diff --git a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/XtextLinker.java b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/XtextLinker.java
index 4f9fb39fa..aff633549 100644
--- a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/XtextLinker.java
+++ b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/XtextLinker.java
@@ -33,6 +33,7 @@ import org.eclipse.xtext.GeneratedMetamodel;
 import org.eclipse.xtext.Grammar;
 import org.eclipse.xtext.GrammarUtil;
 import org.eclipse.xtext.NamedArgument;
+import org.eclipse.xtext.Parameter;
 import org.eclipse.xtext.ParserRule;
 import org.eclipse.xtext.ReferencedMetamodel;
 import org.eclipse.xtext.RuleCall;
@@ -409,10 +410,32 @@ public class XtextLinker extends Linker {
 		}
 		final List<RuleCall> allRuleCalls = EcoreUtil2.getAllContentsOfType(grammar, RuleCall.class);
 		for (RuleCall call : allRuleCalls) {
-			if (call.getRule() != null && !call.isExplicitlyCalled()) {
-				AbstractRule rule = rulePerName.get(call.getRule().getName());
-				if (rule != null)
+			AbstractRule calledRule = call.getRule();
+			if (calledRule != null && !call.isExplicitlyCalled()) {
+				AbstractRule rule = rulePerName.get(calledRule.getName());
+				if (rule != null) {
 					call.setRule(rule);
+					if (!call.getArguments().isEmpty()) {
+						if (calledRule instanceof ParserRule && rule instanceof ParserRule) {
+							updateNamedArguments(
+									call,
+									((ParserRule) calledRule).getParameters(),
+									((ParserRule) rule).getParameters());
+						}
+					}
+				}
+			}
+		}
+	}
+
+	private void updateNamedArguments(RuleCall call, List<Parameter> superParams,
+			List<Parameter> overridingParameters) {
+		for(NamedArgument argument: call.getArguments()) {
+			Parameter superParameter = argument.getParameter();
+			for(int i = 0, max = Math.min(superParams.size(), overridingParameters.size()); i <  max ; i++) {
+				if (superParams.get(i) == superParameter) {
+					argument.setParameter(overridingParameters.get(i));
+				}
 			}
 		}
 	}
diff --git a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformer.java b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformer.java
index 3c40372ea..b6b173b17 100755
--- a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformer.java
+++ b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformer.java
@@ -774,14 +774,14 @@ public class Xtext2EcoreTransformer {
 					"Overridden rule " + rule.getName() + " does not declare any parameters", rule);
 		}
 		StringBuilder message = new StringBuilder("Parameter list is incompatible with inherited ");
-		message.append(rule.getName()).append("[");
+		message.append(rule.getName()).append("<");
 		for(int i = 0; i < overridden.getParameters().size(); i++) {
 			if (i != 0) {
 				message.append(", ");
 			}
 			message.append(overridden.getParameters().get(i).getName());
 		}
-		message.append("]");
+		message.append(">");
 		throw new TransformationException(TransformationErrorCode.InvalidRuleOverride,
 				message.toString(), rule);
 	}
diff --git a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/XtextLinkerTest.xtend b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/XtextLinkerTest.xtend
index c4bea3a6e..c74cc6b06 100644
--- a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/XtextLinkerTest.xtend
+++ b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/XtextLinkerTest.xtend
@@ -22,6 +22,8 @@ import org.eclipse.xtext.Alternatives
 import org.eclipse.xtext.Negation
 import org.eclipse.xtext.ParameterReference
 import org.eclipse.xtext.LiteralCondition
+import org.eclipse.emf.common.util.URI
+import org.eclipse.xtext.util.LazyStringInputStream
 
 /**
  * @author Sven Efftinge - Initial contribution and API
@@ -98,6 +100,31 @@ class XtextLinkerTest extends AbstractXtextTests {
 		assertFalse((argument.value as LiteralCondition).isTrue)
 	}
 	
+	@Test def void testNamedParameterAdjustment() throws Exception {
+		val grammarAsString = '''
+			grammar test.Lang with org.eclipse.xtext.common.Terminals
+			generate test 'http://test'
+			Root<MyParam>: rule=Rule<true>;
+			Rule<MyParam>: name=ID child=Root<false>?;
+		'''
+		val grammar = grammarAsString.model as Grammar
+		val resourceSet = grammar.eResource.resourceSet
+		val otherResource = resourceSet.createResource(URI.createURI('other.xtext'))
+		otherResource.load(new LazyStringInputStream('''
+			grammar test.SubLang with test.Lang
+			import 'http://test'
+			Root<MyParam>: rule=super::Rule<true>;
+		'''), null)
+		val subGrammar = otherResource.contents.head as Grammar
+		val rootRule = subGrammar.rules.head as ParserRule
+		val parentRule = grammar.rules.last as ParserRule
+		val lastAssignment = (parentRule.alternatives as Group).elements.last as Assignment
+		val ruleCall = lastAssignment.terminal as RuleCall
+		val argument = ruleCall.arguments.head
+		assertEquals(rootRule.parameters.head, argument.parameter)
+		assertFalse((argument.value as LiteralCondition).isTrue)
+	}
+	
 	@Test def void testExplicitRuleCallsAreTracked() throws Exception {
 		val grammarAsString = '''
 			grammar test.Lang with org.eclipse.xtext.common.Terminals
diff --git a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformerTest.xtend b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformerTest.xtend
index 28588ad3a..fd92a9b67 100644
--- a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformerTest.xtend
+++ b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/xtext/ecoreInference/Xtext2EcoreTransformerTest.xtend
@@ -1817,12 +1817,10 @@ class Xtext2EcoreTransformerTest extends AbstractXtextTests {
 		var typeD = ePackage.type("TypeD") as EClass
 		assertNotNull(typeD)
 		assertNotNull(typeD.feature("x"))
-		assertEquals(1,
-			typeD.features.
-				size)
-			}
+		assertEquals(1, typeD.features.size)
+	}
 
-																																					@Test def void testBug346685_a05() throws Exception {
+	@Test def void testBug346685_a05() throws Exception {
 		var String grammar = '''grammar test with org.eclipse.xtext.common.Terminals generate test 'http://test'«»'''
 		grammar += " RuleA returns TypeA: RuleB? ({TypeC.x=current} 'x' | {TypeD.x=current} 'y')? name+=STRING;"
 		grammar += " RuleB returns TypeB: {TypeB} 'ignore';"