diff --git a/gcc/cp/decl.c b/gcc/cp/decl.c
index 31d68745844..ca1c8a4a0e6 100644
--- a/gcc/cp/decl.c
+++ b/gcc/cp/decl.c
@@ -6466,7 +6466,7 @@ reshape_init_r (tree type, reshape_iter *d, tree first_initializer_p,
      non-empty subaggregate, brace elision is assumed and the
      initializer is considered for the initialization of the first
      member of the subaggregate.  */
-  if (TREE_CODE (init) != CONSTRUCTOR
+  if ((TREE_CODE (init) != CONSTRUCTOR || COMPOUND_LITERAL_P (init))
       /* But don't try this for the first initializer, since that would be
 	 looking through the outermost braces; A a2 = { a1 }; is not a
 	 valid aggregate initialization.  */
diff --git a/gcc/testsuite/g++.dg/cpp0x/initlist123.C b/gcc/testsuite/g++.dg/cpp0x/initlist123.C
new file mode 100644
index 00000000000..29f037f07ef
--- /dev/null
+++ b/gcc/testsuite/g++.dg/cpp0x/initlist123.C
@@ -0,0 +1,39 @@
+// PR c++/95164
+// { dg-do compile { target c++11 } }
+// { dg-options "-Wmissing-braces" }
+
+struct H {
+  int a;
+};
+
+struct X : H { };
+
+struct I {
+  int c;
+  H b;
+};
+struct E { I d; };
+void foo(E);
+
+template<int N>
+void fn ()
+{
+  int a = 42;
+  int &k = a;
+
+  foo({1, {H{k}}}); // { dg-warning "missing braces around initializer for .I." }
+  foo({1, {X{k}}}); // { dg-warning "missing braces around initializer for .I." }
+
+  foo({{1, {k}}});
+  foo({{1, {N}}});
+
+  foo({{1, H{k}}});
+  foo({{1, H{N}}});
+  foo({{1, X{k}}});
+  foo({{1, X{N}}});
+
+  foo({{1, {H{k}}}});
+  foo({{1, {H{N}}}});
+  foo({{1, {X{k}}}});
+  foo({{1, {X{N}}}});
+}