diff --git a/gcc/cp/ChangeLog b/gcc/cp/ChangeLog
index 2b1b453526c..92907b8d638 100644
--- a/gcc/cp/ChangeLog
+++ b/gcc/cp/ChangeLog
@@ -1,3 +1,8 @@
+2001-10-13  Kriang Lerdsuwanakij  <lerdsuwa@users.sourceforge.net>
+
+	* pt.c (lookup_template_class): Build complete template arguments
+	for BOUND_TEMPLATE_TEMPLATE_PARM.
+
 2001-10-12  Kriang Lerdsuwanakij  <lerdsuwa@users.sourceforge.net>
 
 	* cp-tree.h (TYPE_BINFO): Update comment.
diff --git a/gcc/cp/pt.c b/gcc/cp/pt.c
index cd68629ab92..e2904b5cf5f 100644
--- a/gcc/cp/pt.c
+++ b/gcc/cp/pt.c
@@ -3913,6 +3913,19 @@ lookup_template_class (d1, arglist, in_decl, context, entering_scope, complain)
 
       parmlist = DECL_INNERMOST_TEMPLATE_PARMS (template);
 
+      /* Consider an example where a template template parameter declared as
+
+	   template <class T, class U = std::allocator<T> > class TT
+
+	 The template parameter level of T and U are one level larger than 
+	 of TT.  To proper process the default argument of U, say when an 
+	 instantiation `TT<int>' is seen, we need to build the full
+	 arguments containing {int} as the innermost level.  Outer levels
+	 can be obtained from `current_template_args ()'.  */
+
+      if (processing_template_decl)
+	arglist = add_to_template_args (current_template_args (), arglist);
+
       arglist2 = coerce_template_parms (parmlist, arglist, template,
                                         complain, /*require_all_args=*/1);
       if (arglist2 == error_mark_node)
diff --git a/gcc/testsuite/g++.dg/template/ttp2.C b/gcc/testsuite/g++.dg/template/ttp2.C
new file mode 100644
index 00000000000..45d9abddfe2
--- /dev/null
+++ b/gcc/testsuite/g++.dg/template/ttp2.C
@@ -0,0 +1,17 @@
+// Copyright (C) 2001 Free Software Foundation
+// Contributed by Kriang Lerdsuwanakij <lerdsuwa@users.sourceforge.net>
+// { dg-do compile }
+
+template <class U> struct Alloc {};
+
+template <class T, class U = Alloc<T> > struct Vector {};
+
+template <template <class T, class U = Alloc<T> > class TT>
+struct C {
+	TT<int> tt;
+};
+
+int main()
+{
+	C<Vector> c;
+}