
+      auto inner = [&]() -> bool {
+	return x == 0;
+      };
+      return inner();
+    };
+    return outer();
+  }
+
+  // CHECK: define internal zeroext i1 @__f1_block_invoke_0
+  // CHECK: call zeroext i1 @"_ZNK7PR127462f119__f1_block_invoke_03$_0clEv"
+
+  bool f2(int *x) {
+    auto outer = [&]() -> bool {
+      bool (^inner)() = ^ {
+	return x == 0;
+      };
+      return inner();
+    };
+    return outer();
+  }
+}
+
diff --git a/test/CXX/expr/expr.prim/expr.prim.lambda/blocks.mm b/test/CXX/expr/expr.prim/expr.prim.lambda/blocks.mm
index 941443a0d6..0c3fdb2d80 100644
--- a/test/CXX/expr/expr.prim/expr.prim.lambda/blocks.mm
+++ b/test/CXX/expr/expr.prim/expr.prim.lambda/blocks.mm
@@ -86,25 +86,3 @@ namespace overloading {
     int &ir = accept_lambda_conv([](int x) { return x + 1; });
   }
 }
-
-namespace PR12746 {
-  bool f1(int *x) {
-    bool (^outer)() = ^ {
-      auto inner = [&]() -> bool {
-	return x == 0;
-      };
-      return inner();
-    };
-    return outer();
-  }
-
-  bool f2(int *x) {
-    auto outer = [&]() -> bool {
-      bool (^inner)() = ^ {
-	return x == 0;
-      };
-      return inner();
-    };
-    return outer();
-  }
-}