Index: cfe/trunk/lib/Sema/SemaDecl.cpp
===================================================================
--- cfe/trunk/lib/Sema/SemaDecl.cpp
+++ cfe/trunk/lib/Sema/SemaDecl.cpp
@@ -7491,7 +7491,10 @@
             return;
           }
         }
-      } else if (T.getAddressSpace() != LangAS::opencl_private) {
+      } else if (T.getAddressSpace() != LangAS::opencl_private &&
+                 // If we are parsing a template we didn't deduce an addr
+                 // space yet.
+                 T.getAddressSpace() != LangAS::Default) {
         // Do not allow other address spaces on automatic variable.
         Diag(NewVD->getLocation(), diag::err_as_qualified_auto_decl) << 1;
         NewVD->setInvalidDecl();
Index: cfe/trunk/lib/Sema/SemaType.cpp
===================================================================
--- cfe/trunk/lib/Sema/SemaType.cpp
+++ cfe/trunk/lib/Sema/SemaType.cpp
@@ -7419,7 +7419,9 @@
       (T->isVoidType() && !IsPointee) ||
       // Do not deduce addr spaces for dependent types because they might end
       // up instantiating to a type with an explicit address space qualifier.
-      T->isDependentType() ||
+      // Except for pointer or reference types because the addr space in
+      // template argument can only belong to a pointee.
+      (T->isDependentType() && !T->isPointerType() && !T->isReferenceType()) ||
       // Do not deduce addr space of decltype because it will be taken from
       // its argument.
       T->isDecltypeType() ||
Index: cfe/trunk/lib/Sema/TreeTransform.h
===================================================================
--- cfe/trunk/lib/Sema/TreeTransform.h
+++ cfe/trunk/lib/Sema/TreeTransform.h
@@ -5392,13 +5392,6 @@
     if (ResultType.isNull())
       return QualType();
 
-    // Return type can not be qualified with an address space.
-    if (ResultType.getAddressSpace() != LangAS::Default) {
-      SemaRef.Diag(TL.getReturnLoc().getBeginLoc(),
-                   diag::err_attribute_address_function_type);
-      return QualType();
-    }
-
     if (getDerived().TransformFunctionTypeParams(
             TL.getBeginLoc(), TL.getParams(),
             TL.getTypePtr()->param_type_begin(),
Index: cfe/trunk/test/SemaOpenCLCXX/address-space-deduction.cl
===================================================================
--- cfe/trunk/test/SemaOpenCLCXX/address-space-deduction.cl
+++ cfe/trunk/test/SemaOpenCLCXX/address-space-deduction.cl
@@ -63,3 +63,18 @@
 //CHECK: -CXXConstructorDecl {{.*}} x3<T> 'void (const x3<T> &){{( __attribute__.*)?}} __generic'
 template <typename T>
 x3<T>::x3(const x3<T> &t) {}
+
+template <class T>
+T xxx(T *in) {
+  // This pointer can't be deduced to generic because addr space
+  // will be taken from the template argument.
+  //CHECK: `-VarDecl {{.*}} i 'T *' cinit
+  T *i = in;
+  T ii;
+  return *i;
+}
+
+__kernel void test() {
+  int foo[10];
+  xxx(&foo[0]);
+}
Index: cfe/trunk/test/SemaOpenCLCXX/address-space-templates.cl
===================================================================
--- cfe/trunk/test/SemaOpenCLCXX/address-space-templates.cl
+++ cfe/trunk/test/SemaOpenCLCXX/address-space-templates.cl
@@ -3,7 +3,7 @@
 template <typename T>
 struct S {
   T a;        // expected-error{{field may not be qualified with an address space}}
-  T f1();     // expected-error{{function type may not be qualified with an address space}}
+  T f1();     // we ignore address space on a return types.
   void f2(T); // expected-error{{parameter may not be qualified with an address space}}
 };