Index: cfe/trunk/include/clang/Basic/DiagnosticSemaKinds.td
===================================================================
--- cfe/trunk/include/clang/Basic/DiagnosticSemaKinds.td
+++ cfe/trunk/include/clang/Basic/DiagnosticSemaKinds.td
@@ -1585,6 +1585,9 @@
 def err_static_not_bitfield : Error<"static member %0 cannot be a bit-field">;
 def err_static_out_of_line : Error<
   "'static' can only be specified inside the class definition">;
+def ext_static_out_of_line : ExtWarn<
+  err_static_out_of_line.Text>,
+  InGroup<MicrosoftTemplate>;
 def err_storage_class_for_static_member : Error<
   "static data member definition cannot specify a storage class">;
 def err_typedef_not_bitfield : Error<"typedef member %0 cannot be a bit-field">;
Index: cfe/trunk/lib/Sema/SemaDecl.cpp
===================================================================
--- cfe/trunk/lib/Sema/SemaDecl.cpp
+++ cfe/trunk/lib/Sema/SemaDecl.cpp
@@ -8625,8 +8625,12 @@
 
       // Complain about the 'static' specifier if it's on an out-of-line
       // member function definition.
+
+      // MSVC permits the use of a 'static' storage specifier on an out-of-line
+      // member function template declaration, warn about this.
       Diag(D.getDeclSpec().getStorageClassSpecLoc(),
-           diag::err_static_out_of_line)
+           NewFD->getDescribedFunctionTemplate() && getLangOpts().MSVCCompat
+           ? diag::ext_static_out_of_line : diag::err_static_out_of_line)
         << FixItHint::CreateRemoval(D.getDeclSpec().getStorageClassSpecLoc());
     }
 
Index: cfe/trunk/test/SemaCXX/warn-static-outside-class-definition.cpp
===================================================================
--- cfe/trunk/test/SemaCXX/warn-static-outside-class-definition.cpp
+++ cfe/trunk/test/SemaCXX/warn-static-outside-class-definition.cpp
@@ -0,0 +1,11 @@
+// RUN: %clang_cc1 -fms-compatibility -fsyntax-only -verify %s
+
+struct C {
+  template <typename T> static int foo(T);
+};
+
+template <typename T> static int C::foo(T) { 
+  //expected-warning@-1 {{'static' can only be specified inside the class definition}}
+  return 0;
+}
+