diff --git a/tools/clang/lib/Sema/SemaDecl.cpp b/tools/clang/lib/Sema/SemaDecl.cpp
index a772054960..b07d4a9a89 100644
--- a/tools/clang/lib/Sema/SemaDecl.cpp
+++ b/tools/clang/lib/Sema/SemaDecl.cpp
@@ -10459,7 +10459,11 @@ ParmVarDecl *Sema::CheckParameter(DeclContext *DC, SourceLocation StartLoc,
   if (T.getAddressSpace() != 0) {
     // OpenCL allows function arguments declared to be an array of a type
     // to be qualified with an address space.
-    if (!(getLangOpts().OpenCL && T->isArrayType())) {
+    if (!(getLangOpts().OpenCL && T->isArrayType()) &&
+        // HLSL allows parameters to be qualified with the groupshared
+        // address space.
+        !(getLangOpts().HLSL &&
+          T.getAddressSpace() == hlsl::DXIL::kTGSMAddrSpace)) {
       Diag(NameLoc, diag::err_arg_with_address_space);
       New->setInvalidDecl();
     }
diff --git a/tools/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp b/tools/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
index dc112ca364..c3cd903ae0 100644
--- a/tools/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
+++ b/tools/clang/lib/Sema/SemaTemplateInstantiateDecl.cpp
@@ -268,6 +268,17 @@ void Sema::InstantiateAttrs(const MultiLevelTemplateArgumentList &TemplateArgs,
       continue;
     }
 
+    if (isa<HLSLGroupSharedAttr>(TmplAttr)) {
+      // the type wasn't set properly before so we need to instantiate this type
+      // as a groupshared reference
+      ParmVarDecl *NewParm = cast<ParmVarDecl>(New);
+      NewParm->addAttr(TmplAttr->clone(getASTContext()));
+      NewParm->setType(Context.getAddrSpaceQualType(
+          NewParm->getType(), hlsl::DXIL::kTGSMAddrSpace));
+      NewParm->setType(Context.getLValueReferenceType(NewParm->getType()));
+      continue;
+    }
+
     // HLSL Change Begin - Validate post-instantiation attributes
     DiagnoseHLSLDeclAttr(New, TmplAttr);
     // HLSL Change End
diff --git a/tools/clang/test/CodeGenHLSL/groupsharedArgs/TemplateTest.hlsl b/tools/clang/test/CodeGenHLSL/groupsharedArgs/TemplateTest.hlsl
index 48a615a196..44d74f8d71 100644
--- a/tools/clang/test/CodeGenHLSL/groupsharedArgs/TemplateTest.hlsl
+++ b/tools/clang/test/CodeGenHLSL/groupsharedArgs/TemplateTest.hlsl
@@ -26,7 +26,19 @@ void fn1(groupshared Shared<int> Sh) {
   Sh.Arr[1] = D;
 }
 
+// CHECK-LABEL: <4 x i32> @"\01??$tfoo@V?$vector@H$03@@@@YA?AV?$vector@H$03@@AGAV0@@Z"(<4 x i32> addrspace(3)* dereferenceable(16) %a)
+// CHECK: [[B:%.*]] = load <4 x i32>, <4 x i32> addrspace(3)* %a, align 4
+// CHECK: ret <4 x i32> [[B]]
+template<typename T>
+T tfoo(groupshared T a) {
+  return a;
+}
+
+groupshared int4 SharedData1;
+
 [numthreads(4, 1, 1)]
 void main(uint3 TID : SV_GroupThreadID) {
   fn1(SharedData);
+  tfoo<int4>(SharedData1);
+  tfoo(SharedData1);
 }
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/ExplicitCast.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/ExplicitCast.hlsl
index 55652e1866..68c563e9f9 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/ExplicitCast.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/ExplicitCast.hlsl
@@ -7,7 +7,16 @@ void fn1(groupshared half Sh) {
   Sh = 5;
 }
 
