diff --git a/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp b/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
--- a/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
+++ b/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
@@ -2293,7 +2293,7 @@
     // Filter out previous declarations that don't match the scope. The only
     // effect this has is to remove declarations found in inline namespaces
     // for friend declarations with unqualified names.
-    if (isFriend && !QualifierLoc && !FunctionTemplate) {
+    if (isFriend && !QualifierLoc) {
       SemaRef.FilterLookupForScope(Previous, DC, /*Scope=*/ nullptr,
                                    /*ConsiderLinkage=*/ true,
                                    QualifierLoc.hasQualifier());
diff --git a/clang/test/SemaTemplate/friend.cpp b/clang/test/SemaTemplate/friend.cpp
--- a/clang/test/SemaTemplate/friend.cpp
+++ b/clang/test/SemaTemplate/friend.cpp
@@ -148,3 +148,21 @@
   template struct T<X1>;
   int n = f((X1*)nullptr); // expected-error {{cannot initialize a variable of type 'int' with an rvalue of type 'std::nullptr_t'}}
 }
+
+namespace GH61851 {
+namespace A {
+inline namespace B {
+  inline constexpr struct {} foo;
+}
+
+template <typename T>
+class Bar {
+  template <typename U>
+  friend void foo(U &&arg) {} // no diagnostic expected
+};
+}
+
+void foobar() {
+  A::Bar<int> b;
+}
+}