diff --git a/pmd-java/etc/grammar/Java.jjt b/pmd-java/etc/grammar/Java.jjt
index 23e1138ed7..b098b951c0 100644
--- a/pmd-java/etc/grammar/Java.jjt
+++ b/pmd-java/etc/grammar/Java.jjt
@@ -1,4 +1,9 @@
 /**
+ * Allow method references to specify generics.
+ * Bug #207
+ *
+ * Juan Martin Sotuyo Dodero 01/2017
+ *====================================================================
  * Simplify VariableDeclaratorId, forbidding illegal sequences such as
  * this[] and MyClass.this[]
  *
@@ -1812,7 +1817,7 @@ Token t;
 void MethodReference() :
 {Token t; checkForBadMethodReferenceUsage();}
 {
-  "::" ("new" {jjtThis.setImage("new");} | t=<IDENTIFIER> {jjtThis.setImage(t.image);} )
+  "::" ("new" {jjtThis.setImage("new");} | [TypeArguments()] t=<IDENTIFIER> {jjtThis.setImage(t.image);} )
 }
 
 void PrimaryPrefix() :
diff --git a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/ast/ParserCornersTest.java b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/ast/ParserCornersTest.java
index c06e00a11a..467d26e990 100644
--- a/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/ast/ParserCornersTest.java
+++ b/pmd-java/src/test/java/net/sourceforge/pmd/lang/java/ast/ParserCornersTest.java
@@ -136,6 +136,12 @@ public class ParserCornersTest extends ParserTst {
         String c = IOUtils.toString(this.getClass().getResourceAsStream("Bug1530.java"));
         parseJava18(c);
     }
+    
+    @Test
+    public void testGitHubBug207() throws Exception {
+        String c = IOUtils.toString(this.getClass().getResourceAsStream("GitHubBug207.java"));
+        parseJava18(c);
+    }
 
     /**
      * This triggered bug #1484 UnusedLocalVariable - false positive -
diff --git a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/ast/GitHubBug207.java b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/ast/GitHubBug207.java
new file mode 100644
index 0000000000..63bd151c29
--- /dev/null
+++ b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/ast/GitHubBug207.java
@@ -0,0 +1,5 @@
+public class GitHubBug207 {
+    private static HttpMessageWriter<Resource> resourceHttpMessageWriter(BodyInserter.Context context) {
+        return context.map(BodyInserters::<Resource>cast);
+    }
+}
\ No newline at end of file
diff --git a/src/site/markdown/overview/changelog.md b/src/site/markdown/overview/changelog.md
index b91ea27d68..7f6b5c22e9 100644
--- a/src/site/markdown/overview/changelog.md
+++ b/src/site/markdown/overview/changelog.md
@@ -235,6 +235,7 @@ to avoid XSS attacks.
     *   [#183](https://github.com/pmd/pmd/issues/183): \[apex] NCSS Method length is incorrect when using method chaining
 *   java
     *   [#185](https://github.com/pmd/pmd/issues/185): \[java] CPD runs into NPE when analyzing Lucene
+    *   [#207](https://github.com/pmd/pmd/issues/207): \[java] Parse error on method reference with generics
     *   [#213](https://github.com/pmd/pmd/issues/213): \[java] CPD: OutOfMemory when analyzing Lucene
     *   [#1542](https://sourceforge.net/p/pmd/bugs/1542/): \[java] CPD throws an NPE when parsing enums with -ignore-identifiers
     *   [#1545](https://sourceforge.net/p/pmd/bugs/1545/): \[java] Symbol Table fails to resolve inner classes