+template<typename T>
+T fnT(groupshared T A) {
+// expected-note@-1{{candidate function [with T = half] not viable: 1st argument ('half') is in address space 0, but parameter must be in address space 3}}
+  return A;
+}
+
 void fn2() {
   fn1((half)SharedData);
   // expected-error@-1{{no matching function for call to 'fn1'}}
+  // not sure why someone would write this but make sure templates do something sane.
+  fnT<half>((half)SharedData);
+  // expected-error@-1{{no matching function for call to 'fnT'}}
 }
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/ExportNoInlineTest.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/ExportNoInlineTest.hlsl
index 56f8042491..177bf41bbe 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/ExportNoInlineTest.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/ExportNoInlineTest.hlsl
@@ -9,3 +9,14 @@ export void fn1(groupshared uint Sh) {
 // expected-error@-1{{groupshared and export/noinline cannot be used together for a parameter}}
   Sh = 6;
 }
+
+template<typename T>
+void fn3(groupshared T A, groupshared T B) {
+  A = B;
+}
+
+export template void fn3<uint>(groupshared uint A, groupshared uint B);
+// expected-error@-1{{'template' is a reserved keyword in HLSL}}
+template [noinline] void fn3<float>(groupshared float A, groupshared float B);
+// expected-error@-1{{use of undeclared identifier 'noinline'}}
+// expected-error@-2{{expected unqualified-id}}
\ No newline at end of file
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/InOut.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/InOut.hlsl
index 3596b2f03f..4ac02d3f25 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/InOut.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/InOut.hlsl
@@ -23,3 +23,19 @@ void fn8() {
   fn1(SharedData);
 // expected-warning@-1{{Passing groupshared variable to a parameter annotated with inout. See 'groupshared' parameter annotation added in 202x}}
 }
+
+template<typename T>
+T fn9(inout groupshared T A) {
+// expected-error@-1{{'inout' and 'groupshared' cannot be used together for a parameter}}
+  return A;
+}
+template<typename T>
+T fn10(in groupshared T A) {
+// expected-error@-1{{'in' and 'groupshared' cannot be used together for a parameter}}
+  return A;
+}
+template<typename T>
+T fn11(out groupshared T A) {
+// expected-error@-1{{'out' and 'groupshared' cannot be used together for a parameter}}
+  return A;
+}
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/NotGroupSharedTest.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/NotGroupSharedTest.hlsl
index d6e8b4d4c3..93f5bb34ae 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/NotGroupSharedTest.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/NotGroupSharedTest.hlsl
@@ -5,9 +5,17 @@ void fn1(groupshared half Sh) {
   Sh = 5;
 }
 
+template<typename T>
+T fn2(groupshared T Sh) {
+// expected-note@-1{{candidate template ignored: can't deduce a type for 'T' that would make '__attribute__((address_space(3))) T' equal 'half'}}
+  return Sh;
+}
+
 [numthreads(4, 1, 1)]
 void main(uint3 TID : SV_GroupThreadID) {
   half tmp = 1.0;
   fn1(tmp);
   // expected-error@-1{{no matching function for call to 'fn1'}}
+  fn2(tmp);
+  // expected-error@-1{{no matching function for call to 'fn2'}}
 }
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/Pre202xWarning.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/Pre202xWarning.hlsl
index 1382be09a5..0c1de8466d 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/Pre202xWarning.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/Pre202xWarning.hlsl
@@ -10,3 +10,9 @@ void fn1(groupshared uint Sh) {
 void fn2() {
   fn1(SharedData);
 }
+
+template<typename T>
+T fn3(groupshared T A) {
+// expected-warning@-1{{Support for groupshared parameter annotation not added until HLSL 202x}}
+  return A;
+}
diff --git a/tools/clang/test/SemaHLSL/v202x/groupshared/ScalarTest.hlsl b/tools/clang/test/SemaHLSL/v202x/groupshared/ScalarTest.hlsl
index 58f1804a22..70f51f9c4b 100644
--- a/tools/clang/test/SemaHLSL/v202x/groupshared/ScalarTest.hlsl
+++ b/tools/clang/test/SemaHLSL/v202x/groupshared/ScalarTest.hlsl
@@ -7,7 +7,15 @@ void fn1(groupshared half Sh) {
   Sh = 5;
 }
 
+template<typename T>
+T fn3(groupshared T A) {
+// expected-note@-1{{candidate function [with T = half] not viable: no known conversion from '__attribute__((address_space(3))) uint16_t' to '__attribute__((address_space(3))) half' for 1st argument}}
+  return A;
+}
+
 void fn2() {
   fn1(SharedData);
   // expected-error@-1{{no matching function for call to 'fn1'}}
+  fn3<half>(SharedData);
+  // expected-error@-1{{no matching function for call to 'fn3'}}
 }