diff --git a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/OverriddenValueInspector.java b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/OverriddenValueInspector.java
index a14ef9795..20845b154 100644
--- a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/OverriddenValueInspector.java
+++ b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/OverriddenValueInspector.java
@@ -19,6 +19,7 @@ import org.eclipse.xtext.Assignment;
 import org.eclipse.xtext.CompoundElement;
 import org.eclipse.xtext.EnumRule;
 import org.eclipse.xtext.GrammarUtil;
+import org.eclipse.xtext.Keyword;
 import org.eclipse.xtext.ParserRule;
 import org.eclipse.xtext.RuleCall;
 import org.eclipse.xtext.TerminalRule;
@@ -91,6 +92,9 @@ public class OverriddenValueInspector extends XtextRuleInspector<Boolean, Parser
 
 	@Override
 	public Boolean caseAction(Action object) {
+		if (!fragmentStack.isEmpty()) {
+			return Boolean.TRUE;
+		}
 		assignedFeatures = newMultimap();
 		if (GrammarUtil.isMultipleAssignment(object))
 			return null;
@@ -187,10 +191,13 @@ public class OverriddenValueInspector extends XtextRuleInspector<Boolean, Parser
 		Multimap<String, AbstractElement> mergedAssignedFeatures = LinkedHashMultimap.create();
 		Set<AbstractRule> prevPermanentlyVisited = permanentlyVisited;
 		Set<AbstractRule> mergedPermanentlyVisited = Sets.newHashSet();
+		boolean allAborted = true;
 		for (AbstractElement element : object.getElements()) {
 			assignedFeatures = newMultimap(prevAssignedFeatures);
 			permanentlyVisited = Sets.newHashSet(prevPermanentlyVisited);
-			doSwitch(element);
+			if (!doSwitch(element)) {
+				allAborted = false;
+			}
 			mergedAssignedFeatures.putAll(assignedFeatures);
 			mergedPermanentlyVisited.addAll(prevPermanentlyVisited);
 		}
@@ -198,7 +205,7 @@ public class OverriddenValueInspector extends XtextRuleInspector<Boolean, Parser
 			mergedAssignedFeatures.putAll(prevAssignedFeatures);
 		}
 		assignedFeatures = mergedAssignedFeatures;
-		if (GrammarUtil.isMultipleCardinality(object)) {
+		if (!allAborted && GrammarUtil.isMultipleCardinality(object)) {
 			prevAssignedFeatures = assignedFeatures;
 			for (AbstractElement element : object.getElements()) {
 				assignedFeatures = newMultimap(prevAssignedFeatures);
@@ -215,12 +222,21 @@ public class OverriddenValueInspector extends XtextRuleInspector<Boolean, Parser
 	private Multimap<String, AbstractElement> newMultimap(Multimap<String, AbstractElement> from) {
 		return LinkedHashMultimap.create(from);
 	}
+	
+	@Override
+	public Boolean caseAbstractElement(AbstractElement object) {
+		return Boolean.FALSE;
+	}
 
 	@Override
 	public Boolean caseCompoundElement(CompoundElement object) {
 		Multimap<String, AbstractElement> prevAssignedFeatures = newMultimap(assignedFeatures);
 		for (AbstractElement element : object.getElements()) {
-			doSwitch(element);
+			if (doSwitch(element)) {
+				if (GrammarUtil.isOptionalCardinality(object))
+					assignedFeatures.putAll(prevAssignedFeatures);
+				return Boolean.TRUE;
+			}
 		}
 		if (GrammarUtil.isMultipleCardinality(object)) {
 			for (AbstractElement element : object.getElements()) {
diff --git a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/OverriddenValueInspectorTest.xtend b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/OverriddenValueInspectorTest.xtend
index 68416439a..36b92fa73 100644
--- a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/OverriddenValueInspectorTest.xtend
+++ b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/OverriddenValueInspectorTest.xtend
@@ -119,6 +119,86 @@ class OverriddenValueInspectorTest extends AbstractXtextRuleInspectorTest<Boolea
 		assertEquals(warnings.toString(), 0, warnings.size())
 	}
 
+	@Test def void testFragment_07() throws Exception {
+		var String grammarAsString = '''
+			grammar org.foo with org.eclipse.xtext.common.Terminals
+			generate metamodel 'foo.sample'
+			EntryRule:
+				name=ID FragmentWithAction
+			;
+			fragment FragmentWithAction returns EntryRule:
+				{EntryRule.prev=current} name=ID
+			;
+		'''
+		val grammar = getGrammar(grammarAsString)
+		val rule = GrammarUtil.findRuleForName(grammar, "EntryRule") as ParserRule
+		rule.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+		val fragment = GrammarUtil.findRuleForName(grammar, "FragmentWithAction") as ParserRule
+		fragment.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+	}
+	
+	@Test def void testFragment_08() throws Exception {
+		var String grammarAsString = '''
+			grammar org.foo with org.eclipse.xtext.common.Terminals
+			generate metamodel 'foo.sample'
+			EntryRule:
+				name=ID FragmentWithAction
+			;
+			fragment FragmentWithAction returns EntryRule:
+				name=ID {EntryRule.prev=current} name=ID
+			;
+		'''
+		val grammar = getGrammar(grammarAsString)
+		val rule = GrammarUtil.findRuleForName(grammar, "EntryRule") as ParserRule
+		rule.validateRule
+		assertEquals(warnings.toString(), 2, warnings.size())
+		val fragment = GrammarUtil.findRuleForName(grammar, "FragmentWithAction") as ParserRule
+		fragment.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+	}
+	
+	@Test def void testFragment_09() throws Exception {
+		var String grammarAsString = '''
+			grammar org.foo with org.eclipse.xtext.common.Terminals
+			generate metamodel 'foo.sample'
+			EntryRule:
+				name=ID FragmentWithAction
+			;
+			fragment FragmentWithAction returns EntryRule:
+				name=ID {EntryRule.prev=current}
+			;
+		'''
+		val grammar = getGrammar(grammarAsString)
+		val rule = GrammarUtil.findRuleForName(grammar, "EntryRule") as ParserRule
+		rule.validateRule
+		assertEquals(warnings.toString(), 2, warnings.size())
+		val fragment = GrammarUtil.findRuleForName(grammar, "FragmentWithAction") as ParserRule
+		fragment.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+	}
+	
+	@Test def void testFragment_10() throws Exception {
+		var String grammarAsString = '''
+			grammar org.foo with org.eclipse.xtext.common.Terminals
+			generate metamodel 'foo.sample'
+			EntryRule:
+				name=ID FragmentWithAction*
+			;
+			fragment FragmentWithAction returns EntryRule:
+				({EntryRule.prev=current} name=ID)*
+			;
+		'''
+		val grammar = getGrammar(grammarAsString)
+		val rule = GrammarUtil.findRuleForName(grammar, "EntryRule") as ParserRule
+		rule.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+		val fragment = GrammarUtil.findRuleForName(grammar, "FragmentWithAction") as ParserRule
+		fragment.validateRule
+		assertEquals(warnings.toString(), 0, warnings.size())
+	}
+	
 	@Test def void testBug280011_01() throws Exception {
 		var String grammarAsString = '''
 			grammar org.foo with org.eclipse.xtext.common.Terminals