diff --git a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/conversion/impl/QualifiedNameValueConverter.java b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/conversion/impl/QualifiedNameValueConverter.java
index 33c4c15d6..c3b7cba15 100644
--- a/plugins/org.eclipse.xtext/src/org/eclipse/xtext/conversion/impl/QualifiedNameValueConverter.java
+++ b/plugins/org.eclipse.xtext/src/org/eclipse/xtext/conversion/impl/QualifiedNameValueConverter.java
@@ -102,7 +102,7 @@ public class QualifiedNameValueConverter extends AbstractValueConverter<String>
 				if(getWildcardLiteral().equals(segment)) {
 					buffer.append(getWildcardLiteral());
 				} else {
-					buffer.append(delegateToString(segment));
+					buffer.append((String) valueConverterService.toValue(segment, getDelegateRuleName(), null));
 				}
 			}
 		}
diff --git a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/valueconverter/QualifiedNameValueConverterTest.java b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/valueconverter/QualifiedNameValueConverterTest.java
index 08a7b74ab..1fc29fa31 100644
--- a/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/valueconverter/QualifiedNameValueConverterTest.java
+++ b/tests/org.eclipse.xtext.tests/src/org/eclipse/xtext/valueconverter/QualifiedNameValueConverterTest.java
@@ -7,6 +7,7 @@
  *******************************************************************************/
 package org.eclipse.xtext.valueconverter;
 
+import org.eclipse.xtext.conversion.impl.QualifiedNameValueConverter;
 import org.eclipse.xtext.junit.AbstractXtextTests;
 import org.eclipse.xtext.resource.XtextResource;
 import org.eclipse.xtext.valueconverter.qualifiedName.Element;
@@ -18,6 +19,7 @@ import org.eclipse.xtext.valueconverter.qualifiedName.QualifiedNameFactory;
 public class QualifiedNameValueConverterTest extends AbstractXtextTests {
 
 	public static final String KEYWORD = "keyword";
+	
 
 	@Override
 	protected void setUp() throws Exception {
@@ -54,4 +56,8 @@ public class QualifiedNameValueConverterTest extends AbstractXtextTests {
 		assertEquals(nameAsValue, element.getQualifiedName());
 	}
 	
+	public void testBug367949() throws Exception {
+		assertEquals("org.eclipse.create", get(QualifiedNameValueConverter.class).toValue("org.eclipse.^create", null));
+	}
+	
 }