diff --git a/ChangeLog b/ChangeLog
index 221f4de6..a82a3d38 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,9 @@
+Tue Dec 31 15:44:02 CET 2002 Daniel Veillard <daniel@veillard.com>
+
+	* xmlreader.c python/tests/reader2.py: fixed a problem with
+	  validation within entities pointed by Stéphane Bidoul, augmented
+	  the tests to catch those.
+
 Tue Dec 31 12:15:37 CET 2002 Daniel Veillard <daniel@veillard.com>
 
 	* python/generator.py: modified the generator to allow keeping
diff --git a/python/tests/reader2.py b/python/tests/reader2.py
index 82e46bd6..ea2f782d 100755
--- a/python/tests/reader2.py
+++ b/python/tests/reader2.py
@@ -5,6 +5,7 @@
 import sys
 import glob
 import string
+import StringIO
 import libxml2
 
 # Memory debug specific
@@ -43,6 +44,58 @@ for file in valid_files:
 if err != expect:
     print err
 
+#
+# another separate test based on Stephane Bidoul one
+#
+s = """
+<!DOCTYPE test [
+<!ELEMENT test (x,b)>
+<!ELEMENT x (c)>
+<!ELEMENT b (#PCDATA)>
+<!ELEMENT c (#PCDATA)>
+<!ENTITY x "<x><c>xxx</c></x>">
+]>
+<test>
+    &x;
+    <b>bbb</b>
+</test>
+"""
+expect="""1,test
+3,#text
+1,x
+1,c
+3,#text
+15,c
+15,x
+3,#text
+1,b
+3,#text
+15,b
+3,#text
+15,test
+"""
+res=""
+err=""
+
+input = libxml2.inputBuffer(StringIO.StringIO(s))
+reader = input.newTextReader("test2")
+reader.SetParserProp(libxml2.PARSER_LOADDTD,1)
+reader.SetParserProp(libxml2.PARSER_DEFAULTATTRS,1)
+reader.SetParserProp(libxml2.PARSER_SUBST_ENTITIES,1)
+reader.SetParserProp(libxml2.PARSER_VALIDATE,1)
+while reader.Read() == 1:
+    res = res + "%s,%s\n" % (reader.NodeType(),reader.Name())
+
+if res != expect:
+    print "test2 failed: unexpected output"
+    print res
+    sys.exit(1)
+if err != "":
+    print "test2 failed: validation error found"
+    print err
+    sys.exit(1)
+
+del input
 del reader
 
 # Memory debug specific
diff --git a/xmlreader.c b/xmlreader.c
index a65a1bf2..7c04a0e9 100644
--- a/xmlreader.c
+++ b/xmlreader.c
@@ -134,16 +134,21 @@ static void
 xmlTextReaderStartElement(void *ctx, const xmlChar *fullname,
 	                  const xmlChar **atts) {
     xmlParserCtxtPtr ctxt = (xmlParserCtxtPtr) ctx;
+    xmlParserCtxtPtr origctxt;
     xmlTextReaderPtr reader = ctxt->_private;
 
 #ifdef DEBUG_CALLBACKS
     printf("xmlTextReaderStartElement(%s)\n", fullname);
 #endif
     if ((reader != NULL) && (reader->startElement != NULL)) {
+	/*
+	 * when processing an entity, the context may have been changed
+	 */
+	origctxt = reader->ctxt;
 	reader->startElement(ctx, fullname, atts);
-	if (ctxt->validate) {
-	    ctxt->valid &= xmlValidatePushElement(&ctxt->vctxt, ctxt->myDoc,
-		                                  ctxt->node, fullname);
+	if (origctxt->validate) {
+	    ctxt->valid &= xmlValidatePushElement(&origctxt->vctxt,
+				 ctxt->myDoc, ctxt->node, fullname);
 	}
     }
     reader->state = XML_TEXTREADER_ELEMENT;
@@ -159,6 +164,7 @@ xmlTextReaderStartElement(void *ctx, const xmlChar *fullname,
 static void
 xmlTextReaderEndElement(void *ctx, const xmlChar *fullname) {
     xmlParserCtxtPtr ctxt = (xmlParserCtxtPtr) ctx;
+    xmlParserCtxtPtr origctxt;
     xmlTextReaderPtr reader = ctxt->_private;
 
 #ifdef DEBUG_CALLBACKS
@@ -166,12 +172,16 @@ xmlTextReaderEndElement(void *ctx, const xmlChar *fullname) {
 #endif
     if ((reader != NULL) && (reader->endElement != NULL)) {
 	xmlNodePtr node = ctxt->node;
+	/*
+	 * when processing an entity, the context may have been changed
+	 */
+	origctxt = reader->ctxt;
 
 	reader->endElement(ctx, fullname);
 
-	if (ctxt->validate) {
-	    ctxt->valid &= xmlValidatePopElement(&ctxt->vctxt, ctxt->myDoc,
-		                                 node, fullname);
+	if (origctxt->validate) {
+	    ctxt->valid &= xmlValidatePopElement(&origctxt->vctxt,
+		                ctxt->myDoc, node, fullname);
 	}
     }
     if (reader->state == XML_TEXTREADER_ELEMENT)
@@ -192,6 +202,7 @@ static void
 xmlTextReaderCharacters(void *ctx, const xmlChar *ch, int len)
 {
     xmlParserCtxtPtr ctxt = (xmlParserCtxtPtr) ctx;
+    xmlParserCtxtPtr origctxt;
     xmlTextReaderPtr reader = ctxt->_private;
 
 #ifdef DEBUG_CALLBACKS
@@ -199,9 +210,13 @@ xmlTextReaderCharacters(void *ctx, const xmlChar *ch, int len)
 #endif
     if ((reader != NULL) && (reader->characters != NULL)) {
 	reader->characters(ctx, ch, len);
+	/*
+	 * when processing an entity, the context may have been changed
+	 */
+	origctxt = reader->ctxt;
 
-	if (ctxt->validate) {
-	    ctxt->valid &= xmlValidatePushCData(&ctxt->vctxt, ch, len);
+	if (origctxt->validate) {
+	    ctxt->valid &= xmlValidatePushCData(&origctxt->vctxt, ch, len);
 	}
     }
 }