diff --git a/src/etc/testcases/taskdefs/optional/depend/depend.xml b/src/etc/testcases/taskdefs/optional/depend/depend.xml
index 0493e9b2a..22b35dbd7 100644
--- a/src/etc/testcases/taskdefs/optional/depend/depend.xml
+++ b/src/etc/testcases/taskdefs/optional/depend/depend.xml
@@ -117,6 +117,10 @@
     <fileset id="result" dir="${classes.dir}"/>
   </target>
   
+  <target name="testmethodparaminner" depends="src4setup, compile">
+    <classfileset id="result" dir="${classes.dir}" rootclass="test.MethodParam"/>
+  </target>  
+  
   <target name="testnosource" depends="src1setup, compile">
     <depend destdir="${classes.dir}" closure="yes"/>
   </target>
diff --git a/src/etc/testcases/taskdefs/optional/depend/src4/test/ContainsOnlyInner.java b/src/etc/testcases/taskdefs/optional/depend/src4/test/ContainsOnlyInner.java
new file mode 100644
index 000000000..a60252dc5
--- /dev/null
+++ b/src/etc/testcases/taskdefs/optional/depend/src4/test/ContainsOnlyInner.java
@@ -0,0 +1,8 @@
+package test;
+
+public class ContainsOnlyInner {
+    void method1() {
+        System.out.println(Outer.Inner.class);
+    }    
+}
+
diff --git a/src/etc/testcases/taskdefs/optional/depend/src4/test/MethodParam.java b/src/etc/testcases/taskdefs/optional/depend/src4/test/MethodParam.java
new file mode 100644
index 000000000..de088bf1f
--- /dev/null
+++ b/src/etc/testcases/taskdefs/optional/depend/src4/test/MethodParam.java
@@ -0,0 +1,8 @@
+package test;
+
+public class MethodParam {
+    void method1() {
+        System.out.print(ContainsOnlyInner.class);
+    }
+}
+
diff --git a/src/main/org/apache/tools/ant/util/depend/bcel/DependencyVisitor.java b/src/main/org/apache/tools/ant/util/depend/bcel/DependencyVisitor.java
index ddee618c0..77dc85093 100644
--- a/src/main/org/apache/tools/ant/util/depend/bcel/DependencyVisitor.java
+++ b/src/main/org/apache/tools/ant/util/depend/bcel/DependencyVisitor.java
@@ -124,11 +124,35 @@ public class DependencyVisitor extends EmptyVisitor {
         if (obj.getSignature(constantPool).equals("Ljava/lang/Class;")
                 && name.startsWith("class$")) {
             String classname = name.substring(6).replace('$', '.');
-            addClass(classname);
-            int index = classname.lastIndexOf(".");
-            if (index != -1) {
-                classname = classname.substring(0, index) + "$" +
-                            classname.substring(index + 1);
+            // does the class have a package structure
+            int index = classname.lastIndexOf(".");            
+            if (index > 0) {
+                char start;
+                // check if the package structure is more than 1 level deep
+                int index2 = classname.lastIndexOf(".", index -1);
+                if (index2 != -1) {
+                    // class name has more than 1 package level 'com.company.Class'
+                    start = classname.charAt(index2 + 1);
+                }
+                else {
+                    // class name has only 1 package level 'package.Class'
+                    start = classname.charAt(0);
+                }
+                // Check to see if it's an inner class 'com.company.Class$Inner'
+                if ((start > 0x40) && (start < 0x5B)) {
+                    // first letter of the previous segment of the class name 'Class'
+                    // is upper case ascii. so according to the spec it's an inner class
+                    classname = classname.substring(0, index) + "$" +
+                            classname.substring(index + 1);                            
+                    addClass(classname);
+                }
+                else {
+                    // Add the class in dotted notation 'com.company.Class'                       
+                    addClass(classname);
+                }                    
+            }
+            else {               
+                // Add a class with no package 'Class'
                 addClass(classname);
             }
         }
diff --git a/src/testcases/org/apache/tools/ant/taskdefs/optional/depend/DependTest.java b/src/testcases/org/apache/tools/ant/taskdefs/optional/depend/DependTest.java
index 736bb355d..e571af5d8 100644
--- a/src/testcases/org/apache/tools/ant/taskdefs/optional/depend/DependTest.java
+++ b/src/testcases/org/apache/tools/ant/taskdefs/optional/depend/DependTest.java
@@ -179,7 +179,7 @@ public class DependTest extends BuildFileTest {
     public void testInnerClosure() {
         Project project = getProject();
         executeTarget("testinnerclosure");
-        assertEquals("Depend did not leave correct number of files", 2,
+        assertEquals("Depend did not leave correct number of files", 4,
             getResultFiles().size());
     }
 
diff --git a/src/testcases/org/apache/tools/ant/types/optional/depend/ClassFileSetTest.java b/src/testcases/org/apache/tools/ant/types/optional/depend/ClassFileSetTest.java
index 8dac493e2..c445e9377 100644
--- a/src/testcases/org/apache/tools/ant/types/optional/depend/ClassFileSetTest.java
+++ b/src/testcases/org/apache/tools/ant/types/optional/depend/ClassFileSetTest.java
@@ -184,5 +184,30 @@ public class ClassFileSetTest extends BuildFileTest {
             files.containsKey("D.class"));
         assertTrue("Result did not contain E.class",
             files.containsKey("E.class"));
-    }    
+    }   
+    
+    /**
+     * Test that classes included in a method "System.out.println(Outer.Inner.class)" are included.
+     */
+    public void testMethodParamInner() {
+        Project project = getProject();
+        executeTarget("testmethodparaminner");
+        FileSet resultFileSet = (FileSet)project.getReference(RESULT_FILESET);
+        DirectoryScanner scanner = resultFileSet.getDirectoryScanner(project);
+        String[] scannedFiles = scanner.getIncludedFiles();
+        Hashtable files = new Hashtable();
+        for (int i = 0; i < scannedFiles.length; ++i) {
+            files.put(scannedFiles[i], scannedFiles[i]);
+        }
+        assertEquals("Classfileset did not pick up expected number of "
+            + "class files", 4, files.size());
+        assertTrue("Result did not contain test/Outer$Inner.class",
+            files.containsKey("test/Outer$Inner.class"));
+        assertTrue("Result did not contain test/Outer.class",
+            files.containsKey("test/Outer.class"));
+        assertTrue("Result did not contain test/ContainsOnlyInner.class",
+            files.containsKey("test/ContainsOnlyInner.class"));
+        assertTrue("Result did not contain test/ContainsOnlyInner.class",
+            files.containsKey("test/MethodParam.class"));            
+    }
 }