Index: lib/AST/MicrosoftMangle.cpp
===================================================================
--- lib/AST/MicrosoftMangle.cpp
+++ lib/AST/MicrosoftMangle.cpp
@@ -66,6 +66,16 @@
   }
 };
 
+static const DeclContext *
+getLambdaDefaultArgumentDeclContext(const Decl *D) {
+  if (const auto *RD = dyn_cast<CXXRecordDecl>(D))
+    if (RD->isLambda())
+      if (const auto *Parm =
+              dyn_cast_or_null<ParmVarDecl>(RD->getLambdaContextDecl()))
+        return Parm->getDeclContext();
+  return nullptr;
+}
+
 /// \brief Retrieve the declaration context that should be used when mangling
 /// the given declaration.
 static const DeclContext *getEffectiveDeclContext(const Decl *D) {
@@ -75,12 +85,8 @@
   // not the case: the lambda closure type ends up living in the context
   // where the function itself resides, because the function declaration itself
   // had not yet been created. Fix the context here.
-  if (const CXXRecordDecl *RD = dyn_cast<CXXRecordDecl>(D)) {
-    if (RD->isLambda())
-      if (ParmVarDecl *ContextParam =
-              dyn_cast_or_null<ParmVarDecl>(RD->getLambdaContextDecl()))
-        return ContextParam->getDeclContext();
-  }
+  if (const auto *LDADC = getLambdaDefaultArgumentDeclContext(D))
+    return LDADC;
 
   // Perform the same check for block literals.
   if (const BlockDecl *BD = dyn_cast<BlockDecl>(D)) {
@@ -112,14 +118,6 @@
   return FD;
 }
 
-static bool isLambda(const NamedDecl *ND) {
-  const CXXRecordDecl *Record = dyn_cast<CXXRecordDecl>(ND);
-  if (!Record)
-    return false;
-
-  return Record->isLambda();
-}
-
 /// MicrosoftMangleContextImpl - Overrides the default MangleContext for the
 /// Microsoft Visual C++ ABI.
 class MicrosoftMangleContextImpl : public MicrosoftMangleContext {
@@ -200,9 +198,12 @@
 
     // Lambda closure types are already numbered, give out a phony number so
     // that they demangle nicely.
-    if (isLambda(ND)) {
-      disc = 1;
-      return true;
+    // Use scope zero for lambdas in default arguments, one for all other lambdas.
+    if (const auto *RD = dyn_cast<CXXRecordDecl>(ND)) {
+      if (RD->isLambda()) {
+        disc = getLambdaDefaultArgumentDeclContext(RD) ? 0 : 1;
+        return true;
+      }
     }
 
     // Use the canonical number for externally visible decls.
@@ -824,9 +825,19 @@
       if (const CXXRecordDecl *Record = dyn_cast<CXXRecordDecl>(TD)) {
         if (Record->isLambda()) {
           llvm::SmallString<10> Name("<lambda_");
+
+          Decl *LambdaContextDecl = Record->getLambdaContextDecl();
+          unsigned LambdaManglingNumber = Record->getLambdaManglingNumber();
           unsigned LambdaId;
-          if (Record->getLambdaManglingNumber())
-            LambdaId = Record->getLambdaManglingNumber();
+          const ParmVarDecl *Parm =
+              dyn_cast_or_null<ParmVarDecl>(LambdaContextDecl);
+          const FunctionDecl *Func =
+              Parm ? dyn_cast<FunctionDecl>(Parm->getDeclContext()) : nullptr;
+
+          if (Func)
+            LambdaId = Func->getNumParams() - Parm->getFunctionScopeIndex();
+          else if (LambdaManglingNumber)
+            LambdaId = LambdaManglingNumber;
           else
             LambdaId = Context.getLambdaId(Record);
 
@@ -834,6 +845,16 @@
           Name += ">";
 
           mangleSourceName(Name);
+
+          // If the context of a closure type is an initializer for a class
+          // member (static or nonstatic), it is encoded in a qualified name.
+          if (LambdaManglingNumber && LambdaContextDecl) {
+            if ((isa<VarDecl>(LambdaContextDecl) ||
+                 isa<FieldDecl>(LambdaContextDecl)) &&
+                LambdaContextDecl->getDeclContext()->isRecord()) {
+              mangleUnqualifiedName(cast<NamedDecl>(LambdaContextDecl));
+            }
+          }
           break;
         }
       }
@@ -937,7 +958,6 @@
       // for how this should be done.
       Out << "__block_invoke" << Context.getBlockId(BD, false);
       Out << '@';
-      continue;
     } else if (const ObjCMethodDecl *Method = dyn_cast<ObjCMethodDecl>(DC)) {
       mangleObjCMethodName(Method);
     } else if (isa<NamedDecl>(DC)) {
@@ -945,8 +965,15 @@
       if (const FunctionDecl *FD = dyn_cast<FunctionDecl>(ND)) {
         mangle(FD, "?");
         break;
-      } else
+      } else {
         mangleUnqualifiedName(ND);
+        // Lambdas in default arguments conceptually belong to the function the
+        // parameter corresponds to.
+        if (const auto *LDADC = getLambdaDefaultArgumentDeclContext(ND)) {
+          DC = LDADC;
+          continue;
+        }
+      }
     }
     DC = DC->getParent();
   }
Index: test/CodeGenCXX/mangle-ms-cxx11.cpp
===================================================================
--- test/CodeGenCXX/mangle-ms-cxx11.cpp
+++ test/CodeGenCXX/mangle-ms-cxx11.cpp
@@ -318,3 +318,26 @@
 
 // CHECK-DAG: @"\01?unaligned_foo8@unaligned_foo8_S@@QFCEXXZ"
 
+namespace PR31197 {
+struct A {
+  // CHECK-DAG: define linkonce_odr x86_thiscallcc i32* @"\01??R<lambda_1>@x@A@PR31197@@QBE@XZ"(
+  int *x = []() {
+    static int white;
+    // CHECK-DAG: @"\01?white@?1???R<lambda_1>@x@A@PR31197@@QBE@XZ@4HA"
+    return &white;
+  }();
+  // CHECK-DAG: define linkonce_odr x86_thiscallcc i32* @"\01??R<lambda_1>@y@A@PR31197@@QBE@XZ"(
+  int *y = []() {
+    static int black;
+    // CHECK-DAG: @"\01?black@?1???R<lambda_1>@y@A@PR31197@@QBE@XZ@4HA"
+    return &black;
+  }();
+  using FPtrTy = void(void);
+  static void default_args(FPtrTy x = [] {}, FPtrTy y = [] {}) {}
+  // CHECK-DAG: @"\01??R<lambda_1>@?A@??default_args@A@PR31197@@SAXP6AXXZ0@Z@QBE@XZ"(
+  // CHECK-DAG: @"\01??R<lambda_2>@?A@??default_args@A@PR31197@@SAXP6AXXZ0@Z@QBE@XZ"(
+};
+A a;
+
+int call_it = (A::default_args(), 1);
+}