diff --git a/lib/templatesimplifier.cpp b/lib/templatesimplifier.cpp
index 6fb4c81e6..1214667c0 100644
--- a/lib/templatesimplifier.cpp
+++ b/lib/templatesimplifier.cpp
@@ -168,7 +168,7 @@ const Token* TemplateSimplifier::hasComplicatedSyntaxErrorsInTemplates(Token *to
 
 unsigned int TemplateSimplifier::templateParameters(const Token *tok)
 {
-    unsigned int numberOfParameters = 0;
+    unsigned int numberOfParameters = 1;
 
     if (!tok)
         return 0;
@@ -179,9 +179,6 @@ unsigned int TemplateSimplifier::templateParameters(const Token *tok)
     unsigned int level = 0;
 
     while (tok) {
-        if (level == 0)
-            ++numberOfParameters;
-
         // skip const
         if (Token::Match(tok, "const %any%"))
             tok = tok->next();
@@ -217,20 +214,26 @@ unsigned int TemplateSimplifier::templateParameters(const Token *tok)
         if (tok->str() == "<") {
             ++level;
             tok = tok->next();
-            continue;
         }
 
         // ,/>
-        while (tok->str() == ">") {
+        while (tok->str() == ">" || tok->str() == ">>") {
             if (level == 0)
                 return numberOfParameters;
             --level;
+            if (tok->str() == ">>") {
+                if (level == 0)
+                    return numberOfParameters;
+                --level;
+            }
             tok = tok->next();
             if (!tok)
                 return 0;
         }
         if (tok->str() != ",")
-            break;
+            continue;
+        if (level == 0)
+            ++numberOfParameters;
         tok = tok->next();
     }
     return 0;
diff --git a/test/testtokenize.cpp b/test/testtokenize.cpp
index bab83cd9f..4b235b32f 100644
--- a/test/testtokenize.cpp
+++ b/test/testtokenize.cpp
@@ -224,6 +224,7 @@ private:
         TEST_CASE(varid49); // #3799 - void f(std::vector<int>)
         TEST_CASE(varid50); // #3760 - explicit
         TEST_CASE(varid51); // don't set varid for template function
+        TEST_CASE(varid52); // Set varid for nested templates
         TEST_CASE(varid_cpp_keywords_in_c_code);
         TEST_CASE(varidFunctionCall1);
         TEST_CASE(varidFunctionCall2);
@@ -3380,6 +3381,17 @@ private:
                       tokenizeDebugListing(code, false, "test.cpp"));
     }
 
+    void varid52() {
+        const std::string code("A<B<C>::D> e;\n"
+                               "B< C<> > b[10];\n"
+                               "B<C<>> c[10];");
+        ASSERT_EQUALS("\n\n##file 0\n"
+                      "1: A < B < C > :: D > e@1 ;\n"
+                      "2: B < C < > > b@2 [ 10 ] ;\n"
+                      "3: B < C < > > c@3 [ 10 ] ;\n",
+                      tokenizeDebugListing(code, false, "test.cpp"));
+    }
+
     void varid_cpp_keywords_in_c_code() {
         const char code[] = "void f() {\n"
                             "    delete d;\n"