Index: lib/Sema/SemaInit.cpp
===================================================================
--- lib/Sema/SemaInit.cpp
+++ lib/Sema/SemaInit.cpp
@@ -4087,6 +4087,12 @@
     = S.CompareReferenceRelationship(DeclLoc, cv1T1, cv2T2, DerivedToBase,
                                      ObjCConversion, ObjCLifetimeConversion);
 
+
+  if (isLValueRef && (!T1Quals.hasVolatile() && T2Quals.hasVolatile())) {
+    Sequence.SetFailed(InitializationSequence::FK_ReferenceInitDropsQualifiers);
+    return;
+  }
+
   // C++0x [dcl.init.ref]p5:
   //   A reference to type "cv1 T1" is initialized by an expression of type
   //   "cv2 T2" as follows:
Index: test/SemaCXX/bind-infinite-recursion.cpp
===================================================================
--- test/SemaCXX/bind-infinite-recursion.cpp
+++ test/SemaCXX/bind-infinite-recursion.cpp
@@ -0,0 +1,18 @@
+// RUN: %clang_cc1 %s -fsyntax-only -verify
+
+struct S;
+
+struct W {
+  W( const S& ) {}  // expected-note {{passing argument to parameter here}}
+};
+
+struct S {
+  S(volatile W) {}
+};
+
+int main() {
+  volatile W *w = 0;
+  S s(*w);  // expected-error {{binding value of type 'volatile W' to reference to type 'const S' drops 'volatile' qualifier}}
+  return 0;
+}
+